Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-azd-2_12-cv-01055/USCOURTS-azd-2_12-cv-01055-0/pdf.json

Nature of Suit Code: 190
Nature of Suit: Other Contract Actions
Cause of Action: 28:1441 Petition for Removal- Petition to Quiet Title

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 The Court notes that Defendants claim Arizona Trust Deed Corporation/FNBC

Properties, Inc., is fraudulently joined and that its citizenship should be disregarded.

Defendants premise this argument on the theory that this company is the Trustee and that

there is no cause of action against a Trustee under Arizona law. However, in Hogan v.

Washington Mutual Bank, N.A., 2012 WL 1835540, ¶ 5 (Ariz. 2012), the Arizona Supreme

Court stated that there is liability on a Trustee for breach of fiduciary duty in certain

circumstances. On this record, the Court cannot conclude the Trustee was fraudulently

joined. (This holding is without prejudice to the Trustee moving to dismiss on this or any

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IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF ARIZONA

Mischelle K. Henry and Eljay Scott, 

Plaintiffs, 

vs.

Arizona Deed of Trust Corporation, et al.,

Defendants. 

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No. CV 12-1055-PHX-JAT

ORDER

“Inquiring whether the court has jurisdiction is a federal judge’s first duty in every

case.” Belleville Catering Co. v. Champaign Market Place, L.L.C., 350 F.3d 691, 693 (7th

Cir. 2003). In this case, the notice of removal fails to sufficiently plead jurisdiction. See 28

U.S.C. § 1332; Hertz Corp. v. Friend, 130 S. Ct. 1181, 1192; - - - U.S. - - - (2010)

(discussing the citizenship of a corporation). Specifically, in this case the notice of removal

fails to allege the principal place of business of FNBC Properties, Inc. (which Defendants

claim Arizona Trust Deed Corporation merged into).1

Case 2:12-cv-01055-JAT Document 10 Filed 06/25/12 Page 1 of 2
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28 other basis.)

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Accordingly,

IT IS ORDERED that by July 16, 2012, the removing Defendants shall file a

supplement to the notice of removal properly alleging federal subject matter jurisdiction, or

this case will be remanded for lack of federal subject matter jurisdiction.

DATED this 25th day of June, 2012.

Case 2:12-cv-01055-JAT Document 10 Filed 06/25/12 Page 2 of 2