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Arnel Management Company v. McClifton Magee
8:17-cv-01917
C.D. Cal.
Nov 2, 2017
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Background

  • 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)
Read the full case

Case Details

Case Name: Arnel Management Company v. McClifton Magee
Court Name: District Court, C.D. California
Date Published: Nov 2, 2017
Docket Number: 8:17-cv-01917
Court Abbreviation: C.D. Cal.