Mohanna v. OCWEN Loan Servicing, LLC

Background

The defendants removed the case from the Superior Court of California for the County of San Francisco to federal court. The plaintiff asserted a claim under the Rosenthal Act, which incorporates provisions of the Federal Fair Debt Collection Practices Act. The defendants also mentioned federal bankruptcy jurisdiction.

Jurisdictional analysis

The court held that the defendants did not carry their burden to establish diversity jurisdiction under 28 U.S.C. § 1332(a)(1). At least one defendant, Western Progressive Trustee, LLC, appeared to be a limited liability company. For such an entity, citizenship depends on the citizenship of its members, not merely on its place of incorporation or principal place of business. The defendants’ removal documents and opposition brief did not provide that information.

The court also held that the Rosenthal Act claim did not establish federal-question jurisdiction. Although the claim incorporated provisions of a federal debt-collection statute, the defendants did not identify a contested and substantial federal issue. The defendants also did not explain how the case arose under, arose in, or was related to a case under Title 11, the federal bankruptcy code, as required for bankruptcy jurisdiction.

Disposition

The court remanded the case to the Superior Court of California for the County of San Francisco. The defendants’ motion to dismiss and request for judicial notice were denied as moot. Judge Vince Chhabria did not decide the underlying claims.