Amerihome Mortgage Company, LLC v. Mayra Salcedo
5:17-cv-01733
C.D. Cal.Aug 30, 2017Background
- Amerihome Mortgage Company filed an unlawful detainer action in Riverside County Superior Court seeking possession under California law.
- Defendants removed the action to federal court, asserting federal jurisdiction.
- The district court reviewed the Notice of Removal and state-court records sua sponte.
- The complaint contains only state-law unlawful detainer claims and does not allege federal causes of action.
- Removal defendants relied on asserted federal defenses and argued for diversity/amount-in-controversy, but the complaint alleges a limited civil action (under $25,000) and not complete diversity.
- The court determined subject-matter jurisdiction was lacking and ordered remand to state court.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether federal-question jurisdiction exists | Complaint raises only state-law claims; no federal question | Federal-law affirmative defenses give rise to federal question jurisdiction | No — federal defenses do not create federal-question jurisdiction; jurisdiction depends on plaintiff’s complaint |
| Whether diversity jurisdiction exists | Plaintiffs are California parties; complaint is limited civil action under $25,000 | Removal asserts diversity and amount in controversy met | No — not all parties are diverse and amount in controversy not plausibly > $75,000 |
| Whether removal was proper | State action should remain unless federal jurisdiction clearly exists | Removal was proper only if original federal jurisdiction established | Case remanded for lack of subject-matter jurisdiction |
| Whether court may raise jurisdiction sua sponte | N/A | N/A | Yes — court must remand if it lacks subject-matter jurisdiction and may raise it sua sponte |
Key Cases Cited
- Syngenta Crop Prot., Inc. v. Henson, 537 U.S. 28 (federal removal is statutory and strictly construed)
- Great N. R.R. Co. v. Alexander, 246 U.S. 276 (suit begun in state court remains there absent congressional authorization for removal)
- Nevada v. Bank of Am. Corp., 672 F.3d 661 (9th Cir.) (removal statutes construed narrowly)
- Gaus v. Miles, Inc., 980 F.2d 564 (9th Cir.) (burden on removing defendant to show federal jurisdiction)
- Abrego Abrego v. Dow Chem. Co., 443 F.3d 676 (9th Cir.) (removing party bears burden to establish jurisdiction)
- ARCO Envtl. Remediation, LLC v. Dep’t of Health & Envtl. Quality, 213 F.3d 1108 (9th Cir.) (federal jurisdiction depends on plaintiff’s claims, not anticipated defenses)
- Berg v. Leason, 32 F.3d 422 (9th Cir.) (federal-law affirmative defense does not render a state claim removable)
- Franchise Tax Bd. v. Constr. Laborers Vacation Trust, 463 U.S. 1 (defense-based federal-question removal improper even if defense is only real issue)
- Kelton Arms Condo. Owners Ass’n v. Homestead Ins. Co., 346 F.3d 1190 (9th Cir.) (subject-matter jurisdiction non-waivable; remand required if lacking)
- Emrich v. Touche Ross & Co., 846 F.2d 1190 (9th Cir.) (court may raise lack of jurisdiction at any time)
- Dart Cherokee Basin Operating Co. v. Owens, 574 U.S. 81 (removing party must plausibly show amount in controversy when challenged)
