Lopez v. Grace Corporate Park, LLC

Background

Ricardo Jose Caldern Lopez, doing business as Starlight Consulting Services, appeared without a lawyer. He filed a notice attempting to remove two 2007 cases from the Civil Court of the City of New York, Small Claims Part, to the federal district court. The opinion identifies those matters as cases involving Grace Corp, Park LLC and 251 W. 36 St. Realty.

On January 31, 2023, the court ruled that, assuming the Small Claims cases were still pending, removal was improper because Lopez was not the defendant in those state-court matters. The court returned the action to Small Claims court. Lopez then moved for reconsideration, arguing that the return was improper under 28 U.S.C. § 1447(d).

Court’s reasoning

The court explained that orders returning removed cases to state court generally cannot be appealed or reconsidered. It also explained that a return based on a procedural defect must ordinarily occur within 30 days after the notice of removal. Because the court directed the Clerk to return this action 31 days after the notice of removal, the court held that review of the return order was permitted.

The court nevertheless denied reconsideration under 28 U.S.C. § 1441(a). That statute permits “the defendant or the defendants” to remove a case that falls within federal jurisdiction. Because Lopez was the plaintiff in the two state-court cases, he could not remove them to federal court. The court found no basis to change its order returning the action to Small Claims court.

Ruling and effect

Judge Laura Taylor Swain denied Lopez’s motion for reconsideration. The court terminated all other pending matters, directed the Clerk not to accept further submissions under the closed case number except papers directed to the Second Circuit, and certified that an appeal would not be taken in good faith. The court therefore denied permission to appeal without paying filing fees for that appeal.