Benita Arvizu v. Indymac Bank FSB et al
Filing
14
MINUTE ORDER IN CHAMBERS by Judge James V. Selna: Order Declining to Rule on MTC Financial Inc.'s MOTION to Dismiss 10 and Remanding Case to Orange County Superior Court. Case number 30-02011-00462678. Mailed certified copies to Orange County Superior with CV 103. Case Terminated. Made JS-6 (Attachments: # 1 CV 103) (twdb)
UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA
CIVIL MINUTES - GENERAL
Case No.
SA CV 11-1159-JVS(ANx)
Title
Benita Arvizu v. Indymac Bank, F.S.B., et al.
Present: The
Honorable
Date
September 30, 2011
James V. Selna
Karla J. Tunis
Not Present
Deputy Clerk
Court Reporter
Attorneys Present for Plaintiffs:
Attorneys Present for Defendants:
Not Present
Not Present
Proceedings:
(In Chambers)
Order Declining to Rule on MTC Financial, Inc.’s Motion to Dismiss
and Remanding Case to Orange County Superior Court
This case was removed to federal court on August 2, 2011. On August 26, 2011,
MTC Financial, Inc. dba Trustee Corps (“Trustee Corps”), filed a motion to dismiss
Plaintiff’s complaint, along with a request for judicial notice. (Doc. No. 10.) No
opposition was filed.
The Court does not reach the merits of Trustee Corps’ motion because no federal
questions remain and the Court declines to exercise supplemental jurisdiction over
Plaintiff’s remaining claims.
I.
Background
Plaintiff owned a home in Santa Ana, California, encumbered by a deed of trust in
favor of Defendant Indymac Bank (“Indymac”). (Compl. ¶ 10-11.) A notice of default
was recorded on March 9, 2009. (Id. ¶ 12.) After one or more substitutions of trustee
and assignments of deed of trust, a notice of trustee’s sale was recorded on November 4,
2009. (Id. ¶ 18.) The trustee’s deed upon sale was recorded on February 11, 2010. (Id. ¶
19.) Plaintiff alleges that Indymac and Trustee Corps constructively conspired to defraud
her of her property, utilizing forged documents recorded in the Orange County
Recorder’s office and sent through the U.S. Postal Service. (Id. ¶ 28.) Plaintiff’s
complaint brings causes of action for: (1) violation of California Civil Code § 2932.5
power of sale under assigned mortgage, (2) failure to comply with the statutory
requirements in a non-judicial foreclosure, (3) negligent misrepresentation, (4) violation
CV-90 (06/04)
CIVIL MINUTES - GENERAL
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UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA
CIVIL MINUTES - GENERAL
Case No.
SA CV 11-1159-JVS(ANx)
Title
Date
September 30, 2011
Benita Arvizu v. Indymac Bank, F.S.B., et al.
of California Civil Code § 2941.9, and (5) lack of standing as the real party of interest to
foreclose under California Code of Civil Procedure § 367.
After Plaintiff filed her complaint in state court, Trustee Corps demurred to the
complaint. On July 15, 2011, the Orange County Superior Court sustained the demurrer
without leave to amend as to Plaintiff’s first, fourth, and fifth causes of action. (RJN, Ex.
G.) The demurrer was also sustained as to the second and third causes of action, but
Plaintiff was granted ten days leave to amend. (Id.) On August 2, 2011, the FDIC, as
receiver for Indymac, removed the case to federal court. The Court dismissed the FDIC
on September 21, 2011. (Doc. No. 13.)
II.
Legal Standard
Removal of a case to federal court is governed by 28 U.S.C. § 1441. Under the
statute, a case may be removed only for matters over which federal courts have original
jurisdiction. For cases arising under federal law, removal is allowed without regard to
citizenship of the parties. 28 U.S.C. § 1441(b). Following removal, if the Court
dismisses all claims over which it has original jurisdiction, the Court may decline to
exercise supplemental jurisdiction over remaining state law claims. 28 U.S.C. §
1367(c)(3).
III.
Discussion
Under 12 U.S.C.A. § 1819(b)(2)(A), removal by the FDIC was proper because
whenever the FDIC is a party to a civil action, the matter is deemed to arise under the
laws of the United States. Thus, the Court has federal question jurisdiction. 28 U.S.C. §
1331.
Because the Court’s jurisdiction was premised on the presence of the FDIC as a
party, now that the FDIC has been dismissed, the case no longer arises under federal law.
All of Plaintiff’s claims are rooted in state law, and removal was not also sought on the
concurrent basis of diversity jurisdiction. Plaintiff’s complaint does not allege the
citizenship of each defendant, but all Defendants conduct business in California and there
is no showing that diversity jurisdiction exists. Because no issues of federal law remain,
CV-90 (06/04)
CIVIL MINUTES - GENERAL
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UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA
CIVIL MINUTES - GENERAL
Case No.
SA CV 11-1159-JVS(ANx)
Date
Title
September 30, 2011
Benita Arvizu v. Indymac Bank, F.S.B., et al.
the Court declines to exercise supplemental jurisdiction over Plaintiff’s state law claims.
The Court orders this matter remanded to the Orange County Superior Court.
Trustee Corps’ motion to dismiss is denied as moot.1
The Court finds that oral argument would not be helpful on this matter and vacates
the October 3, 2011 hearing. Fed. R. Civ. P. 78; Local Rule 7-15.
IT IS SO ORDERED.
0
Initials of Preparer
:
00
kjt
1
The Court notes that after Plaintiff missed her statecourt deadline to amend the second and third causes of action,
and shortly before the FDIC gave notice of the removal, Trustee
Corps previously filed a motion to dismiss in state court. (RJN,
Ex. H.) Because Plaintiff failed to amend her second and third
causes of action by July 25, 2011 (RJN, Ex. J), it appears that
dismissal is proper under Cal. Civ. P. Code § 581(f)(2).
However, the Court leaves this and any future determinations to
the Orange County Superior Court.
CV-90 (06/04)
CIVIL MINUTES - GENERAL
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