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