Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-3_07-cv-06015/USCOURTS-cand-3_07-cv-06015-2/pdf.json

Nature of Suit Code: 870
Nature of Suit: Tax Suits
Cause of Action: 28:1441 Petition for Removal

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STIPULATION AND 

PROPOSED ORDER

Case No. 03:07-cv-6015-SI

JOSEPH P. RUSSONIELLO 

United States Attorney

THOMAS M. NEWMAN (CTBN 422187)

Assistant United States Attorney

 9th Floor Federal Building

 450 Golden Gate Avenue, Box 36055

 San Francisco, California 94102

 Telephone: (415) 436-6805

 Fax: (415) 436-6748

Attorneys for the United States of America

IN THE UNITED STATES DISTRICT COURT FOR THE

NORTHERN DISTRICT OF CALIFORNIA

SAN FRANCISCO DIVISION

WACHOVIA BANK, N.A. AS TRUSTEE )

(BAYVIEW), a national banking association ) Case No.: 3:07-cv-6015-SI

)

Plaintiff, )

)

v. )

)

JOHN CLIFTON ELSTEAD, et. al; )

SANDRA F. ELSTEAD, also known as )

SANDRA F. WAGNER, an individual ; TITLE ) STIPULATION FOR REMAND

INSURANCE AND TRUST COMPANY, a )

California corporation; FIDELITY NATIONAL )

TITLE INSURANCE COMPANY, a California )

corporation; SUSAN ELSTEAD, an individual; )

LAW OFFICES OF WALKER & DURHAM, )

an entity of unknown form; THE UNITED )

STATES OF AMERICA; MBNA AMERICA )

BANK, N.A., a national banking entity; )

MEUSER COLLECTION COMPANY doing )

business as MEUSER OF CALIFORNIA, a )

California corporation; UNIVERSAL FENCES )

& SUPPLY, INC., a California corporation; )

THE CITY OF OAKLAND, a municipal entity; )

DOES 1 through 100, inclusive, ) 

)

Defendants. )

)

STIPULATION

1. Plaintiff commenced this action on September 17, 2007, Alameda County 

Superior Court, Case No.nRG07346492. Plaintiff Wachovia filed this action seeking to

foreclose on real property held by Defendant Elstead.

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STIPULATION AND 

PROPOSED ORDER

Case No. 03:07-cv-6015-SI

2. The action was removed by defendant the United States of America pursuant to

28 U.S.C. §§ 1442(a)(1) and 1444.

3. Defendant, the United States has claim against the property that plaintiff seeks to

foreclose that is related to IRS liens filed against defendant Elstead for unpaid federal taxes. The

United States’ interest in property that plaintiff seeks to foreclose is the sole basis for federal

jurisdiction, which includes the amount and priority of the IRS liens. The parties agree that the

remaining issues in this case, which is limited to whether plaintiff has an right to foreclose on the

property, arise under California state law. The parties further agree that those issues

predominate over the sole federal question. 

4. Defendant Elstead further agrees that, while no judgment has been entered in

favor of the IRS’s tax liens, he is not contesting those tax liabilities in this proceeding.

5. In addition, the United States agrees that the IRS liens filed against the real

property at issue that are related to defendant Elstead’s federal tax liabilities are subordinate to

Wachovia’s interests in the real property it seeks to foreclose.

6. Based on the foregoing, the parties agree that this case should be remanded the

Alameda County Superior Court, and any pending motion in this Court should be denied as

moot.

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STIPULATION AND 

PROPOSED ORDER

Case No. 03:07-cv-6015-SI

JOSEPH P. RUSSONIELLO 

United States Attorney

/s/ Thomas M. Newman

THOMAS M. NEWMAN

Assistant United States Attorney

Tax Division

DATED: March 31, 2008 By: /s/S. Christopher Yoo_________ S. CHRISTOPHER YOO

ROCIO HERRERA

Attorneys for plaintiff

WACHOVIA BANK, N.A. AS

TRUSTEE

(BAYVIEW)

DATED: April 2, 2008 By: /s/John C. Elstead________________ JOHN C. ELSTEAD

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STIPULATION AND 

PROPOSED ORDER

Case No. 03:07-cv-6015-SI

IN THE UNITED STATES DISTRICT COURT FOR THE

NORTHERN DISTRICT OF CALIFORNIA

SAN FRANCISCO DIVISION

WACHOVIA BANK, N.A. AS TRUSTEE )

(BAYVIEW), a national banking association ) Case No.: 3:07-cv-6015-SI

)

Plaintiff, )

)

v. ) ORDER

)

JOHN CLIFTON ELSTEAD, et. al; )

)

Defendants. )

)

Base on the parties’ stipulation the Court find that the issues in this case arise

predominantly under state law. A district court may decline to exercise supplemental

jurisdiction where “the district court has dismissed all claims over which it has original

jurisdiction.” See 28 U.S.C. § 1367(c)(3); see also Bryant v. Adventist Health System/West, 289

F. 3d 1162, 1169 (9th Cir. 2002) (holding where district court grants judgment on federal claims,

district court, pursuant to § 1367(c)(3), may properly decline to exercise supplemental

jurisdiction over remaining state law claims). Further, a district court may decline to exercise

supplemental jurisdiction over claims that “substantially predominate[ ] over the claim or claims

over which the district court has original jurisdiction.” See 28 U.S.C. § 1367(c)(2). The Court

DECLINES to exercise supplemental jurisdiction over the remaining state law claims.

Accordingly, the above-titled action is hereby REMANDED to the Superior Court of

Case 3:07-cv-06015-SI Document 28 Filed 04/02/2008 Page 4 of 5

UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORN

I

A

Submitting counsel are

directed to serve this 

order upon all other 

non-efiling parties 

in this action.

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STIPULATION AND 

PROPOSED ORDER

Case No. 03:07-cv-6015-SI

California, in and for the County of Alameda, and the Clerk is DIRECTED to transfer forthwith

the instant order, at the following address:

Office of the Clerk

Superior Court of California 

County of Alameda

1225 Fallon Street

Oakland, CA 94612-4293

IT IS SO ORDERED.

______________________________

SUSAN ILLSTON

UNITED STATES DISTRICT COURT JUDGE

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