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Paul Singer v. Wells Fargo Bank, N.A.
8:12-cv-00801
C.D. Cal.
Jul 11, 2012
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Background

  • Singer v. Wells Fargo Bank, N.A. is before the court on Wells Fargo's motion to dismiss and Greenlee's motion to remand; proceedings include a prior order regarding jurisdiction remand.
  • Wells Fargo removed the case to this court based on complete diversity; Greenlee is a California citizen and Wells Fargo's principal place of business is California with a main office in South Dakota.
  • Controlling law governs national bank citizenship: 28 U.S.C. § 1348 states banks are citizens of states where located, with Schmidt addressing the meaning of located.
  • There is intra-court disagreement on whether Schmidt and American Surety are reconcilable; the court analyzes authority in the Ninth Circuit.
  • The court concludes Wells Fargo is a California citizen, so there is no diversity jurisdiction, and remand is appropriate; no federal question jurisdiction exists.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether Wells Fargo is a citizen of California for diversity Greenlee: principal place of business test makes Wells Fargo California citizen Wells Fargo: main office/state location determination sufficient; contends diversity exists No diversity; Wells Fargo is California citizen
Whether Schmidt and American Surety are reconcilable for citizenship American Surety confines Wells Fargo to principal place of business state Schmidt controls main office location; conflict resolved by reconciling authorities Schmidt and American Surety are reconcilable; American Surety remains binding authority
Whether federal question jurisdiction exists State-law claims predominate; no federal claims Removal to federal court premised on diversity only No federal question jurisdiction

Key Cases Cited

  • American Surety Co. v. Bank of California, 133 F.2d 160 (9th Cir. 1943) (bank citizenship limited to principal place of business)
  • Wachovia Bank v. Schmidt, 546 U.S. 303 (Supreme Court 2006) (national banks are citizens of the state of their main office)
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Case Details

Case Name: Paul Singer v. Wells Fargo Bank, N.A.
Court Name: District Court, C.D. California
Date Published: Jul 11, 2012
Docket Number: 8:12-cv-00801
Court Abbreviation: C.D. Cal.