Mansaray v. Credit Acceptance Corporation

CourtDistrict Court, District of Columbia
DecidedOctober 7, 2024
DocketCivil Action No. 2023-0144
StatusPublished

This text of Mansaray v. Credit Acceptance Corporation (Mansaray v. Credit Acceptance Corporation) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mansaray v. Credit Acceptance Corporation, (D.D.C. 2024).

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

ALIEU MANSARAY,

Plaintiff, Case No. 23-cv-144 (JMC)

v.

CREDIT ACCEPTANCE CORPORATION, et al.,

Defendants.

MEMORANDUM OPINION

Plaintiff Alieu Mansaray, proceeding pro se, bought a car from a Maryland dealership in

October 2018. ECF 1-1 ¶¶ 7–32; ECF 5 at 2.1 He signed a contract with the dealership to finance

the transaction; Defendant Credit Acceptance Corporation (Credit Acceptance) is the assignee of

that contract. ECF 1-1 ¶¶ 18–20; ECF 5 at 2, 4. The contract includes an arbitration clause. ECF 5

at 3–5. After Mansaray stopped making monthly payments on the contract, Credit Acceptance

retained Defendant Collections Transport Impound Towing, LLC (CTIT) to repossess the vehicle.

ECF 1-1 ¶¶ 30–31; ECF 5 at 5. Mansaray alleges that, on October 22, 2022, CTIT unlawfully

repossessed his car. ECF 1-1 ¶ 90.

Mansaray filed this action in the Superior Court of the District of Columbia, suing Credit

Acceptance, CTIT, and an unnamed CTIT tow truck driver for various claims arising from the

unlawful repossession. See ECF 1-1. Only Credit Acceptance has been served. See ECF 1 ¶¶ 10,

26–27; ECF 9 ¶¶ 25–45, 58, 60. Credit Acceptance removed the action to federal court, ECF 1,

1 Unless otherwise indicated, the formatting of citations has been modified throughout this opinion, for example, by omitting internal quotation marks, emphases, citations, and alterations and by altering capitalization. All pincites to documents filed on the docket in this case are to the automatically generated ECF Page ID number that appears at the top of each page.

1 and moved to compel arbitration, ECF 4. Mansaray opposes the motion to compel arbitration,

ECF 13, and moves to remand this action to D.C. Superior Court, ECF 9.

Because Credit Acceptance has not carried its burden to assure this Court of its subject

matter jurisdiction, see Novak v. Cap. Mgmt. & Dev. Corp., 452 F.3d 902, 906 (D.C. Cir. 2006),

the Court will GRANT Mansaray’s motion for remand to D.C. Superior Court, ECF 9.

I. LEGAL STANDARD

As noted, two motions are pending before this Court: Mansaray’s motion to remand for

lack of jurisdiction, ECF 9, and Credit Acceptance’s motion to compel arbitration, ECF 4. Because

jurisdiction is a threshold question, the Court must begin with the motion to remand. See Vaden v.

Discover Bank, 556 U.S. 49, 52 (2009) (“Section 4 of the Federal Arbitration Act . . . authorizes a

United States district court to entertain a petition to compel arbitration if the court would have

jurisdiction, ‘save for [the arbitration] agreement,’ over ‘a suit arising out of the controversy

between the parties.’” (quoting 9 U.S.C. § 4)).

“‘Federal courts are courts of limited jurisdiction,’ possessing ‘only that power authorized

by Constitution and statute.’” Gunn v. Minton, 568 U.S. 251, 256 (2013) (quoting Kokkonen v.

Guardian Life Ins. Co. of Am., 511 U.S. 375, 377 (1994)). When a case is removed from state to

federal court, “a plaintiff may move for the case to be remanded back to state court if it believes

that the federal court lacks subject matter jurisdiction.” Inst. for Truth in Mktg. v. Total Health

Network Corp., 321 F. Supp. 3d 76, 84 (D.D.C. 2018); see 28 U.S.C. § 1447(c). If the district court

finds that it lacks jurisdiction, it must remand the case. Republic of Venezuela v. Philip Morris

Inc., 287 F.3d 192, 196 (D.C. Cir. 2002). The burden is on the party who sought removal to

establish jurisdiction by a preponderance of the evidence, see Kokkonen, 511 U.S. at 377; Gray v.

Gregory, No. 22-CV-1856, 2023 WL 1815704, at *1 (D.D.C. Feb. 8, 2023), and “[t]he court must

2 resolve any ambiguities concerning the propriety of removal in favor of remand,” Busby v. Cap.

One, N.A., 841 F. Supp. 2d 49, 53 (D.D.C. 2012).

Credit Acceptance removed this case to federal court on diversity jurisdiction grounds.

ECF 1 ¶ 14. There are two requirements for diversity jurisdiction: (1) the amount in controversy

must exceed $75,000, and (2) each Defendant must be a citizen of a different state from each

Plaintiff—a requirement known as “complete diversity.” See 28 U.S.C. § 1332(a); Owen Equip.

& Erection Co. v. Kroger, 437 U.S. 365, 373 (1978).

II. ANALYSIS

Mansaray argues that this case should be remanded to D.C. Superior Court because this

Court lacks diversity jurisdiction over the matter. ECF 9 ¶¶ 15, 93–113. The parties do not dispute

that the amount in controversy exceeds $75,000 and that, for purposes of diversity jurisdiction,

Mansaray is a citizen of the District of Columbia and Credit Acceptance is a citizen of Michigan.

See ECF 1 ¶¶ 15-16, 23; see generally ECF 9. The parties disagree, however, about the citizenship

of CTIT and the unnamed tow truck driver. Mansaray argues that they are citizens of the District

of Columbia, defeating complete diversity. See ECF 9 ¶¶ 94–113. Credit Acceptance contends that

CTIT is a citizen of Maryland and that the citizenship of the John Doe defendant (the tow truck

driver) is immaterial. See ECF 11 at 37.

Credit Acceptance is correct that the Court need not consider the unnamed driver’s

citizenship in assessing diversity jurisdiction. 28 U.S.C. § 1441(b)(1) provides: “[i]n determining

whether a civil action is removable on the basis of the jurisdiction under section 1332(a) . . . the

citizenship of defendants sued under fictitious names shall be disregarded.” This includes cases

where the plaintiff names a John Doe defendant—or here, “Driver’s name (Unknown)”—because

the plaintiff does not know the defendant’s identity. See 14C Charles Alan Wright, et al., Federal

3 Practice and Procedure § 3723 (4th ed. 2024) (explaining that Congress amended the removal

statute in 1988 to ensure that “the presence of Doe defendants no longer can defeat subject-matter

jurisdiction, and does not afford a ground for remanding an action to state court.”); see, e.g., Smith

v. Comcast Corp., 786 F. App’x 935, 939 (11th Cir. 2019) (per curiam) (holding that district court

correctly disregarded citizenship of defendants identified as “Number One” and “Number Two”).

But Credit Acceptance has not carried its burden to establish CTIT’s citizenship.2 CTIT is

a limited liability company (LLC). ECF 1 ¶ 17; ECF 9 ¶ 94. For purposes of diversity jurisdiction,

an LLC has the citizenship of each of its members. CostCommand, LLC v. WH Administrators,

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Related

Owen Equipment & Erection Co. v. Kroger
437 U.S. 365 (Supreme Court, 1978)
Kokkonen v. Guardian Life Insurance Co. of America
511 U.S. 375 (Supreme Court, 1994)
Vaden v. Discover Bank
556 U.S. 49 (Supreme Court, 2009)
Novak v. Capital Management & Development Corp.
452 F.3d 902 (D.C. Circuit, 2006)
Albert Pecherski v. General Motors Corp. And Jane Doe
636 F.2d 1156 (Eighth Circuit, 1981)
Anand Prakash v. American University
727 F.2d 1174 (D.C. Circuit, 1984)
Gunn v. Minton
133 S. Ct. 1059 (Supreme Court, 2013)
Busby v. Capital One, N.A.
841 F. Supp. 2d 49 (District of Columbia, 2012)
Lopes v. Jetsetdc, LLC
4 F. Supp. 3d 238 (District of Columbia, 2014)
CostCommand, LLC v. WH Administrators, Inc.
820 F.3d 19 (D.C. Circuit, 2016)
Inst. for Truth in Mktg. v. Total Health Network Corp.
321 F. Supp. 3d 76 (D.C. Circuit, 2018)
In Re: Calvin Levy
52 F.4th 244 (Fifth Circuit, 2022)

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