Student Loan Marketing Ass'n v. Hanes

181 F.R.D. 629, 1998 U.S. Dist. LEXIS 13422, 1998 WL 547007
CourtDistrict Court, S.D. California
DecidedAugust 24, 1998
DocketCiv. No. 98-0734-B (JFS)
StatusPublished
Cited by84 cases

This text of 181 F.R.D. 629 (Student Loan Marketing Ass'n v. Hanes) is published on Counsel Stack Legal Research, covering District Court, S.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Student Loan Marketing Ass'n v. Hanes, 181 F.R.D. 629, 1998 U.S. Dist. LEXIS 13422, 1998 WL 547007 (S.D. Cal. 1998).

Opinion

ORDER (1) DENYING DEFENDANT HANES’ MOTION TO STRIKE, (2) DENYING HANES’ MOTION FOR A MORE DEFINITE STATEMENT OR FOR JUDGMENT ON THE PLEADINGS, (3) GRANTING PLAINTIFF’S MOTION FOR SUMMARY JUDGMENT, (4) DENYING PLAINTIFF’S ALTERNATIVE MOTION FOR SUMMARY ADJUDICATION, (5) GRANTING CROSS-DEFENDANT SALLIE MAE’S MOTION TO DISMISS CROSS-COMPLAINT, (6) GRANTING CROSS-DEFENDANT MANZ’ MOTION TO DISMISS CROSS-COMPLAINT, (7) GRANTING CROSS-DEFENDANT SHALALA’S MOTION TO DISMISS CROSS-COMPLAINT, (8) DENYING CROSS-DEFENDANT SHALALA’S MOTION FOR SUMMARY JUDGMENT, (9) GRANTING SHALALA’S MOTION TO STAY DISCOVERY, AND (10) DENYING HANES’ DEMAND FOR NAMES OF DOES

BREWSTER, Senior Judge.

I. Background

During the mid-1980s, Defendant Hanes entered into four Health Education Assistance Program (“HEAL”) loan agreements with a lender to pay for her educational expenses. The lender subsequently sold these student loans to Plaintiff Student Loan Marketing Association (“Sallie Mae”), a statutorily-created private corporation. See 20 U.S.C. § 1087-2. On March 20, 1994, Hanes consolidated her student loans into a single loan by signing a promissory note (hereinafter, the “Note”) with Sallie Mae for a loan consolidation. On April 28, 1994, Sallie Mae disbursed the consolidated loan funds in the amount of $19,943.75, and, pursuant to the terms of the Note, paid in full Hanes’ outstanding balances on her four HEAL loans.

After a payment made by Hanes to Sallie Mae on January 13, 1997, Sallie Mae claims that Hanes became delinquent in her repayment obligations under the Note.1 (Holloway Declaration, f 11). No further payments on the Note have been received by Sallie Mae, leaving a present balance, including interest due, of $24,361.83, as of August 24, 1998.2 On February 17, 1998, Sallie Mae timely brought suit in California Superior Court against Hanes based on her alleged failure to make student loan payments under the Note. Defendant demurred and filed, pursuant to Cal.Code Civ.P. § 428.10, a cross-complaint against Sallie Mae, Donna Shalala, Kevin Manz, Kathleen MeCan, and Does 1-20 alleging breach of promissory notes, unconscionability, fraud, larceny, conversion, and unjust enrichment. Only Sallie Mae, Shalala and Manz have been served with this cross-complaint. Because the cross-complaint was filed in state court, the Court will use the state-law term “cross-complaint” to describe this pleading, and it will refer to Sallie Mae, Shalala and Manz as Cross-Defendants.

Cross-Defendant Shalala, who is the Secretary of the United States Department of Health and Human Services, properly removed this case to federal court pursuant to 28 U.S.C. § 1442(a)(1). Several motions have been filed: (1) Hanes’ motion to strike Sallie Mae’s and the Cross-Defendants’ pleadings; (2) Hanes’ motion for a more definite statement, or in the alternative, for judgment on the pleadings; (3) Sallie Mae’s motion for summary judgment, or, in the alternative, for summary adjudication of liability as to the first cause of action of its complaint; (4) Sallie Mae’s motion to dismiss Hanes’ cross-complaint against it; (5) Manz’ motion to dismiss Hanes’ cross-complaint against him; (6) Shalala’s motion to dismiss [632]*632the cross-complaint against her, or in the alternative, for summary judgment, (7) Shala-la’s motion to stay discovery; and (8) Hanes’ demand for the names of the Does named in her cross-complaint.

II. Jurisdiction and Choice of Law

Cross-Defendant Shalala, who is the United States Secretary of the Department of Health and Human Services, removed this case to federal court pursuant to 28 U.S.C. § 1442(a)(1), which provides that an officer of the United States may remove any civil or criminal action filed against her in state court for any act under color of such office. A federal court has jurisdiction over such actions, regardless of the presence of federal question or diversity jurisdiction. See Mir v. Fosburg, 646 F.2d 342, 344 (9th Cir.1980). The invocation of removal jurisdiction by a federal officer does not revise or alter the underlying law to be applied. Therefore, the Federal Rules of Civil Procedure and California substantive law will apply. See Arizona v. Manypenny, 451 U.S. 232, 241-243, 101 S.Ct. 1657, 68 L.Ed.2d 58 (1981). See also 28 U.S.C. § 1652 (“The laws of the several states, except where [federal law otherwise requires], shall be regarded as rules of decision in civil actions....”); see also Fed.R.Civ.P. 81(c) (The federal rules “apply to civil actions removed to the United States district courts from state courts and govern procedure after removal.”)

III. Hanes’ Motion to Strike

Hanes moves the Court to strike “Defendants’ Student Loan Marketing Association, Donna Shalala, Kevin Manz, Kathleen McCan, Lender Bank Doe # 1, and Bank Auditor Doe #2’s Motion to Dismiss the Cross-Complaint, pursuant to [Fed.R.Civ.P.] 12(f)(g)(h)(Z)” [sic] on the grounds of insufficiency of defense, untimeliness, failure to state a claim upon which relief can be granted, and scandalousness.

Motions to strike are disfavored and are rarely granted. See 5A Wright & Miller, Federal Practice and Procedure, § 1380 et seq. The Court finds no justification for striking any of the motions filed by the Cross-Defendants. Hanes’ motion to strike is denied.

IV. Hanes’ Motion for More Definite Statement or Judgment on the Pleadings

Hanes’ “motion” includes only a notice of motion and exhibits. She does not specify which pleadings she believes are inadequate, or whether the motion seeks judgment on the pleadings as to Sallie Mae’s complaint or to her cross-complaint. The moving papers do not make any legal argument, and Hanes has not provided any sworn statements to support the motion. The Court finds that all pleadings filed by Sallie Mae and the Cross-Defendants are pled adequately, so Hanes’ motion for a more definite statement is denied. Hanes has not established that she is entitled to judgment as a matter of law, so her motion for judgment on the pleadings is denied.

V. Sallie Mae’s Motion for Summary Judgment

A. Standard of Law for Summary Judgment

Summary judgment “shall be rendered forthwith if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law.” Fed.R.Civ.P. 56(c).

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Bluebook (online)
181 F.R.D. 629, 1998 U.S. Dist. LEXIS 13422, 1998 WL 547007, Counsel Stack Legal Research, https://law.counselstack.com/opinion/student-loan-marketing-assn-v-hanes-casd-1998.