Park S. Neighborhood Corp. v. Vesta Mgmt. Corp.
Decision Date | 20 February 2015 |
Docket Number | Civil Action No. 14–1675 RBW |
Citation | 80 F.Supp.3d 192 |
Parties | Park Southern Neighborhood Corporation, Plaintiff, v. Vesta Management Corporation, et al., Defendants. |
Court | U.S. District Court — District of Columbia |
Sharon Diane Anderson, Law Offices of Sharon Anderson, Washington, DC, for Plaintiff.
Matthew D. Foster, Pepper Hamilton LLP, Chad Wayne Copeland, Thomas Louis Koger, Office of the Attorney General for the District of Columbia, Nicholas Alan Bush, DC Office of the Attorney General, Washington, DC, for Defendants.
This opinion resolves an order to show cause, issued by this Court on January 29, 2015, which required the parties to show cause why this case should not be remanded to the Superior Court of the District of Columbia (“Superior Court”) on the ground that the Court lacks subject-matter jurisdiction to entertain this matter. After careful consideration of the District of Columbia and the District of Columbia Department of Housing and Community Development's (collectively, “District”) response to the Court's order,1 as well as the parties' oral arguments and representations at the various status conferences conducted throughout this case,2 for the reasons discussed herein, the Court must remand the case back to the Superior Court because it lacks subject-matter jurisdiction.
On September 17, 2014, the plaintiff, Park Southern Neighborhood Corporation, a nonprofit entity, which represents that its “primary purpose is to make adequate housing available to poor and underprivileged residents of the Park Southern neighborhood of Washington, DC, and provide ancillary and supportive services to such residents,” filed this civil action in the Superior Court against defendant Vesta Management Corporation (“Vesta”), a “property management firm,” asserting that Vesta has unlawfully converted the plaintiff's real property and tortiously interfered with the plaintiff's contractual and business relationships with various third parties. Compl. ¶¶ 6, 7, 31–43; First Am. Compl. ¶¶ 6, 7, 32–44. The plaintiff also moved for a temporary restraining order and a preliminary injunction against Vesta. See, e.g., Removal Notice ¶ 4. While a hearing on the plaintiff's motion was already underway in the Superior Court, on October 7, 2014, Vesta removed the case to this Court on the basis of diversity jurisdiction. See id. ¶¶ 6–16; Docket Sheet (ECF No. 2) at 2–5.
After Vesta removed the case from the Superior Court, the plaintiff filed an amended complaint on November 2, 2014. See First Am. Compl. at 11. At a status hearing held on November 20, 2014, the Court expressed its concern that the plaintiff necessarily had to join the District to the matter before the Court could hold a hearing on the plaintiff's motion for preliminary relief.3 See November 20, 2014 Minute Entry. Thereafter, the plaintiff moved to join the District, see Joinder Mot. at 1,4 and the Court granted the motion, see January 15, 2015 Order at 1.
The second amended complaint was filed on January 15, 2015. See Second Am. Compl. at 14. On January 28, 2015, the Court held another status hearing, when, inter alia, it recognized that the joinder of the District had destroyed diversity jurisdiction, and thus it no longer had subject-matter jurisdiction over the case. See January 28, 2015 Minute Entry. The District took exception with the Court's position, whereupon the Court permitted the District to brief the issue.5 See January 29, 2015 Order at 1.
Pursuant to 28 U.S.C. §§ 1441, 1446 (2012), the defendants in a civil action in a state court may remove an action to a United States district court provided that the action could have originally been brought in the district court. Upon the timely filing of a notice of removal, the defendants “bear[ ] the burden of proving that jurisdiction exists in federal court.” Downey v. Ambassador Dev., LLC, 568 F.Supp.2d 28, 30 (D.D.C.2008). “If after removal the plaintiff seeks to join additional defendants whose joinder would destroy subject[-]matter jurisdiction, the [C]ourt may deny joinder, or permit joinder and remand the action to the State court.” 28 U.S.C. § 1447(e) ; see also id. § 1447(c) (); Republic of Venezuela v. Philip Morris Inc., 287 F.3d 192, 196 (D.C.Cir.2002) ( ).
Specifically, “the presence or absence of federal-question jurisdiction is governed by the ‘well-pleaded complaint rule,’ which provides that federal jurisdiction exists only when a federal question is presented on the face of the plaintiff's properly pleaded complaint.” Rivet v. Regions Bank of La., 522 U.S. 470, 475, 118 S.Ct. 921, 139 L.Ed.2d 912 (1998) (internal alteration and quotation marks omitted); see also Caterpillar, Inc. v. Williams, 482 U.S. 386, 392, 107 S.Ct. 2425, 96 L.Ed.2d 318 (1987) (same); Merrell Dow Pharms., Inc. v. Thompson, 478 U.S. 804, 809 n. 6, 106 S.Ct. 3229, 92 L.Ed.2d 650 (1986) (); Wis. Dep't of Corr. v. Schacht, 524 U.S. 381, 390, 118 S.Ct. 2047, 141 L.Ed.2d 364 (1998) . The “well-pleaded complaint rule” recognizes that the plaintiff is “master of the claim” and may rely exclusively on state law to avoid federal question jurisdiction. Caterpillar, 482 U.S. at 392, 107 S.Ct. 2425 ; see also Vaden v. Discover Bank, 556 U.S. 49, 60, 129 S.Ct. 1262, 173 L.Ed.2d 206 (2009) (“Under the longstanding well-pleaded complaint rule ... a suit ‘arises under’ federal law ‘only when the plaintiff's statement of his own cause of action shows that it is based upon [federal law].’ ” (quoting Louisville & Nashville R. Co. v. Mottley, 211 U.S. 149, 152, 29 S.Ct. 42, 53 L.Ed. 126 (1908) ); Grable & Sons Metal Prods., Inc. v. Darue Eng'g & Mfg., 545 U.S. 308, 312, 125 S.Ct. 2363, 162 L.Ed.2d 257 (2005) (). And “[c]ourts in [the District of Columbia] [C]ircuit have construed removal jurisdiction strictly, favoring remand where the propriety of removal is unclear.” Ballard v. District of Columbia, 813 F.Supp.2d 34, 38 (D.D.C.2011) ; see also Mizell v. SunTrust Bank, 26 F.Supp.3d 80, 84 (D.D.C.2014) ( ).
There is no dispute that the Court was divested of subject-matter jurisdiction on the basis of diversity when the plaintiff joined the District as a defendant in this case. See District Remand Resp. at 1 (); id. at 3 (). Nevertheless, the District insists that the second amended complaint sufficiently pleads a federal question.6 See id. at 3. This argument is meritless.
In the second amended complaint, the plaintiff has only alleged District of Columbia common law claims for unlawful conversion, tortious interference with business and contractual relationships, and civil conspiracy against the defendants. Second Am. Compl. ¶¶ 36–56. It has neither asserted a claim nor sought relief under the United States Constitution, a federal statute, or a United States treaty. See 28 U.S.C. § 1441(c)(1)(A) ( ). Therefore, under the “well-pleaded complaint rule,” as the “master” of its claims, the plaintiff has chosen to rely exclusively on state law to avoid federal-question jurisdiction.
Notwithstanding this straightforward application of the “well-pleaded complaint rule,” the District argues that the plaintiff “has at all times averred that it sues upon one or more constitutional violations.” District Remand Resp. at 3. In particular, the District “underst[ands]” the plaintiff “to [be] assert[ing] a claim for [the] taking of [its] property without just compensation in violation of the Fifth Amendment.” Id. But this is nothing more than speculation, see id. at 3 ( ), as the second amended complaint only mentions “constitutional violations” once in passing,7 see Second Am. Compl. at 1 (). Aside from this lone reference in the introductory paragraph of the second amended complaint, the plaintiff never identifies the “Fifth Amendment,” let alone alludes to the United States Constitution again in the complaint.8
This case is akin to Stein v. Am. Express Travel Related Servs., 813 F.Supp.2d 69 (D.D.C.2011). There, faced with a motion to remand the case back to the Superior Court, the Court entertained the argument that there was federal-question jurisdiction based on the complaint's “references to the Fourth Amendment.” Id. at...
To continue reading
Request your trial-
Organic Consumers Ass'n v. R.C. Bigelow, Inc.
...Inc. v. Williams, 482 U.S. 386, 392, 107 S.Ct. 2425, 96 L.Ed.2d 318 (1987) ); see also Park S. Neighborhood Corp. v. Vesta Mgmt. Corp., 80 F.Supp.3d 192, 194 (D.D.C. 2015) (Walton, J.) ("The ‘well-pleaded complaint rule’ recognizes that the plaintiff is ‘master of the claim’ and may rely ex......
-
RX Med. v. Melton
...2007); Thompson v. Bama Cos., Inc., 2006 WL 717477, at *8 (N.D. Okla. Mar. 20, 2006); Park S. Neighborhood Corp. v. Vesta Mgmt. Corp., 80 F.Supp.3d 192, 194 (D.D.C. 2015) (“The ‘well-pleaded complaint rule' recognizes that the plaintiff is ‘master of the claim' and may rely exclusively on s......