Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-3_15-cv-01373/USCOURTS-cand-3_15-cv-01373-5/pdf.json

Nature of Suit Code: 850
Nature of Suit: Securities, Commodities, Exchange
Cause of Action: 15:78m(a) Securities Exchange Act

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UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORNIA

JD BROTHERS LLC, et al.,

Plaintiffs,

v.

LIBERTY ASSET MANAGEMENT 

CORPORATION, et al.,

Defendants.

Case No. 15-cv-01373-VC 

ORDER DENYING MOTION TO 

DISMISS CROSS-CLAIMS

Re: Dkt. No. 118

The Court has subject matter jurisdiction because the cross-claims relate to the same 

"transaction or occurrence" as the original action – the purchase and sale of 166 Geary Street, 

San Francisco, CA – and the cross-claims were brought against a coparty. Fed. R. Civ. P. 13(g); 

see Third Am. Compl. ¶¶ 8-9, 98, 106; Cross-Claim ¶¶ 15-18, 36-46. The cross-claims and the 

complaint's claims share a "common nucleus of operative fact" such that they "would normally 

be tried together." Bahrampour v. Lampert, 356 F.3d 969, 978 (9th Cir. 2004).

The cross-claimants have standing because they clearly allege an ownership interest in 

HK Grace. Cross-Claim ¶¶ 13, 21, 28, 32-33, 37. And for similar reasons, the assertions by the 

cross-defendants regarding the ownership status of HK Grace cannot, at the pleading stage, 

defeat the cross-claims. 

Accordingly, the motion to dismiss the cross-claims is denied.

IT IS SO ORDERED.

Dated: October 24, 2016

______________________________________

VINCE CHHABRIA

United States District Judge

Case 3:15-cv-01373-VC Document 143 Filed 10/24/16 Page 1 of 1