Deutsche Bank National Trust Company as Trustee v. Jerry Duran
Filing
11
ORDER GRANTING MOTION TO REMAND AND REQUEST FOR ATTORNEYS FEES AND COSTS IN THE AMOUNT OF $437.50 AND DENYING REQUEST TO BAR FUTURE REMOVALS AND PROCEED EX PARTE IN THE EVENT OF FUTURE REMOVALS 6 . The Clerk of the Court shall close this case. by Judge Otis D. Wright, II. cc: order, docket, remand letter to Los Angeles Superior Court, Santa Monica, No. 14 R0373. MD JS-6. Case Terminated. (lc). Modified on 1/23/2015 (lc).
1
2
3
O
4
JS-6
5
6
7
United States District Court
Central District of California
8
9
10
11
DEUTSCHE BANK NATIONAL TRUST Case No. 2:14-CV-08439-ODW-PLAx
12
COMPANY, as trustee
13
14
Plaintiff,
v.
15
JERRY DURAN; RICHARD THOMAS;
16
and DOES 1–100, inclusive,
17
Defendants.
18
19
I.
ORDER GRANTING MOTION TO
REMAND AND REQUEST FOR
ATTORNEYS’ FEES AND COSTS
AND DENYING REQUEST TO BAR
FUTURE REMOVALS AND
PROCEED EX PARTE IN THE
EVENT OF FUTURE REMOVALS
[6]
INTRODUCTION
20
Plaintiff Deutsche Bank National Trust Company, as Trustee, moves to remand
21
this action to the Superior Court of the State of California, Los Angeles County, Santa
22
Monica Judicial District for lack of federal subject-matter jurisdiction. (ECF No. 6).
23
Further, Plaintiff seeks attorneys’ fees and costs in the amount of $962.50 pursuant to
24
28 U.S.C. § 1447(c); a bar on any future removals of the action; and permission to
25
proceed ex parte if there are any future removals of the action. (Id.) Plaintiff argues
26
that Defendant Jerry Duran failed to establish a sufficient basis for removal and is
27
merely attempting to impede Plaintiff’s ability to recover possession of the real
28
property. For the reasons discussed below, the Court finds that Defendant had no
1
objectively reasonable basis for removal. Therefore, the Court GRANTS Plaintiff’s
2
Motion to Remand and AWARDS attorneys’ fees against Defendant in the amount of
3
$437.50. (Id.) Plaintiff’s request for an Order barring future removals of this action
4
and for permission to proceed ex parte in the event there are future removals of this
5
action is DENIED.1 (Id.)
II.
6
FACTUAL BACKGROUND
7
Plaintiff’s claim arose out of a non-judicial foreclosure sale. (ECF No. 6, Mot.
8
to Remand [“MTR”] 1.) In March 2006, Defendant Jerry Duran executed a deed of
9
trust encumbering the real property in dispute.
(Id.)
In March 2014, Plaintiff
10
purchased this property at a trustee’s sale and perfected title. (Id.) Plaintiff alleges
11
Defendant remained in possession of the property and on April 16, 2014, Plaintiff
12
filed an unlawful detainer action against Defendant in the Los Angeles County
13
Superior Court. (Id. at 2; MTR Ex. 1.)2
14
The hearing on Plaintiff’s state-court motion for summary judgment was
15
originally set for August 12, 2014. (MTR 2.) On August 8, 2014, two court days
16
before that hearing, Defendant removed the action to federal court pursuant to 28
17
U.S.C. § 1441 on the basis of purported federal question jurisdiction. Specifically,
18
Defendant alleged that Plaintiff’s claim “is based upon a notice which expressly
19
references and incorporates the ‘Protecting Tenants at Foreclosure Act of 2009,’ 12
20
U.S.C § 5201.” (MTR Ex. 4, at 2.) Consequently, the hearing on Plaintiff’s MSJ was
21
continued. (MTR 2.)
22
Upon removal this case was assigned to Judge Dale S. Fischer who then
23
remanded the case holding that Plaintiff’s Complaint does not state a federal cause of
24
1
25
26
27
28
After carefully considering the papers filed in support of and in opposition to the Motion, the Court
deems the matter appropriate for decision without oral argument. Fed. R. Civ. P. 78; L.R. 7-15.
2
The Court takes judicial notice to the extent it relies on the documents attached to the Request for
Judicial Notice (ECF No. 6-1). See Fed. R. Evid. Rule 201(b); C.B. v. Sonora Sch. Dist., 691 F.
Supp. 2d 1123, 1138 (E.D. Cal. 2009) (“The Court may take judicial notice of matters of public
record, including duly recorded documents, and court records available to the public through the
PACER system via the internet.”) To the extent the documents are not relied upon, the Request is
moot.
2
1
action. (Id.); see Deutsche Bank Nat’l Trust Co. v. Duran, No. CV 14-6253 DSF
2
(FFMx) (C.D. Cal. Aug. 19, 2014) (order remanding case to Superior Court of
3
California, County of Los Angeles).
4
Once remanded, Plaintiff scheduled another hearing on its MSJ. On September
5
22, 2014, one day before the hearing, Defendant filed a bankruptcy petition in the
6
United States Bankruptcy Court, Central District. (MTR 3.) As a result, the hearing
7
on Plaintiff’s MSJ was once again continued. (Id.) On November 4, 2014, the United
8
States Bankruptcy Court, Central District granted Plaintiff’s request to lift the
9
automatic bankruptcy stay. (Id.; MTR Ex. 9.)
10
On October 13, 2014, Defendant filed a second Notice of Removal again
11
asserting that Plaintiff’s claim implicates the Protecting Tenants at Foreclosure Act of
12
2009, 12 U.S.C. § 5201. (MTR Ex. 10, at 2.) Plaintiff alleges that it did not receive
13
notice of this motion until it was informed by this Court on November 5, 2014. (MTR
14
3.) Plaintiff’s MSJ hearing was once more continued. (Id.) On December 3, 2014,
15
Plaintiff filed this Motion seeking (1) an order from this Court remanding this case to
16
state court, (2) attorneys’ fees and costs in the amount of $962.50, and (3) permission
17
to proceed ex parte if there are any future removals of this action.
18
Defendant did not file an opposition.
19
III.
(Id. at 4.)
LEGAL STANDARD
20
Federal courts are courts of limited jurisdiction, having subject-matter
21
jurisdiction only over matters authorized by the Constitution and Congress. U.S.
22
Const. art. III, § 2, cl. 1; see, e.g., Kokkonen v. Guardian Life Ins. Co. of Am., 511
23
U.S. 375, 377 (1994). A suit filed in state court may be removed to federal court if the
24
federal court would have had original jurisdiction over the suit. 28 U.S.C. § 1441(a).
25
Federal courts have original jurisdiction where an action presents a federal question
26
under 28 U.S.C. § 1331, or diversity of citizenship under 28 U.S.C. § 1332.
27
exercise diversity jurisdiction, a federal court must find complete diversity of
28
3
To
1
citizenship among the adverse parties, and the amount in controversy must exceed
2
$75,000, usually exclusive of interest and costs. 28 U.S.C. § 1332(a).
3
Courts strictly construe the removal statute against removal jurisdiction, and
4
“[f]ederal jurisdiction must be rejected if there is any doubt as to the right of removal
5
in the first instance.” Gaus v. Miles, Inc., 980 F.2d 564, 566 (9th Cir. 1992). The
6
party seeking removal bears the burden of establishing federal jurisdiction. Durham v.
7
Lockheed Martin Corp., 445 F.3d 1247, 1252 (9th Cir. 2006) (citing Gaus, 980 F.2d
8
at 566).
IV.
9
10
11
A.
DISCUSSION
The Motion to Remand
As an initial matter, Defendant did not file an Opposition to Plaintiff’s Motion
12
for Remand.
Pursuant to Local Rule 7-12, “[t]he failure to file any required
13
document, or the failure to file it within the deadline, may be deemed consent to the
14
granting or denial of the motion.” L.R. 7-12. “[T]his alone provides a sufficient basis
15
to grant the motion.” Pac. Value Opportunities Fund II LP v. Eskidjian, No. LA CV
16
13-03442 JAK (SPx) 2013 WL 3467312, at *1 (C.D. Cal. July 9, 2013).
17
Notwithstanding Local Rule 7-12, Defendant’s second Notice of Removal was
18
untimely filed. Pursuant to 28 U.S.C. § 1446(b) (provides that a notice of removal
19
shall be filed within 30 days after the defendant’s receipt of the complaint.)
20
Defendant was served with the Summons and Complaint of Plaintiff’s unlawful
21
detainer action on April 20, 2014. (MTR 7; MTR Ex. 2.) Defendant’s second Notice
22
of Removal was filed on October 30, 2014 (MTR 7; See also Second Notice of
23
Removal)—over six months past the date he was served with the Complaint.
24
Defendant missed the 30-day time period proscribed by § 1446(b) rendering his
25
Removal motion defective.
26
Additionally, even had Defendant’s Notice of Removal been timely filed, Judge
27
Fischer previously founjd this case is not eligible for removal. Deutsche Bank, No.
28
CV 14-6253 DSF (FFMx). As discussed above, in response to Defendant’s initial
4
1
Notice of Removal, also untimely filed, Judge Fischer sua sponte remanded this case
2
to state court. Id. Judge Fischer determined “[t]he complaint is a state law unlawful
3
detainer complaint and does not state a federal cause of action.” Id. (emphasis
4
added). Moreover, Judge Fischer reiterated that “federal jurisdiction is based on the
5
plaintiff’s complaint and not on any federal counterclaims or defenses that a defendant
6
might assert.” Id. Further, as Plaintiff accurately points out, Defendant’s second
7
Notice of Removal is identical to his first. (MTR 9.) Consequently, Defendant
8
presents no new information to the Court and the Court finds no reason to disagree
9
with Judge Fischer’s earlier decision.
10
Finally, the Court is not presented with any other basis for removal. Defendant
11
makes no showing that diversity exists between the parties, nor has he presented any
12
facts indicating the amount in controversy meets the $75,000 statutory requirement.
13
Accordingly, consistent with Judge Fischer’s August 19, 2014 Order, this Court finds
14
removal improper.
15
B.
The Request for Attorneys’ Fees
16
Plaintiff argues it is entitled to attorneys’ fees and costs of $962.50 incurred as a
17
result of filing the present Motion to Remand. (MTR 8.) Plaintiff cites to 28 U.S.C.
18
§ 1447(c) which in relevant part provides “[a]n order remanding the case may require
19
payment of just costs and any actual expenses, including attorney fees, incurred as a
20
result of the removal.” 28 U.S.C. § 1447(c) (emphasis added).
21
In Martin v. Franklin Capital Corp., 546 U.S. 132, 134 (2005), the Supreme
22
Court granted certiorari to determine the proper standard for awarding attorneys’ fees
23
under § 1447(c). The Supreme Court acknowledged that an “appropriate test for
24
awarding fees under § 1447(c) should recognize the desire to deter removals sought
25
for the purpose of prolonging litigation and imposing costs on the opposing party,
26
while not undermining Congress’ basic decision to afford defendants a right to remove
27
as a general matter, when the statutory criteria are satisfied.” Id. at 140. Consistent
28
with that aim, the Supreme Court held that “[a]bsent unusual circumstances, courts
5
1
may award attorney’s fees under § 1447(c) only where the removing party lacked an
2
objectively reasonable basis for seeking removal.” Id. at 141 (emphasis added).
3
Here, Defendant lacked an objectively reasonable basis for seeking removal.
4
The Court agrees with Plaintiff’s assertion that Defendant’s second Notice of
5
Removal was merely a tactic to delay the expeditious resolution of this case. (MTR 4,
6
8, 9.) As described above, the hearing on Plaintiff’s MSJ has now been continued
7
four times due to various filings by Defendant. Moreover, Judge Fischer had already
8
held removal in this case would be improper. Despite this, Defendant filed a second,
9
identical Notice of Removal five months after the filing deadline passed. The Court
10
finds Defendant did not have an objectively reasonable basis for seeking removal.
11
Pac. Value Opportunities Fund II LP v. Eskidjian, No. LA CV 13-03442 JAK (SPx)
12
2013 WL 3467312, at *1–*2 (C.D. Cal. July 9, 2013) (holding defendant had no
13
objectively reasonable basis for removal where defendant failed to establish federal
14
question or diversity jurisdiction, untimely filed Notice of Removal, and failed to file
15
an opposition to plaintiff’s motion to remand).
16
The Court has “wide discretion” to grant reasonable attorneys’ fees and costs.
17
Moore v. Permanente Med. Grp., Inc. 981 F.2d 443, 447 (9th Cir. 1992). Here, the
18
Court finds that Defendant did not have an objectively reasonable basis for seeking
19
removal, therefore, to reimburse Plaintiff for unnecessary litigation costs, the Court
20
awards Plaintiff attorneys’ fees and costs in the amount of $437.50. The Court
21
acknowledges this award is below the $962.50 relief Plaintiff requested. (MTR 4, 8,
22
10.) However, since Defendant never opposed the motion, Plaintiff did not have to
23
prepare a reply as it earlier predicted. (ECF No. 6, Parto Decl. ¶ 4) Accordingly, the
24
$525.00 allocated for that purpose was not factored into the calculation of Plaintiff’s
25
reward. (Id.)
26
///
27
///
28
///
6
1
C.
The Request for a Court Order Barring Future Removals in This Action
2
and Permission to Proceed Ex Parte in the Event There Are Future Removals
3
An Order barring future removals of this particular action is unnecessary since
4
the defendant is already barred by the passing of the 30-day filing deadline provided
5
by § 1447(b).
6
As to Plaintiff’s second request, the Court declines to grant an order permitting
7
Plaintiff to proceed ex parte in the event there are future removals of this action. Once
8
this case is remanded to state court this Court no longer has jurisdiction over the
9
action or the parties. Accordingly, an order permitting Plaintiff to proceed ex parte
10
would be improper. If Defendant again removes this action based on the same failed
11
arguments it has used twice before, he will be required to show cause why he should
12
not be sanctioned for unnecessarily prolonging litigation with frivolous motions. See
13
FRCP Rule 11(c)(3), L.R. 11-9.
V.
14
CONCLUSION
15
For the reasons discussed above, this Court finds Defendant had no objectively
16
reasonable basis for seeking removal. Accordingly, the Court GRANTS Plaintiff’s
17
Motion to Remand and AWARDS attorneys’ fees against Defendant in the amount of
18
$437.50. (ECF No. 6.) Plaintiff’s request for an Order barring future removals of this
19
action and for permission to proceed ex parte in the event there are future removals of
20
this action is DENIED. This action is remanded to the Superior Court of the State of
21
California, Los Angeles County, Santa Monica Judicial District. The Clerk of the
22
Court shall close this case.
23
IT IS SO ORDERED
24
January 23, 2015
25
26
____________________________________
OTIS D. WRIGHT, II
UNITED STATES DISTRICT JUDGE
27
28
cc: order, docket, remand letter to
Los Angeles Superior Court, Santa Monica, No. 14 R0373
7
Disclaimer: Justia Dockets & Filings provides public litigation records from the federal appellate and district courts. These filings and docket sheets should not be considered findings of fact or liability, nor do they necessarily reflect the view of Justia.
Why Is My Information Online?