Alexander by Alexander v. Goldome Credit Corp.

772 F. Supp. 1217, 1991 WL 163653
CourtDistrict Court, M.D. Alabama
DecidedJuly 10, 1991
DocketCiv. A. 91-H-380-E
StatusPublished
Cited by38 cases

This text of 772 F. Supp. 1217 (Alexander by Alexander v. Goldome Credit Corp.) is published on Counsel Stack Legal Research, covering District Court, M.D. Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Alexander by Alexander v. Goldome Credit Corp., 772 F. Supp. 1217, 1991 WL 163653 (M.D. Ala. 1991).

Opinion

MEMORANDUM OPINION AND ORDER

HOBBS, District Judge.

This cause comes before the Court on plaintiffs Jasper and Betty Alexander’s motion to remand. A hearing was held on this motion on June 5, 1991. Upon consideration of the motion, defendants’ responses thereto, the record, and for the reasons set out herein, the Court finds that plaintiffs’ motion is due to be granted.

I. BACKGROUND

Plaintiffs initiated this action in Tallapoosa County, Alabama circuit court on March 1, 1991 against defendants Goldome Credit Corporation (“Goldome”), C & J Construction Company (“C & J Construction”), and Morris Capsuto (“Capsuto”). 1 Plaintiffs’ complaints arise from an agreement they entered into on March 4, 1989 with C & J Construction for $7,555.82 worth of exteri- or home improvements on plaintiffs’ residence in Equality, Alabama. 2 To finance the improvements, plaintiffs executed a real estate mortgage on their home. Plain *1219 tiffs contend that the work was not performed to their satisfaction. As a result, plaintiffs refused to sign a certificate of completion. Plaintiffs contend that, notwithstanding the absence of such a certificate, defendant Goldome disbursed to C & J Construction the amount financed under the March 4, 1989 installment sales agreement and mortgage in violation of the Truth in Lending Act, 15 U.S.C. § 1601, et seq. Plaintiffs seek compensatory and punitive damages for fraud and breach of contract as well as rescission of the installment sales agreement and mortgage. The fraud and breach of contract claims are alleged against all three defendants while the Truth in Lending Act claim is directed against defendant Goldome only. Goldome filed a notice of removal on April 8, 1991, alleging that this Court has federal question jurisdiction in this case based on plaintiffs’ Truth in Lending Act claim. C & J Construction and Morris Capsuto did not join in the notice of removal. The notice of removal does not contain any explanation as to why Goldome’s codefendants did not join in removing the case.

II. REMOVAL

This case presents some interesting questions concerning the process of removal of a case from state to federal court on the basis of federal question jurisdiction. The Court must determine whether this case has been removed properly, and if so, pursuant to what statute. “A federal court presented with a motion to remand is limited solely to the question of its authority to hear the case pursuant to the removal statute.” 14A C. Wright, A. Miller, & E. Cooper, Federal Practice and Procedure § 3739, at 580 (2d ed. 1985). The right to remove a case from state to federal court is purely statutory. Regard for the independence of state governments requires federal courts to “scrupulously confine their own jurisdiction to the precise limits which the statute has defined.” Shamrock Oil Corp. v. Sheets, 313 U.S. 100, 109, 61 S.Ct. 868, 872, 85 L.Ed. 1214 (1941) (quoting Healy v. Ratta, 292 U.S. 263, 270, 54 S.Ct. 700, 703, 78 L.Ed. 1248 (1934)). The burden of establishing federal jurisdiction is upon the party or parties seeking removal, and the removal statute is strictly construed against removal jurisdiction. Em-rich v. Touche Ross & Co., 846 F.2d 1190, 1195 (9th Cir.1988).

A. 28 U.S.C. § 1441(a) & (b)

The first possible basis for removal that will be examined is contained in 28 U.S.C. § 1441(a) & (b). 3 Goldome expressly relies on § 1441(b) for removal in this case, alleging that the Court has federal question jurisdiction based on the Truth in Lending Act claim. Plaintiffs contend, however, that § 1441(b) is not a proper basis for removal in this case. The Court agrees, although not for the same reasons as those argued by plaintiffs.

Plaintiffs contend that, when federal question jurisdiction is the basis for removal, § 1441(b) only applies in those cases where there is one cause of action and that cause of action is federal in nature. Under plaintiffs’ interpretation of § 1441(b), federal question removal could be defeated in all cases simply through the joinder of a state law claim. This construction, however, completely ignores the Court’s ability to exercise pendent jurisdiction over related *1220 claims. 4 See United Mine Workers v. Gibbs, 383 U.S. 715, 86 S.Ct. 1130, 16 L.Ed.2d 218 (1966). See also Steinman, Removal, Remand, and Review in Pendent Claim and Pendent Party Cases, 41 Vand.L.Rev. 923, 932-33 (1988) (discussing and rejecting the argument that § 1441(c) is the exclusive statutory means of removing cases involving federal and nonfederal claims). Pendent claim jurisdiction is available in removed cases just as it is available in cases originally filed in federal court. See Carnegie-Mellon Univ. v. Cohill, 484 U.S. 343, 350-51, 108 S.Ct. 614, 618-19, 98 L.Ed.2d 720 (1988) (noting that, in a case removed under § 1441(a) where plaintiffs’ complaint stated a single federal claim and numerous state-law claims, “[t]he state-law claims fell within the jurisdiction of the District Court to which the action was removed because they derived from the same nucleus of operative fact as the federal claim”); Contemporary Serv. Corp. v. Universal City Studios, Inc., 655 F.Supp. 885, 892 (C.D.Cal.1987).

Plaintiffs also erroneously argue that removal is prohibited in this case because the Truth in Lending Act does not confer exclusive jurisdiction in the federal courts, but allows for concurrent jurisdiction with state courts. See 15 U.S.C. § 1640(e). In other words, plaintiffs contend that remand is called for because the state court is a competent court to hear the federal claim in this case and that is where plaintiffs have chosen to adjudicate their claim. Whether the federal court's jurisdiction over a removed claim is concurrent or exclusive, however, is irrelevant in a removal analysis. An overwhelming majority of courts supports the proposition that “a Congressional grant of concurrent jurisdiction in a statute does not imply that removal is prohibited.” 14A C. Wright, A. Miller, & E. Cooper, Federal Practice and Procedure, § 3729, at 495 (2d ed. 1985); see Dorsey v. City of Detroit,

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Bluebook (online)
772 F. Supp. 1217, 1991 WL 163653, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alexander-by-alexander-v-goldome-credit-corp-almd-1991.