Dugar v. U.S. Bank

CourtDistrict Court, N.D. Illinois
DecidedDecember 22, 2021
Docket1:21-cv-04052
StatusUnknown

This text of Dugar v. U.S. Bank (Dugar v. U.S. Bank) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dugar v. U.S. Bank, (N.D. Ill. 2021).

Opinion

UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION

OTTIS DUGAR AND DEMITRI DUGAR,

Plaintiffs, No. 21 CV 4052 v. Judge Manish S. Shah U.S. BANK NATIONAL ASSOCIATION,

Defendant.

MEMORANDUM OPINION AND ORDER

In February 2020, plaintiffs Ottis and Demitri Dugar visited a U.S. Bank in Oak Park, Illinois. Later that day, the Dugars were seized at gunpoint and arrested by police officers. But the Dugars, an older Black couple, had done nothing wrong. Rather, a (much younger) Black man had allegedly attempted to rob the bank on the same day as the Dugars’s visit. The Dugars say that bank employees gave police information based solely on the color of their skin, causing their arrest. Plaintiffs sued U.S. Bank in state court, and defendant removed the case to federal court. The Dugars bring claims under Illinois law for discrimination, false arrest, and negligent hiring, training, and supervision. Plaintiffs move to remand the case, while U.S. Bank seeks dismissal for failure to state a claim. For the reasons that follow, plaintiffs’ motion to remand is denied and defendant’s motion to dismiss is granted. I. Legal Standards A defendant may remove a case from state court when the case could originally have been filed in federal court. See Collier v. SP Plus Corp., 889 F.3d 894, 896 (7th Cir. 2018) (citing 28 U.S.C. § 1441(a)). The removing party bears the burden of establishing federal jurisdiction. See Betzner v. Boeing Co., 910 F.3d 1010, 1014 (7th Cir. 2018). Any “doubts regarding removal are resolved in favor of the plaintiff’s

choice of forum in state court.” Morris v. Nuzzo, 718 F.3d 660, 668 (7th Cir. 2013). A complaint must contain a short and plain statement that suggests a plausible right to relief. Fed. R. Civ. P. 8(a)(2); Ashcroft v. Iqbal, 556 U.S. 662, 677– 78 (2009). To survive a motion to dismiss under Rule 12(b)(6), a plaintiff must allege facts that “raise a right to relief above the speculative level.” Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 555 (2007). I accept all factual allegations as true and draw

all reasonable inferences in plaintiffs’ favor, but I disregard legal conclusions or “threadbare recitals” supported by only “conclusory statements.” Iqbal, 556 U.S. at 678. A plaintiff must provide “more than labels” or “a formulaic recitation of a cause of action’s elements,” Twombly, 550 U.S. at 555, and the complaint must “contain either direct or inferential allegations respecting all the material elements necessary to sustain recovery under some viable legal theory.” Id. at 562. II. Background

In February 2020, Ottis and Demitri Dugar went to a U.S. Bank in Oak Park, Illinois to make a financial transaction. [14] ¶ 6.1 Ottis, an 86-year-old Black man, and Demitri, a 67-year-old Black woman, visited the bank on the same day that a 30- to-40-year-old Black man tried to rob it. Id. ¶¶ 2–3, 7, 18. The Dugars had nothing to

1 Bracketed numbers refer to entries on the district court docket. Referenced page numbers are taken from the CM/ECF header placed at the top of filings. Facts are taken from the amended complaint, [14]. do with the attempted robbery, yet bank employees provided information to the police suggesting that they were involved. Id. ¶¶ 9–10, 17. As a result, police officers stopped, seized at gunpoint, arrested, and threatened the Dugars. Id. ¶¶ 21–23.

Both Dugars were at least 27 years older than the individual who attempted to rob the bank, and they did not match his description. Id. ¶¶ 19–20. They contend that U.S. Bank breached a duty not to discriminate against customers when its employees “provided false information to the police indicating that the [Dugars] were the alleged attempted bank robbers simply because of the color of their skin.” Id. ¶ 16. The complaint alleges that U.S. Bank failed to ensure that its employees were racially

sensitive and competent to work with—and not discriminate against—racially diverse customers. Id. ¶¶ 26–28, 33–35, 43–45. The Dugars filed suit in the Circuit Court of Cook County, bringing a negligence claim against U.S. Bank under Illinois law. U.S. Bank timely removed the case. After defendant filed a motion to dismiss, the Dugars amended their complaint as a matter of course, bringing claims against defendant under Illinois law for discrimination and false arrest (Count I), and for negligent hiring, training, and

supervision (Counts II–IV). Defendant again moves to dismiss. III. Analysis A. Motion to Remand The Dugars seek a remand to state court, arguing that this court lacks subject- matter jurisdiction. Because this case arises under state law, federal jurisdiction exists if the parties are citizens of different states and the amount in controversy exceeds $75,000. See 28 U.S.C. § 1332(a). All agree that the parties are diverse—the Dugars are Illinois citizens and U.S. Bank National Association is a Delaware corporation with its principal place of business in Minnesota. [9] ¶¶ 5–6; [10] ¶ 3; see

also Hertz Corp. v. Friend, 559 U.S. 77, 92–93 (2010). The Dugars argue, however, that the amount in controversy falls short of the jurisdictional threshold. When removal is based on diversity of citizenship, generally “the sum demanded in good faith in the initial pleading shall be deemed to be the amount in controversy.” 28 U.S.C. § 1446(c)(2). But “the notice of removal may assert the amount in controversy if the initial pleading seeks … a money judgment, but the

State practice … permits recovery of damages in excess of the amount demanded.” Id. § 1446(c)(2)(A)(ii). The bar is not high: “a defendant’s notice of removal need include only a plausible allegation that the amount in controversy exceeds the jurisdictional threshold.” Dart Cherokee Basin Operating Co., LLC v. Owens, 574 U.S. 81, 89 (2014); see also Blomberg v. Serv. Corp. Int’l, 639 F.3d 761, 763 (7th Cir. 2011) (removing party’s “good-faith estimate is acceptable if it is plausible and adequately supported by the evidence”). When a plaintiff contests the defendant’s amount-in-

controversy allegation, removal is proper “if the district court finds, by the preponderance of the evidence, that the amount in controversy” exceeds $75,000. 28 U.S.C. § 1446(c)(2)(B). The amount in controversy “is evaluated as of the time of removal.” Carroll v. Stryker Corp., 658 F.3d 675, 680–81 (7th Cir. 2011). Here, plaintiffs acknowledge that Cook County permits recovery of damages in excess of the amount demanded, see [10] ¶ 12, and the initial complaint sought “compensatory damages in excess of fifty thousand dollars ($50,000.00), punitive damages, and costs.” [9-1] ¶ 24. The amended (and original) notice of removal alleges that the amount in controversy exceeds $75,000 based on the initial complaint’s

prayer for relief and plaintiffs’ pre-suit settlement demand for a sum exceeding $75,000. [9] ¶¶ 10–12; [2] ¶¶ 10–12.

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