Arnel Management Company v. McClifton Magee
8:17-cv-01917
C.D. Cal.Nov 2, 2017Background
- Plaintiff Arnel Management Co. sued McClifton Magee in California Superior Court in an unlawful detainer action.
- Defendant Magee filed a Notice of Removal to federal court asserting federal jurisdiction (citing Protecting Tenants at Foreclosure Act, 28 U.S.C. § 1334, and constitutional/federal defenses).
- The federal court reviewed the removal papers and state-court record sua sponte to assess subject-matter jurisdiction.
- The complaint asserted only state-law unlawful detainer claims and did not plead any federal question or federal right that the state court would refuse to enforce.
- The court found no basis for federal-question jurisdiction, no valid § 1443 civil-rights removal showing, and no diversity jurisdiction or sufficient amount-in-controversy.
- The court remanded the case to the Orange County Superior Court for lack of subject-matter jurisdiction.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether federal-question jurisdiction exists under 28 U.S.C. § 1331 | Complaint raises only state-law claims (no federal question) | Federal defenses or anticipated federal issues (including PTFA) create federal jurisdiction | Held: No — federal jurisdiction depends on plaintiff's complaint, not defendant's defenses; PTFA inapplicable and expired |
| Whether removal under 28 U.S.C. § 1443 is proper | State court will enforce federal civil rights; removal unnecessary | Removal available because defendant's federal civil-rights claims will be denied in state court | Held: No — defendant failed to show state courts would deny enforcement or that statutory criteria are met |
| Whether bankruptcy jurisdiction under 28 U.S.C. § 1334 applies | N/A (plaintiff's claim not based on Title 11) | Removal asserted § 1334 jurisdiction | Held: No — underlying unlawful detainer does not arise under Title 11 |
| Whether diversity jurisdiction exists under 28 U.S.C. § 1332 | Complaint does not allege > $75,000; plaintiff and defendant are California citizens | Defendant contends amount-in-controversy satisfied and diversity exists | Held: No — parties not completely diverse and amount-in-controversy not plausibly met; case not removable on diversity grounds |
Key Cases Cited
- Syngenta Crop Prot., Inc. v. Henson, 537 U.S. 28 (federal removal is statutory and strictly construed)
- Great Northern Ry. Co. v. Alexander, 246 U.S. 276 (suit begun in state court remains there absent federal removal statute)
- Franchise Tax Bd. v. Construction Laborers Vacation Trust, 463 U.S. 1 (federal defense does not create federal-question jurisdiction)
- Dart Cherokee Basin Operating Co. v. Owens, 135 S. Ct. 547 (plaintiff’s complaint controls amount-in-controversy showing for removal)
- Gaus v. Miles, Inc., 980 F.2d 564 (burden on removing party to establish federal jurisdiction)
- Abrego Abrego v. Dow Chemical Co., 443 F.3d 676 (removing defendant bears burden to show jurisdiction)
- ARCO Environmental Remediation, L.L.C. v. Department of Health and Environmental Quality, 213 F.3d 1108 (federal jurisdiction depends on plaintiff’s claims, not anticipated defenses)
- Berg v. Leason, 32 F.3d 422 (affirmative federal defense does not render state claim removable)
- Kelton Arms Condo. Owners Ass’n v. Homestead Ins. Co., 346 F.3d 1190 (subject-matter jurisdiction cannot be waived; court must remand if lacking)
- Patel v. Del Taco, Inc., 446 F.3d 996 (requirements for removal under § 1443 demand specific showing)
- Bogart v. California, 355 F.2d 377 (conclusory statements insufficient for § 1443 removal)
- City of Greenwood v. Peacock, 384 U.S. 808 (§ 1443(2) limited to federal officers and similar actors)
