Best v. Rebeyee

Background

Michael Best filed this action without a lawyer and was permitted to proceed without paying the filing fee in advance. He alleged that Roy Rebeyev, identified as the president of College Diamond Fund, Inc. (CDF), caused Best to lose an ownership interest in property at 1023 College Avenue in the Bronx. Best alleged that he owned 11% of the property, that Rebeyev refused to work with him to obtain a home-equity loan during an extension granted by a state court, and that the property was sold at public auction on February 3, 2025. Best sought $88,000, which he described as 11% of the property’s claimed $800,000 value.

The court discussed Best’s earlier related federal case involving the same property without repeating that proceeding’s party caption. In that earlier round, Best had stated in court documents that he owned a 1% interest in the property. CDF had also stated that a tax-foreclosure action was pending in Bronx County Supreme Court, and, after the sale, CDF moved in that state proceeding for distribution of the sale proceeds.

Reasons for dismissal

The court dismissed the complaint for lack of subject-matter jurisdiction, meaning the federal court lacked legal authority to decide the dispute.

First, the court found no federal-question jurisdiction. Best’s allegations concerned his claimed interest in the property, and the court concluded that this claim did not arise under the Constitution, federal laws, or treaties. Merely invoking federal jurisdiction was insufficient.

Second, the court found that the allegations did not establish diversity jurisdiction. Diversity jurisdiction generally requires the parties to be citizens of different states and requires more than $75,000 to be in dispute. Even assuming Best could state a claim against Rebeyev, the court found that the amount in controversy did not appear to exceed $75,000 because Best had previously described his interest as 1%, which would amount to $8,000 of the property’s estimated $800,000 value.

Third, the court held that, even if the amount requirement were satisfied, it would refrain from taking jurisdiction under the Younger doctrine. This doctrine generally limits federal court intervention in certain ongoing state proceedings. The court found that the pending Bronx County foreclosure matter involved the state court’s authority to determine how the property-sale proceeds should be distributed. Best had not alleged bad faith, harassment, or immediate and serious irreparable injury, and had not alleged that he had filed submissions in the state proceeding asserting a right to part of the distribution.

Disposition

The court dismissed the action for lack of subject-matter jurisdiction under Federal Rule of Civil Procedure 12(h)(3). The dismissal was without prejudice to Best pursuing the requested relief in the state courts, including the Bronx County Supreme Court foreclosure proceeding. The court denied leave to amend, finding that the jurisdictional defect could not be cured by amendment, and directed the Clerk of Court to enter judgment.