Avalon Morrison Park Apartments, LLC v. Master

Background

Avalon Morrison Park Apartments, LLC brought an unlawful-detainer case against Arthur Master and Dejan Kuzmanovic in Santa Clara County Superior Court. Master and Kuzmanovic removed the case to the U.S. District Court for the Northern District of California. The order required them to show cause—in other words, explain in writing—why the federal court should not return the case to state court for lack of federal subject-matter jurisdiction.

Jurisdiction

Federal courts have limited authority, and the party seeking to use federal jurisdiction bears the burden of showing that jurisdiction exists. The order considered two possible bases: federal-question jurisdiction and diversity jurisdiction.

The defendants’ removal notice asserted that the complaint raised a federal question because the federal CARES Act preempted California eviction law. The court observed, however, that the complaint’s sole claim was for unlawful detainer under state law and that the complaint did not appear to implicate a substantial federal-law question. The court also found that diversity jurisdiction had not been shown. Diversity jurisdiction requires complete diversity between the plaintiff and every defendant and an amount in controversy exceeding $75,000.

Order

Judge Nathanael M. Cousins ordered Master and Kuzmanovic to file a written response by January 18, 2022, explaining why the case should not be remanded to Santa Clara County Superior Court. The court stated that it must remand a removed case that lacks subject-matter jurisdiction and that a remand order may require payment of removal-related costs and actual expenses, including attorney fees. The court did not order remand at this stage; it stated that the case would be remanded if the defendants failed to respond on time.