Residential Credit Solutions, Inc. v. Smith et al
Filing
18
MEMORANDUM AND ORDER Granting 17 MOTION to Dismiss the United States of America as a Party-Defendant and MOTION to Remand to State Court filed by Residential Credit Solutions, Inc.; Finding pursuant to Federal Rule of Civil Pr ocedure 54(b) that there is no just reason for delay in entry of judgment on the claim involving the United States; Directing the Clerk of Court to enter a Rule 54(b) judgment dismissing the claim involving the United States; and REMANDING the remainder of this case to the Circuit Court of the Third Judicial Circuit, Madison County, Illinois. Signed by Judge J. Phil Gilbert on 4/29/13. (bkl)
IN THE UNITED STATES DISTRICT COURT
FOR THE SOUTHERN DISTRICT OF ILLINOIS
RESIDENTIAL CREDIT SOLUTIONS, INC.,
Plaintiff,
vs.
No. 13-cv-140-JPG-DGW
ERICKSON TAYLOR SMITH a/k/a Erickson T.
Smith, LORETTA SHELTON SMITH a/k/a Loretta
S. Smith, UNITED STATES OF AMERICA,
UNKNOWN OWNERS and NON-RECORD
CLAIMANTS,
Defendants.
MEMORANDUM AND ORDER
This matter comes before the Court on plaintiff Residential Credit Solutions, Inc.’s
motion to dismiss defendant United States of America in light of its disclaimer and waiver of
redemption rights in the subject property of this foreclosure action, and motion to remand this
action to state court in light of that dismissal (Doc. 17).
This case was originally filed in state court, but the United States removed it, relying on
the Court’s original jurisdiction over a claim against the United States, see 28 U.S.C. § 1442(a),
and over a foreclosure action against the United States, see 28 U.S.C. § 1444. The claim
involving the United States is the only claim in this case over which the Court has original
jurisdiction. The Court had at the time of removal, and continues to have, jurisdiction over the
remaining claims under 28 U.S.C. § 1367(a), which extends supplemental federal jurisdiction to
all claims that are sufficiently related to the claims on which original jurisdiction is based so as
to be part of the same case or controversy.
Dismissal of this case as to the United States is appropriate in light of his disclaimer and
waiver. Further, since the claim involving the United States provided the sole basis for original
federal jurisdiction, and since that claim has now been resolved, pursuant to 28 U.S.C.
§ 1367(c)(3), the Court may decline to exercise supplemental jurisdiction over the remaining
claims. In deciding whether to decline jurisdiction over remaining claims when no original
jurisdiction claims remain pending, a district court should consider judicial economy,
convenience, fairness and comity. Wright v. Associated Ins. Cos., 29 F.3d 1244, 1251 (7th Cir.
1994) (citing Carnegie-Mellon Univ. v. Cohill, 484 U.S. 343, 350 (1988)). Where a district court
dismisses all claims over which it has original jurisdiction before trial, “the usual and preferred
course is to remand the state claims to the state court unless there are countervailing
considerations.” Payne for Hicks v. Churchich, 161 F.3d 1030, 1043 (7th Cir. 1998) (citing
Wright, 29 F.3d at 1251).
The Court has considered the relevant factors, including the fact that this case is in a very
early stage, and has determined that remand is proper. Accordingly, the Court:
•
GRANTS the motion to dismiss the United States and to remand this case to state court
(Doc. 17);
•
FINDS pursuant to Federal Rule of Civil Procedure 54(b) that there is no just reason for
delay in entry of judgment on the claim involving the United States;
•
DIRECTS the Clerk of Court to enter a Rule 54(b) judgment dismissing the claim
involving the United States; and
•
REMANDS the remainder of this case to the Circuit Court of the Third Judicial Circuit,
Madison County, Illinois.
IT IS SO ORDERED.
DATED: April 29, 2013
s/J. Phil Gilbert
J. PHIL GILBERT
DISTRICT JUDGE
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