Greene v. Alara Homeowners Association Incorporated

District Court, D. Arizona·Decided July 16, 2025·No. 2:25-cv-02421·Unknown

Opinion

WO

Eric S Greene, II, et al., No. CV-25-02421-PHX-MTL

Plaintiffs, ORDER

v.

Alara Homeowners Association Incorporated, et al., Defendants. Before the Court is Plaintiff Eric S Greene’s (“Greene”) Complaint (Doc. 1), Application to Proceed Without Paying Fees or Costs (Doc. 3) (“Application”), and Motion for Preliminary Injunction (“Motion”) (Doc. 4). The Court will grant the Application but will dismiss Greene’s Complaint without prejudice. Greene’s Motion will be denied as moot. A party may file a lawsuit without paying the filing fee if the Court grants leave to proceed in forma pauperis (“IFP”). 28 U.S.C. § 1915.1 “An affidavit in support of an IFP application is sufficient where it alleges that the affiant cannot pay the court costs and still afford the necessities of life.” Escobedo v. Applebees, 787 F.3d 1226, 1234 (9th Cir. 2015) (citation omitted). To proceed IFP in the District of Arizona, plaintiffs must establish their inability to pay by filing an Application, which is an affidavit describing the applicant’s inability to pay costs and a complete statement of all income and assets. See LRCiv 3.3.

1 Section 1915 largely concerns prisoner litigation, but § 1915(e) applies to all IFP proceedings in the Ninth Circuit. Calhoun v. Stahl, 254 F.3d 845 (9th Cir. 2001). Greene’s Application shows that he does not have sufficient funds to pay the filing fee and still afford the necessities of life. (Doc. 3); Escobedo, 787 F.3d at 1234. The Court will grant his application to proceed IFP. The Court must screen complaints brought IFP. 28 U.S.C. § 1915(e)(2). The Court must dismiss the complaint if the action is frivolous or malicious, fails to state a claim on which relief may be granted, or seeks monetary relief against a defendant who is immune from such relief. Id. § 1915(e)(2)(B). The Court must also have jurisdiction to hear the complaint. Federal courts are courts of limited jurisdiction, possessing only the power authorized by Congress or the Constitution. Kokkonen v. Guardian Life Ins. Co. of Am., 511 U.S. 375, 377 (1994). Congress has determined that federal courts can hear only certain types of cases, and without such subject-matter jurisdiction, federal courts cannot entertain a lawsuit. Royal Canin U.S.A., Inc. v. Wullschleger, 604 U.S. 22, 26 (2025). Relevant here, Congress has granted federal courts authority to exercise subject matter jurisdiction over “all civil actions arising under the Constitution, laws, or treaties of the United States.” 28 U.S.C. § 1331; Gunn v. Minton, 568 U.S. 251, 257 (2013). A case arises under federal law when federal law creates the cause of action. Am. Well Works Co. v. Layne & Bowler Co., 241 U.S. 257, 260 (1916). If the facts of the well-pled complaint do not assert a federal question, subject matter jurisdiction is lacking. See id. Greene alleges that Defendants Alara Homeowners Association (“Alara HOA”) and Stratman Law Firm (“Stratman”) recorded a lien against him for failing to pay Alara HOA fees. (Doc. 1 at 4, 6.) Greene then “transferred ownership of the property into the ERIC GREENE II ESTATE/TRUST” in attempt to absolve himself of liability. (Id. at 4.) Defendants continued to pursue Greene himself for the Alara HOA fees, threatening to start foreclosure proceedings if Green refuses to pay. (Id. at 6.) Greene claims he asked for proof of the debt and “a copy of any contract or agreement showing that [Greene] personally owed the amount,” but that Defendants failed to provide it. (Id.) Greene seeks a preliminary injunction to stop Defendants “from initiating or continuing any enforcement or foreclosure proceedings” against his property or Greene personally. (Doc. 4 at 1.) Although not clear, Greene seems to claim that because he transferred ownership of his property to a trust in his name, he is no longer personally responsible for his HOA debts or his lien.2 The Court must first determine if it has jurisdiction. A case arises under federal law when federal law creates the cause of action. Am. Well Works, 241 U.S. at 260. Greene asserts federal claims under 15 U.S.C. § 1692, the Fair Debt Collection Practices Act (“FDCPA”), and constitutional violations arising under 42 U.S.C. § 1983. The Court will consider each in turn. A. The FDCPA The FDCPA regulates how debt collectors communicate with consumers. Obduskey v. McCarthy & Holthus LLP, 586 U.S. 466, 468 (2019). The FDCPA prevents debt collectors from using false, deceptive, or misleading representations when collecting debt, including a false representation that the collector is an attorney. 15 U.S.C. § 1692e(3). The consumer can also request that the debt collector validate the debt with the original creditor before collecting it. 15 U.S.C. § 1692g(b). With less-than-ideal clarity, Greene seemingly cites these provisions of the FDCPA to claim that Defendants falsely represented themselves as attorneys when attempting to collect the lien and failed to validate the debt when Greene requested it. (Doc. 1 at 6; Doc. 4 at 2-3.) But Greene has not pled any facts showing that he is entitled to relief: he simply cites these statutes and asserts that the Defendants violated the law. There are not enough facts on the face of the complaint to assert a federal question. Am. Well Works, 241 U.S. at 260. Without more, the Court does not have jurisdiction.3 2 As this is a state law question, the Court will not address the merits of this issue. 3 Greene attached similar conclusory facts and exhibits to his Motion. (See Doc. 4.) However, “[courts] consider only the facts alleged in the complaint and in any documents appended thereto.” Bernhardt v. County of Los Angeles, 279 F.3d 862, 867 (9th Cir. 2002). Because these facts are not in the complaint, the Court cannot consider them. B. 42 U.S.C. § 1983 An individual may sue “any person” who commits constitutional violations against the individual while the person was acting “under color” of state law. 42 U.S.C. § 1983. A person acts under color of state law when “exercising power possessed by virtue of state law.” Polk County v. Dodson, 454 U.S. 312, 317 (1981). Therefore, only claims against state actors and those working in tandem with state actors are eligible for relief under the statute. See id.; Lugar v. Edmondson Oil Co.,

Greene v. Alara Homeowners Association Incorporated, (D. Ariz. 2025).

Greene v. Alara Homeowners Association Incorporated (Greene v. Alara Homeowners Association Incorporated) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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