Wells Fargo Bank N.A. v. Law

Filing 3

ORDER signed by District Judge Kimberly J. Mueller on 9/11/17 ORDERING that this Action is REMANDED to San Joaquin County Superior Court and the Court DENIES as moot Defendant's MOTION to proceed in forma pauperis 2 . Copy of remand order sent to other court. CASE CLOSED. (Mena-Sanchez, L)

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UNITED STATES DISTRICT COURT

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FOR THE EASTERN DISTRICT OF CALIFORNIA

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WELLS FARGO BANK, N.A., et al.,

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No. 2:17-cv-01835-KJM-CKD

Plaintiffs,

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v.

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ROSE M. LAW,

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ORDER

Defendant.

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On September 5, 2017, defendant Rose M. Law, proceeding pro se, removed this

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unlawful detainer action from San Joaquin County Superior Court. ECF No. 1. Law also filed a

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motion to proceed in forma pauperis. ECF No. 2. As explained below, the court REMANDS the

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case to the San Joaquin County Superior Court and DENIES as moot defendant’s motion to

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proceed in forma pauperis.

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I.

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SUBJECT MATTER JURISDICTION
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Legal Standard
When a case “of which the district courts of the United States have original

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jurisdiction” is initially brought in state court, a defendant may remove it to federal court. 28

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U.S.C. § 1441(a). There are two primary bases for federal subject matter jurisdiction: (1) federal

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question jurisdiction under 28 U.S.C. § 1331, and (2) diversity jurisdiction under 28 U.S.C.

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§ 1332.

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Under § 1331, district courts have federal question jurisdiction over “all civil

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actions arising under the Constitution, laws, or treaties of the United States.” 28 U.S.C. § 1331.

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Under the longstanding well-pleaded complaint rule, a suit “arises under” federal law “only when

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the plaintiff’s statement of his own cause of action shows that it is based upon [federal law].”

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Louisville & Nashville R. Co. v. Mottley, 211 U.S. 149, 152 (1908). Federal question jurisdiction

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cannot rest upon an actual or anticipated defense or counterclaim. Vaden v. Discover Bank, 556

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U.S. 49, 60 (2009).

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Under § 1332, district courts have diversity-of-citizenship jurisdiction where the

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amount in controversy exceeds $75,000 and the parties are in complete diversity. 28 U.S.C.

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§ 1332. “Where it is not facially evident from the complaint that more than $75,000 is in

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controversy, the removing party must prove, by a preponderance of the evidence, that the amount

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in controversy meets the jurisdictional threshold.” Matheson v. Progressive Specialty Ins. Co.,

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319 F.3d 1089, 1090 (9th Cir. 2003) (per curiam).

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A federal district court may remand a case sua sponte where a defendant has not

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established federal jurisdiction. See 28 U.S.C. § 1447(c) (“If at any time before final judgment it

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appears that the district court lacks subject matter jurisdiction, the case shall be remanded . . . .”);

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Enrich v. Touche Ross & Co., 846 F.2d 1190, 1195 (9th Cir. 1988) (citing Wilson v. Republic

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Iron & Steel Co., 257 U.S. 92, 97 (1921)).

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B.

Discussion
Law’s Notice of Removal asserts the court has federal question jurisdiction under

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§ 1331 because questions in this case turn on “[p]laintiffs’ duty and condition to comply with

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[the] Federally Mandated Making Home Affordable Act pursuant to 12 U.S.C. § 5219.” ECF No.

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1 at 3. But the complaint plaintiff filed in state court asserts only a claim for unlawful detainer, a

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matter of state law. See ECF No. 1 at 11.

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As explained above, the court cannot base federal question jurisdiction on Law’s
answer or counterclaim. Vaden, 556 U.S. at 60. Plaintiff is the master of the complaint and may,
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as here, “avoid federal jurisdiction by pleading solely state-law claims.” Valles v. Ivy Hill Corp.,

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410 F.3d 1071, 1075 (9th Cir. 2005). Because plaintiff’s complaint is not based upon federal law,

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the court does not have federal question jurisdiction over the action.

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Neither does the court appear to have diversity jurisdiction. Defendant’s notice of

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removal states “diversity in citizenship exists” but defendant does not explain how the complaint

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meets the amount-in-controversy requirement. ECF No. 1 at 2. Plaintiff’s complaint is labeled as

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a “limited” civil case, meaning plaintiff predicts the total damages will not exceed $10,000. ECF

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No. 1 at 11. Plaintiff seeks possession of the premises, costs and reasonable attorney’s fees, and

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damages of $44 per day for each day from July 13, 2017 until the date of judgment. ECF No. 1 at

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15. These damages are not likely to total more than $75,000, and Law has provided no other

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evidence or allegations as to the amount in controversy. As such, the court cannot exercise

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diversity jurisdiction over the action.

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II.

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REQUEST TO PROCEED IN FORMA PAUPERIS
For the foregoing reasons, the court has determined sua sponte that it does not

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have subject matter jurisdiction, and thus remands the case to the San Joaquin County Superior

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Court. Cf. Matheson, 319 F.3d at 1090 (“Where doubt regarding the right to removal exists, a

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case should be remanded to state court.”). This order moots defendant’s motion for in forma

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pauperis status.

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III.

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CONCLUSION
This action is REMANDED to San Joaquin County Superior Court, and the court

DENIES as moot defendant’s motion to proceed in forma pauperis.
IT IS SO ORDERED.
DATED: September 11, 2017.

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UNITED STATES DISTRICT JUDGE

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