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Lenear v. American Brokers Conduit

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF CALIFORNIA


January 25, 2010

CATHERINE T. LENEAR, PLAINTIFF,
v.
AMERICAN BROKERS CONDUIT; SAXON MORTGAGE SERVICES, INC.; EMC MORTGAGE CORPORATION; ACCUMAX INVESTMENT CO.; ALL PERSONS CURRENTLY UNKNOWN CLAIMING ANY LEGAL OR EQUITABLE INTEREST IN THE TRUST PROPERTY; DOES ONE THROUGH ONE HUNDRED, INCLUSIVE, DEFENDANTS.

The opinion of the court was delivered by: Morrison C. England, Jr. United States District Judge

MEMORANDUM AND ORDER

Presently before the Court is a Motion by Defendant Saxon Mortgage Services, Inc. ("Defendant") to dismiss the First Amended Complaint of Plaintiff Catherine Lenear ("Plaintiff") for failure to state a claim upon which relief may be granted pursuant to Federal Rule of Civil Procedure 12(b)(6).*fn1

This dispute arises out a mortgage loan transaction that eventually led to the foreclosure of Plaintiff's home. While Plaintiff's original Complaint alleged violations of both federal and state laws, Plaintiff has since filed an Amended Complaint abandoning her federal claims.

With only Plaintiff's state law claims remaining, this Court ceases to have subject matter jurisdiction over the suit. There is no diversity jurisdiction,*fn2 and the Court declines to exercise supplemental jurisdiction over the pendant state claims. The Supreme Court has held, "When the balance of factors indicates that a case properly belongs in state court, as when the federal law claims have dropped out of the lawsuit in its early stages and only state law claims remain, the federal court should decline the exercise of jurisdiction by dismissing the case without prejudice." Carnegie-Mellon Univ. v. Cohill, 484 U.S. 343, 351 (1988). In deference to the rules of comity, this Court abstains from proceeding.

Thus, Plaintiff's Amended Complaint is hereby dismissed without prejudice for lack of subject matter jurisdiction. Defendant's Motion to Dismiss Plaintiff's Amended Complaint pursuant to Federal Rule of Civil Procedure 12(b)(6) (Docket No. 24) is denied as moot. The case is remanded to the Superior Court of California, County of Sacramento. The Clerk is directed to close the case.

IT IS SO ORDERED.


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