Morfidis v. IndyMac Bank et al

Filing 27

ORDER to SHOW CAUSE signed by Senior Judge Lawrence K. Karlton on 10/26/10. The Parties are ORDERED to Show Cause in writing within seven (7) days of the issuance of this order why this case should not be remanded to State Court.(Mena-Sanchez, L)

Morfidis v. IndyMac Bank et al

Doc. 27

1 2 3 4 5 6 7 8 9 10 Plaintiff, 11 v. 12 13 14 15 16 17 18 Defendants. 19 20 21 22 23 24 25 26 / Plaintiff originally filed this action on March 18, 2010 in Solano County Superior Court, seeking quiet title and declaratory relief against multiple defendants. One of the defendants, IndyMac Bank, Inc., was closed by the Office of Thrift Supervision in July 2008, and the Federal Deposit Insurance Company ("FDIC") was appointed as its receiver. As receiver for IndyMac Bank, the FDIC succeeded to all rights, titles, powers and privileges of IndyMac INDYMAC BANK, an unknown entity; MTC FINANCIAL, INC., dba TRUSTEE CORPS, an unknown entity; BLUE MOUNTAIN MORTGAGE, LLC, an unknown entity; JIM BARCEWSKI; LENDING SERVICES, LLC, an unknown entity; SUISUN VALLEY PARTNERS, LLC, an unknown entity; KEVIN BROWNING; MICHAEL FLORENTINO; and DOES 1 through 10, inclusive, ORDER CIV. NO. S-10-1797 LKK/GGH VICTORIA MORFIDIS aka VICTORIA FLORENTINO, UNITED STATES DISTRICT COURT EASTERN DISTRICT OF CALIFORNIA

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Bank. FDIC removed the case to federal court pursuant to 12 U.S.C. § 1819(b)(2)(A), which provides "all suits of a civil nature at common law or in equity to which the [Federal Deposit Insurance] Corporation, in any capacity, is a party shall be deemed to arise under the laws of the United States." FDIC filed a notice of removal to this court on July 9, 2010. ECF No. 1. No party has asserted any other basis for federal court jurisdiction over this case. One month later FDIC, as receiver for IndyMac Bank filed a motion to dismiss the claims against IndyMac Bank. Plaintiff filed a statement of non-opposition to the motion to dismiss, and on October 5, 2010 this court granted the motion by dismissing all claims against FDIC as Receiver for defendant IndyMac. Under 28 U.S.C. § 1447(c), district courts shall remand a removed case "[i]f at any time before final judgment it appears that the district court lacks subject matter jurisdiction." Here, the court's subject matter jurisdiction was based solely on 12 U.S.C. § 1819(b)(2)(A). That basis of jurisdiction no longer exists following the dismissal of FDIC as a party. No federal question exists on the face of the complaint, and the parties are not diverse under 28 U.S.C. § 1332. Accordingly, the parties are ORDERED to show cause in writing within seven (7) days of the issuance of this order why this case should not be remanded to state court. IT IS SO ORDERED. DATED: October 26, 2010.

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