Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-casd-3_11-cv-01032/USCOURTS-casd-3_11-cv-01032-0/pdf.json

Nature of Suit Code: 220
Nature of Suit: Foreclosure
Cause of Action: 28:1441 Petition for Removal- Breach of Contract

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UNITED STATES DISTRICT COURT

SOUTHERN DISTRICT OF CALIFORNIA

FRANCISCO M. GUMATAOTAO, an

individual, and ROSE P. GUMATAOTAO,

an individual,

Plaintiffs,

CASE NO. 11cv1032-LAB (BLM)

ORDER ON ORDER TO SHOW

CAUSE

vs.

BNC MORTGAGE, INC., a Delaware

Corporation; et al.,

Defendants.

On May 11, 2011, Defendants removed this action from state court. Two days later,

the Court ordered them to show cause why it should not be remanded for failure to allege

facts establishing jurisdiction. The notice of removal identifies diversity as the basis for the

Court’s exercise of jurisdiction in this case, but failed to allege the citizenship of NDex West,

LLC. The other Defendants’ citizenship was adequately alleged. Defendants responded to

the order to show cause, alleging ownership of NDex West and the citizenship of its owners.

The chain of ownership With one possible exception, the allegations show NDex West is

a citizenship of Delaware, Minnesota, and Texas. Because Plaintiffs are alleged to be

California citizens, it appears the Court can exercise diversity jurisdiction over the removed

action.

/ / /

Case 3:11-cv-01032-LAB-BLM Document 9 Filed 06/03/11 Page 1 of 2
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The one possible problem is that some of NDex West’s ultimate owners are alleged

to be individuals residing in Texas. Presumably, Defendants intended to argue that these

individuals are Texas citizens, not merely Texas residents. See Snell v. Cleveland, Inc., 316

F.3d 822, 824 (9th Cir. 2002) (holding that allegation of residency is insufficient to show

citizenship for purposes of diversity jurisdiction).

If Defendants can, consistently with Fed. R. Civ. P. 11, amend their notice of removal

to make clear the Court can exercise diversity jurisdiction in this case, they may do so no

later than June 10, 2011. If they fail to do so within the time permitted, this action will be

remanded.

IT IS SO ORDERED.

DATED: June 2, 2011

HONORABLE LARRY ALAN BURNS

United States District Judge

Case 3:11-cv-01032-LAB-BLM Document 9 Filed 06/03/11 Page 2 of 2