FLAGSTAR BANK, FSB v. CULLIGAN et al

Filing 12

ORDER ADOPTING the Magistrate Judge's 11 Report and Recommendations dated 7/24/2015; Remanding this action to the Superior Court of New Jersey, Ocean County; Closing Case. Signed by Judge Freda L. Wolfson on 8/10/2015. (eaj)

UNITED STATES DISTRICT COURT
DISTRICT OF NEW JERSEY
_____________________________________
:
FLAGSTAR BANK, FSB,
:
:
Plaintiff,
:
:
v.
:
:
RICHARD M. CULLIGAN, et al.,
:
:
Defendants.
:
_____________________________________:

Civ. Action No.: 15-0385(FLW)(DEA)

ORDER

THIS MATTER having been opened to the Court on an Order to Show Cause issued by

the Court on April 15, 2014, directing Defendants to show cause for why this action should not be
remanded to the Superior Court of New Jersey for lack of subject matter jurisdiction; the
Honorable Douglas E. Arpert having issued a Report and Recommendation dated July 24. 2015,
recommending that the Court remand this matter; it appearing that the Magistrate Judge found that
Defendants removed this case on the basis of original jurisdiction, 28 U.S.C. § 1331, arguing that
their counterclaims arise under federal law, see Order dated November 18, 2014; it appearing that
the Supreme Court has repeatedly affirmed that the well-pleaded complaint rule designates the
plaintiff as the only party who may establish original jurisdiction and has held that counterclaims
arising under federal law, even when compulsory, are insufficient to create original jurisdiction,
see Vanden v. Discover Bank, 556 U.S. 49, 60 (2009); it further appearing that Plaintiff only asserts
state law causes of action in its Complaint and, further, that neither party asserts that diversity
jurisdiction exists, see 28 U.S.C. § 1332; it therefore appearing that the Court lacks subject matter
jurisdiction over this matter; it further appearing that Plaintiff has not filed any objections to the

Report and Recommendation; accordingly, for the reasons stated in the Magistrate Judge’s Report
and Recommendation:
IT IS on this 10th day of August, 2015,
ORDERED that the Magistrate Judge’s Report and Recommendation dated July 24, 2015
is hereby ADOPTED; and it is further
ORDERED that the Complaint is REMANDED to the Superior Court of New Jersey,
Ocean County, Chancery Division; it is further
ORDERED that this case be marked as CLOSED.

/s/ Freda L. Wolfson
Freda L. Wolfson
United States District Judge