Virginia Alvarado v. Richman Property Services, Inc.

CourtDistrict Court, C.D. California
DecidedOctober 22, 2024
Docket8:24-cv-02008
StatusUnknown

This text of Virginia Alvarado v. Richman Property Services, Inc. (Virginia Alvarado v. Richman Property Services, Inc.) is published on Counsel Stack Legal Research, covering District Court, C.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Virginia Alvarado v. Richman Property Services, Inc., (C.D. Cal. 2024).

Opinion

O 1 JS-6 2 3 4 5 6 7

8 United States District Court 9 Central District of California

11 VIRGINIA ALVARADO et al., Case № 8:24-cv-02008-ODW (SSCx)

12 Plaintiffs, ORDER GRANTING PLAINTIFFS’

13 v. MOTION TO REMAND [19]; AND DENYING DEFENDANT’S MOTION 14 RICHMAN PROPERTY SERVICES, TO DISMISS [10] INC. et al., 15

Defendants. 16

17 18 I. INTRODUCTION 19 On August 12, 2024, Plaintiffs Virginia Alvarado and Eduardo Alvarado 20 initiated this action against Defendants Richman Property Services, Inc. (“Richman”) 21 and DOES 1 through 10 for violation of California’s Investigative Consumer 22 Reporting Agencies Act (“ICRAA”) in the Superior Court of California. (Notice 23 Removal (“NOR”) Ex. A (“Complaint” or “Compl.”), ECF Nos. 1, 1-1.) On 24 September 18, 2024, Richman removed this action to federal court based on alleged 25 diversity jurisdiction pursuant to 28 U.S.C. § 1332(a). (NOR ¶ 11.) Plaintiffs now 26 move to remand. (Mem. P. & A. ISO Mot. Remand (“Motion” or “Mot.”), ECF 27 28 1 No. 19-1.) For the reasons below, the Court GRANTS Plaintiffs’ Motion and 2 REMANDS this action to Orange County Superior Court.1 3 II. BACKGROUND 4 In 2023, Plaintiffs completed and submitted a rental application (“Application”) 5 to apply for an apartment unit in a building operated by Richman. (Compl. ¶¶ 8, 14.) 6 The Application notified applicants that Richman may screen for criminal background 7 and previous evictions. (Id. ¶ 16.) Richman did not provide a process for Plaintiffs to 8 indicate that they wished to receive a copy of any report prepared in connection with 9 the Application, and it did not provide Plaintiffs with “a consent form or disclosure 10 with a box to check” in connection with such reports. (Id. ¶ 22.) Richman later 11 processed Plaintiffs’ Application and requested investigative consumer reports about 12 each Plaintiff, obtaining at least two such reports about each Plaintiff. (Id. ¶¶ 19, 21.) 13 Richman did not provide Plaintiffs a copy of any such reports. (Id. ¶ 23.) Plaintiffs 14 are residents of an apartment building Richman operates. (See Decl. Theresa 15 Eastwood Davis ISO Opp’n Mot. (“Davis Decl.”) ¶ 9, ECF No. 24-1.) 16 On August 12, 2024, Plaintiffs filed this lawsuit in the Superior Court of the 17 State of California, County of Orange. (Compl.) In their Complaint, Plaintiffs assert 18 two causes of action: (1) violation of the ICRAA; and (2) a judicial declaration that 19 Plaintiffs’ Application and annual re-certification violate the ICRAA and are 20 “therefore illegal and wholly void.” (Id. ¶¶ 26–40.) As relief, Plaintiffs request 21 (1) general, compensatory, and punitive damages; (2) statutory damages; (3) interest; 22 (4) attorneys’ fees; (5) equitable relief and restitution; (6) declaratory judgment that 23 Plaintiffs’ Application and annual re-certification violates the ICRAA; (6) an 24 injunction enjoining Richman from violating the ICRAA or refusing to rent to 25 Plaintiffs; and (7) a writ of mandate and injunction requiring Richman to, among other 26

1 After carefully considering the papers filed in support of and in opposition to the Motion, the Court 27 deems the matter appropriate for decision without oral argument. Fed. R. Civ. P. 78; L.R. 7-15. 28 Therefore, the Court VACATES the hearing scheduled for November 4, 2024, and takes the Motion under submission. 1 things, comply with the ICRAA by including in its rental application an option for 2 prospective applicants to receive a copy of any investigative consumer report and, if 3 requested, providing the reports themselves. (Id., Prayer.) “Plaintiffs expressly limit 4 the total amount of recovery, including statutory damages, attorneys’ fees and costs, 5 and [the] cost of injunctive relief not to exceed $74,999.” (Id., Prayer ¶ 3.) 6 Richman removed this action to federal court, alleging diversity jurisdiction 7 under 28 U.S.C. § 1332(a). (NOR ¶ 11.) Plaintiffs now move to remand this action 8 back to Orange County Superior Court. (Mot.) Richman opposes the Motion. 9 (Opp’n Mot. (“Opp’n” or “Opposition”), ECF No. 24.)2 Richman also moves to 10 dismiss this case. (Mot. Dismiss, ECF No. 10; Opp’n Mot. Dismiss, ECF No. 22; 11 Reply Mot. Dismiss, ECF No. 23.) 12 III. LEGAL STANDARD 13 Federal courts are courts of limited jurisdiction and possess only that 14 jurisdiction as authorized by the Constitution and federal statute. Kokkonen v. 15 Guardian Life Ins. Co. of Am., 511 U.S. 375, 377 (1994). Under 28 U.S.C. § 1441(a), 16 a party may remove a civil action brought in a state court to a district court only if the 17 plaintiff could have originally filed the action in federal court. Federal district courts 18 have original jurisdiction where an action arises under federal law, or where each 19 plaintiff’s citizenship is diverse from each defendant’s citizenship (i.e., diversity is 20 “complete”), and the amount in controversy exceeds $75,000. 28 U.S.C. §§ 1331, 21 1332(a). 22 There is a strong presumption that a court is without jurisdiction until 23 affirmatively proven otherwise. Fifty Assocs. v. Prudential Ins. Co. of Am., 446 F.2d 24 1187, 1190 (9th Cir. 1970); see Gaus v. Miles, Inc., 980 F.2d 564, 566 (9th Cir. 1992) 25 (“Federal jurisdiction must be rejected if there is any doubt as to the right of removal 26 in the first instance.”). When an action is removed from state court, the removing 27 party bears the burden of demonstrating that removal is proper. Corral v. Select 28 2 Plaintiffs did not file a reply in support of their Motion. 1 Portfolio Servicing, Inc., 878 F.3d 770, 773 (9th Cir. 2017). Removal is strictly 2 construed, and any doubt as to removal is to be resolved in favor of remand. Id. 3 IV. DISCUSSION 4 Plaintiffs seek to remand the case to state court, asserting that the amount in 5 controversy does not exceed $75,000. (Mot. 8–15.) “Plaintiffs, who are the masters 6 of their complaints,” may “stipulat[e] to amounts at issue” “to avoid removal to 7 federal court, and to obtain a remand to state court.” Standard Fire Ins. Co. v. 8 Knowles, 568 U.S. 588, 595 (2013); see St. Paul Mercury Indemnity Co. v. Red Cab 9 Co., 303 U.S. 283, 294 (1938) (“If [a plaintiff] does not desire to try his case in the 10 federal court he may resort to the expedient of suing for less than the jurisdictional 11 amount, and though he would be justly entitled to more, the defendant cannot 12 remove.”). 13 Richman agrees that while a plaintiff “can limit the damages and attorney’s 14 fees [that plaintiff] seek[s] to $74,999,” a plaintiff cannot so limit the cost for a 15 defendant to comply with injunctive relief. (Opp’n 15 (collecting cases).) Here, 16 “Plaintiffs expressly limit the total amount of recovery, including statutory damages, 17 attorneys’ fees and costs, and [the] cost of injunctive relief not to exceed $74,999.” 18 (Compl., Prayer ¶ 3.) The Court need not decide whether a plaintiff can limit the cost 19 of injunctive and declaratory relief to avoid federal diversity jurisdiction.

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Virginia Alvarado v. Richman Property Services, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/virginia-alvarado-v-richman-property-services-inc-cacd-2024.