MARGARET M. MORROW, District Judge.
On February 28, 2014, Lotti Bluemner filed this action in Los Angeles Superior Court against Ergo Media Capital, LLC ("Ergo"), Erik H. Gordon (collectively, "defendants"), and certain fictitious defendants.
On March 30, 2015, Bluemner filed a motion to remand, asserting that defendants' removal was untimely.
Bluemner alleges that Gordon is the sole owner of ErGo Media.
Bluemner alleges that she was always on call when Gordon was in town.
The complaint asserts that Gordon often praised Bluemner for her work, and that he paid her an end-of-the-year bonus of $8,250.00. She contends that, prior to her termination, she did not receive any negative feedback from Gordon.
At the end of March 2013, Bluemner told Gordon she was pregnant; she asserts that the was she was treated changed immediately; she was purportedly excluded from social events and trips in which she had typically been included.
On July 11, 2013, after he returned from a trip abroad on which Bluemner was not invited, Gordon emailed Bluemner to say that he was terminating her, effective immediately, and that he would issue her last paycheck on July 15, 2013, six weeks prior to her due date.
"Except as otherwise expressly provided by Act of Congress, any civil action brought in a State court of which the district courts of the United States have original jurisdiction, may be removed by the defendant or the defendants, to the district court of the United States for the district and division embracing the place where such action is pending." 28 U.S.C. § 1441(a). "If at any time before final judgment[, however,] it appears that the district court lacks subject matter jurisdiction, the case shall be remanded." 28 U.S.C. § 1447(c).
The right to remove a case to federal court is entirely a creature of statute. See Libhart v. Santa Monica Dairy Co., 592 F.2d 1062, 1064 (9th Cir. 1979). The removal statute, 28 U.S.C. § 1441, allows defendants to remove when a case originally filed in state court presents a federal question or is between citizens of different states and involves an amount in controversy that exceeds $75,000. See 28 U.S.C. §§ 1441(a), (b); see also 28 U.S.C. §§ 1331, 1332(a). Only state court actions that could originally have been filed in federal court can be removed. 28 U.S.C. § 1441(a); see Caterpillar, Inc. v. Williams, 482 U.S. 386, 392 (1987); Ethridge v. Harbor House Rest., 861 F.2d 1389, 1393 (9th Cir. 1988).
A plaintiff may seek remand if the removal is untimely. 28 U.S.C. § 1446(b) "provides two thirty-day windows during which a case may be removed — during the first thirty days after the defendant receives the initial pleading or during the first thirty days after the defendant receives a paper `from which it may first be ascertained that the case is one which is or has become removable' if `the case stated by the initial pleading is not removable.'" Harris v. Bankers Life & Cas. Co., 425 F.3d 689, 692 (9th Cir. 2005) (quoting 28 U.S.C. § 1446(b)).
The Ninth Circuit "strictly construe[s] the removal statute against removal jurisdiction," and "[f]ederal jurisdiction must be rejected if there is any doubt as to the right of removal in the first instance." Gaus v. Miles, Inc., 980 F.2d 564, 566 (9th Cir. 1992) (citing Boggs v. Lewis, 863 F.2d 662, 663 (9th Cir. 1988), Takeda v. Northwestern Nat'l Life Ins. Co., 765 F.2d 815, 818 (9th Cir. 1985), and Libhart, 592 F.2d at 1064). "The `strong presumption' against removal jurisdiction means that the defendant always has the burden of establishing that removal is proper." Id. (citing Nishimoto v. Federman-Bachrach & Assocs., 903 F.2d 709, 712 n. 3 (9th Cir. 1990); Emrich v. Touche Ross & Co., 846 F.2d 1190, 1195 (9th Cir. 1988)). Doubts as to removability must be resolved in favor of remanding the case to state court. Matheson v. Progressive Specialty Ins. Co., 319 F.3d 1089, 1090 (9th Cir. 2003).
Bluemner contends that defendants' removal was untimely. Defendants counter (1) that they were not properly served and that their default was thereafter entered, making it impossible for them to remove. It is well settled that a court lacks power to exercise jurisdiction over a defendant, and hence the thirty-day removal period does not begin to run, "in the absence of [ ] service (or waiver of service by the defendant)." Murphy Brothers, Inc. v. Michetti Pipe Stringing, Inc., 526 U.S. 344, 350 (1999).
Where a defendant has not been properly served, courts look to whether the defendant has waived service under state law in gauging the timeliness of removal. See Jenkins v. MTGLQ Investors, 218 Fed. Appx. 719, 724 (10th Cir. Feb. 9, 2007) (Unpub. Disp.) ("Because, as the district court concluded, MTGLQ was never properly served with a copy of the summons . . . absent waiver of service . . . the thirty-day period for filing a notice of removal set forth in 28 U.S.C. § 1446(b) never started to run"); Maddaloni Jewelers, Inc. v. Rolex Watch U.S.A., Inc., No. 02 CIV. 6438 (SAS), 2002 WL 31509881, *3 (S.D.N.Y. Nov. 6, 2002) ("The key question . . . is whether defendants waived formal service of process"); see also Russell v. Gordon, No. CV-12-0514-JLQ, 2012 WL 4793651, *4 (E.D. Wash. Oct. 9, 2012) ("The question Plaintiff presents is whether the removal clock was nevertheless started where the defendant has, by its conduct, waived service"); Marina Bay Towers Urban Renewal II, L.P. v. City of N. Wildwood, No. CIVA 09-369 NLH KMW, 2009 WL 2568203, *3 (D.N.J. Aug. 13, 2009) ("It appears that plaintiff has never formally served the City, [but] the City's appearance at the injunction hearing . . . may constitute a waiver of service under state law").
California Code of Civil Procedure § 1014 provides, in relevant part, that a defendant generally appears in an action "when the defendant answers, demurs, files a notice of motion to strike, files a notice of motion to transfer pursuant to Section 396b, moves for reclassification pursuant to Section 403.040, gives the plaintiff written notice of appearance, or when an attorney gives notice of appearance for the defendant." CAL. CODE CIV. PROC. § 1014. This list is not exclusive, however. Hamilton v. Asbestos Corp., 22 Cal.4th 1127, 1147 (2000). A defendant who invokes the authority of the court or who affirmatively seeks relief available only if the court has jurisdiction over the defendant is deemed to have made a general appearance. Factor Health Management v. Superior Court, 132 Cal.App.4th 246, 250 (2005). "[W]hether a party engaged in an act that amounts to an appearance is `fact specific.'" Air Mach. Com SRL v. Superior Court, 186 Cal.App.4th 414, 426 (2010).
Here, defendants filed motions to set aside their defaults under California Code of Civil Procedure § 473 on October 6, 2014.
Defendants maintain, however, they could not file a notice of removal after their defaults were entered in state court and before the defaults had been set aside. There is no authority for this proposition. To the contrary, "the Ninth Circuit does not prohibit a defendant from removing a case, assuming that removal is timely, even if default judgment has been previously entered against the defendant. Therefore, an entry of default against a [ ] defendant does not abrogate [d]efendants' right to removal." Ali v. Downey Sav. & Loan, No. CV 10 3798 GAF FMO, 2010 WL 2720505, *1 (C.D. Cal. July 7, 2010) (citing Butner v. Neustadter, 324 F.2d 783, 785 (9th Cir. 1963) ("The federal court takes the case as it finds it on removal and treats everything that occurred in the state court as though it had been validly rendered in the federal proceeding")); cf. Kizer v. Sherwood, 311 F.Supp. 809, 811 (M.D. Pa. 1970) ("there is no question that under the general removal statute,28 U.S.C. § 1441-1450, it is within the power of a Federal Court to set aside a default judgment rendered by a State Court before removal of a particular case").
Furthermore, it has long been the rule that a removal constitutes a special appearance that does not waive a defendant's right to contest service of process. See Barnard v. Watson, No. 14-CV-0024-TOR, 2014 WL 2573238, *1 n. 1 (E.D. Wash. June 9, 2014) ("Defendants did not waive this challenge [(to service of process)] by removing the case to this Court," citing Wabash W. Ry. v. Brow, 164 U.S. 271, 279 (1896) (holding that the removal of a case from state court to federal court constitutes a special appearance and does not waive the defendant's right to contest service of process)); Maplebrook Townhomes LLC v. Greenbank, No. 10-CV-03688-LHK, 2010 WL 4704472, *4 (N.D. Cal. Nov. 12, 2010) (same). Thus, the fact defendants were still in default on October 6, 2014 is of no consequence.
Finally, defendants argue that even if they could have removed while in default, and even if they waived service of process as of October 6, 2014, their removal was timely because neither of § 1446(b)'s 30-day removal windows was triggered. The court does not agree. Defendants assert that Bluemner is a California citizen based on allegations in the complaint; because they rely exclusively on Bluemner's allegations in this regard, the case stated by the initial pleading was removable, and first of § 1446's third-day removal periods was triggered as soon as defendants made a general appearance on October 6, 2014. See Harris, 425 F.3d at 694 ("the first thirty-day period for removal in 28 U.S.C. § 1446(b) only applies if the case stated by the initial pleading is removable on its face"). Stated differently, in the notice of removal, defendants rely exclusively on facts alleged in the complaint to establish Bluemner's citizenship. Bluemner pled that she "is now, and at all times mentioned herein was, an individual residing and doing business in the County of Los Angeles, State of California."
Defendants also argue that Bluemner's complaint failed adequately to allege their citizenship as it pled only that Gordon maintained a residence in Beverly Hills, California where he "resided. . . for significant portions of time."
The fact that the amended complaint did not adequately allege defendants' citizenship therefore does not relieve defendants of the obligation to remove in a timely fashion. Because defendants are charged with knowledge of their own citizenship, and because they rely solely on information alleged in the complaint to plead Bluemner's citizenship, the thirty day removal clock was triggered on the case stated in the complaint on October 6, 2014, when defendants waived any objection to service of process by making a general appearance. Defendants filed their notice of removal more than four months later, on February 26, 2015.
Bluemner seeks attorneys' fees under 28 U.S.C. § 1447(c) in the event of remand. "Under 28 U.S.C. § 1447(c), `[a]n order remanding the case may require payment of just costs and any actual expenses, including attorney fees, incurred as a result of the removal.'" Federal Home Loan Mortg. Corp. v. Lettenmaier, No. CV-11-165-HZ, 2011 WL 1297960, *1 (D. Or. Apr. 5, 2011) (quoting 28 U.S.C. § 1447(c)). "`Absent unusual circumstances, courts may award attorney's fees under § 1447(c) only where the removing party lacked an objectively reasonable basis for seeking removal. Conversely, when an objectively reasonable basis exists, fees should be denied.'" Id. (quoting Martin v. Franklin Capital Corp., 546 U.S. 132, 141 (2005)).
"Removal is not objectively unreasonable solely because the removing party's arguments lack merit and the removal is ultimately unsuccessful." Id. (citing Lussier v. Dollar Tree Stores, Inc., 518 F.3d 1062, 1065 (9th Cir. 2008)). "Rather, the court should assess `whether the relevant case law clearly foreclosed the defendant's basis of removal' by examining the `clarity of the law at the time of removal.'" Id. (quoting Lussier, 518 F.3d 1066); see also Patel v. Del Taco, Inc., 446 F.3d 996, 999-1000 (9th Cir. 2006) ("Del Taco's state court petition to confirm the arbitration award contained only one state law cause of action; it did not contain any federal claim that could provide the basis for a § 1441(c) removal. Joinder of a federal claim and a claim for removal of a state court action in a federal complaint cannot effect a § 1441(c) removal. There being no objectively reasonable basis for removal, the district court did not abuse its discretion in awarding attorney's fees under § 1447(c) to Del Taco").
Bluemner contends attorneys' fees are warranted because defendants' removal clearly lacked merit, and constituted an impermissible interference with her right to be the master of her complaint. The court declines to award attorneys' fees. Although not persuasive, the court does not find defendants' arguments in support of removal so objectively unreasonable that they warrant an award of attorneys' fees. See Lussier, 518 F.3d at 1065 (noting that while "[t]here is no question that [the defendant's] arguments were losers[,] . . . removal is not objectively unreasonable solely because the removing party's arguments lack merit, or else attorney's fees would always be awarded whenever remand is granted"). While the court does not agree that a defendant in default cannot remove, or that defendants' decision to move to set aside their defaults did not constitute a general appearance under California law, the principles of law governing these issues are not immediately obvious, and the court cannot say that defendants' arguments were so objectively unreasonable that they merit an award of attorneys' fees to Bluemner.
For the reasons stated, the court grants Bluemner's motion to remand, and directs the clerk to remand the action to Los Angeles Superior Court forthwith. Bluemner's request for attorneys' fees and costs is denied.