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Federal National Mortgage Association v. Josefina Castaneda

March 9, 2012

FEDERAL NATIONAL MORTGAGE ASSOCIATION
v.
JOSEFINA CASTANEDA, ET AL.



The opinion of the court was delivered by: Present: The Honorable Margaret M. Morrow

CIVIL MINUTES - GENERAL

ANEL HUERTA N/A

Deputy Clerk Court Reporter

Attorneys Present for Plaintiffs: Attorneys Present for Defendants:

None None

Proceedings: Order Granting Plaintiff's Motion to Remand Action to Los Angeles

Superior Court for Lack of Subject Matter Jurisdiction[7]

Plaintiff Federal National Mortgage Association ("FNMA") filed this unlawful detainer action in Los Angeles Superior Court against defendant Josefina Castaneda and fictitious defendants on June 30, 2011.*fn1 On May 17, 2007, Castaneda allegedly executed a promissory note secured by a deed of trust on real property located at 21316 Island Avenue, Carson, California, 90745 ("the property").*fn2

Castaneda allegedly defaulted on the promissory note, and the trustee initiated foreclosure proceedings in accordance with California Civil Code § 2924 et seq.*fn3 On May 25, 2011, the property was sold to FNMA at a foreclosure sale.*fn4 A trustee's deed upon sale reflecting the sale to FNMA was recorded in Los Angeles County.*fn5

On June 21, 2011, FNMA allegedly served a notice to quit on Castaneda, requiring her to deliver possession of the property within three days of service of the notice.*fn6 More than three days have passed, and Castaneda allegedly continues in possession of the property without FNMA's permission or consent.*fn7 FNMA seeks possession of the property as well as damages in the amount of $60 per day (the allegedly reasonable daily rental value) for each day from June 27, 2011 until Castaneda relinquishes the property.*fn8

Castaneda filed a notice of removal on December 6, 2011, invoking the court's federal question jurisdiction under 28 U.S.C. § 1331 and diversity jurisdiction under 28 U.S.C. § 1332.*fn9

FNMA filed a motion to remand the case to Los Angeles Superior Court on January 6, 2012, alleging a lack of federal question jurisdiction.*fn10 Additionally, FNMA seeks sanctions against Castaneda under Rule 11.*fn11 Castaneda has not opposed the motion. Pursuant to Rule 78 of the Federal Rules of Civil Procedure and Local Rule 7-15, the court finds the matter appropriate for decision without oral argument and vacates the hearing scheduled for March 19, 2012. For the reasons discussed below, FNMA's motion to remand is granted.

I. DISCUSSION

A. Legal Standards Governing Removal ...


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