Misson v. Robles

Background

The plaintiffs filed the action in federal court, asserting two federal claims: misappropriation under the Defend Trade Secrets Act and a claim under the Racketeer Influenced and Corrupt Organizations Act. They also asserted numerous state-law claims based on the defendants’ alleged scheme to defraud and extort money from them.

The court had previously granted the defendants’ motion to dismiss both federal claims under Rule 12(b)(6), which addresses whether a complaint adequately states a legal claim. The court gave the plaintiffs an opportunity to file an amended complaint by January 28, 2023, to correct the identified defects. It stated that it would not address the state-law claims until a federal claim was adequately alleged.

Motion and Analysis

The plaintiffs did not file an amended complaint. Instead, they filed a motion asking the court to remand all state-law claims to state court and stated that they had decided not to amend their federal claims. They alternatively asked the court to retain jurisdiction over the state-law claims.

The court denied the request for remand because the action had originally been filed in federal court, rather than removed from state court. The court also rejected the request to retain jurisdiction. It explained that the plaintiffs had not stated a viable federal claim and that the parties were not diverse, so there was no stated basis for federal subject-matter jurisdiction.

Disposition

The court held that it lacked subject-matter jurisdiction and that dismissal was required. It denied the plaintiffs’ motion to remand and dismissed the remaining claims without prejudice to refiling in state court. The Clerk’s Office was directed to close the case. Judge Alex Tse signed the order.