Jagdishbhai and Hansaben Patel v. Del Taco, Inc.

446 F.3d 996, 2006 U.S. App. LEXIS 10882, 2006 WL 1148735
CourtCourt of Appeals for the Ninth Circuit
DecidedMay 2, 2006
Docket04-16208, 04-16604
StatusPublished
Cited by543 cases

This text of 446 F.3d 996 (Jagdishbhai and Hansaben Patel v. Del Taco, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Jagdishbhai and Hansaben Patel v. Del Taco, Inc., 446 F.3d 996, 2006 U.S. App. LEXIS 10882, 2006 WL 1148735 (9th Cir. 2006).

Opinion

HOLLAND, District Judge.

In this consolidated appeal, Jagdishbhai and Hansaben Patel (“the Patels”) seek review of two orders issued by the district court: 1) an order granting Del Taco’s motion to remand and awarding attorney’s fees and 2) an order staying the Patels’ federal claims and compelling arbitration of those claims. We dismiss the appeal from the remand order based on 28 U.S.C. § 1441 for lack of jurisdiction. We affirm as to the remand order based on 28 U.S.C. § 1443 and as to the award of attorney’s fees. We also dismiss the appeal from the order staying the federal claims and compelling arbitration of those claims for lack of jurisdiction.

Background

The Patels entered into a franchise agreement with Del Taco, Inc. under which the Patels were to operate a Del Taco restaurant in Hanford, California. The franchise agreement contained an ar *998 bitration clause that provided that “any controversy or claim arising out of or relating to this Agreement, whether such [a] controversy is one of law, fact or both, shall be submitted to arbitration” before the American Arbitration Association (“AAA”) in Orange County, California. In 2003, Del Taco accused the Patels of breaching the franchise agreement and initiated arbitration proceedings. Both Del Taco and the AAA served the Patels with a demand for arbitration. Although the Patels’ attorney was aware of the hearing, neither the Patels nor their attorney appeared at the arbitration hearing. The arbitrators issued an unanimous award in favor of Del Taco, terminating the franchise agreement and awarding Del Taco over $20,000 in damages.

On February 10, 2004, Del Taco filed a petition to confirm the arbitration award in Orange County Superior Court. Shortly thereafter, Del Taco filed a motion to confirm the award, and a hearing on the motion was set for March 9, 2004.

On March 5, 2004, the Patels filed a complaint in federal district court against Del Taco, alleging fraud and civil rights violations under 42 U.S.C. §§ 1981, 1983, and 1985(3). In the fourth claim for relief in their federal complaint, the Patels sought to remove to federal court Del Taco’s pending state court petition to confirm the arbitration award. In other words, they did not file a separate removal petition but rather joined their removal petition to their federal civil rights complaint. The Patels alleged that the state court arbitration petition was removable under 28 U.S.C. § 1443d). 1

Del Taco moved to remand the arbitration petition to state court. The district court granted the motion to remand and awarded Del Taco $9,767 in attorney’s fees. Del Taco then moved to stay the Patels’ federal action and to compel them to arbitrate their federal claims. The district court granted Del Taco’s motion to stay the Patels’ federal claims and to compel arbitration of those claims. This consolidated appeal followed.

Analysis

I. Motion to Remand

The district court determined that removal was not proper under either 28 U.S.C. § 1441 or § 1443(1). We lack jurisdiction to review the remand order based on § 1441. See 28 U.S.C. § 1447(d) (“order remanding a case to the State court from which it was removed is not renewable on appeal”). Accordingly, the Patels’ appeal from the remand order based on § 1441 is dismissed.

We do, however, have jurisdiction to review the remand order based on 28 U.S.C. § 1443(1). See 28 U.S.C. § 1447(d) (“order remanding a case to the State court from which it was removed pursuant to section 1443 of this title shall be reviewable by appeal”). “A district court’s decision to remand a removed case is ... reviewed de novo.” State of Neb. ex rel. Dep’t of Social Services v. Bentson, 146 F.3d 676, 678 (9th Cir.1998).

Any of the following civil actions or criminal prosecutions, commenced in a State court may be removed by the defendant to the district court of the United States for the district and division embracing the place wherein it is pending:
(1) Against any person who is denied or cannot enforce in the courts of such State a right under any law providing for the equal civil rights of citizens of the United States, or of all persons within the jurisdiction thereof.

A petition for removal under § 1443(1) must satisfy the two-part test *999 articulated by the Supreme Court in Georgia v. Rachel, 384 U.S. 780, 788-92, 794-804, 86 S.Ct. 1783, 16 L.Ed.2d 925 (1966) and City of Greenwood, Miss. v. Peacock, 384 U.S. 808, 824-28, 86 S.Ct. 1800, 16 L.Ed.2d 944 (1966). “First, the petitioners must assert, as a defense to the prosecution, rights that are given to them by explicit statutory enactment protecting equal racial civil rights.” California v. Sandoval, 434 F.2d 635, 636 (9th Cir.1970). “Second, petitioners must assert that the state courts will not enforce that right, and that allegation must be supported by reference to a state statute or a constitutional provision that purports to command the state courts to ignore the federal rights.” Id.

Assuming without deciding that the Patels’ petition for removal met the first prong of the § 1443(1) removal test, it did not meet the second prong. The Patels point to no formal expression of state law that prohibits them from enforcing their civil rights in state court nor do they point to anything that suggests that the state court would not enforce their civil rights in the state court proceedings. The arbitration petition was not removable pursuant to 28 U.S.C. § 1443(1), and the district court did not err in remanding it to state court.

II. Attorney’s Fees

The Patels also challenge the attorney’s fees awarded to Del Taco pursuant to 28 U.S.C.

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446 F.3d 996, 2006 U.S. App. LEXIS 10882, 2006 WL 1148735, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jagdishbhai-and-hansaben-patel-v-del-taco-inc-ca9-2006.