Stroffe Investments, LLC v. Candice Houtz-Ratterree
5:22-cv-00895
C.D. Cal.Jun 1, 2022Background:
- Plaintiff Stroffe Investments, LLC filed an unlawful detainer action in Riverside County Superior Court.
- A defendant removed the action to federal court; the district court reviewed the notice of removal and state-court filings.
- Removing party invoked federal-question jurisdiction (based on asserted federal defenses), 28 U.S.C. § 1443 (civil-rights removal), 28 U.S.C. § 1334 (bankruptcy jurisdiction), and diversity/amount-in-controversy.
- The complaint alleges only state-law unlawful detainer claims and requests less than the federal amount-in-controversy thresholds for removal.
- The court found multiple defects: no federal-question jurisdiction, §1443 removal not satisfied, §1334 inapplicable, lack of diversity/amount, the removing party is a California citizen, and the removing party was not a named defendant in the state complaint.
- The District Court sua sponte remanded the case to Riverside County Superior Court for lack of subject-matter jurisdiction.
Issues:
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Federal-question jurisdiction under 28 U.S.C. § 1331 | Complaint asserts only state-law unlawful detainer claims | Federal defenses/affirmative defenses create federal-question jurisdiction | Denied — jurisdiction depends on plaintiff’s claim, not defenses; federal defenses do not make case removable |
| Removal under 28 U.S.C. § 1443 (civil-rights removal) | State courts enforce federal civil-rights laws | Removal appropriate because defendant claims federal civil-rights will be denied in state court | Denied — defendant failed to identify an explicit statutory federal right and show state courts would refuse enforcement |
| Bankruptcy jurisdiction under 28 U.S.C. § 1334 | Underlying action arises under Title 11 (as asserted by removing party) | Removal proper under bankruptcy jurisdiction | Denied — unlawful detainer does not arise under Title 11 |
| Diversity/amount-in-controversy and procedural defects | Removal satisfies diversity and amount requirements (as claimed) | Removing party asserts diversity or sufficient amount | Denied — parties are not completely diverse, amount-in-controversy not plausibly > $75,000 (case is limited civil action ≤ $25,000), removing party is a California citizen, and removing party was not a named defendant |
Key Cases Cited
- Syngenta Crop Prot., Inc. v. Henson, 537 U.S. 28 (U.S. 2002) (removal is statutory and must be shown by defendant)
- Great N. Ry. Co. v. Alexander, 246 U.S. 276 (U.S. 1918) (state suits remain unless Congress provides removal)
- Gaus v. Miles, Inc., 980 F.2d 564 (9th Cir. 1992) (burden on removing party; removal statutes strictly construed)
- Abrego Abrego v. Dow Chem. Co., 443 F.3d 676 (9th Cir. 2006) (removing defendant bears burden to establish federal jurisdiction)
- ARCO Env’t Remediation, L.L.C. v. Dep’t of Health & Env’t Quality, 213 F.3d 1108 (9th Cir. 2000) (jurisdiction depends on plaintiff’s claims, not anticipated defenses)
- Berg v. Leason, 32 F.3d 422 (9th Cir. 1994) (federal-law affirmative defense does not render a state action removable)
- Franchise Tax Bd. v. Constr. Laborers Vacation Tr., 463 U.S. 1 (U.S. 1983) (federal defenses cannot support removal)
- City of Greenwood v. Peacock, 384 U.S. 808 (U.S. 1966) (limitations on § 1443(2) removal for federal officers)
- Patel v. Del Taco, Inc., 446 F.3d 996 (9th Cir. 2006) (requirements for § 1443(1) removal and need to show state courts would deny federal rights)
- Dart Cherokee Basin Operating Co. v. Owens, 574 U.S. 81 (U.S. 2014) (plaintiff’s burden and standards for amount-in-controversy allegations in removal)
