Scotiabank De P.R. v. Halais-Borges

350 F. Supp. 3d 39
CourtUnited States District Court
DecidedDecember 11, 2018
DocketCivil No. 18-1350 (FAB)
StatusPublished

This text of 350 F. Supp. 3d 39 (Scotiabank De P.R. v. Halais-Borges) is published on Counsel Stack Legal Research, covering United States District Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Scotiabank De P.R. v. Halais-Borges, 350 F. Supp. 3d 39 (usdistct 2018).

Opinion

BESOSA, District Judge.

The Court remanded this action to the Puerto Rico Court of First Instance, San Juan Superior Division, case number K CD 2012-1782. (Docket No. 16.) Plaintiff Scotiabank de Puerto Rico ("Scotiabank") requests the Court to order defendant Eric Santiago Halais-Borges ("Halais") to pay attorneys' fees pursuant to 28 U.S.C. section 1447(c) (" section 1447"). (Docket No. 19.) For the reasons set forth below, the Court GRANTS Scotiabank's motion for attorneys' fees.

I. Background

On May 7, 2018, Halais filed a notice of removal. (Docket No. 1.) Halais invoked the Court's federal question jurisdiction pursuant to 28 U.S.C. § 1331, asserting that the "Commonwealth Court Action concern[ed] a suit for mortgage foreclosure and collection of monies owed by [Halais] to [Scotiabank]." Id. at p. 1 (citing Scotiabank v. Eric Santiago Halais-Borges, Civil Case No. K CD 2012-1782). Both claims arise pursuant to Puerto Rico law. See P.R. Laws Ann. tit 31, § 5171 ("A debtor is liable for the fulfillment of his obligations with all his present and future property."). Halais set forth a myriad of affirmative defenses pursuant to eight federal statutes.1

Scotiabank opposed removal, arguing that the Court lacked jurisdiction. (Docket *41No. 12.) The Court remanded this action, holding that the federal statutes "raise[d] in defense of Scotiabank's Puerto Rico law claims [were] insufficient to confer jurisdiction on this Court." Scotiabank de P.R. v. Halais-Borges, No. 18-1350, 339 F.Supp.3d 25, 27-28, 2018 WL 5259287, at *2, 2018 U.S. Dist. LEXIS 182535 *5 (D.P.R. Oct. 22, 2018) (Besosa, J.); see Scotiabank de P.R. v. Residential Partners S.E., 350 F.Supp.2d 334, 337 (D.P.R. 2004) (Pieras, J.) (remanding action based on collection of monies and mortgage foreclosure pursuant to Puerto Rico law because an affirmative defense arising from the federal Bank Holding Company Act was "insufficient to confer federal jurisdiction"). Scotiabank seeks payment of the attorneys' fees stemming from the removal and subsequent remand of this action. (Docket No. 19.)

II. Attorneys' Fees Pursuant to Section 1447

Section 1447 provides that an "order remanding the case may require payment of just costs and any actual expenses, including attorneys' fees, incurred as a result of the removal." 28 U.S.C. § 1447(c). The United States Supreme Court has noted that "[t]he process of removing a case to federal court and then having it remanded back to state court delays resolution of the case, imposes additional costs on both parties, and wastes judicial resources." Martin v. Franklin Capital Corp., 546 U.S. 132, 140, 126 S.Ct. 704, 163 L.Ed.2d 547 (2005) ; see Cortés-Pacheco v. PBF-TEP Acquisitions, Inc., No. 15-1460, 2015 WL 9412859, *6, 2015 U.S. Dist. LEXIS 171876, *16 (D.P.R. Dec. 23, 2015) (Fusté, J.) (granting motion for attorneys' fees, because "[a]ll that the removal accomplished was eight months of needless litigation and expense").

An award of fees pursuant to section 1447 is committed to the sound discretion of the district court. See Martin, 546 U.S. at 138-39, 126 S.Ct. 704. There is neither a strong presumption in favor of awarding fees on remand, nor a strong bias against fee awards. Id. (noting that there is "nothing to ... [suggest] that fees under § 1447(c) should either usually be granted or usually be denied"). Because there is "no heavy congressional thumb on either side of the scales ... the standard for awarding fees should turn on the reasonableness of the removal." Id. at 139-41, 126 S.Ct. 704. Consequently, "[a]bsent unusual circumstances, courts may award attorneys' fees under § 1447(c) only where the removing party lacked an objectively reasonable basis for seeking removal." Id. at 141, 126 S.Ct. 704. Section 1447 does not require a finding of bad faith. Net 2 Press, Inc. v. Nat'l Graphic Supply Corp., 324 F.Supp.2d 15, 19 (D. Me. 2004) (citing Excell, Inc. v. Sterling Boiler & Mech., Inc., 106 F.3d 318, 322 (10th Cir. 1997) ).

III. Discussion

Scotiabank argues that no objectively reasonable basis supported removal to this Court. (Docket No.

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350 F. Supp. 3d 39, Counsel Stack Legal Research, https://law.counselstack.com/opinion/scotiabank-de-pr-v-halais-borges-usdistct-2018.