UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF MICHIGAN

NORTHERN DIVISION

COUNTRYWIDE HOME LOANS, INC.,

as servicer for the United States Department of

Veteran Affairs

Plaintiff,

Case Number 08-14614-BC

v. Honorable Thomas L. Ludington

MICHIGAN DEPARTMENT OF TREASURY,

Robert J. Kleine, Treasurer, et al.,

Defendants.

______________________________________ /

ORDER TO SHOW CAUSE WHY PLAINTIFF’S COMPLAINT SHOULD NOT BE

DISMISSED FOR LACK OF SUBJECT MATTER JURISDICTION

On October 30, 2008, Plaintiff Countrywide Home Loans, Inc. (“Plaintiff”) filed a complaint

to vacate a tax foreclosure judgment and to quiet title. See dkt. # 1. Plaintiff alleges that Defendants

improperly foreclosed on real property that Plaintiff retained a first mortgage lien interest. The

complaint asserts that this Court’s subject matter jurisdiction is predicated on 28 U.S.C. § 2410

pursuant to 28 U.S.C. § 1331. Defendant Marvin D. Hare disputes that this Court retains subject

matter jurisdiction over Plaintiff’s complaint. Dkt. # 13 at ¶ 3.

“[F]ederal courts have an independent obligation to investigate and police the boundaries of

their own jurisdiction . . . .” Douglas v. E.G. Baldwin & Assocs., Inc., 150 F.3d 604, 607 (6th Cir.

1998). 28 U.S.C. § 2410 provides, in pertinent part, that “the United States may be named a party

in any civil action or suit in any district court, or in any State court having jurisdiction of the subject

matter– (1) to quiet title to, (2) to foreclose a mortgage or other lien upon . . . .” Section 2410 “does

not confer jurisdiction upon district courts to entertain quiet title actions . . . the limited purpose of

[section] 2410 is to waive sovereign immunity from suit, and ‘presupposes that the court in which

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such suit is pending or brought has jurisdiction thereof on grounds independent of the statute.’”

Seattle Ass’n of Credit Men v. United States, 240 F.2d 906, 908-09 (9th Cir. 1952)(quoting Wells

v. Long, 162 F.2d 842, 844 (9 Cir. 1947); see also Norman v. United States, 962 F.Supp. 936, 938

(S.D. Miss. 1996) (Section 2410 “does not confer this court with jurisdiction, but instead constitutes

a waiver of the government’s immunity.”); see also Pac. Mut. Life Ins. Co. v. Amer. Nat. Bank and

Trust Co. of Chicago, 642 F.Supp. 163, 166-67 (N.D. Ill. 1986) (Section 2410 permits the United

States to join a federal action without destroying diversity “so long as an independent basis of

jurisdiction exists over the claim against the United States.”). In addition, 28 U.S.C. § 1444 permits

the United States to remove a complaint from state court that is brought under section 2410 against

the United States. 

In this instance, however, Plaintiff filed the complaint in this Court; it did not remove a

complaint from a state court. Thus, it is unclear how 28 U.S.C. § 2410 or 28 U.S.C. § 1444 would

establish subject matter jurisdiction in this Court. In addition, the complaint cites the power over

property conferred to Congress by the United States Constitution, however, it is unclear how

Plaintiff is able to establish a viable claim under this theory. See dkt. # 1 at ¶ 27 (citing U.S. Const.

Art IV, Sec. 3, Cl. 2. Consequently, the Court has reasonable basis to question whether it has

subject matter jurisdiction over the complaint. 

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Accordingly, it is ORDERED that Plaintiff shall show cause in writing why the complaint

establishes federal question jurisdiction and the complaint should not be dismissed for lack of

jurisdiction on or before May 4, 2009. Plaintiff’s brief shall not exceed ten (10) pages. Any

Defendant in this matter may file a response brief on or before May 11, 2009. Any response brief

shall not exceed five pages.

s/Thomas L. Ludington 

THOMAS L. LUDINGTON

United States District Judge

Dated: April 24, 2009

PROOF OF SERVICE

The undersigned certifies that a copy of the foregoing order was served

upon each attorney or party of record herein by electronic means or first

class U.S. mail on April 24, 2009

s/Tracy A. Jacobs 

TRACY A. JACOBS

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