Demarest v. HSBC Bank USA, No. 17-56432 (9th Cir. 2019)
Annotate this CaseThe Ninth Circuit affirmed the district court's exercise of diversity jurisdiction over an action stemming from the foreclosure of plaintiff's property. The panel held that the Supreme Court's decision in Navarro Savings Ass'n v. Lee, 446 U.S. 458, 458 (1980), which held that a trustee is a real party to the controversy for purposes of diversity jurisdiction when he possesses certain customary powers to hold, manage, and dispose of assets for the benefit of others, was still controlling and the Supreme Court's decision in Americold Realty Trust v. ConAgra Foods, Inc., 136 S. Ct. 1012 (2016), did not upset the holding in Navarro or the panel's precedent. In this case, HSBC and the other defendants were not, like plaintiff, citizens of California and therefore there was complete diversity. Accordingly, the court properly exercised diversity jurisdiction.
Court Description: Diversity Jurisdiction The panel affirmed the district court’s exercise of diversity jurisdiction over an action stemming from the foreclosure of plaintiff’s property. Plaintiff’s mortgage loan was securitized and the deed of trust assigned to HSBC Bank USA N.A., as trustee for a trust. Defendants removed the action to federal court based on diversity jurisdiction. The panel held that the Supreme Court’s decision in Americold Realty Trust v. ConAgra Foods, Inc., 136 S. Ct. 1012 (2016), did not upset the holding in Navarro Ass’n v. Lee, 446 U.S. 458, 458 (1980) (holding that “a trustee is a real party to the controversy for purposes of diversity jurisdiction when he possesses certain customary powers to hold, manage, and dispose of assets for the benefit of others”), nor other precedent where, as here, HSBC—the
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