Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-3_19-cv-03929/USCOURTS-cand-3_19-cv-03929-0/pdf.json

Nature of Suit Code: 190
Nature of Suit: Other Contract Actions
Cause of Action: 18:1964 Racketeering (RICO) Act

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United States District Court

Northern District of California

UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORNIA

MENTOR CAPITAL, INC., et al.,

Plaintiffs,

v.

G FARMALABS LIMITED, et al.,

Defendants.

Case No. 19-cv-03929-RS 

ORDER TO SHOW CAUSE RE 

JURISDICTION

Defendants removed this action from state court on grounds that the fourteenth “cause of 

action” set out in the complaint asserts “Civil RICO” as a basis for alleged liability. Although it 

appears likely the mere invocation of RICO suffices as a basis for removal jurisdiction, continued 

litigation of the case in this forum will not be appropriate in the event the RICO claim is not 

viable. See Carnegie–Mellon Univ. v. Cohill, 484 U.S. 343, 351 (1988) (“[I]n the usual case in 

which all federal-law claims are eliminated before trial, the balance of factors to be considered 

under the pendent jurisdiction doctrine-judicial economy, convenience, fairness, and comity-will 

point toward declining to exercise jurisdiction over the remaining state-law claims.”).

The complaint here plainly sounds primarily in state law contract, with some possible 

closely related state law claims. The assertion of liability under RICO is pleaded conclusorily and 

without any clear connection to any factual allegations that would be necessary to set out a RICO 

claim. Accordingly, within seven court days of entry of this order, plaintiff shall either file a 

Case 3:19-cv-03929-RS Document 16 Filed 08/05/19 Page 1 of 2
CASE NO. 19-cv-03929-RS

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United States District Court

Northern District of California

dismissal with prejudice of its claims under RICO, or shall set out in a brief not exceeding seven 

pages any reasons it may have that it believes it can plead a viable claim under the statute. 

Further briefing on the pending motions is hereby suspended. The hearings set for August 

29, 2019 and September 12, 2019 are vacated, pending further order.

IT IS SO ORDERED.

Dated: August 5, 2019 

______________________________________

RICHARD SEEBORG

United States District Judge

Case 3:19-cv-03929-RS Document 16 Filed 08/05/19 Page 2 of 2