Glover v. Midland Mortgage Co. of Oklahoma, Inc.

228 B.R. 293, 1998 U.S. Dist. LEXIS 19584, 1998 WL 887138
CourtDistrict Court, N.D. Alabama
DecidedDecember 7, 1998
DocketCV 98-BU-1211-S
StatusPublished
Cited by5 cases

This text of 228 B.R. 293 (Glover v. Midland Mortgage Co. of Oklahoma, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Glover v. Midland Mortgage Co. of Oklahoma, Inc., 228 B.R. 293, 1998 U.S. Dist. LEXIS 19584, 1998 WL 887138 (N.D. Ala. 1998).

Opinion

Memorandum Opinion

BUTTRAM, District Judge.

Under 28 U.S.C. § 1447(a), the district court may “at any time prior to final judgment” remand a case to state court if “it appears that the district court lacks subject matter jurisdiction.” The court also notes that it is free, at any time during the proceedings of a case to evaluate its subject matter jurisdiction. Federal Rule of Civil Procedure 12(h)(3). 1 Upon reviewing the file, the court determines that jurisdiction is lacking and the matter will be REMANDED to the Circuit Court of Jefferson County, Alabama. 2

The district court earlier concluded that remand was inappropriate because the plaintiff satisfied the amount in controversy requirement of the diversity jurisdiction statute 28 U.S.C. § 1332(a). Upon reconsideration, this court reaches a different conclusion. The court also concludes that although there may exist bankruptcy jurisdiction over the instant case, the case should be equitably remanded to the state court.

*295 In resolving the issues pertaining to removal and remand, the court first notes certain precepts that are well-established in this circuit:

... On a motion to remand, the removing party bears the burden of establishing jurisdiction. See Tapscott v. MS Dealer Serv. Corp., 77 F.3d 1353, 1356 (11th Cir.1996). The removal statute should be construed narrowly with doubt construed against removal. See Shamrock Oil & Gas Corp. v. Sheets, 313 U.S. 100, 107-09, 61 S.Ct. 868, 85 L.Ed. 1214 (1941).

Diaz v. Sheppard, 85 F.3d 1502, 1505 (11th Cir.1996). 3

Facts

The named plaintiff in the instant case asserts the existence of a purported nationwide class action against the defendant Midland Mortgage Company of Oklahoma, Inc. (“Midland”). According to Glover, Midland, a servicer of home mortgages, charges borrowers in default on their loan payments monthly “property inspection fees,” which, he alleges, are not permitted by applicable loan documents and are not necessary for Midland to protect its security interest in the borrowers’ real property.

On January 23, 1997, the plaintiff filed a bankruptcy petition under Chapter 13 of the Bankruptcy Code in the United States Bankruptcy Court for the Northern District of Alabama. During proceedings in that court, Midland filed a proof of claim that included the property inspection fees that are the subject of the instant suit. The plaintiff included the property inspection fees among the claims that he would repay under his Chapter 13 plan.

Contentions & Analysis

Two bases for removal were originally proposed by the defendant in the instant action. First, the defendant contended that removal was proper under 28 U.S.C. § 1441(a) & (b) because diversity jurisdiction exists pursuant to 28 U.S.C. § 1332. It was on this basis that the court earlier denied remand. The defendant also argued that removal was appropriate under the bankruptcy removal statute, 28 U.S.C. § 1452, because the instant ease is related to a bankruptcy action under 28 U.S.C. § 1334. 4 The district court did not address this argument.

Diveesity of Citizenship.

The general removal statute, 28 U.S.C. § 1441(a), permits a defendant to remove from state to federal court “any civil action brought in a State court of which the district courts of the United States have original jurisdiction.” In the instant case, it was determined that the court had original jurisdiction over the action based on diversity of citizenship. The requirements of diversity jurisdiction under 28 U.S.C. § 1332(a)(1) are, first, complete diversity of state or foreign citizenship between the plaintiffs and all defendants (see Strawbridge v. Curtiss, 7 U.S. (3 Cranch) 267, 2 L.Ed. 435 (1806) and Owen Equip. & Erection Co. v. Kroger, 437 U.S. 365, 373, 98 S.Ct. 2396, 57 L.Ed.2d 274 (1978)) and satisfaction of the present statutory amount in controversy requirement of over “$75,000.00, exclusive of interest and costs.” There is no issue here that diversity of citizenship exists between the parties;- the named plaintiff is an Alabama citizen and Midland is, apparently, a citizen of the State of Oklahoma. See Supreme Tribe of Ben-Hur v. Cauble, 255 U.S. 356, 364-65, 41 S.Ct. 338, 65 L.Ed. 673 (1921). Instead, the court focuses its attention on whether the amount in controversy requirement has been met.

The court based its earlier opinion that jurisdiction exists on the grounds that the named plaintiff sought, on behalf of the puta *296 tive class, injunctive relief that could be aggregated and that any class-wide attorneys’ fee award would be aggregate relief. For the following reasons, the court will depart from that earlier ruling.

AGGREGATION OF ATTORNEYS’ FEES.

The court earlier held it appropriate to aggregate any attorneys’ fees that might be awarded and to attribute the amount of those fees to each plaintiff. This conclusion extends the rationale of Tapscott v. MS Dealer Serv. Corp., 77 F.3d 1353 (11th Cir.1996), to the aggregation of attorneys’ fees to satisfy the amount in controversy requirement in cases involving class claims. This court is aware of a substantial difference of opinion on the issue of whether, and under what circumstances, an attorneys’ fee award creates a common and undivided right of a group of plaintiffs subject to aggregation. In explicating the rationale behind such an extension, the court will briefly review Twpscott and some of the history behind it.

In Oliver v. Alexander, 31 U.S. (6 Pet.) 143, 8 L.Ed.

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Cite This Page — Counsel Stack

Bluebook (online)
228 B.R. 293, 1998 U.S. Dist. LEXIS 19584, 1998 WL 887138, Counsel Stack Legal Research, https://law.counselstack.com/opinion/glover-v-midland-mortgage-co-of-oklahoma-inc-alnd-1998.