Hollyvale Rental Holdings, LLC v. Rae Nola Edwards et al

Filing 52

ORDER denying without prejudice ECF No. 17 Motion to Remand to State Court; Clerk instructed to strike ECF No. 39 Amended Complaint. Champery must file a second amended complaint omitting parties by 11/3/2017. Signed by Judge Miranda M. Du on 10/27/2017. (Copies have been distributed pursuant to the NEF - KW)

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UNITED STATES DISTRICT COURT

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DISTRICT OF NEVADA

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CHAMPERY RENTAL REO, LLC,

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Plaintiff,

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Case No. 3:17-cv-00162-MMD-WGC
ORDER

v.
RAE NOLA EDWARDS; FEDERAL
NATIONAL MORTGAGE ASSOCIATION;
QUALITY LOAN SERVICE
CORPORATION; KERN & ASSOCIATES,
LTD.; SPRINGLAND VILLAGE
HOMEOWNERS ASSOCIATION; All other
persons unknown claiming any right, title,
estate, lien or interest in the real property
described in the Complaint adverse to
Plaintiff’s ownership, or any cloud upon
Plaintiff’s title thereto; DOES I through V;
and ROE Corporations I through V,

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Defendants.

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FEDERAL NATIONAL MORTGAGE
ASSOCIATION,

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Counterclaimant,
v.
CHAMPERY RENTAL REO LLC,
Counter-Defendant.

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On September 19, 2017, Plaintiff Champery Rental REO LLC (“Champery”) filed

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an Amended Complaint (ECF No. 39) to reflect the substitution of former Plaintiff Hollyvale

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Rental Holdings LLC (“Hollyvale”) and former Defendant Rae Nola Edwards. However,

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the Amended Complaint also added two new parties as defendants—Kern & Associates

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Ltd. (“Kern”) and Springland Village Homeowners Association (“Springland”)—without

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leave of Court as is required under Federal Rule of Civil Procedure 15(a)(2). While the

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Court had permitted substitution of Plaintiff Champery for Hollyvale (ECF No. 38) and

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substitution of Defendant Unknown Heirs of Rae Nola Edwards (“Unknown Heirs”) for Rae

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Nola Edwards (ECF No. 25), it did not permit the addition of new defendants. Therefore,

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the Court will strike Champery’s Amended Complaint (ECF No. 39) with leave for

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Champery to file a second amended complaint to reflect the substitution of Champery and

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Unknown Heirs. In light of these substitutions, the Court denies former Plaintiff Hollyvale’s

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Motion to Remand (ECF No. 17) without prejudice, as that motion failed to address the

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citizenship of Champery1 or whether and how the Court should consider the citizenship of

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Unknown Heirs in its analysis of jurisdiction.2

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It is therefore ordered that Hollyvale’s Motion to Remand (ECF No. 17) is denied

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without prejudice. Champery may file a new motion to remand within seven (7) days of

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this order.

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The Clerk is instructed to strike Champery’s Amended Complaint (ECF No. 39).

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Champery must file a second amended complaint omitting the added parties—Kern and

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Springland—and including only the substituted parties—Champery and Unknown Heirs—

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within seven (7) days of this order. Failure to file a second amended complaint within that

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time will result in dismissal of this case.

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DATED this 27th day of October 2017.

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MIRANDA DU
UNITED STATES DISTRICT JUDGE

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1An

LLC is a citizen of every state of which its owners/members are citizens.
Johnson v. Columbia Props. Anchorage, LP, 437 F.3d 894, 899 (9th Cir. 2006).
2It is unclear whether Unknown Heirs constitute “fictitious defendants” for purposes
of determining diversity jurisdiction. See 28 U.S.C. § 1441(b)(1) (“In determining whether
a civil action is removable on the basis of [diversity jurisdiction], the citizenship of
defendants sued under fictitious names shall be disregarded.”)

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