WILLIAM H. STEELE, Chief District Judge.
This matter comes before the Court on Plaintiff's Motion to Dismiss without Prejudice (doc. 57). Defendant has filed a Response (doc. 59) in opposition to the Motion.
This case already bears an unfortunate procedural pedigree, of which plaintiff's Rule 41(a)(2) Motion is simply the latest chapter. To summarize briefly and in relevant part, plaintiff Billie Jean Ford, originally proceeding pro se, sued a host of defendants in the U.S. District Court for the Southern District of California in August 2010. Her First Amended Complaint recited a laundry list of, inter alia, federal statutory claims (including "TILA, RESPA, HOEPA, the Wire Act, the Mail Fraud Act, Bank Fraud, and RICO" (doc. 4, ¶ 6)), and also maintained that federal jurisdiction was proper under the diversity provisions of 28 U.S.C. § 1332. The federal court in California transferred venue to this District Court in January 2011, based on its conclusion that Ford's lawsuit was primarily a "local action" that must be brought in the state where the real property is located (in this case, Alabama). Nine months following transfer to the Southern District of Alabama, and after Ford veered dangerously close to dismissal of her lawsuit for failure to prosecute or to abide by court orders, counsel of record appeared for plaintiff for the first time in October 2011.
On November 23, 2011, plaintiff's counsel filed the Second Amended Complaint (doc. 51). This pleading deleted
On January 4, 2012, plaintiff filed her Motion to Dismiss without Prejudice, reasoning as follows: (i) there is no § 1331 jurisdiction over the Second Amended Complaint because no federal questions are raised therein; (ii) plaintiff's counsel has now determined that Ford was a "resident of Florida" during the times relevant to her pleading; (iii) plaintiff's Florida residency is fatal to § 1332 jurisdiction because it destroys diversity (inasmuch as Ocwen is alleged to be a Florida citizen for diversity purposes); and (iv) federal jurisdiction does not lie in this matter. On that basis, Ford asks this Court to dismiss this action without prejudice, presumably to facilitate her ability to refile the action in an appropriate state court.
For its part, Ocwen opposes the requested dismissal. Significantly, defendant does not challenge plaintiff's counsel's assessment that original federal jurisdiction over this action is lacking.
First, case law is legion for the proposition that district courts must be circumspect about wielding their discretion to exercise supplemental jurisdiction under 28 U.S.C. § 1367 after all original-jurisdiction claims have been dismissed, particularly in the early stages of a case. See, e.g., Carnegie-Mellon University v. Cohill, 484 U.S. 343, 350 n.7, 108 S.Ct. 614, 98 L.Ed.2d 720 (1988) ("in the usual case in which all federal-law claims are eliminated before trial, the balance of factors to be considered . . . will point toward declining to exercise jurisdiction over the remaining state-law claims"); Raney v. Allstate Ins. Co., 370 F.3d 1086, 1089 (11
That said, "declining to exercise supplemental jurisdiction is not a kneejerk action once all federal claims are dismissed; rather, the court should take into account concerns of comity, judicial economy, convenience, fairness, and the like." Doe v. City of Demopolis, 799 F.Supp.2d 1300, 1317 (S.D. Ala. 2011). But those factors weigh heavily in favor of declining to exercise supplemental jurisdiction here.
Second, it bears emphasis that this dismissal issue is presented not in the form of a defendant's Rule 12(b) motion, but via the plaintiff's Rule 41(a)(2) motion. That rule provides that "an action may be dismissed at the plaintiff's request only by court order, on terms that the court considers proper." Rule 41(a)(2), Fed.R.Civ.P. "The basic purpose of Rule 41(a)(2) is to freely permit the plaintiff, with court approval, to voluntarily dismiss an action so long as no other party will be prejudiced." First Financial Bank v. CS Assets, LLC, 2010 WL 1416724, *2 (S.D. Ala. Apr. 8, 2010) (citing Versa Products, Inc. v. Home Depot, USA, Inc., 387 F.3d 1325, 1327 (11
Here, Ocwen has not come forward with any suggestion, much less convincing argument, that it will incur prejudice if plaintiff's motion is granted. That Ocwen may be called upon to defend against Ford's claims in another forum is not, in and of itself, clear legal prejudice. Similarly, that Ocwen might prefer to remain in federal court is not, in and of itself, the sort of prejudice that warrants denial of a motion for voluntary dismissal. Accordingly, the undersigned is of the opinion that this case falls within the broad class of actions in which a plaintiff's Rule 41(a)(2) motion should be freely granted, given the absence of countervailing prejudice to the defendant. This is so, regardless of whether Ford's position on the jurisdictional issue is meritorious or not. Whatever the jurisdictional status of this case may be, plaintiff has a firmly entrenched right to take a voluntary dismissal of her lawsuit, provided that defendant does not suffer clear legal prejudice thereby. No such prejudice is perceptible here.
For all of the foregoing reasons, Plaintiff's Motion to Dismiss without Prejudice (doc. 57) is
DONE and ORDERED.