Allen v. Utiliquest, LLC
Filing
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ORDER by Judge Saundra Brown Armstrong GRANTING 16 Motion to Remand. Case remanded to the Superior Court of California, County of San Francisco. Signed on 1/8/2014. (ndr, COURT STAFF) (Filed on 1/9/2014) Modified on 1/9/2014 (jlmS, COURT STAFF).
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UNITED STATES DISTRICT COURT
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FOR THE NORTHERN DISTRICT OF CALIFORNIA
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OAKLAND DIVISION
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9 JEFFREY H. ALLEN, on behalf of himself
Case No: C 13-4466 SBA
and all others similarly situated,
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Plaintiff,
ORDER GRANTING PLAINTIFF’S
MOTION TO REMAND
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vs.
Dkt. 16
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UTILIQUEST, LLC, and DOES 1 through
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Defendants.
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Defendant UtiliQuest, LLC, previously removed the instant putative wage and hour
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class action from state court pursuant to the Class Action Fairness Act (“CAFA”), 28
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U.S.C. § 1332(d)(2). The Court remanded the action based on Defendant’s failure to
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demonstrate that the amount in controversy exceeds $5,000,000, as required by CAFA.
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Defendant subsequently removed the action a second time based on allegedly new law and
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facts.
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The parties are presently before the Court on Plaintiff’s Motion to Remand. Dkt. 16.
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Having read and considered the papers filed in connection with this matter and being fully
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informed, the Court hereby GRANTS the motion for the reasons set forth below. The
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Court, in its discretion, finds this matter suitable for resolution without oral argument. See
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Fed. R. Civ. P. 78(b); N.D. Cal. Civ. L.R. 7-1(b).
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I.
BACKGROUND
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On October 31, 2012, Jeffrey Allen filed a civil action against Defendant claiming
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that it violated California law wage and hour laws by failing to compensate him and class
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members for time spent on commuting. On December 4, 2012, Plaintiff filed an Amended
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Class Action Complaint (“Amended Complaint”). On January 4, 2013, Defendant removed
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the action to this Court, alleging jurisdiction under CAFA. See Allen v. Utiliquest, No.
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C 13-0049 SBA.1
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Plaintiff filed a motion to remand for lack of subject matter jurisdiction on the
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ground that Defendant had failed to demonstrate with “legal certainty” that the amount in
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controversy exceeds $5,000,000. On August 1, 2013, the Court granted Plaintiff’s motion
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and remanded the action to the San Francisco County Superior Court. Allen v. Utiliquest,
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LLC, No. C 13-0049 SBA, 2013 WL 4033673 at (N.D. Cal. Aug. 1, 2013). In reaching its
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decision, the Court found that Defendant had failed to satisfy the “legal certainty” test set
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forth in Lowdermilk v. U.S. Bank Nat’l Ass’n, 479 F.3d 994, 997 (9th Cir. 2007). The
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Court remanded the action under 28 U.S.C. § 1447(c) for lack of jurisdiction.
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On September 25, 2013, Defendant removed the action to this Court for the second
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time, again relying on CAFA as the basis for jurisdiction. According to Defendant’s Notice
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of Removal, “significant changes in Ninth Circuit case law and Plaintiff’s recent deposition
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testimony . . . allow[] this case to be removed to the Court at this time.” Notice of Removal
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¶ 8, Dkt. 1. Defendant first points to the Ninth Circuit post-remand decision in Rodriguez
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v. AT&T Mobility Services, LLC, 728 F.3d 975 (9th Cir. 2013) which overruled
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“Federal jurisdiction under CAFA has three elements: (1) there must be minimal
diversity of citizenship between the parties, (2) the proposed class must have at least 100
27 members and (3) the amount in controversy must exceed[ ] the sum or value of
$5,000,000.” Kuxhausen v. BMW Fin. Servs. NA LLC, 707 F.3d 1136, 1139 (9th
28 Cir.2013) (internal quotation marks omitted).
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Lowdermilk’s legal certainty standard. Id. ¶ 5.2 Defendant next alleges that it only recently
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learned the factual basis of Plaintiff’s claims during his August 27, 2013 deposition, at
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which time Plaintiff acknowledged that his “sole” theory of recovery is that Defendant
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allegedly failed to compensate him for time spent driving his company vehicle between his
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home and his first and last job sites. Id.
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Plaintiff now moves to remand the action to state court pursuant to 28 U.S.C.
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§ 1447(c) on the grounds that (1) Defendant has failed to articulate a change in law or facts
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to justify a second removal and (2) Defendant failed to remove the action within thirty days
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after service of an initial pleading. The motion has been fully briefed and is ripe for
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adjudication.
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II.
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LEGAL STANDARD
“A motion to remand is the proper procedure for challenging removal.” Moore-
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Thomas v. Alaska Airlines, Inc., 553 F.3d 1241, 1244 (9th Cir. 2009). A remand may be
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ordered either for lack of subject matter jurisdiction or for any defect in the removal
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procedure. See 28 U.S .C. § 1447(c). “The ‘strong presumption against removal
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jurisdiction means that the defendant always has the burden of establishing that removal is
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proper,’ and that the court resolves all ambiguity in favor of remand to state court.” Hunter
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v. Philip Morris USA, 582 F.3d 1039, 1042 (9th Cir. 2009) (quoting Gaus v. Miles, Inc.,
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980 F.2d 564, 566 (9th Cir. 1992) (per curiam)). “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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28 U.S.C. § 1447(c).
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III.
DISCUSSION
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As a general rule, a party is not entitled to file a second notice of removal upon the
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same grounds where the district court previously remanded the action. See St. Paul & C.
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In Rodriguez, the Ninth Circuit held that Lowdermilk’s legal certainty test is
inconsistent with the Supreme Court’s decision in Standard Fire Insurance Co. v. Knowles,
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defendant to establish the amount in controversy is the preponderance of the evidence
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Ry. Co. v. McLean, 108 U.S. 212, 217 (1983); Seedman v. U.S. Dist. Court for Cent. Dist.
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of Cal., 837 F.2d 413, 414 (9th Cir. 1988) (“a second removal petition based on the same
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grounds does not ‘reinvest’ the court’s jurisdiction”). The general prohibition on
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successive removals, however, does not apply “when subsequent pleadings or events reveal
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a new and different ground for removal.” Kirkbride v. Continental Casualty Co., 933 F.2d
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729, 732 (9th Cir. 1991) (quoting FDIC v. Santiago Plaza, 598 F.2d 634, 636 (1st Cir.
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1979)) (emphasis in original).
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In Kirkbride, the Ninth Circuit reversed a district court order remanding an action
removed by the Federal Deposit Insurance Corporation (“FDIC”). After remanding the
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action twice previously, the district court remanded a third time on the ground that it was
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bound by its prior remand orders. In rejecting the trial court’s reasoning, the Ninth Circuit
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explained that while the action was pending in state court, Congress enacted the Financial
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Institutions Reform, Recovery, and Enforcement Act of 1989 (“FIRREA”), which
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broadened the scope of the FDIC’s removal authority. Id. at 731. The Ninth Circuit
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highlighted the fact that the FIRREA’s jurisdictional provisions applied to cases pending on
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the date of its enactment, and unequivocally established the FDIC’s right to litigate in
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federal court. Id. at 731-32. The court concluded that the prior remand orders did not bar
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the FDIC’s third removal, since it “was based on newly enacted legislation that gave FDIC
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different removal rights than its predecessor.” Id. at 732 (emphasis added).
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Relying on Kirkbride, Defendant argues that the Ninth Circuit’s post-remand
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decision in Rodriguez eliminated the “legal certainty” standard upon which the Court
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previously relied, and that such change constitutes a new legal basis for removal. The
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Court disagrees. The successive removal in Kirkbride was permitted because it was
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predicated on the legislation that created a new legal basis for removal that did not exist at
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the time of the prior removals. In this case, however, the legal basis of Defendant’s second
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removal is the same as the first: CAFA. There has been no amendment to CAFA that
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affords Defendant a right to remove that it did not have previously. While the legal
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standard applicable to determining whether the removing party has met its burden of
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demonstrating jurisdiction under CAFA may have changed, that is not the type of
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intervening change in the law which Kirkland recognized as a “new and different ground
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for removal.” 933 F.2d at 732.
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Equally unpersuasive is Defendant’s ancillary contention that changed factual
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circumstances justify the second removal. Defendant cites Benson v. SI Handling Systems,
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Inc., 188 F.3d 780 (7th Cir. 1999) for the proposition that a defendant may remove a
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previously remanded action based on the presentation of additional evidence demonstrating
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that the requisite amount in controversy has been satisfied. In Benson, the district court
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initially remanded the case after finding that “the papers did not establish that the amount in
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controversy exceeds $75,000.” Id. at 781. Defendants removed a second time, and the
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district court again remanded after concluding, inter alia, that successive removals are
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impermissible. Id. The Seventh Circuit reversed, holding that there was no legal
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impediment to a successive removal based on changed circumstances, and that the
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imposition of such a rigid rule “would encourage plaintiffs to be coy.” Id. at 783. The
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court noted that after the action was remanded and pending in state court, the plaintiffs
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“’fessed up” in discovery that at least $75,000 was in controversy. The court held that this
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admission was sufficient to support a renewed attempt to remove the action. Id.
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Setting aside that Benson is not binding in this Circuit, the Court finds that it is
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factually distinguishable and thus has no application here. Unlike Benson, Defendant’s
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second removal petition is not based on new discovery wherein Plaintiff has admitted or
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confirmed that in excess of $5,000,000 is in controversy. Moreover, the “new” factual
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information cited by Defendant was readily available when it filed its opposition to
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Plaintiff’s original motion to remand. In particular, Defendant relies on the declaration of
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its Senior Human Resources Manager, Neil Vocke, who reviewed the company’s internal
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time records and payroll information pertaining to Plaintiff and employees working in his
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position, and estimated the amount of time and wages they may be owed for time spent
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commuting. Vocke Decl. ¶¶ 4, 6-17, Dkt. 4. Based on the figures provided by Mr. Vocke,
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defense counsel, in turn, calculated the alleged amount in controversy. Bean Decl. ¶ 2, Dkt.
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5. Notably, in providing these estimates, Defendant simply relied on information already in
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its possession, as opposed to new information obtained from Plaintiff to establish that, in
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fact, the requisite amount was in controversy to support jurisdiction under CAFA.
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Defendant also argues that during Plaintiff’s deposition on August 27, 2013, it
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learned for the first time that his claims were predicated solely on Defendant’s failure to
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pay for commute time. However, this specific information was fully disclosed to
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Defendant by Plaintiff in his Initial Disclosures served on April 30, 2013, prior to the first
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remand. Roller Decl. Ex. B, Dkt. 17. Defendant does not dispute this, but complains that
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the Initial Disclosures did not specifically state the amount Plaintiff is seeking in damages.
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Perhaps so, but the Initial Disclosures provided Defendant with more than sufficient detail
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from which it could have reviewed its internal records to show that more than $5,000,000 is
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at stake. The information now proffered by Defendant could—and indeed, should—have
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been presented to the Court in opposing Plaintiff’s first motion to remand. That Defendant
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is belatedly attempting to do so now does not render its factual showing “new and
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different” for purposes of allowing a successive removal petition.3
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IV.
CONCLUSION
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For the reasons set forth above,
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IT IS HEREBY ORDERED THAT, pursuant to 28 U.S.C. § 1447(c), Plaintiff’s
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Motion to Remand is GRANTED. The instant action is REMANDED to San Francisco
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County Superior Court. The Clerk shall mail a certified copy of this Order to the clerk of
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the State court. The Clerk shall close the file and terminate all pending matters.
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IT IS SO ORDERED.
Dated: 1-8-14
______________________________
SAUNDRA BROWN ARMSTRONG
United States District Judge
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In view of the above, the Court need not reach Plaintiff’s alternative contention
that the removal is untimely.
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