Sheree R Roberts v. Washington Mutual Bank, FA
2:17-cv-05837
C.D. Cal.Sep 22, 2017Background
- Pro se plaintiff Sheree R. Roberts filed a complaint on August 7, 2017 against multiple defendants including Washington Mutual, U.S. Bank (as trustee), Caliber Home Loans, Quality Loan Service Corp., and others.
- Plaintiff’s complaint does not assert any federal-question claims; jurisdiction was asserted based on diversity but the complaint lacks necessary citizenship allegations.
- Plaintiff alleges only Los Angeles County residency; she did not plead her state of domicile (required to establish individual citizenship for diversity).
- Plaintiff failed to identify, for corporate and bank defendants, the state(s) of incorporation, the principal place of business (or main office for national banks), or the main office locations for national banks.
- The Court sua sponte raised subject-matter jurisdiction concerns and ordered Plaintiff to show cause in writing why the case should not be dismissed for lack of jurisdiction.
- The Court set a deadline (September 28, 2017) for Plaintiff to provide: (1) main office locations for defendants identified as national banks, (2) state of incorporation and principal place of business for corporate or state-chartered bank defendants, and (3) Plaintiff’s state of domicile, warning that failure to respond would result in dismissal.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether federal subject-matter jurisdiction exists | Complaint asserts diversity but offers only residency and business activity in Los Angeles; no specific citizenship allegations | (Not argued in decision) Court requires defendants’ citizenship facts; absence negates showing of diversity | Court held Plaintiff failed to plead facts establishing diversity jurisdiction and must show cause or face dismissal |
| Adequacy of pleading corporate/bank citizenship | Plaintiff alleges defendants do business in Los Angeles but omits incorporation/principal place or main office for national banks | (Not argued) Corporate/bank citizenship must be pleaded: state of incorporation and principal place of business; national banks are citizens of state of main office | Court required Plaintiff to identify each defendant’s state of incorporation/principal place of business or main office for national banks |
| Adequacy of pleading individual citizenship | Plaintiff alleges only residency in Los Angeles County | (Not argued) Citizenship for individuals is domicile, not mere residency | Court held Plaintiff must plead her state of domicile to establish her citizenship for diversity purposes |
| Consequence of failing to cure jurisdictional defects | Plaintiff did not timely provide requisite jurisdictional facts in complaint | (Not argued) Failure to establish or adequately allege subject-matter jurisdiction requires dismissal | Court ordered Plaintiff to show cause and warned that failure to respond would result in dismissal |
Key Cases Cited
- Rains v. Criterion Sys., Inc., 80 F.3d 339 (9th Cir. 1996) (federal courts must determine their own jurisdiction even absent objection)
- Kokkonen v. Guardian Life Ins. Co. of Am., 511 U.S. 375 (U.S. 1994) (federal courts are courts of limited jurisdiction)
- Caterpillar Inc. v. Lewis, 519 U.S. 61 (U.S. 1996) (diversity jurisdiction requires complete diversity of citizenship)
- Hertz Corp. v. Friend, 559 U.S. 77 (U.S. 2010) (principal place of business is the corporation's nerve center)
- Rouse v. Wachovia Mortg., FSB, 747 F.3d 707 (9th Cir. 2014) (national banks are citizens only of the state where their main office is located)
- Wachovia Bank v. Schmidt, 546 U.S. 303 (U.S. 2006) (location of a national bank's main office is designated in its articles of association)
- Kanter v. Warner-Lambert Co., 265 F.3d 853 (9th Cir. 2001) (individual citizenship determined by domicile, not mere residence)
- Miss. Band of Choctaw Indians v. Holyfield, 490 U.S. 30 (U.S. 1989) (clarifying domicile concept for jurisdictional purposes)