Judi Booth v. Countrywide Home Loans, Inc et al

Filing 30

MINUTES (IN CHAMBERS) Order Remanding Case by Judge Andrew J. Guilford. Because Defendants have not met their burden of establishing that the amount in controversy exceeds $75,000, the case is REMANDED to state court. ORDER remanding case to Superior Court of California, County of Orange, Case number 30-02014-00730085. (see document for details). Case Terminated. Made JS-6 (dro)

UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA
CIVIL MINUTES - GENERAL
Case No.

SACV 14-1162 AG (AN)

Title

JUDI BOOTH v. COUNTRYWIDE HOME LOANS, INC., et al.

Present: The
Honorable

Date

September 30, 2014

ANDREW J. GUILFORD

Lisa Bredahl
Deputy Clerk

Not Present
Court Reporter / Recorder

Attorneys Present for Plaintiffs:

Proceedings:

Tape No.

Attorneys Present for Defendants:

[IN CHAMBERS] ORDER REMANDING CASE

Plaintiff Judi Booth (“Plaintiff”) filed this complaint in state court against Defendants
Countrywide Home Loans, Inc. (“Countrywide”); Bank of New York Mellon (“BNY”);
Residential Credit Solutions, Inc. (“RCS”); and Sage Point Lender Services, LLC.
Plaintiff alleges state law violations concerning Defendants’ attempt to foreclose on a
home loan without considering Plaintiff’s requests for a loan modification. Defendants
removed this case to federal court under diversity jurisdiction. Because Defendants have
not met their burden of establishing that the amount in controversy exceeds $75,000, the
case is REMANDED to state court.
On September 4, 2014, the Court ordered Defendants to show cause why the case should
not be remanded for failure to satisfy the amount in controversy threshold. The Order
stated:
Defendants rightly note in the Notice of Removal that “[i]n actions seeking
declaratory or injunctive relief, it is well established that the amount in
controversy is measured by the value of the object of the litigation.” Hunt v.
Wash State Apple Adver. Comm’n, 432 U.S. 333, 347 (1977). But
Defendants argue, too simplistically, that the “object of the litigation” in
CIVIL MINUTES - GENERAL
Page 1 of 3

UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA
CIVIL MINUTES - GENERAL
Case No.

SACV 14-1162 AG (AN)

Date

September 30, 2014

Title

JUDI BOOTH v. COUNTRYWIDE HOME LOANS, INC., et al.

this case is the value of the underlying property securing the loan. Plaintiff
hasn’t contested Defendants’ assertion. Nevertheless, the Court has
concerns.
Plaintiff seeks relief relating to the premature filing of a Notice of Default
and some fraudulent misrepresentations made during the loan modification
process. In this case, the Court fails to see how the value of the property is
the appropriate measure of the amount in controversy. See, e.g., Cross v.
Home Loan Mortg. Corp., CV 11-04728 DMG RZX, 2011 WL 2784417, at
*2 (C.D. Cal. July 15, 2011) (“[T]he test for determining the amount in
controversy is the pecuniary result to either party which the judgment
would directly produce.”) (emphasis added).
Accordingly, the Court ORDERS Defendants to show cause in writing
within 14 days of this Order why this action should not be remanded,
demonstrating that the possible pecuniary result to either party exceeds
$75,000. Plaintiff may submit a response within seven days of Defendants’
filing.
In their response to that Order, Defendants do not establish that the possible pecuniary
result to either party exceeds $75,000. Instead they reiterate the same assertion they made
in the Notice of Removal—that the entire amount of the loan is at issue because Plaintiff
seeks to stay the foreclosure proceedings. Defendants have not established that such a
stay could possibly deprive them of the entire value of the loan. Therefore, they have
failed to meet their burden as to the amount in controversy.
This case is REMANDED.
:
Initials of
Preparer
CIVIL MINUTES - GENERAL
Page 2 of 3

0

UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA
CIVIL MINUTES - GENERAL
Case No.

SACV 14-1162 AG (AN)

Date

Title

JUDI BOOTH v. COUNTRYWIDE HOME LOANS, INC., et al.

CIVIL MINUTES - GENERAL
Page 3 of 3

September 30, 2014