Shakti Hotels Inc v. Choudhry

Background

Shakti Hotels Inc. filed an unlawful-detainer case against Khurrumm Choudhry in Santa Clara County Superior Court. Choudhry removed the case to the U.S. District Court for the Northern District of California on July 18, 2023. The order does not state when Choudhry received the complaint or summons.

Jurisdiction and removal concerns

Federal district courts have limited jurisdiction, and the party seeking to remain in federal court must establish that jurisdiction exists. Choudhry asserted that federal-question jurisdiction existed because the unlawful-detainer case was driven by religious discrimination allegedly violating the Federal Fair Housing Act. The court explained that federal-question jurisdiction generally depends on the plaintiff’s properly pleaded complaint, not on a federal defense or counterclaim. The court found that the face of Shakti Hotels’ complaint did not show a federal issue and that there did not appear to be a substantial question of federal law in the complaint.

The court also identified a possible timing problem. Federal law generally requires a notice of removal to be filed within 30 days after the defendant receives the initial pleading. The removal notice did not specify when Choudhry received the complaint or summons, while the attached complaint showed a May 23, 2023 filing date. The court stated that this suggested the removal might not have been timely.

Order

The court ordered Choudhry to show cause by filing a written response no later than September 15, 2023, explaining why the case should not be remanded to state court for lack of federal subject-matter jurisdiction. The court cautioned that a later remand order could require payment of just costs and actual expenses, including attorney fees, caused by the removal. The opinion itself did not remand the case. The order was signed by United States Magistrate Judge Nathanael M. Cousins.