(PS) Liam Meyer Irrevocable Trust et al v. Chan et al
Filing
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FINDINGS and RECOMMENDATIONS signed by Magistrate Judge Sean C. Riordan on 1/24/2025 RECOMMENDING that this action be remanded to the Sacramento County Superior Court and the Clerk close this file. Referred to Judge Kimberly J. Mueller. Objections to F&R due within 14 days. (Deputy Clerk KEZ)
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UNITED STATES DISTRICT COURT
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FOR THE EASTERN DISTRICT OF CALIFORNIA
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LIAM MEYER TRUST and LIAM
MEYER,
Plaintiffs,
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v.
PEGGY PICKYOKE YEE, SUI CHEONG
CHAN et al.,
No. 2:23-cv-1472-KJM-SCR
FINDINGS AND RECOMMENDATIONS
REMANDING THIS ACTION TO STATE
COURT
Defendants.
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Plaintiffs Liam Meyer and Liam Meyer Trust are proceeding in this action pro se. On
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May 10, 2023, Plaintiffs filed a complaint in the Sacramento County Superior Court. ECF No. 1
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at 2. On July 21, 2023, this case was removed from the Sacramento County Superior Court to
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this Court. ECF No. 1. This matter was referred to Magistrate Judge Barnes in accordance with
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Local Rule 302(c)(21) and 28 U.S.C. § 636(b)(1). On June 25, 2024, Plaintiffs filed the First
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Amended Complaint (“FAC”) in this action. ECF No. 15. On August 6, 2024, this matter was
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reassigned to the undersigned. ECF No. 16.
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On September 19, 2024, Plaintiffs requested entry of default against Defendants. ECF
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No. 17. On September 20, 2024, the Clerk of the Court denied the request because the Court had
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not screened the FAC. ECF No. 18. While such screening was not, in fact, required because
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Plaintiffs are not seeking to proceed IFP, the undersigned nonetheless reviewed the Complaint in
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order to determine whether federal jurisdiction over this matter exists. On December 13, 2024,
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the undersigned ordered Plaintiffs to show cause within 21 days as to why this case should not be
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dismissed for a lack of federal jurisdiction. ECF No. 19. Plaintiffs did not file a response to that
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order.
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The Court has reviewed the FAC and hereby recommends that the matter be remanded to
state court due to a lack of federal jurisdiction.
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I.
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The FAC names as Defendants Peggy Yee and Sui Cheong Chan. ECF No. 15 at 1. It
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The FAC
asserts that all parties are residents of Sacramento County, California. Id. at ¶¶ 3-4.
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The FAC asserts that on September 11, 2019, Plaintiffs bought property at 7907 Garden
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Highway, Sacramento, CA 95837 (“Subject Property”) from Defendants. Id. at ¶ 2. At the time
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of the sale, Defendants knew that Plaintiffs intended to rent out rooms in the Subject Property to
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pay for upgrades thereto. Id. Defendants represented to Plaintiffs that various issues with the
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Subject Property, including a damaged riverbank, would cost no more than $500,000 to repair.
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Id.
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The FAC alleges that after the purchase of the Subject Property, the State of California
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informed Plaintiffs that repairing damages to the riverbank alone would cost $1,745,000. Id. The
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County of Sacramento also replaced a “Limited Use Notice” that had been removed before
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Plaintiffs began reviewing the Subject Property. Id. This use restriction bars Plaintiffs from
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renting rooms to tenants for income. Id. The FAC concludes that Defendants deliberately
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withheld information about the Subject Property to trick the Plaintiffs into buying it. Id.
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The FAC alleges five causes of action. Claims asserted under federal law include (1)
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concealment under 18 U.S.C. § 1001, (2) Elder Financial Abuse under 10 U.S.C. § 21002, and (3)
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Civil Rights Violations under 42 U.S.C. § 1983 and 18 U.S.C. § 242. Id. at 12, 13, 15-16.
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II.
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A court must consider its subject matter jurisdiction sua sponte. See United States v.
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Keller, 2 F.4th 1278, 1282 (9th Cir. 2021). “[T]he existence of federal jurisdiction depends solely
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on the plaintiff’s claims for relief[.]” ARCO Envtl. Remediation, LLC v. Dep’t of Health & Envtl.
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Quality, 213 F.3d 1108, 1113 (9th Cir. 2000).
Analysis
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“The strong presumption against removal jurisdiction” means that “the court resolves all
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ambiguity in favor of remand to state court.” Hunter v. Philip Morris USA, 582 F.3d 1039, 1042
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(9th Cir. 2009). That is, federal jurisdiction over a removed case “must be rejected if there is any
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doubt as to the right of removal in the first instance.” Geographic Expeditions, 599 F.3d at 1107.
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“If at any time prior to judgment it appears that the district court lacks subject matter jurisdiction,
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the case shall be remanded.” 28 U.S.C. § 1447(c); Gibson v. Chrysler Corp., 261 F.3d 927, 932
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(9th Cir. 2001). Remand under 28 U.S.C. § 1447(c) “is mandatory, not discretionary.” Bruns v.
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NCUA, 122 F.3d 1251, 1257 (9th Cir. 1997); see also California ex. rel. Lockyer v. Dynegy, Inc.,
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375 F.3d 831, 838 (9th Cir. 2004). Where it appears, as it does here, that the district court lacks
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subject matter jurisdiction over a removed case, “the case shall be remanded.” 28 U.S.C. §
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1447(c).
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Federal jurisdiction can be based either on diversity under 28 U.S.C. § 1332 or a federal
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question under 28 U.S.C. § 1331. Diversity jurisdiction is present when “the matter in
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controversy exceeds the sum or value of $75,000, exclusive of interest and costs, and is between”
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some combination of citizens of different states and subjects of foreign states, or is brought by a
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foreign state as a plaintiff. 28 U.S.C. § 1332(a). Because all parties in this action are citizens of
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the state of California, diversity jurisdiction does not apply. See ECF No. 15 at ¶¶ 3-4.
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Federal-question jurisdiction exists when a civil action arises “under the Constitution,
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laws, or treaties of the United States.” 28 U.S.C. § 1331. “A claim invoking federal-question
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jurisdiction under 28 U.S.C. § 1331 … may be dismissed for want of subject matter jurisdiction if
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it is not colorable, i.e., if it is immaterial and made solely for the purpose of obtaining jurisdiction
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or is wholly insubstantial and frivolous.” Arbaugh v. Y&H Corp., 546 U.S. 500, 513 n.10 (2006)
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(citation and quotations omitted). As a related matter, a court may dismiss a claim sua sponte
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“where the claimant cannot possibly win relief.” Omar v. Sea-Land Service, Inc., 813 F.2d 986,
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991 (9th Cir. 1987).
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A. The FAC Does Not Allege a Colorable Claim Under Federal Law.
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The federal law claims alleged in the FAC are (1) concealment under 18 U.S.C. § 1001, (2) Elder
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Financial Abuse under 10 U.S.C. § 21002, and (3) Civil Rights Violations under 42 U.S.C. §
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1983 and 18 U.S.C. § 242. ECF No. 15 at 12, 13, 15-16.
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As to concealment, except as otherwise provided by law, whoever:
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(1) falsifies, conceals, or covers up by any trick, scheme, or device a material fact;
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(2) makes any materially false, fictitious, or fraudulent statement or representation;
or
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(3) makes or uses any false writing or document knowing the same to contain any
materially false, fictitious, or fraudulent statement or entry;
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shall be subject to a combination of fines and imprisonment. 18 U.S.C. § 1001(a).
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However, such statute is a “bare criminal statute,’ with no other statutory basis for inferring that a
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civil cause of action exists[.]” Lee v. United States Agency for Int’l Dev., 859 F.3d 74, 77 (D.C.
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Cir. 2017). The D.C. Circuit concluded in Lee that based on the language of the statute and its
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legislative history, 18 U.S.C. § 1001 does not create a private cause of action. 859 F.3d at 77-78.
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Plaintiffs cannot assert a claim based on it.
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As to elder financial abuse, Plaintiffs cite 10 U.S.C. § 21002 as the statutory basis for the
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claim. ECF No. 15 at ¶ 41. This statute does not exist. Moreover, Title 10 of the United States
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Code concerns the nation’s armed forces. Plaintiffs do not otherwise specify the basis of a federal
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claim for elder financial abuse, and the Court is aware of none.
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As to civil rights violations, federal law holds liable any “person who, under color of any
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statute, ordinance, regulation, custom, or usage, of any State or Territory or the District of
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Columbia, subjects, or causes to be subjected,” any United States citizen to deprivation of their
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rights. 42 U.S.C. § 1983. The FAC alleges that Defendants, as previous owners of the Subject
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Property, sold it to Plaintiffs without disclosing important information about the Subject Property.
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ECF No. 15 at ¶ 2. Plaintiffs do not assert that Defendants were government employees or
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otherwise acting under color of law. Defendants cannot be the subject of a cause of action under
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§ 1983. Plaintiffs also cannot pursue relief under 18 U.S.C. § 242 in this civil action. See Allen
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v. Gold Country Casino, 464 F.3d 1044, 1048 (9th Cir.2006) (affirming the dismissal of a
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plaintiff's claims under 18 U.S.C. §§ 241 and 242 because the they “are criminal statutes that do
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not give rise to civil liability”); Aldabe v. Aldabe, 616 F.2d 1089, 1092 (9th Cir.1980) (finding 18
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U.S.C. §§ 241 and 242 provide no private right of action and cannot form basis for civil suit).
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None of the federal claims in the FAC are colorable.
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B. The Surviving State Claims Should be Remanded to State Court.
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The only viable claims in the FAC arise under state law. At issue is whether this court can
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still exercise jurisdiction over the surviving claims.
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The United States Supreme Court recently addressed whether a federal court can
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adjudicate a case removed from state court when the plaintiff subsequently amends the complaint
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to eliminate all claims under federal law. Royal Canin U.S.A., Inc. v. Wullschleger, 604 U.S. ___,
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2025 WL 96212 at *3 (Jan. 15, 2025). The Court held that when a plaintiff amends the complaint
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after removal, the amended complaint supersedes the original and dictates whether a federal court
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has jurisdiction. 2025 WL 96212 at *5, *7. Eliminating all federal claims also eliminates any
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supplemental jurisdiction over state claims. 2025 WL 96212 at *5. The Court reasoned that its
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holding also reflects that a plaintiff is “master of the complaint” insofar as the plaintiff can always
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choose which claims to pursue against which defendants, establishing which courts have
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jurisdiction in the process. 2025 WL 96212 at *7 (quoting Caterpillar Inc. v. Williams, 482 U. S.
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386, 398-399 (1987)). The Court concluded that after the plaintiff had amended the complaint,
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the district court should have remanded the action to state court. 2025 WL 96212 at *11.
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In the present case, the Complaint filed in the Sacramento County Superior Court
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established federal jurisdiction by alleging violations of 18 U.S.C. §§ 1962(c)-(d). ECF No. 1 at
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2. Plaintiffs deliberately chose not to reassert this claim in the FAC. Plaintiffs knowingly
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relinquished this claim as a basis for federal jurisdiction and have failed to assert another, or to
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respond to the Court’s order to show cause. The Court “no longer” has supplemental jurisdiction
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over any state claims in the FAC, and “must hand” the case “over” to state court. This case
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should be remanded to the Sacramento County Superior Court. See Royal, 2025 WL 96212 at
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*11.
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III.
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Accordingly, IT IS HEREBY RECOMMENDED:
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1. That this action be remanded forthwith to the Sacramento County Superior Court,
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Conclusion
pursuant to 28 U.S.C. § 1447(c), for lack of subject matter jurisdiction;
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2. The Clerk of Court close this file.
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These findings and recommendations will be 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, either party may file written
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objections with the court. The document should be captioned “Objections to Magistrate Judge's
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Findings and Recommendations.” The parties are advised that failure to file objections within the
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specified time may result in waiver of the right to appeal the district court’s order. Martinez v.
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Ylst, 951 F.2d 1153 (9th Cir. 1991).
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DATED: January 24, 2025.
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