Bristol v. Hughes et al

Filing 17

ORDER denying 9 Motion to Dismiss for Lack of Jurisdiction. Signed by Judge James C. Mahan on 1/18/2017. (Copies have been distributed pursuant to the NEF - JM)

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UNITED STATES DISTRICT COURT

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DISTRICT OF NEVADA

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***

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GABRIEL M. BRISTOL,
Plaintiff,

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ORDER

v.

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Case No. 2:16-cv-00705-JCM-CWH

ELIZABETH JOAN HUGHES, et al.,
Defendants.

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Presently before the court is defendant Elizabeth Hughes’s motion to dismiss for lack of

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subject matter jurisdiction, pursuant to Federal Rule of Civil Procedure 12(b)(1). (ECF No. 9).

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Plaintiff Gabriel Bristol filed a response (ECF No. 16), but defendant filed no reply.

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I.

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Introduction
On March 30, 2016, plaintiff filed a complaint regarding the course of dealings between

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himself and defendant, who allegedly provided plaintiff with a $166,886.00 loan to buy a

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residence in Las Vegas. (ECF No. 1). Plaintiff requests declaratory relief and alleges that

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defendant has breached the lending contract as well as the implied covenant of good faith and

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fair dealing due to defendant’s alleged demand for early payment of the full sum and alleged

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claim that plaintiff “stole the loan proceeds rather than having lawfully borrowed them.” (Id. at

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9).

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In the instant motion, defendant argues that this court has no subject matter jurisdiction
for two reasons: (1) plaintiff is actually a non-diverse resident of Nevada; and (2) the amount in

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controversy standard of 28 U.S.C. § 1332 is not satisfied because, although the underlying debt

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is at least $155,286, only an additional sum of slightly more than $6,600 is in dispute. (ECF No.

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9). Plaintiff responds that defendant’s exhibits shows no admission of Nevada residence,

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arguing instead that he is a California resident who “owns investment properties here in

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Nevada,” and that the amount-in-controversy requirement is satisfied because the full value of

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the loan, exceeding $160,000, is the applicable jurisdictional value. (ECF No. 16 at 7).

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II.

Federal Rule of Civil Procedure 12(b)(1) allows a party to present the defense of “lack of

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Legal Standard

subject-matter jurisdiction.” For a federal district court to have diversity jurisdiction, 28 U.S.C.

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§ 1332(a)(1) requires that “the matter in controversy exceeds the sum or value of $75,000,

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exclusive of interest and costs” and that the action be between “citizens of different states.”

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Moreover, “a Rule 12(b)(1) motion can attack the substance of a complaint’s jurisdictional

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allegations despite their formal sufficiency, and in so doing rely on affidavits or any other

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evidence properly before the court.” St. Clair v. City of Chico, 880 F.2d 199, 201 (9th Cir.

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1989).
Specifically, 28 U.S.C. § 1332 requires diversity of citizenship, which is not indicated by

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an individual’s residence but rather that person’s place of domicile. Kanter v. Warner-Lambert

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Co., 265 F.3d 853, 857 (9th Cir. 2001). “A person’s domicile is her permanent home, where she

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resides with the intention to remain or to which she intends to return.” Id. (citing Lew v. Moss,

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797 F.2d 747, 749 (9th Cir. 1986)).

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III.

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Discussion
This court’s review of defendant’s offered exhibits, including subpoena requests or

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deposition notices, attorney correspondence, and Clark County assessor records, neither reveals

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an admission that plaintiff is a Nevada citizen nor shows that plaintiff both resides and has the

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intent to remain in Nevada. See Kanter, 265 F.3d at 857; see also (ECF Nos. 9-1, 9-2, 9-3, 9-4,

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9-5, 9-6). Conversely, plaintiff offers evidence probative of his jurisdictional allegation of

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diversity jurisdiction—an attorney letter indicating a reluctance to travel from northern

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California to Nevada for a deposition. See (ECF No. 16-1); see also (ECF No. 1) (alleging that

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28 U.S.C. § 1332(a)(1) applies and that “[e]very issue of law and fact in this action is wholly

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between a plaintiff who is a citizen of a state that is different from that of defendant.”).

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Therefore, defendant’s argument that diversity of citizenship is not present fails. (ECF No. 9).

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Next, “[i]n actions seeking declaratory or injunctive relief, it is well established that the

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amount in controversy is measured by the value of the object of the litigation.” Cohn v.

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Petsmart, Inc., 281 F.3d 837, 840 (9th Cir. 2002) (quoting Hunt v. Wash. State Apple Adver.

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Comm’n, 432 U.S. 333, 347, 97 S.Ct. 2434, 53 L.Ed.2d 383 (1977)).
Here, plaintiff has requested declaratory relief. (ECF No. 1). Further, both parties agree

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that the sum of the underlying loan is at least $155,286. See (ECF Nos. 1, 9, 16). In this case,
plaintiff seeks a declaration of his legal rights, including inter alia that:

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Mr. Bristol be adjudged to have lawfully borrowed the subject loan proceeds; that

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the term of the loan is 30 years; that the interest rate is 5 percent per year; that the

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amount of the amortized monthly payment is $879.08; that no act or omission to

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act may be attributed to Mr. Bristol causing an event of default and, relatedly, that

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the loan has not been accelerated and that the entire balance is not due; that Ms.

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Hughes has prevented the performance of the loan by her conduct as described

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herein; and that that Mr. Bristol has already made repayments in the total sum of

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$11,600.

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(ECF No. 1).
In light of plaintiff’s complaint, it is clear that the present litigation involves the

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underlying loan as a whole. See Cohn, 281 F.3d at 840; see also (ECF No. 1). Further, the

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parties have agreed that the loan amount is greater than $75,000. (ECF Nos. 9, 16). Therefore,

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the amount-in-controversy requirement of § 1332 is satisfied here.

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IV.

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Conclusion
Plaintiff has sufficiently alleged diversity of citizenship, and defendant offers no evidence

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demonstrating that plaintiff is actually a citizen of Nevada. Moreover, the loan value satisfies

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the amount-in-controversy requirement for diversity jurisdiction.

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Accordingly,

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IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that defendant’s motion to
dismiss (ECF No. 9) be, and the same hereby is, DENIED.
DATED THIS 18th day of January, 2017.

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JAMES C. MAHAN
UNITED STATES DISTRICT JUDGE