McCallister v. CitiMortgage, Inc. as successor to CitiFinancial Mortgage Company, Inc.

CourtDistrict Court, D. Maryland
DecidedNovember 17, 2021
Docket1:21-cv-01639
StatusUnknown

This text of McCallister v. CitiMortgage, Inc. as successor to CitiFinancial Mortgage Company, Inc. (McCallister v. CitiMortgage, Inc. as successor to CitiFinancial Mortgage Company, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McCallister v. CitiMortgage, Inc. as successor to CitiFinancial Mortgage Company, Inc., (D. Md. 2021).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MARYLAND

JAMAAL MCCALLISTER * Plaintiff, *

v. * CIVIL NO. JKB-21-1639 CITI MORTGAGE, INC., et al. * Defendants. * * x x x * x * * * MEMORANDUM Plaintiff Jamaal McCallister sued several defendants in the Circuit Court for Baltimore City seeking to recover on various tort law claims arising from his alleged exposure to lead paint at two properties located in Baltimore, Maryland. (See Compl., ECF No. 3.) After Plaintiff agreed to dismiss the non-diverse defendants, Defendant CitiMortgage filed a notice of removal. (See Notice of Removal, ECF No. 1.) Pending now before the Court are Plaintiff's Motion for Leave _ to File a First Amended Complaint (ECF No. 10), and Motion to Remand (ECF No. 11). Plaintiff's proposed First Amended Complaint seeks to add a previously dismissed non-diverse Defendant, a development that would eliminate this Court’s diversity jurisdiction and require remand. Both Motions are ripe for review and no hearing is required. See Local Rule 105.6 (D. Md. 2021). For the reasons that follow, Plaintiff's Motion for Leave to File a First Amended Complaint and Motion to Remand will both be GRANTED. i Background | On October 16, 2020, Plaintiff—a Maryland citizen, (see Compl. at 1}—filed suit in the Circuit Court for Baltimore City against Defendants CitiMortgage, Inc., CitiFinancial Mortgage,

Co., Inc., CMINY, Inc. (“Citi Defendants”), Ella J. Robinson, Walter Johnson, and Patricia Johnson. (See Compl.) Defendant CitiMortgage is incorporated in New York and has its principal place of business in Missouri. (See ECF No. 1 10; ECF No. 1-4 at 2.) CitiMortgage was formerly known as CMNIY, Inc., (see ECF No. 1 7 12; ECF No. 1-7 at 2), and is a successor by merger to the former New York corporation CitiFinancial Mortgage, Inc.! (See ECF No. 1 □ 11; ECF No. 1- 7 at 2.) CitiMortgage was incorporated in New York in all its incarnations, though CitiFinancial Mortgage, Inc.’s principal place of business was in Connecticut. (See ECF No. 1-5 at 2.) Defendant Ella J. Robinson is a citizen of Virginia. (See ECF No. 1 J 8.) Walter Johnson and Patricia Johnson are both citizens of Maryland.’ (See id. 45.) Plaintiff's state court Complaint alleged claims for negligence, negligent misrepresentation, and private nuisance resulting from Plaintiffs alleged exposure to lead paint at two locations: 1235 N. Bentalou Street, Baltimore, Maryland (“1235 N. Bentalou Street”) and 2008 Penrose Avenue, Baltimore, Maryland (“2008 Penrose Avenue”). (See generally Compl.) Plaintiff named the Citi Defendants and Ella J. Robinson in connection with 1235 N. Bentalou Street and Walter and Patricia Johnson in connection with 2008 Penrose Avenue. He purported to sue Defendants jointly and severally “in multiple defendant-per-property instances.”? (Compl. {ff

According to Defendant CitiMortgage, CitiFinancial Mortgage, Inc. “no longer exists as a separate entity as a result of its prior merger into CitiMortgage, Inc.” (ECF No. 13 at 2.) 2 The parties do not dispute the citizenship of these individuals and entities. 3 Maryland recognizes joint and several liability among “two or more persons” who are “liable in tort for the same injury to person or property, whether or not judgment has been recovered against some or all of them.” See Md. Code Ann., Cts. Jud. Pro. § 3-1401 ef seg. (West 2021). Plaintiffs argue that Mr. Johnson should be joined because he may be found jointly and severally liable with the Defendants sued in connection with 1235 N. Bentalou Street. (ECF No, 10-4 at 7.) Defendant CitiMortgage says that this argument fails because Plaintiff's state court Complaint, (see Compl. Jf 4, 12, 15, 23), and Proposed Amended Complaint, (see ECF No. 10-2 {ff 4, 12, 15, 23), both seek to recover jointly and severally only “in multiple-Defendant-per-property instances.” (ECF No. 13 at 8 n.5.) It appears that under Maryland law, all Defendants who are found liable in this case would be jointly and severally liable for the totality of Plaintiff's alleged injury regardless of Plaintiff's pleading. Even if joint and several liability functions as Defendant CitiMortgage contends it should—in which joint and several liability is confined to alleged tortfeasors who collectively owned an individual property—the factfinder would still be faced with the complicated task of apportioning fault among all liable Defendants. This process would be made more difficult if Mr. Johnson is not re- joined—even if the 2008 Penrose Avenue Defendants are not jointly and severally liable for any damages for which

12, 15, 23.) On June 7, 2021, Plaintiff entered into a stipulation of dismissal without prejudice with Walter and Patricia Johnson because they lacked insurance coverage or sufficient assets to cover a potential judgment. (See Stipulation of Dismissal, ECF No. 10-1; see also ECF No. 13 at 8, 10; Affs. of Walter and Patricia Johnson, ECF No. 13-2.) With only non-Maryland Defendants remaining, Defendant CitiMortgage filed a timely notice of removal on July 2, 2021. (ECF No. 1.) Twenty days later, Plaintiff moved to amend his Complaint to add Mr. J ohnson*’—a Maryland citizen—and remand the action to state court. (See ECF Nos. 10, 11.) il. Legal Standard When federal courts have subject matter jurisdiction pursuant to 28 U.S.C. § 1332(a), there must be “complete diversity among parties, meaning that the citizenship of every plaintiff must be different from the citizenship of every defendant.” Cent. W. Va, Energy Co. v. Mountain State Carbon, LLC, 636 F.3d 101, 103 (4th Cir. 2011) (citing Caterpillar, Inc. v. Lewis, 519 U.S. 61, 68 (1996)). Although Federal Civil Rule 15(a)(2) instructs courts to grant a party leave to amend a pleading “freely” and “when justice so requires,” courts must proceed with greater caution when the amended pleading would destroy complete diversity. Fed. R. Civ. P. 15(a)(2). When a plaintiff seeks to join a non-diverse defendant following removal, the Court may either “deny joinder, or permit joinder and remand the action” to state court, 28 U.S.C. § 1447(e). This decision is. “committed to the sound discretion of the district court.” Mayes v. Rapoport, 198 F.3d 457, 462 (4th Cir. 1999). In exercising this discretion, the Court should consider “the extent to which the purpose of the amendment is to defeat federal jurisdiction, whether the plaintiff has been dilatory

the 1235 N. Bentalou Street Defendants are liable. The Court therefore finds Defendant CitiMortgage’s argument unavailing even if correct. 4 Defendants allege that Ms. Johnson is in active military service and is thus incapable of being rejoined. (ECF No. 13 at 3 n.1.) Because the Court allows Plaintiff to add Mr. Johnson and remands this matter to state court, it does not reach this argument. 5 § 1332 requires only minimal diversity in class actions filed pursuant to the Class Action Fairness Act of 2005, Pub, L. No, 109-2, 119 Stat. 4 (2005).

in asking for amendment, whether the plaintiff will be significantly injured if amendment is not allowed, and any other factors bearing on the equities.” Jd. at 462 (internal citations and quotations omitted). “[T]he diverse defendant has an interest in keeping the action in federal court,” Coley v. Dragon Lid., 138 F.R.D.

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McCallister v. CitiMortgage, Inc. as successor to CitiFinancial Mortgage Company, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/mccallister-v-citimortgage-inc-as-successor-to-citifinancial-mortgage-mdd-2021.