WILLIAM B. SHUBB, District Judge.
Plaintiffs Paul Singh and Andrea Singh initiated this action against defendants Lowe's Home Centers, LLC ("Lowe's) and Does 1 through 50, bringing claims for assault, battery, intentional infliction of emotional distress, negligence, vicarious liability, and negligent supervision, instruction, and training. (First Amended Compl. ("FAC") (Docket No. 1., Ex. B).) Presently before the court are plaintiffs' Motion to Remand (Docket No. 7); plaintiffs' Motion for Leave to File a Second Amended Complaint (Docket No. 9); and Lowe's Motion to Dismiss or, in the alternative, for More Definite Statement (Docket No. 4).
Generally, jurisdiction is a preliminary matter that should be resolved before all others.
"[A]ny 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 . . . where such action is pending." 28 U.S.C. § 1441(a). However, if "it appears that the district court lacks subject matter jurisdiction, the case shall be remanded." 28 U.S.C. § 1447(c). On a motion to remand, the defendant bears the burden of showing by a preponderance of the evidence that federal jurisdiction is appropriate.
Federal courts have original jurisdiction over cases where complete diversity exists between the parties and the amount in controversy exceeds $75,000, exclusive of interest and costs. 28 U.S.C. § 1332(a). To satisfy the requirements for complete diversity, "each of the plaintiffs must be a citizen of a different state than each of the defendants."
Plaintiffs initiated this case in Sutter County Superior Court, and Lowe's removed it to federal court, alleging that "it is a civil action wherein the matter in controversy exceeds the sum of $75,000.00," and additionally alleging that "the action is between citizens of different states." (Notice of Removal (Docket No. 1) ¶ 17.) Defendants include Lowe's, the sole named defendant, as well as Does 1 through 50. It is undisputed that plaintiffs were, and presently remain, residents of California, while Lowe's is a citizen of North Carolina. (
Plaintiffs argue that the presence of doe defendants destroys complete diversity and thus precludes removal. However, it is well established that "[i]n determining whether a civil action is removable on the basis of jurisdiction under section 1332(a) . . . the citizenship of defendants sued under fictitious names shall be disregarded." 28 U.S.C. § 1441(b)(1). From this language, the Ninth Circuit has concluded that "Congress obviously reached the conclusion that doe defendants should not defeat diversity jurisdiction."
It is possible that plaintiffs may later seek leave to add a nondiverse party. In the event that occurs, "the court may deny joinder, or permit joinder and remand the action to the State court."
Federal Rule of Civil Procedure 15 empowers parties to agree to amendments and alternatively directs the court to freely grant leave to amend "when justice so requires." Fed. R. Civ. P. 15(a)(2). "[T]his policy is to be applied with extreme liberality."
Courts commonly consider four factors when deciding whether to grant a motion for leave to amend a complaint: (1) bad faith on the part of the movant; (2) undue delay in filing the motion; (3) prejudice to the opposing party; and (4) the futility of the proposed amendment.
Here, the court does not find that plaintiff unduly delayed proceedings or acted in bad faith. Further, prejudice generally only exists where amendment will significantly hinder a defendant's ability to defend against the plaintiff's claims, as in cases where discovery has already been completed or when the amendment will require relitigation of significant issues.
Defendants' final argument regarding futility is also insufficient to overcome the presumption in favor of amendment. A court need not deny plaintiff's motion for leave to amend based on futility alone.
Lowe's has moved to dismiss plaintiffs' First Amended Complaint for failure to state a claim upon which relief can be granted, pursuant to to Federal Rule of Civil Procedure 12(b)(6), or, in the alternative, Motion for a More Definite Statement pursuant to Federal Rule of Civil Procedure 12(e). Because the court will grant plaintiffs' Motion for Leave to Amend, it will deny as moot Lowe's Motion to Dismiss and will defer consideration of any challenges to the merits until after plaintiffs have filed their second amended complaint.
IT IS THEREFORE ORDERED that plaintiffs' Motion to Remand (Docket No. 7) be, and the same hereby is, DENIED.
IT IS FURTHER ORDERED that plaintiffs' Motion for Leave to File a Second Amended Complaint (Docket No. 9) be, and the same hereby is, GRANTED.
IT IS FURTHER ORDERED that Lowe's Motion to Dismiss or, in the alternative, for More Definite Statement (Docket No. 4) be, and the same hereby is, DENIED as moot.
Plaintiffs are ordered to file their Second Amended Complaint within ten days of the date this Order is filed.