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Amerihome Mortgage Company, LLC v. Mayra Salcedo
5:17-cv-01733
C.D. Cal.
Aug 30, 2017
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Background

  • 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)
Read the full case

Case Details

Case Name: Amerihome Mortgage Company, LLC v. Mayra Salcedo
Court Name: District Court, C.D. California
Date Published: Aug 30, 2017
Docket Number: 5:17-cv-01733
Court Abbreviation: C.D. Cal.