City of Galt v. 7 STAR LLC et al

Filing 7

ORDER signed by Judge Kimberly J. Mueller on 1/28/15 REMANDING CASE to Sacramento County Superior Court. Copy of remand order sent to other court. CASE CLOSED. (Meuleman, A)

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UNITED STATES DISTRICT COURT

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FOR THE EASTERN DISTRICT OF CALIFORNIA

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CITY OF GALT, a municipal corporation,

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No. 2:15-cv-00189-KJM-AC

Plaintiff,
v.

ORDER

7 STAR LLC, a California Limited liability
company; PACIFIC WESTERN BANK, as
successor by merger with CapitolSource
Bank; and DOES 1 through 50,
Defendants.

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7 STAR LLC, a California Limited
Liability Company, Harjinder S. Sandhu,
an individual, Sukhdev Singh Sandhu, an
individual,

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Cross-Claimants,
v.
CITY OF GALT, a municipal corporation,
ROES 1-50,
Cross-Defendants.

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Defendants and cross-claimants, 7 STAR LLC, Harjinder S. Sandhu and Sukhdev

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Singh Sandhu, filed a notice of removal on January 19, 2015. ECF No. 1. The notice asserts this

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court’s removal jurisdiction under 28 U.S.C. §§ 1331 and 1441 based on claims arising under 42

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U.S.C. § 1983, 42 U.S.C. § 3601 and 28 U.S.C. § 1331. These claims, however, are not part of

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the original state-court complaint, but are asserted in a cross-claim filed concurrently with the

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defendants’ answer. See ECF Nos. 2–4; Not. Removal Ex. A; id. at 2, ECF No. 1 (“This action is

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a civil action of which this court has original jurisdiction under 28 U.S.C. § 1331 . . . .

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Specifically, the Defendant’s cross complaint raises issues under 42 U.S.C. 1983, 42 U.S.C. 3601,

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and the 14th Amendment of the United States.”).

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“[A] counterclaim—which appears as part of the defendant’s answer, not as part of

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the plaintiff's complaint—cannot serve as the basis for ‘arising under’ jurisdiction.” Holmes

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Grp., Inc. v. Vornado Air Circulation Sys., Inc., 535 U.S. 826, 831 (2002). In other words,

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“defendants may remove only on the basis of claims brought against them and not on the basis of

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counterclaims, cross-claims, or defenses asserted by them.” 14C Charles A. Wright, et al.,

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Federal Practice and Procedure § 3730 (4th ed.).

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The case is REMANDED to the Sacramento County Superior Court.

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IT IS SO ORDERED.

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DATED: January 28, 2015.

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UNITED STATES DISTRICT JUDGE

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