DARG, LLC v. Guanzon et al
Filing
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ORDER AND FINDINGS and RECOMMENDATIONS signed by Magistrate Judge Edmund F. Brennan on 04/03/12 ORDERING that the 04/11/12 hearing on plaintiff's 10 Motion to Dismiss/Remand is VACATED and RECOMMENDING that 10 Amended Motion to Dismiss be granted and this case be remanded to Solano County Superior Court. Objections to these F&Rs due within 14 days; Motion referred to Judge Garland E. Burrell, Jr. (Benson, A.)
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IN THE UNITED STATES DISTRICT COURT
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FOR THE EASTERN DISTRICT OF CALIFORNIA
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DARG, LLC,
Plaintiff,
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No. CIV S-11-3254 GEB EFB PS
vs.
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DHANNY GUANZON,
ROSARIO GUANZON,
and DOES 1-10, inclusive,
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Defendants.
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/
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ORDER AND
FINDINGS AND RECOMMENDATIONS
This case, in which defendants are proceeding pro se, is before the undersigned pursuant
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to Eastern District of California Local Rule 302(c)(21). See 28 U.S.C. § 636(b)(1). On
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December 8, 2011, defendants removed this unlawful detainer action from Solano County
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Superior Court, contending that this court has both federal question and diversity jurisdiction.
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Dckt. No 1. Then, on February 28, 2012, defendants filed a cross-complaint against numerous
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defendants, as well as an amended notice of removal. Dckt. Nos. 6, 7. The amended notice of
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removal once again states that this court has both federal question and diversity jurisdiction.
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Dckt. No. 7.
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Plaintiff originally moved to dismiss this case after defendants’ initial removal, and has
also filed an amended motion to dismiss based on the amended notice of removal. Dckt. Nos. 3,
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10. The amended motion to dismiss is noticed for hearing on April 11, 2012. Dckt. No. 10.
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Plaintiff contends that the case should be dismissed as moot since the underlying action has
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already been fully adjudicated. Id. at 2. In the alternative, plaintiff moves to remand the action
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to state court. Id. at 5-6. Defendants have not opposed the motion.
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A federal court is a court of limited jurisdiction, and may adjudicate only those cases
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authorized by the Constitution and by Congress. Kokkonen v. Guardian Life Ins. Co., 511 U.S.
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375, 377 (1994). “If at any time before final judgment it appears that the district court lacks
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subject matter jurisdiction, the case shall be remanded.” 28 U.S.C. § 1447(c). “The burden of
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establishing federal jurisdiction is on the party seeking removal, and the removal statute is
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strictly construed against removal jurisdiction.” Emrich v. Touche Ross & Co., 846 F.2d 1190,
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1195 (9th Cir. 1988). “Federal jurisdiction must be rejected if there is any doubt as to the right
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of removal in the first instance.” Gaus v. Miles, Inc., 980 F.2d 564, 566 (9th Cir. 1992).
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Although defendants’ notice of removal and amended notice of removal each contend
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that this court has diversity jurisdiction, diversity jurisdiction requires complete diversity of
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citizenship among the parties, as well as a minimum amount in controversy of over $75,000. See
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28 U.S.C. § 1332. For purposes of diversity, a corporation is a citizen of the state in which it has
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been incorporated and the state where it has its principal place of business. Id. § 1332(c)(1).
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Here, defendants’ notices of removal fail to establish complete diversity since neither notice
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establishes the citizenship of plaintiff. Although the notices state that plaintiff is a citizen of
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Nevada, they do not state where plaintiff is incorporated or where it has its principal place of
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business. In a declaration submitted in support of its motion, plaintiff establishes that it is a
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citizen of both Nevada and California since it was incorporated in Nevada but has its principle
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place of business in California. Brian Decl., Dckt. No. 11, ¶¶ 3, 4; see also Dckt. No. 10 at 6.
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Because defendants admit that they are citizens of California, Dckt. No. 7 at 3, complete
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diversity is lacking here.1
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Additionally, although defendants’ notices of removal contend that this court has federal
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question jurisdiction, Dckt. No. 7 at 3-4, a review of plaintiff’s complaint reveals that plaintiff
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does not allege any federal claims; instead, plaintiff alleges only unlawful detainer under state
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law. Dckt. No. 1 at 39-41. The presence or absence of federal question jurisdiction “is governed
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by the ‘well-pleaded complaint rule,’ which provides that federal jurisdiction exists only when a
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federal question is presented on the face of plaintiff’s properly pleaded complaint.” Caterpillar,
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Inc. v. Williams, 482 U.S. 386, 392 (1987). This is the case where the complaint “establishes
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either that [1] federal law creates the cause of action or that [2] the plaintiff's right to relief
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necessarily depends on resolution of a substantial question of federal law.” Williston Basin
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Interstate Pipeline Co. v. An Exclusive Gas Storage Leashold & Easement, 524 F.3d 1090, 1100
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(9th Cir. 2008) (quoting Franchise Tax Bd. v. Constr. Laborers Vacation Trust, 463 U.S. 1,
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27-28 (1983)). Here, plaintiff’s one cause of action is for unlawful detainer under state law.
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Therefore, no federal question is presented on the face of the complaint.2
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Because defendants have not adequately established that this court has diversity
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jurisdiction or that plaintiff’s complaint alleges a federal claim, the undersigned will recommend
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that this action be remanded to state court.3 See 28 U.S.C. § 1447(c).
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Further, because defendants are citizens of California, removal to this court was
improper under 28 U.S.C. § 1441(b), which provides that diversity “action[s] shall be removable
only if none of the parties in interest properly joined and served as defendants is a citizen of the
State in which such action is brought.” 28 U.S.C. § 1441(b).
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Although defendants attempt to raise defenses and counter-claims based on federal
laws, the Court lacks jurisdiction over those as well. See Dckt. No. 6; Dckt. No. 7 at 3-4. Under
the well-pleaded complaint rule, a defendant’s claims or defenses may not serve as a basis for
removal. See Takeda v. Northwestern Nat. Life Ins. Co., 765 F.2d 815, 822 (9th Cir. 1985).
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Although plaintiff also moves to dismiss this case, it has not shown that the futility
exception to the remand provisions of 28 U.S.C. § 1447, as established in Bell v. City of Kellogg,
922 F.2d 1418, 1424-25 (9th Cir. 1991), applies here. See, e.g., In re Nat’l Security Agency
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Accordingly, IT IS HEREBY ORDERED that the April 11, 2012 hearing on plaintiff’s
motion to dismiss/remand is vacated.
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IT IS FURTHER RECOMMENDED that:
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1. Plaintiff’s motion to remand, Dckt. No. 10, be granted; and
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2. The above-captioned case be REMANDED to the Superior Court of the State of
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California in and for the County of Solano.
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These findings and recommendations are submitted to the United States District Judge
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assigned to the case, pursuant to the provisions of 28 U.S.C. § 636(b)(l). Within fourteen days
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after being served with these findings and recommendations, any party may file written
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objections with the court and serve a copy on all parties. Such a document should be captioned
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“Objections to Magistrate Judge’s Findings and Recommendations.” Any reply to the objections
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shall be served and filed within fourteen days after service of the objections. Failure to file
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objections within the specified time may waive the right to appeal the District Court’s order.
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Turner v. Duncan, 158 F.3d 449, 455 (9th Cir. 1998); Martinez v. Ylst, 951 F.2d 1153, 1157 (9th
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Cir. 1991).
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DATED: April 3, 2012.
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Telecommunications Records Litig., 483 F. Supp. 2d 934, 945-46 (N.D. Cal. 2007).
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