Credit Management Association of California v. American Express Company et al

Filing 8

ORDER TO SHOW CAUSE RE: SUBJECT MATTER JURISDICTION by Judge Ronald S.W. Lew.It is ORDERED that Defendant AEC show cause why this case is removable to federal district court based on diversity of citizenship. Defendant AEChas no later than August 15, 2013, to respond, in writing, demonstrating why this case should not be remanded for lack of subject matter jurisdiction. Thematter will stand submitted upon the filing of the response or on the date the response is due, whichever occurs first. SEE ORDER FOR COMPLETE DETAILS. (jre)

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1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 CENTRAL DISTRICT OF CALIFORNIA 10 11 Credit Managers Association of California, DBA Credit 12 Managers Association, Assignee for the Benefit of 13 Creditors of Pandigital, Inc., 14 Plaintiff, 15 v. 16 American Express Co.; and Does 1 through 10, 17 inclusive, 18 19 20 Defendants. ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) CV 13-5342 RSWL (MRWx) ORDER TO SHOW CAUSE RE: SUBJECT MATTER JURISDICTION The Court is in receipt of Defendant American 21 Express Company’s (“AEC”) Notice of Removal, which 22 alleges diversity jurisdiction as the ground for 23 removing this Action to federal court [1]. 24 The removal statute, 28 U.S.C. § 1441, allows a 25 defendant to remove a case originally filed in state 26 court when the case presents a federal question or is 27 an action between citizens of different states and 28 involves an amount in controversy that exceeds $75,000. 1 1 See 28 U.S.C. §§ 1441(a), (b). See also 28 U.S.C. §§ 2 1331, 1332(a). 3 The Ninth Circuit “strictly construe[s] the removal 4 statute against removal jurisdiction,” and “[f]ederal 5 jurisdiction must be rejected if there is any doubt as 6 to the right of removal in the first instance.” Gaus 7 v. Miles, Inc., 980 F.2d 564, 566 (9th Cir. 1992) 8 (citing Boggs v. Lewis, 863 F.2d 662, 663 (9th Cir. 9 1988), Takeda v. Northwestern Nat’l Life Ins. Co., 765 10 F.2d 815, 818 (9th Cir. 1985), and Libhart v. Santa 11 Monica Dairy Co., 592 F.2d 1062, 1064 (9th Cir. 1979)). 12 “The ‘strong presumption’ against removal jurisdiction 13 means that the defendant always has the burden of 14 establishing that removal is proper.” Id. (citing 15 Nishimoto v. Federman-Bachrach & Assocs., 903 F.2d 709, 16 712 n. 3 (9th Cir. 1990), and Emich v. Touche Ross & 17 Co., 846 F.2d 1190, 1195 (9th Cir. 1988)). 18 “[J]urisdiction founded on [diversity] requires 19 that parties be in complete diversity and the amount in 20 controversy exceed $75,000.” Matheson v. Progressive 21 Specialty Ins. Co., 319 F.3d 1089, 1090 (9th Cir. 22 2003). 23 See 28 U.S.C. § 1332(a)(1). As the party invoking federal jurisdiction in this 24 case, Defendant AEC has the burden of establishing the 25 existence of subject matter jurisdiction. See Kokkonen 26 v. Guardian Life Ins. Co., 511 U.S. 375, 377 (1994); In 27 re Ford Motor Co., 264 F.3d 952, 957 (9th Cir. 2001); 28 Thompson v. McCombe, 99 F.3d 352, 353 (9th Cir. 1996). 2 1 The Notice of Removal alleges that removal is proper 2 based on diversity jurisdiction. Here, the Complaint 3 alleges that the amount in controversy is $74,000, 4 which is less than what is required for establishing 5 diversity jurisdiction. 6 See Compl. ¶ 6. Therefore, it is ORDERED that Defendant AEC show 7 cause why this case is removable to federal district 8 court based on diversity of citizenship. Defendant AEC 9 has no later than August 15, 2013, to respond, in 10 writing, demonstrating why this case should not be 11 remanded for lack of subject matter jurisdiction. The 12 matter will stand submitted upon the filing of the 13 response or on the date the response is due, whichever 14 occurs first. 15 16 IT IS SO ORDERED. 17 DATED: August 5, 2013 18 19 20 HONORABLE RONALD S.W. LEW Senior, U.S. District Court Judge 21 22 23 24 25 26 27 28 3

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