Deutsche Bank National Trust Company v. Lee
3:18-cv-05256
| W.D. Wash. | May 15, 2018Background
- Deutsche Bank filed an unlawful detainer complaint in Pierce County Superior Court seeking possession of a Steilacoom, WA residence and accrued rent/charges (amount conceded to be well under $75,000).
- Defendant Judy K. Lee removed the case to federal court on March 29, 2018, asserting federal-question and diversity jurisdiction.
- Lee’s notice of removal alleged violations of the Washington Deeds of Trust Act and claimed the amount in controversy exceeded $75,000; she signed the notice from a Steilacoom, WA address.
- Deutsche Bank moved to remand; Lee did not oppose the motion.
- The district court evaluated subject-matter jurisdiction (federal question and diversity) and found neither basis satisfied.
- The court granted the motion and remanded the case to Pierce County Superior Court on May 15, 2018.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether federal-question jurisdiction exists | Complaint asserts only state-law unlawful detainer claim; federal question absent | Removal notice claimed federal issues (Deeds of Trust Act/RVW 61.24) | No federal-question jurisdiction; claim arises under Washington common law |
| Whether diversity jurisdiction exists | Plaintiff notes amount in controversy is below $75,000 and case filed in WA | Defendant alleged parties are diverse and amount exceeds $75,000 | No diversity: defendant is a Washington citizen and case was filed in Washington; §1441(b)(2) bars removal |
| Whether removal burden is met | Plaintiff argued removal statutes are strictly construed and defendant bears burden | Defendant did not respond to contest jurisdiction or meet burden | Defendant failed to establish federal jurisdiction; remand required |
| Appropriate remedy when jurisdiction lacking | Plaintiff sought remand to state court | Defendant sought federal adjudication via removal | Court remanded the action to Pierce County Superior Court |
Key Cases Cited
- Sparta Surgical Corp. v. National Ass'n of Securities Dealers, Inc., 159 F.3d 1209 (9th Cir. 1998) (removal requires original jurisdiction at time of removal)
- Harris v. Provident Life and Acc. Ins. Co., 26 F.3d 930 (9th Cir. 1994) (party invoking removal bears burden to establish federal jurisdiction)
- Libhart v. Santa Monica Dairy Co., 592 F.2d 1062 (9th Cir. 1979) (removal statutes strictly construed against removal)
- Spencer v. U.S. Dist. Court for N. Dist. of Ca., 393 F.3d 867 (9th Cir. 2004) (§1441(b)(2) prevents removal when a properly joined defendant is a citizen of the forum state)