Eagle Vista Equities, LLC v. Ricardo Vielma et al
Filing
10
ORDER by Judge John A. Kronstadt remanding case to Los Angeles Superior Court, Case number 14U16562. This action is summarily REMANDED to the Los Angeles Superior Court at its Stanley Mosk Courthouse. Jurisdiction to impose sanctions, if necessary, i s retained. Cooter & Gell v. Hartmarx Corp., 496 U.S. 384, 396 (1990). As stated above, on or before May 18, 2015, Defendants shall file a declaration under penalty of perjury explaining why sanctions in the amount of $250 should not be imposed for this successive removal of this action. Upon receiving any response from Defendants, the Court will determine whether or not sanctions should be imposed, and if so, their amount and the terms of their payment. Case Terminated. Made JS-6 (shb)
UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA
CIVIL MINUTES – GENERAL
Case No.
LA CV15-03036 JAK (SSx)
Title
Eagle Vista Equities, LLC v. Ricardo Vielma, et al.
Present: The Honorable
Date
May 8, 2015
JOHN A. KRONSTADT, UNITED STATES DISTRICT JUDGE
Andrea Keifer
Not Reported
Deputy Clerk
Court Reporter / Recorder
Attorneys Present for Plaintiffs:
Attorneys Present for Defendants:
Not Present
Not Present
Proceedings:
I.
(IN CHAMBERS) ORDER SUMMARILY REMANDING ACTION FOR LACK
OF SUBJECT MATTER JURISDICTION AND ORDERING DEFENDANTS
TO SHOW CAUSE WHY SANCTIONS SHOULD NOT BE IMPOSED (JS-6)
Introduction
On December 23, 2014, Eagle Vista Equities, LLC (“Plaintiff”) brought an unlawful detainer action
(“Complaint”), number 14U16562, against Ricardo and Sandra Vielma (“Defendants”) in the Los Angeles
Superior Court. Defendants, who are self-represented, removed that action on February 27, 2015. Eagle
Vista Equities, LLC v. Ricardo Vielma, et al., LA CV15-01452 JAK (SSx) (C.D. Cal. 2015). The purported
bases for removal included that the unlawful detainer action was related to another action brought by
Defendants, LA CV14-9807-JAK (SSx), and that the true debtors were foreign situs trusts with the same
names as Defendants. Id. Dkts. 1, 14. After concluding that there was no subject matter jurisdiction, an
order issued on April 8, 2015, remanding the action to the Superior Court. Id. Dkt. 16. That Order is
incorporated by this reference. Plaintiff presents as an Exhibit a “Clerk’s Notice of Entry of Judgment,”
which indicates that, following remand, judgment was entered in Plaintiff’s favor on April 15, 2015. Dkt.
9-2.
On April 23, 2015, Defendants again removed the same unlawful detainer action 14U16562. Dkt. 1. They
again claim there is a distinction between them and the entities purportedly named in the Complaint,
which have the same names as Defendants. Defendants’ argument is based on the manner in which the
Government Printing Office Style Manual and Social Security Act, 42 U.S.C. § 1301(a)(2), allegedly
identify parties and determine their domiciles. Id. at 3-4. Defendants also urge the Court to reconsider its
prior determination that the amount in controversy does not exceed $75,000, notwithstanding that the
Complaint states the “demand does not exceed $10,000.” Id. Finally, Defendants assert that there is
jurisdiction under 28 U.S.C. § 1443, the civil rights removal statute, because California unlawful detainer
proceedings are allegedly conducted in a manner that deprive Defendants of their substantive and
procedural due process rights. Id. at 12, 14.
Page 1 of 4
UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA
CIVIL MINUTES – GENERAL
Case No.
LA CV15-03036 JAK (SSx)
Title
Date
May 8, 2015
Eagle Vista Equities, LLC v. Ricardo Vielma, et al.
Once again, Defendants fail to identify a basis for subject matter jurisdiction. For these reasons, this
action is summarily REMANDED to the Los Angeles Superior Court at its Stanley Mosk Courthouse. In
addition, on or before May 18, 2015, Defendants shall file a declaration under penalty of perjury
explaining why sanctions in the amount of $250 should not be imposed for the successive removal of this
action, which appears to have been based on frivolous arguments and inconsistent with the prior order of
remand.
II.
Analysis
A.
Legal Standard
As stated in the April 8, 2015 Order, a determination of subject matter jurisdiction must be made before
the merits of a case can be addressed. Steel Co. v. Citizens for a Better Env’t, 523 U.S. 83, 94 (1998). In
addition, under the “well-pleaded complaint rule,” “federal jurisdiction exists only when a federal question
is presented on the face of the plaintiff’s properly pleaded complaint.” Caterpillar Inc. v. Williams, 482
U.S. 386, 392 (1987).
B.
Application
1.
Removal Was Improper
Defendants did not previously, and do not now, show that diversity jurisdiction is proper under 28 U.S.C.
§ 1332. They have not shown that the parties are of diverse citizenship. The burden of proving diversity of
citizenship rests on the removing party. Kanter v. Warner-Lambert Co., 265 F.3d 853, 857 (9th Cir. 2001).
Defendants once again have failed to meet this burden. Defendants’ theory is frivolous and without
support. Thus, it is baseless to argue that the capitalization of the names “RICARDO VIELMA” and
“SANDRA VIELMA” in the caption results in a Complaint that identified entities domiciled in the District of
Columbia rather than “Ricardo Vielma and Sandra Vielma, the living man and living woman, who are only
authorized signatories and beneficiaries.” Dkt. 1 at 3-4. Also without support is the theory that, because
Plaintiff allegedly is not a United States citizen under the Social Security Act, diversity is present under 28
U.S.C. § 1332. Id. at 4. Equally insubstantial is Defendants’ argument that the amount in controversy
exceeds $75,000 and that this should be reviewed as a motion for reconsideration of the April 8, 2015
Order. There is no basis for such a motion. See Local Rule 7-18 (permissible grounds are (i) a material
difference in fact or law; (ii) the emergence of new material facts or a change in law; and (iii) manifest
failure to consider material facts). Thus, the Court adheres to the ruling that the Complaint’s demand of
an amount “not [to] exceed $10,000” should not be disregarded, and limits the amount in controversy to
less than the jurisdictional threshold. See Standard Fire Ins. Co. v. Knowles, 133 S. Ct. 1345, 1350
(2013); RJ Moon Inc. v. Ashraf, 2013 WL 4451077, at *2 (C.D. Cal. Aug. 16, 2013).
Page 2 of 4
UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA
CIVIL MINUTES – GENERAL
Case No.
LA CV15-03036 JAK (SSx)
Title
Date
May 8, 2015
Eagle Vista Equities, LLC v. Ricardo Vielma, et al.
Defendants also fail to show removal jurisdiction under 28 U.S.C. § 1443. That statute provides that civil
actions in a state court may be removed where they are:
(1) Against any person who is denied or cannot enforce in the courts of such State a right
under any law providing for the equal civil rights of citizens of the United States, or of all
persons within the jurisdiction thereof; [or]
(2) For any act under color of authority derived from any law providing for equal rights, or
for refusing to do any act on the ground that it would be inconsistent with such law.
Removal under § 1443(1) is proper only where defendants can “assert, as a defense to the prosecution,
rights that are given to them by explicit statutory enactment protecting equal racial civil rights.” Patel v.
Del Taco, Inc., 446 F.3d 996, 999 (9th Cir. 2006) (internal citation and quotation marks omitted). The
allegations of Defendants that the unlawful detainer procedures are inadequate, even if true, would not
render this action removable under this provision. Nor does § 1443(2) provide a basis for removal. That
statute authorizes removal only by federal or state officials or agents; Defendants are neither. See Gross
Mortgage Corp. v. Al-Mansur, 2012 WL 5270052, at *3 (N.D. Cal. Oct. 24, 2012) (citing City of
Greenwood, Miss. v. Peacock, 384 U.S. 808, 824 & n.22) (1966)). Defendants have also failed to
advance a plausible basis for federal question jurisdiction under 28 U.S.C. § 1331.
2.
Sanctions May Be Warranted
Although there is no categorical bar on the second or subsequent removal of an action, sanctions may be
imposed where removal is frivolous. See Peabody v. Maud Van Cortland Hill Schroll Trust, 892 F.2d 772,
776 (9th Cir. 1989); Orange Prod. Credit Ass'n v. Frontline Ventures Ltd., 801 F.2d 1581, 1583 (9th Cir.
1986). Sanctions also may be imposed under Fed. R. Civ. P. 11 where a filing is “frivolous, legally
unreasonable, or without factual foundation, or is brought for an improper purpose.” Estate of Blue v.
Cnty. of Los Angeles, 120 F.3d 982, 985 (9th Cir. 1997). In addition, the Court retains jurisdiction
following remand to impose sanctions. See Cooter & Gell v. Hartmarx Corp., 496 U.S. 384, 396 (1990)
(sanction determination “may be made after the principal suit has been terminated”); Westlake N. Prop.
Owners Ass'n v. City of Thousand Oaks, 915 F.2d 1301, 1303 (9th Cir. 1990) (“[E]ven if a court does not
have jurisdiction over an underlying action, it may have jurisdiction to determine whether the parties have
abused the judicial system and whether sanctions are appropriate to remedy such abuse.”).
The Court finds that sanctions may be warranted here. It is mindful that Defendants are self-represented
and that this may affect the determination as to whether sanctions should be imposed. Warren v.
Guelker, 29 F.3d 1386, 1390 (9th Cir. 1994). However, a court “cannot decline to impose any sanction
where a violation has arguably occurred simply because the plaintiff is proceeding pro se.” Simpson v.
Lear Astronics Corp., 77 F.3d 1170, 1177 (9th Cir. 1996). The grounds for removal advanced by
Defendants are frivolous, legally unreasonable and without factual foundation. Further, they have been
advanced in two separate processes, which has imposed undue administrative burdens on the Court and
the Superior Court. Each has had to process this matter twice. It has also impeded the purpose of the
unlawful detainer process, which is to permit a prompt and efficient means of determining such claims.
Page 3 of 4
UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA
CIVIL MINUTES – GENERAL
Case No.
LA CV15-03036 JAK (SSx)
Title
Eagle Vista Equities, LLC v. Ricardo Vielma, et al.
III.
Date
May 8, 2015
Conclusion
For the reasons stated in this Order, this action is summarily REMANDED to the Los Angeles Superior
Court at its Stanley Mosk Courthouse. Jurisdiction to impose sanctions, if necessary, is retained. Cooter
& Gell v. Hartmarx Corp., 496 U.S. 384, 396 (1990). As stated above, on or before May 18, 2015,
Defendants shall file a declaration under penalty of perjury explaining why sanctions in the amount of
$250 should not be imposed for this successive removal of this action. Upon receiving any response from
Defendants, the Court will determine whether or not sanctions should be imposed, and if so, their amount
and the terms of their payment.
IT IS SO ORDERED.
:
Initials of Preparer
ak
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