US Bank National Association v. Banks et al
Filing
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FINDINGS and RECOMMENDATIONS signed by Magistrate Judge Edmund F. Brennan on 12/22/14 recommending that this case be REMANDED to the Superior Court of the State of California in and for the County of San Joaquin. F&R referred to Judge Garland E. Burrell, Jr.. Objections to F&R due Within fourteen days. (Kaminski, H)
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UNITED STATES DISTRICT COURT
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FOR THE EASTERN DISTRICT OF CALIFORNIA
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US BANK NATIONAL ASSOCIATION,
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Plaintiff,
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No. 2:14-cv-2930-GEB-EFB PS
v.
FINDINGS AND RECOMMENDATIONS
JEROME BANKS, ROBERTA BANKS,
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Defendants.
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On December 18, 2014, defendants, proceeding pro se, filed a notice of removal of this
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unlawful detainer action from the Superior Court of the State of California for San Joaquin
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County. ECF No. 1. This case is before the undersigned in accordance with 28 U.S.C.
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§ 636(b)(1) and Eastern District of California Local Rule 302(c)(21).
This court has an independent duty to ascertain its jurisdiction and may remand sua sponte
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for lack of subject matter jurisdiction. See 28 U.S.C. § 1447(c). “The burden of establishing
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federal jurisdiction is on the party seeking removal, and the removal statute is strictly construed
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against removal jurisdiction.” Emrich v. Touche Ross & Co., 846 F.2d 1190, 1195 (9th Cir.
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1988). “Federal jurisdiction must be rejected if there is any doubt as to the right of removal in the
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first instance.” Gaus v. Miles, Inc., 980 F.2d 564, 566 (9th Cir. 1992). As explained below,
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defendants have failed to meet that burden.
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The notice of removal states that this court has federal question jurisdiction pursuant to 28
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U.S.C. § 1331. ECF. No. 1 at 2. However, a review of the complaint reveals that plaintiff does
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not allege any federal claims; instead, plaintiff alleges only unlawful detainer under state law.
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ECF No. 1 at 10-13 (Compl.). The presence or absence of federal question jurisdiction “is
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governed by the ‘well-pleaded complaint rule,’ which provides that federal jurisdiction exists
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only when a federal question is presented on the face of plaintiff’s properly pleaded complaint.”
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Caterpillar, Inc. v. Williams, 482 U.S. 386, 392 (1987). This is the case where the complaint
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“establishes either that [1] federal law creates the cause of action or that [2] the plaintiff's right to
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relief 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 Leasehold & 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, 27-28
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(1983)). Here, plaintiff’s one cause of action is for unlawful detainer under state law, and under
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the well-pleaded complaint rule, a defendant’s claims or defenses may not serve as a basis for
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removal.1 See Takeda v. Nw. Nat’l Life Ins. Co., 765 F.2d 815, 822 (9th Cir. 1985).
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Defendants argue that a federal question has been raised under the Protecting Tenants at
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Foreclosure Act (“PTFA”), 12 U.S.C. §§ 5201 et seq. ECF No. 1 at 3. However, “defendants’
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assertions of the ‘Protecting Tenants at Foreclosure Act’ are best characterized as defenses or
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potential counterclaims; neither of which are considered in evaluating whether a federal question
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appears on the face of a plaintiff’s complaint.” First N. Bank of Dixon v. Hatanaka, 2011 WL
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6328713, at * 4 (E.D. Cal. Dec. 16, 2011). “[F]ederal district courts have held that a defense
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based on the Protecting Tenants at Foreclosure Act cannot serve as a basis for removal
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jurisdiction.” Aurora Loan Servs., LLC v. Montoya, 2011 WL 5508926, at *4 (E.D. Cal. Nov. 9,
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Nor have defendants established that this court has diversity jurisdiction, since the
notice of removal does not establish diversity of the parties or that the amount in controversy
exceeds $75,000, nor does it appear that removal by defendants would be proper under 28 U.S.C.
§ 1441(b), which permits removal in diversity cases only when “none of the parties in interest
properly joined and served as defendants is a citizen of the State in which such action is brought.”
See also Fed. Home Loan Mortg. Corp. v. Cantillano, 2012 WL 1193613, at *2 (C.D. Cal. Apr. 9,
2012) (“The appropriate dollar amount in determining the amount of controversy in unlawful
detainer actions is the rental value of the property, not the value of the property as a whole.”).
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2011) (citing SD Coastline LP v. Buck, 2010 WL 4809661, at *1–3 (S.D. Cal. Nov. 19, 2010);
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Wescom Credit Union v. Dudley, 2010 WL 4916578, at *2 (C.D. Cal. Nov. 22, 2010)
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(“provisions [of the PTFA] offer [defendant] a federal defense to an unlawful detainer action
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where the plaintiff fails to comply with these requirements. A federal defense, however, does not
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support federal-question jurisdiction.”); Aurora Loan Servs., LLC v. Martinez, 2010 WL
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1266887, at *1 (N.D. Cal. Mar. 29, 2010)).
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Therefore, because defendants have not adequately established a basis for this court’s
subject matter jurisdiction, the case must be remanded. See 28 U.S.C. § 1447(c).
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Accordingly, IT IS HEREBY RECOMMENDED that the above-captioned case be
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REMANDED to the Superior Court of the State of California in and for the County of San
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Joaquin.
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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: December 22, 2014.
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