Banco Popular de Puerto Rico v. Ramírez

280 F. Supp. 3d 316
CourtDistrict Court, D. Puerto Rico
DecidedNovember 22, 2017
DocketCIVIL NO. 17-2183 (GAG)
StatusPublished
Cited by5 cases

This text of 280 F. Supp. 3d 316 (Banco Popular de Puerto Rico v. Ramírez) is published on Counsel Stack Legal Research, covering District Court, D. Puerto Rico primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Banco Popular de Puerto Rico v. Ramírez, 280 F. Supp. 3d 316 (prd 2017).

Opinion

OPINION AND ORDER

GUSTAVO A. GELPI, United States District Judge

Plaintiff Banco Popular de Puerto Rico sued in state court initiating foreclosure proceedings against Roberto Pérez Ra-mírez, Clarivette Castro Narvaez, and the Conjugal Partnership constituted between them in state court on August 4, 2015, (Docket No. 17-1). Defendants were served on September 21, 20151 (Docket No, 17 at 2). The state court entered judgment in favor of Plaintiff, Defendants appealed, and.while the appeal was pending before the state court of .appeals, Defendants filed a motion for stay. On August 9, 2017, the state court denied the motion for stay, and on September 5, 2017, Defendants removed this case to this Court. (Docket No. 7-1). In response, Plaintiff filed a motion to remand. (Docket No. 17). Because Plaintiffs action does not raise a federal question of law, and even if it did, Defendants failed to file the notice of removal within thirty days of service, Plaintiffs motion to remand is GRANTED and the case is REMANDED to state court.

I. Discussion

To remove a case from state court to federal court, the defendant must file a notice of removal, including the basis for federal court’s subject matter jurisdiction — normally either by way of diversity or federal question jurisdiction — within thirty days of receipt of a copy of the initial pleadings. See 28 U.S.C. §§ 1441(a), 1446(b); City of Chicago v. Int’l Coll. of Surgeons, 522 U.S. 156, 163, 118 S.Ct. 523, 139 L.Ed.2d 525 (1997). If the case is not initially removable, notice of removal may also be filed thirty days after' a defendant receives notice that the case is one which may be removed. See 28 U.S.C. § 1446(b)(3). This exception, however, only allows “removal later in the case if it was not removable as originally filed, but becomes removable due to an amendment or for other reasons .... If the case was removable originally, and the defendant failed to remove it within thirty days, [the defendant] has lost the option of federal court.” Joseph W. Glannon, the Glannon Guide To Civil Procedube53 (2003) (emphasis in original).

Defendants assert that the Court’s subject matter jurisdiction stems from a federal question at the heart of the suit. (Docket No. 7-1 at 1-2). Specifically, Defendants contend that Plaintiff failed to comply with the Truth in Lending Act (TILA), the Real Estate Settlement Procedures Act (RE SPA), the Home Mortgage Disclosure Act (HDMA), and the Home Ownership and Equity Protection Act (HOEPA), among others. Id at 2. Furthermore, they assert that the case became removable when the state court denied their motion for stay on August 9, 2017— not when they were served in 2015. Id. at 3.

.A. Subject Matter Jurisdiction

Four score and sixteen years ago, the Supreme Court brought forth the proposition1 that “where it appears from the [complaint] that the right to relief depends upon the construction or application of the Constitution or laws of the United States, and that such federal claim is not merely colorable, and rests upon a reasonable foundation, the District Court, has jurisdiction under this provision. Smith v. Kansas City Title & Tr. Co., 255 U.S. 180, 199, 41 S.Ct. 243, 65 L.Ed. 577 (1921). Simplifiéd, “[a] federal question exists when the action is one ‘arising under the Constitution, laws, or treaties of the United States.”’ López-Muñoz v. Triple-S Salud, Inc., 754 F.3d 1, 4 (1st Cir. 2014) (citations omitted). The federal question must be stated “on the face of the plaintiffs well-pleaded complaint.” Id. (citing R.I. Fishermen's All., Inc. v. R.I. Dep’t Of Envtl. Mgmt., 585 F.3d 42, 48 (1st Cir. 2009)). Thus, “the court is tó look- only to plaintiffs complaint to find the answer.” Rosselló-González v. Calderón-Serra, 398 F.3d 1, 10 (1st Cir. 2004) (quoting Hernández-Agosto v. Romero-Barceló, 748 F.2d 1, 2 (1st Cir. 1984)). The Court cannot look at a defense that raises a federal question, for it is “inadequate to confer federal jurisdiction.”, Merrell Dow Pharmaceuticals Inc. v. Thompson, 478 U.S. 804, 808, 106 S.Ct. 3229, 92 L.Ed.2d 650 (1986).

Nevertheless, there are exceptions to the principle that the plaintiff is the master of its claim. The Supreme Court has held that “a case may arise under federal law ‘where the vindication of a right under state law necessarily turned on some construction of federal law.’” Id. However, “this. statement must be read with qaution.” Id. at 809, 814, 106 S.Ct. 3229 (providing a four factor analysis and holding that “the presence of a federal issue as an element of a state tort is not the kind of adjudication for which jurisdiction would serve congressional purposes and the federal system.”). The First Circuit has further explained that “cases sometimes arise under federal law when an interpretation of federal law is outcome-determinative.” PCS 2000 LP. v. Romulus Telecommunications, Inc., 148 F.3d 32, 35 (1st Cir. 1998) (citing Smith v. Kansas City Title & Trust Co., 255 U.S. 180, 199, 41 S.Ct. 243, 65 L.Ed. 577 (1921)) (finding it “too tenuous” to confer federal-question jurisdiction when “Communications Act confers no private right of action and plaintiffs complaint only advances non-federal claim”). In these cases, a court may “peer beneath the local-law veneer of a plaintiff s'complaint in order" to glean the true nature of the claims presented.” López-Muñoz, 754 F.3d at 5. “When such a glimpse reveals that a federal statute entirely displaces the local-law causes of action pleaded in the complaint, a hidden core of federal law sufficient to support federal jurisdiction emerges.” Id. This is “a narrow exception” that‘hinges on whether Congress “intended that federal law provide the'exclusive cause of action for the claims asserted by the plaintiff.” Id. (citing Beneficial Nat’l Bank v. Anderson, 539 U.S. 1, 8, 123 S.Ct. 2058, 156 L.Ed.2d 1 (2003)).

Here, Plaintiff did not state a federal question in its complaint, much less a federal issue. Unlike in Merrell Dow, where the plaintiff cited violation of a federal statute as proof of negligence in a state action, here Plaintiff alleges no violations of federal law. Although Defendants allege in their notice of removal that Plaintiff violated federal laws related to foreclosure actions, this is “inadequate to confer federal jurisdiction.” Merrell Dow, 478 U.S. at 808, 106 S.Ct. 3229. The Court must only consider the causes of action in Plaintiffs complaint. Furthermore, the “narrow exception” to the well-plead complaint standard does not apply here.

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Bluebook (online)
280 F. Supp. 3d 316, Counsel Stack Legal Research, https://law.counselstack.com/opinion/banco-popular-de-puerto-rico-v-ramirez-prd-2017.