Born-Betts v. Passage

District Court, D. Arizona·Decided August 15, 2024·No. 2:23-cv-02061·Unknown

Opinion

WO

Iris Born-Betts, No. CV-23-02061-PHX-DJH

Plaintiff, ORDER

v.

Nicole Passage,

Defendant. Defendant Nicole Passage (“Defendant”) asks the Court to reconsider its decision to award attorneys’ fees to Plaintiff under 28 U.S.C. § 1447(c) for improper removal of this action to federal court. (Doc. 24). The Court allowed Plaintiff to file a response or a notice that she no longer intends to seek attorneys’ fees. (Doc. 25). Plaintiff filed a Response in opposition of Defendant’s Motion (Doc. 29) as well as a Motion for Attorneys’ Fees (Doc. 28), which is now fully briefed. (Docs. 31–32). I. Background This case arises from Defendant’s sale of a home to Plaintiff for $330,000.00. (Doc. 23 at 1). Plaintiff alleged in her Complaint that she learned of defects in her home that should have been disclosed to her prior to the sale. (Id.) On January 26, 2023, Plaintiff sued Defendant in state court, asserting several claims for relief under Arizona state law, including: breach of agreement to mediate, breach of contractual warranty, common law fraud, and consumer fraud. (Doc. 1-3 at ¶¶ 39, 46, 52, 65). Plaintiff seeks relief in the form of compensatory and punitive damages in an amount to be proven at trial as well as rescission of the contract, rescissory damages, costs, attorney’s fees, expert witness fees and pre & post judgment interest. (Doc. 1-3, ¶ 68). Defendant was served on April 11, 2023, and Plaintiff sought default judgment on May 29, 2023. (Doc. 23 at 4; Doc. 1 at ¶ 8). Defendant subsequently appeared and filed a motion to set aside default and a motion to dismiss. (Doc. 1 at ¶¶ 9–10). The state court granted the motion to set aside and told the parties it would review the motion to dismiss after the parties went to mediation. The mediation was unsuccessful. (Id. at ¶ 11). On September 15, 2023, Plaintiff moved for leave to amend her Complaint. (Id. at ¶ 15). Before the state court ruled on the motion for leave to amend or the motion to dismiss, on October 2, 2023, Defendant removed this case to federal court by invoking the Court’s diversity jurisdiction under 28 U.S.C. § 1332(a)(1). (Doc. 1). Plaintiff filed a Motion to Remand this case back to state court. (Doc. 15). The Court granted Plaintiff’s Motion to Remand because it found that Defendant’s Notice of Removal was untimely under 28 U.S.C. § 1446(b)(1) (requiring that a defendant desiring to remove a civil action from state court to federal court file their notice of removal “within 30 days after the receipt by the defendant, through service or otherwise, of a copy of the initial pleading setting forth the claim for relief upon which such action or proceeding is based”). (Doc. 23 at 6). In doing so, the Court concluded that Plaintiff’s January 26 Complaint, which sought recission damages relating to the sale contract, affirmatively revealed on its face the facts necessary to establish federal jurisdiction. (Id. at 5 (citing Rosen v. Chrysler Corp., 205 F.3d 918, 922 (6th Cir. 2000) (holding that the amount in controversy related to the recission of a contract is “the full contract price paid by [the] plaintiffs”)). The Court also concluded that Plaintiff was entitled to attorney’s fees associated with defending against Defendant’s removal under 28 U.S.C. § 1447. (Id. at 6). Under Section 1447, “[a]n order remanding the case may require payment of just costs and any actual expenses, including attorney fees, incurred as a result of the removal.” 28 U.S.C. § 1447(c). The Court found that, because Plaintiff’s original Complaint was facially removable, Defendant lacked an objectively reasonable basis for seeking to remove the case months after it was put on notice of its removability; therefore, fees were warranted under Section 1447(c). (Doc. 23 at 6 (citing Martin v. Franklin Cap. Corp., 546 U.S. 132, 141 (2005) (stating that “where the removing party lacked an objectively reasonable basis for seeking removal,” attorney’s fees are proper). After the Court remanded this case to state court, Defendant filed a Motion for Reconsideration as to the Court’s fee award only. (Doc. 24). The Court allowed Plaintiff to file a response to Defendant’s Motion (Doc. 25), which she has done (Doc. 29). She has also filed a separate Motion for Attorney Fees to substantiate the fees she seeks to collect. (Doc. 28). Now, the Court will address these Motions. II. Defendant’s Motion for Reconsideration Defendant asks the Court to reconsider its prior ruling granting Plaintiff attorneys’ fees under 28 U.S.C. 1447(c) for an improper removal. (Doc. 24 at 1). Defendant argues that the Court’s finding that “Plaintiff’s Complaint ‘was facially removable,’ such that Defendant subsequently ‘lacked an objectively reasonable basis for seeking to remove the case’ reflects a manifest error.” (Id.). Defendant asserts that Plaintiff’s Complaint failed to establish a valuation over $75,000.00. (See id). Defendant states that this is so for three reasons: “(1) Such an amount in controversy is controverted by Plaintiff’s tiering of the case for state-court purposes; (2) the Complaint on its face does not state a claim for rescission or plausibly support the demand for recissionary relief; and (3) the Complaint does not address the value, current or otherwise, of the property.” (Id.) Plaintiff, in response, argues that Defendant’s Motion for Reconsideration should be denied because it improperly advances new arguments that should have been raised in Defendant’s Response to Plaintiff’s Motion to Remand and because Defendant’s other remaining arguments recycle arguments already made and rejected by the Court. (Doc. 29 at 1). A. Legal Standard Motions for reconsideration should be granted only in rare circumstances. Carroll v. Nakatani, 342 F.3d 934, 945 (9th Cir. 2003). “Reconsideration is appropriate if the district court (1) is presented with newly discovered evidence, (2) committed clear error or the initial decision was manifestly unjust, or (3) if there is an intervening change in controlling law.” Sch. Dist. No. 1J, Multnomah Cnty., Or. v. ACandS, Inc., 5 F.3d 1255, 1263 (9th Cir. 1993). Indeed, Arizona Local Rule of Civil Procedure 7.2 (“LRCiv 7.2”) provides that “[t]he Court will ordinarily deny a motion for reconsideration of an Order absent a showing of manifest error or a showing of new facts or legal authority that could not have been brought to its attention earlier with reasonable diligence.” LRCiv 7.2(g)(1). The movant must specify “[a]ny new matters being brought to the Court’s attention for the first time and the reasons they were not presented earlier.” Id. This is because “[m]otions for [r]econsideration may not be used to raise arguments or present evidence for the first time when they could reasonably have been raised earlier in the litigation.” Kona Enterprises, Inc. v. Est. of Bishop, 229 F.3d 877, 890 (9th Cir. 2000); Marlyn Nutraceuticals, Inc. v. Mucos Pharma GmbH & Co.,

Born-Betts v. Passage, (D. Ariz. 2024).

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