St Paul's Mar Thoma Church v. Dade
Filing
6
Memorandum Opinion and Order: The court lacks subject matter jurisdiction over this action and sua sponte remands it to Justice of the Peace, Precinct 2, Place 2, Dallas County, Texas, from which it was removed. (Ordered by Judge Sam A Lindsay on 6/26/2014) (jrr)
IN THE UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF TEXAS
DALLAS DIVISION
ST. PAUL’S MAR THOMA CHURCH,
Plaintiff,
v.
DEIDRAH L. DADE AND
ALL OCCUPANTS,
Defendants.
§
§
§
§
§
§
§
§
§
§
Civil Action No. 3:14-CV-2081-L
MEMORANDUM OPINION AND ORDER
For the reasons herein explained, the court lacks subject matter jurisdiction over this action
and sua sponte remands the action to Justice of the Peace, Precinct 2, Place 2, Dallas County, Texas,
from which it was removed.
I.
Standard for Subject Matter Jurisdiction
Defendants removed this case based on diversity and the amount in controversy. A federal
court has subject matter jurisdiction over civil cases “arising under the Constitution, laws, or treaties
of the United States,” or over civil cases in which the amount in controversy exceeds $75,000,
exclusive of interest and costs, and in which diversity of citizenship exists between the parties. 28
U.S.C. §§ 1331, 1332. Federal courts are courts of limited jurisdiction and must have statutory or
constitutional power to adjudicate a claim. See Home Builders Ass’n of Miss., Inc. v. City of
Madison, 143 F.3d 1006, 1010 (5th Cir. 1998). Absent jurisdiction conferred by statute or the
Constitution, they lack the power to adjudicate claims and must dismiss an action if subject matter
jurisdiction is lacking. Id.; Stockman v. Federal Election Comm’n, 138 F.3d 144, 151 (5th Cir.
Memorandum Opinion and Order – Page 1
1998) (citing Veldhoen v. United States Coast Guard, 35 F.3d 222, 225 (5th Cir. 1994)). “[S]ubjectmatter jurisdiction cannot be created by waiver or consent.” Howery v. Allstate Ins. Co., 243 F.3d
912, 919 (5th Cir. 2001). A federal court has an independent duty, at any level of the proceedings,
to determine whether it properly has subject matter jurisdiction over a case. Ruhgras AG v.
Marathon Oil Co., 526 U.S. 574, 583 (1999) (“[S]ubject-matter delineations must be policed by the
courts on their own initiative even at the highest level.”); McDonal v. Abbott Labs., 408 F.3d 177,
182 n.5 (5th Cir. 2005) (“federal court may raise subject matter jurisdiction sua sponte”). As this
action was removed on the basis of diversity of citizenship and the amount in controversy, the court
turns to that issue.
Diversity of citizenship exists between the parties only if each plaintiff has a different
citizenship from each defendant. Getty Oil Corp. v. Insurance Co. of North America, 841 F.2d 1254,
1258 (5th Cir. 1988). Otherwise stated, 28 U.S.C. § 1332 requires complete diversity of citizenship;
that is, a district court cannot exercise jurisdiction if any plaintiff shares the same citizenship as any
defendant. See Corfield v. Dallas Glen Hills LP, 355 F.3d 853, 857 (5th Cir. 2003) (citation
omitted). “[T]he basis upon which jurisdiction depends must be alleged affirmatively and distinctly
and cannot be established argumentatively or by mere inference.” Getty, 841 F.2d at 1259 (citing
Illinois Cent. Gulf R.R. Co. v. Pargas, Inc., 706 F.2d 633, 636 n.2 (5th Cir. 1983)). Failure to allege
adequately the basis of diversity mandates remand or dismissal of the action. See Stafford v. Mobil
Oil Corp., 945 F.2d 803, 805 (5th Cir. 1991). A notice of removal “must allege diversity both at the
time of the filing of the suit in state court and at the time of removal.” In re Allstate Ins. Co., 8 F.3d
219, 221 (5th Cir. 1993) (quotation marks and citations omitted). Such failure, however, is a
procedural defect and may be cured by filing an amended notice. Id. n.4.
Memorandum Opinion and Order – Page 2
A natural person is considered a citizen of the state where that person is domiciled, that is,
where the person has a fixed residence with the intent to remain there indefinitely. See Freeman v.
Northwest Acceptance Corp., 754 F.2d 553, 555-56 (5th Cir. 1985). “‘Citizenship’ and ‘residency’
are not synonymous.” Parker v. Overman, 59 U.S. 137, 141 (1855). “For diversity purposes,
citizenship means domicile; mere residence in [a] [s]tate is not sufficient.” Preston v. Tenet
Healthsystem Mem’l Med. Ctr., Inc., 485 F.3d 793, 799 (5th Cir. 2007) (citation and quotation marks
omitted). “Domicile requires residence in [a] state and an intent to remain in the state.” Id. at 798
(citing Mississippi Band of Choctaw Indians v. Holyfield, 490 U.S. 30, 48 (1989)). A national bank,
for diversity purposes, “is a citizen of the State in which its main office, as set forth in its articles of
association, is located.” Wachovia Bank, N.A. v. Schmidt, 546 U.S. 303, 307 (2006).
For diversity purposes, the amount in controversy normally is determined by the amount
sought on the face of the plaintiff’s pleadings, so long as the plaintiff’s claim is made in good faith.
28 U.S.C. § 1446(c)(2); St. Paul Reinsurance Co. v. Greenberg, 134 F.3d 1250, 1253 (5th Cir.
1998); De Aguilar v. Boeing Co., 47 F.3d 1404, 1408 (5th Cir. 1995). Removal is thus proper if it
is “facially apparent” from the complaint that the claim or claims asserted exceed the jurisdictional
amount. Allen v. R & H Oil & Gas Co., 63 F.3d 1326, 1335 (5th Cir.), reh’g denied, 70 F.3d 26 (5th
Cir. 1995). In a removal case, when the complaint does not state a specific amount of damages, the
defendant must establish by a preponderance of the evidence that “the amount in controversy exceeds
the [$75,000] jurisdictional amount.” St. Paul Reinsurance, 134 F.3d at 1253. “The preponderance
burden forces the defendant to do more than point to a state law that might allow the plaintiff to
recover more than what is pled. The defendant must produce evidence that establishes that the actual
amount of the claim will exceed [the jurisdictional amount].” De Aguilar, 47 F.3d at 1412 (footnotes
Memorandum Opinion and Order – Page 3
omitted). The test to be used by the district court is “whether it is more likely than not that the
amount of the claim will exceed [the jurisdictional amount].” St. Paul Reinsurance, 134 F.3d at
1253 n.13. As the Fifth Circuit has stated, “[t]he district court must first examine the complaint to
determine whether it is ‘facially apparent’ that the claims exceed the jurisdictional amount. If it is
not thus apparent, the court may rely on ‘summary judgment-type’ evidence to ascertain the amount
in controversy.” Id. at 1253. If a defendant fails to establish the requisite jurisdictional amount, the
court must remand the case to state court. If a defendant establishes that the jurisdictional amount
has been met, remand is appropriate only if a plaintiff can establish “to a legal certainty” that his
recovery will not exceed the jurisdictional threshold. In re 1994 Exxon Chemical Fire, 558 F.3d
378, 388 (5th Cir. 2009).
Any doubts as to the propriety of the removal should be construed strictly in favor of remand.
Manguno v. Prudential Prop. & Cas. Ins. Co., 276 F.3d 720, 723 (5th Cir. 2002). “The burden of
establishing subject matter jurisdiction in federal court rests on the party seeking to invoke it.” St.
Paul Reinsurance, 134 F.3d at 1253 (footnote omitted). Accordingly, if a case is removed to federal
court, the defendant has the burden of establishing subject matter jurisdiction; if a case is initially
filed in federal court, the burden rests with the plaintiff to establish that the case “arises under”
federal law, or that diversity exists and that the amount in controversy exceeds the jurisdictional
threshold.
II.
Discussion
Defendants removed this action on June 6, 2014, in an attempt to stay the state court
proceedings in which Defendants were ordered removed from the property at issue. Defendants’
Notice of Removal states that Defendants are citizens of Texas and Plaintiff is a national bank and
Memorandum Opinion and Order – Page 4
citizen of Oklahoma. Defendants also allege that the amount in controversy is $76,100, which is the
fair market value of the property at issue.
Even assuming that there is complete diversity of citizenship, the court concludes that it lacks
jurisdiction because the amount in controversy requirement has not been satisfied. The amount in
controversy in this case is not the value of the property itself but instead the value of the right to
occupy or immediate possession of the property. See, e.g., Wells Fargo Bank NA v. Carson,
3:11-CV-00963-M(BF), 2012 WL 3454142, at *2 (N.D. Tex. July 23, 2012), report accepted by
2012 WL 3518029 (N.D. Tex. Aug. 15, 2012); Wells Fargo Bank, N.A. v. Santana, No. 3:10-CV923-B, 2010 WL 5313734, at *2 (N.D. Tex. Dec. 20, 2010); Wells Fargo Bank v. Jones, No. 3:10CV-758-L, 2010 WL 3304240, at *5 (N.D. Tex. Aug. 19, 2010); BAC Home Loans Servicing, LP
v. Pace, No. 3:10-CV-1038–K, 2010 WL 3447153, at *3 (N.D. Tex. Aug. 31, 2010). As Defendants
are tenants in sufferance under Chapter 24 of the Texas Property Code, the only question regarding
jurisdiction is the value of the right to immediate possession or occupancy of the property, not the
property’s fair market value. Thus, Defendants’ allegations regarding the market value of the
property are insufficient for purposes of satisfying the amount in controversy. Moreover, Defendants
do not allege that a federal question exists to support jurisdiction, and the court concludes that one
does not exist. Defendants have therefore failed to meet their burden of establishing subject matter
jurisdiction, and remand or dismissal of the action is mandated. See Stafford, 945 F.2d at 805.
III.
Conclusion
For the reasons explained, the court lacks subject matter jurisdiction over this action and sua
sponte remands it to Justice of the Peace, Precinct 2, Place 2, Dallas County, Texas, from which it
Memorandum Opinion and Order – Page 5
was removed. The clerk of the court shall effect the remand in accordance with the usual procedure.
It is so ordered this 26th day of June, 2014.
_________________________________
Sam A. Lindsay
United States District Judge
Memorandum Opinion and Order – Page 6
Disclaimer: Justia Dockets & Filings provides public litigation records from the federal appellate and district courts. These filings and docket sheets should not be considered findings of fact or liability, nor do they necessarily reflect the view of Justia.
Why Is My Information Online?