Catamount Properties 2018, LLC v. Selassie

District Court, D. Nevada·Decided December 16, 2024·No. 2:24-cv-01834·Unknown

Opinion

DISTRICT OF NEVADA Catamount Properties 2018, LLC, Case No. 2:24-cv-01834-CDS-NJK

Plaintiff Order Overruling Objection to Report and Recommendation, Adopting v. Recommendation, and Resolving Pending Motions Frasberg Selassie,

Defendant [ECF Nos. 1, 11, 12, 14, 20, 21, 25, 26, 28, 30, 31]

Defendant Frasberg Selassie1 removed this action from state court based on purported federal question jurisdiction arising out of his counterclaim of copyright infringement. See ECF No. 1-1 at 2. On November 26, 2024, United States Magistrate Judge Nancy J. Koppe issued a report and recommendation (R&R) that I dismiss this action for lack of subject matter jurisdiction because a defendant’s counterclaim asserting a violation of federal law cannot be used as a basis for federal question jurisdiction. R&R, ECF No. 28. Selassie filed an objection to the R&R the same day. ECF No. 30. Plaintiff Catamount Properties 2018, LLC filed a response to the objection on December 10, 2024. ECF No. 35. Also pending before the court are Selassie’s motion for a hearing, motion for sanctions, motion for summary judgment, and a renewed application to proceed in forma pauperis (ECF Nos. 14, 25, 26, 31) and Catamount Properties’ motion to remand and motion to declare Selassie a vexatious litigant (ECF Nos. 11, 12).2 For the reasons set forth herein, I overrule Selassie’s objections, adopt the R&R in full, and remand this action to state court. I also deny all remaining motions.

1 Selassie is also known as Mr. Clayton-M. Bernard-Ex. 2 These motions were originally docketed at ECF Nos. 7 and 8. However, corrected images were filed at ECF Nos. 11 and 12, which are now the operative motions. The court cites to the corrected images herein. I. Legal Standard A district court’s review of a magistrate judge’s report and recommendation is governed by 28 U.S.C. § 636. “A judge of the court shall make a de novo determination of those portions of the report or specified proposed findings or recommendations to which objection is made.” 28 U.S.C. § 636(b)(1)(C); see also United States v. Reyna-Tapia, 328 F.3d 1114, 1121 (9th Cir. 2003) (“The statute makes it clear that the district judge must review the magistrate judge’s findings and recommendations de novo if objection is made, but not otherwise.”). A magistrate judge’s order is “clearly erroneous” if the court has “a definite and firm conviction that a mistake has been committed.” United States v. U.S. Gypsum Co., 333 U.S. 364, 395 (1948); Burdick v. Comm’r, 979 F.2d 1369, 1370 (9th Cir. 1992). “An order is contrary to law when it fails to apply or misapplies relevant statutes, case law[,] or rules of procedure.” UnitedHealth Grp., Inc. v. United Healthcare, Inc., 2014 WL 4635882, at *1 (D. Nev. Sept. 16, 2014). The court may accept, reject, or modify, in whole or in part, the findings or recommendations made by the magistrate judge. 28 U.S.C. § 636(b)(1)(C); Fed. R. Civ. P. 72(b)(3); LR IB 3-2(b). II. Discussion A. Judge Koppe’s R&R is neither clearly erroneous nor contrary to the law. Judge Koppe issued a report and recommendation that I dismiss this action for lack of subject matter jurisdiction and for untimely removal. R&R, ECF No. 28 at 2–4. Although Selassie filed an objection to the R&R, he fails to cite any points and authorities demonstrating that the magistrate judge’s legal findings or conclusions are clearly erroneously or contrary to the law. Instead, he makes conclusory arguments related to his dismissed 2019 action, argues opposing counsel makes alleged misrepresentations to the court, and then submits for various requests for relief. See generally Obj., ECF No. 30. Even liberally construing the objections,3 I cannot exercise subject matter jurisdiction over this action because, as determined by Judge

3 Courts must liberally construe documents filed by pro se litigants and afford them the benefit of any doubt. Erickson v. Pardus, 551 U.S. 89, 94 (2007) (per curiam). Koppe, there is no federal question or diversity jurisdiction present on the face of the complaint. Counterclaims cannot give rise to federal question jurisdiction. Caterpillar, Inc., v. Williams, 482 U.S. 386, 392 (1987) (“the presence or absence of federal-question jurisdiction is governed by the ‘well-pleaded complaint’ rule which provides that federal jurisdiction exists only when a federal question is presented on the face of the plaintiff’s properly pleaded complaint”). Under 28 U.S.C. § 1331, a state court action can only be removed if it could have originally been brought in federal court. Id.; Duncan v. Stuetzle, 76 F.3d 1480, 1485 (9th Cir. 1996). Defenses and counterclaims are not considered in evaluating whether a federal question appears on the face of a plaintiff’s complaint. Vaden v. Discover Bank, 556 U.S. 49, 60 (2009) (federal question jurisdiction cannot “rest upon an actual or anticipated counterclaim.”) (emphasis added). Accordingly, Selassie’s objection is overruled. Because the court lack lacks subject matter jurisdiction over this action, it must be dismissed, see Fed. R. Civ. P. 12(h)(3), therefore I adopt Judge Koppe’s R&R in full, remand this action to Justice Court, and deny Selassie’s application for leave to proceed in forma pauperis. Because of this, I deny as moot4 Selassie’s remaining motions and Catamount Properties’ motion to remand. B. Plaintiff’s motion to declare Selassie a vexatious litigant is granted. On October 24, 2024, as part of its motion to remand, Catamount Properties filed a motion to declare Selassie a vexatious litigant. ECF No. 12 at 1–5; 6–10. Therein, Catamount Properties argues that granting their motion to remand this case to state court5 will be insufficient to stop Selassie from “filing inappropriate motions, requests, pleadings, and other documents in this case as well as other future cases,” and will effectively permit Selassie to “further harass [them].” Id. at 1. Catamount Properties asks this court to enter “an order

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