Southland and Home Mortgage II, LLC v. Thomas et al

Filing 6

ORDER Sua Sponte Remanding Action to State Court. The Court also denies Defendant's emergency motion for writ and Plaintiff's Motion to Dismiss for Lack of Jurisdiction as moot (ECF Nos. 3 and 4 ). Signed by Judge Gonzalo P. Curiel on 4/10/17.(All non-registered users served via U.S. Mail Service)(cc: certified copy to State Court) (dlg)

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UNITED STATES DISTRICT COURT

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SOUTHERN DISTRICT OF CALIFORNIA

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SOUTHLAND AND HOME
MORTGAGE II, LLC,

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ORDER SUA SPONTE REMANDING
ACTION TO STATE COURT

Plaintiff,

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Case No.: 3:17-cv-00599-GPC-JMA

v.
[ECF No. 1]

THOMAS ET AL,
Defendants.

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On March 27, 2017, Defendant Edrei Thomas, proceeding pro se, filed a notice of

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removal of this unlawful detainer action from the Superior Court of the State of

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California for San Diego County. Dkt. No. 1. Having reviewed the notice of removal,

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the Court finds it does not have subject matter jurisdiction over this action. Accordingly,

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the Court sua sponte REMANDS the action to state court.

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DISCUSSION

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Any action brought in state court may be “removed by the defendant or the

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defendants” to the district court. See 28 U.S.C. § 1441; see also 28 U.S.C. § 1446 (“A

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defendant or defendants desiring to remove any civil action from a State court shall file

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. . . a notice of removal . . . .”).

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3:17-cv-00599-GPC-JMA

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As an initial matter, Edrei Thomas (“Thomas”), though he may be a tenant, is not a

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named defendant in the state court action. See Dkt. No. 1 at 8 (“Verified Complaint for

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Unlawful Detainer”). Therefore, he cannot remove the action to this Court. But even if

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Thomas were a proper defendant, he still has not demonstrated that this Court has federal

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subject matter jurisdiction over the case.

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It is well-established that a federal court cannot reach the merits of any dispute

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until it confirms that it retains subject matter jurisdiction to adjudicate the issues

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presented. See Steel Co. v. Citizens for a Better Env’t, 523 U.S. 83, 94-95 (1998).

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Accordingly, federal courts are under a continuing duty to confirm their jurisdictional

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power and are “obliged to inquire sua sponte whenever a doubt arises as to [its] existence

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. . . .” Mt. Healthy City Sch. Dist. Bd. of Educ. v. Doyle, 429 U.S. 274, 278 (1977)

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(citations omitted). The federal court is one of limited jurisdiction. Lowdermilk v. U.S.

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Bank Nat'l Ass'n, 479 F.3d 994, 997 (9th Cir. 2007). It possesses only that power

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authorized by the Constitution or statute. See Bender v. Williamsport Area Sch. Dist.,

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475 U.S. 534, 541 (1986).

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Removal jurisdiction is governed by 28 U.S.C. § 1441 et seq. A state court action

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can only be removed if it could have originally been brought in federal court. Caterpillar,

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Inc. v. Williams, 482 U.S. 386, 392, 107 (1987); Duncan v. Stuetzle, 76 F.3d 1480, 1485

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(9th Cir.1996). “The removal statute is strictly construed against removal jurisdiction.”

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Provincial Gov’t of Marinduque v. Placer Dome, Inc., 582 F.3d 1083, 1087 (9th Cir.

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2009) (citing Syngenta Crop Prot., Inc. v. Henson, 537 U.S. 28, 32 (2002)). Thus, for an

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action to be removed on the basis of federal question jurisdiction, the complaint must

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establish either that federal law creates the cause of action or that the plaintiff’s right to

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relief necessarily depends on the resolution of substantial questions of federal law.

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Franchise Tax Bd. of Cal. v. Constr. Laborers Vacation Trust for S. Cal., 463 U.S. 1, 10-

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11 (1983). Alternatively, a federal court may have diversity jurisdiction over an action

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involving citizens of different states where the amount in controversy exceeds $75,000.

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28 U.S.C. § 1332.
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3:17-cv-00599-GPC-JMA

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The presence or absence of federal question jurisdiction “is governed by the ‘well-

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pleaded complaint rule,’ which provides that federal jurisdiction exists only when a

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federal question is presented on the face of plaintiff’s properly pleaded complaint.”

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Caterpillar, 482 U.S. at 392. “The burden of establishing federal jurisdiction is on the

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party seeking removal.” 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

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removal in the first instance.” Gaus v. Miles, Inc., 980 F.2d 564, 566 (9th Cir. 1992).

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A review of the state court complaint in this case shows that Plaintiff Southland

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Home Mortgage II, LLC, alleges a single cause of action for unlawful detainer under

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California state law. Dkt. No. 1 at 8. In the notice of removal, Thomas alleges that the

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Court has jurisdiction pursuant to a federal question because Plaintiff’s complaint is

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related to a pending action in this Court, Case No. 15-cv-02344-GPC-JMA, where the

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original owner of the property at issue is challenging the foreclosure of her residence

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pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act, the Real

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Estate Settlement Procedures Act and the Truth in Lending Act. See Dkt. No. 1 at 2-3;

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see also Case No. No. 15-cv-02344-GPC-JMA, Dkt. No. 1 at ¶ 8.

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Thomas’ reliance on a related case in this Court — namely No. 15-cv-02344 — to

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support subject matter jurisdiction suggests that he may be relying on the court’s

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supplemental jurisdiction; however, a “removal petition . . . may not base subject-matter

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jurisdiction on the supplemental jurisdiction statute, even if the action which a defendant

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seeks to remove is related to another action over which the federal district court already

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has subject-matter jurisdiction.” Pacific Bell v. Covad Commc’ns Co., 1999 WL 390840,

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at *3 (N.D. Cal. June 8, 1999) (quoting Ahearn v. Charter Twp. of Bloomfield, 100 F.3d

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451, 456 (6th Cir. 1996)). Therefore, Thomas’ reason for removal cannot support federal

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subject matter jurisdiction. See Sato v. Wachovia Mort., FSB, 2011 WL 2784567, at *12

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(N.D. Cal. July 13, 2011) (“any relationship between the unlawful detainer action and the

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wrongful foreclosure case is irrelevant for purposes of removal.”); Waadhwa v. Aurora

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Loan Servs., LLC, 2011 WL 308416, at *1 (E.D. Cal. Jan. 27, 2011) (unlawful detainer
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3:17-cv-00599-GPC-JMA

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action does not raise a federal question even though it was filed because of a related

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federal case concerning the loan and foreclosure).

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Thomas’ assertion of federal subject matter jurisdiction is without merit and it does

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not appear that jurisdiction rests on diversity of citizenship as the amount in controversy

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in the state court complaint does not exceed $10,000. See Dkt. No. 1 at 8 (“Verified

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Complaint for Unlawful Detainer”). Thomas, therefore, has not established a basis for

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this Court’s subject matter jurisdiction and the Court must remand the case. 28 U.S.C.

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§ 1447(c).

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CONCLUSION
Based on the above, the Court sua sponte REMANDS the action to the Superior

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Court of the State of California for San Diego County. The Court also DENIES

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Defendant’s emergency motion for writ and Plaintiff’s Motion to Dismiss for Lack of

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Jurisdiction as moot. Dkt. No. 3 & 4.

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IT IS SO ORDERED.

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Dated: April 10, 2017

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3:17-cv-00599-GPC-JMA