PAMELA K. CHEN, District Judge:
Pending before the Court are the cross letter-motions of Plaintiff and Defendant, respectively. Plaintiff moves to remand this action to state court on the basis that removal was improper because the Court lacks subject matter jurisdiction over this judgment enforcement action. (Dkt. 9.) Defendant moves to dismiss or, alternatively, to deem the underlying judgment satisfied. (Dkt. 8.) Because Plaintiff has not registered the judgment with this Court, the Court lacks subject matter jurisdiction over this removal action, and must remand it to state court.
Plaintiff Christine Winter obtained a judgment, following a jury verdict, on April 9, 2012, in the United States District Court for the Western District of Missouri.
On May 14, 2014, Defendant submitted a letter request for a pre-motion conference seeking permission to move to dismiss this action or to deem the judgment satisfied. (Dkt. 8.) On May 16, Plaintiff moved by letter to remand this action to state court on the basis of lack of subject matter jurisdiction. (Dkt. 9.) The Court held oral argument on the parties' respective motions and ordered the parties to submit additional argument in support of the motions. (See June 19, 2014 Minute Entry.) The parties did so, and the motions were fully briefed on July 7, 2014. (Dkts. 16, 17.)
Pursuant to Title 28 U.S.C. § 1441, a defendant may remove a state court action to federal district court in the district embracing the state court in which the action originated where the district court has original jurisdiction over the matter. See 28 U.S.C. § 1441(a). In other words, a defendant may remove an action that, in its present posture, could have been brought in federal court originally. See Freeman v. Burlington Broadcasters, Inc., 204 F.3d 311, 319 (2d Cir.2000) (noting that action "could have been brought originally in a district court, and is therefore properly removable") (citing 28 U.S.C. § 1441(a)).
Federal courts are of limited jurisdiction and "possess[] only that power authorized by Constitution and statute." Kokkonen v. Guardian Life Ins. Co. of Am., 511 U.S. 375, 378, 114 S.Ct. 1673, 128 L.Ed.2d 391 (1994). "It is to be presumed that a cause lies outside this limited jurisdiction and the burden of establishing the contrary rests upon the party asserting jurisdiction." Id. (internal citation omitted). In a case removed to federal court from state court, the removal statute is to be interpreted narrowly, and the burden is on the removing party to show that subject matter jurisdiction exists and that removal was timely and proper. Lupo v. Human Affairs Int'l, Inc., 28 F.3d 269, 274 (2d Cir.1994); Wilson v. Rep. Iron & Steel Co., 257 U.S. 92, 97, 42 S.Ct. 35, 66 L.Ed. 144 (1921). All doubts should be resolved against removability. Lupo, 28 F.3d at 274.
A federal court's jurisdiction generally may be predicated upon federal question jurisdiction, codified at 28 U.S.C. § 1331, or diversity jurisdiction, codified at 28 U.S.C. § 1332. In this case, diversity jurisdiction does not lie, as the amount in controversy does not, as a matter of law, exceed the $75,000 threshold. (See Dkt. 9
Instead, Defendant asserts that this Court has ancillary jurisdiction over this matter because it involves the enforcement of another federal district court's judgment. (Dkt. 16 at 1.) Ancillary jurisdiction is, of course, a well-recognized exception to a district court's limited subject matter jurisdiction. See, e.g., Epperson v. Entm't Express, Inc., 242 F.3d 100, 104-05 (2d Cir.2001) (describing ancillary jurisdiction). The Supreme Court in Peacock v. Thomas, 516 U.S. 349, 116 S.Ct. 862, 133 L.Ed.2d 817 (1996) described a district court's ancillary jurisdiction as such: "[A] federal court may exercise ancillary jurisdiction `(1) to permit disposition by a single court of claims that are, in varying respects and degrees, factually interdependent; and (2) to enable a court to function successfully, that is, to manage its proceedings, vindicate its authority, and effectuate its decrees.'" Peacock, 516 U.S. at 354, 116 S.Ct. 862 (quoting Kokkonen, 511 U.S. at 379-80, 114 S.Ct. 1673). The first category generally applies to cases in which a plaintiff brings related state law claims in addition to claims over which the court has original jurisdiction. See 28 U.S.C. § 1367 (federal supplemental jurisdiction statute) ("the district courts shall have supplemental jurisdiction over all other claims that are so related to claims in the action within such original jurisdiction that they form part of the same case or controversy under Article III of the United States Constitution").
The second category may be described as "enforcement ancillary jurisdiction." Epperson, 242 F.3d at 105. Enforcement ancillary jurisdiction was born of the need for federal courts to enforce their own judgments. Id. The Supreme Court, however, has limited enforcement ancillary jurisdiction to rare circumstances. In Peacock, the Court stated: "We have reserved the use of ancillary jurisdiction in subsequent proceedings for the exercise of a federal court's inherent power to enforce its judgments. Without jurisdiction to enforce a judgment entered by a federal court, `the judicial power would be incomplete and entirely inadequate to the purposes for which it was conferred by the Constitution.'" Id. at 356, 116 S.Ct. 862 (internal citations omitted). Enforcement ancillary jurisdiction remains a narrow exception to a federal district court's limited subject matter jurisdiction. See Finley v. United States, 490 U.S. 545, 551, 109 S.Ct. 2003, 104 L.Ed.2d 593 (1989) (in dicta, describing ancillary jurisdiction as applying in a "narrow class of cases").
Here, Defendant urges the Court to exercise enforcement ancillary jurisdiction over this action on the basis of the Court's alleged inherent jurisdiction to enforce a federal judgment. (See Dkt. 16) ("Because plaintiff is seeking to enforce a money judgment rendered by the Western District of Missouri, this Court possesses ancillary enforcement jurisdiction. The Supreme Court has held that ancillary enforcement jurisdiction exists `in subsequent proceedings for the exercise of a federal court's inherent power to enforce its judgments.'") (citing Peacock, 516 U.S. at 356, 116 S.Ct. 862). Defendant's argument, however, ignores a critical point.
In all of the cases cited by Defendant, including Peacock, the district court was enforcing a judgment it itself had entered. It is clear that the reasoning behind ancillary enforcement jurisdiction
In fact, 28 U.S.C. § 1963 suggests the opposite. Section 1963 provides, in relevant part:
Section 1963 provides the mechanism by which a district court in one jurisdiction can enforce the judgment issued by a district court in another jurisdiction. The registration requirement in Section 1963 would be superfluous if, as Defendant posits, a district court has inherent authority to enforce the judgment of any other district court. Accordingly, because Plaintiff chose not to register her Western District of Missouri judgment in this district, the Court has no authority to enforce it. See, e.g., Weininger v. Castro, 462 F.Supp.2d 457, 490 (S.D.N.Y.2006) ("Upon registration of the judgment, this Court obtained subject matter jurisdiction over the enforcement proceeding through ancillary jurisdiction to enforce a judgment.") (emphasis added); Rubin v. Islamic Rep. of Iran, 456 F.Supp.2d 228, 231 (D.Mass.2006) ("This Court acquired jurisdiction over the present controversy when the plaintiffs registered here the judgment they had obtained against Iran in the United States District Court for the District of Columbia.") (emphasis added); CSX Transp., Inc. v. Filco Carting Corp., 10-CV-1055(NGG), 2011 WL 2713487, at *2 (E.D.N.Y. July 11, 2011) ("If the party seeking to enforce a registered judgment against a third party
Another case cited by Defendant, CAP Holdings, Inc. v. Connors, 12-10751, 2012 WL 2721664 (D.Mass. July 5, 2012) is inapposite for similar reasons. In CAP Holdings, the district court had entered a judgment in favor of the plaintiff. The new plaintiff, to whom the judgment had been assigned, sought to collect on the judgment in Massachusetts state court. The defendant removed the enforcement action to federal court, to the same court that had issued the underlying federal judgment. Id. at *1. The district court reasoned that courts "retain residual federal jurisdiction over post judgment enforcement proceedings flowing from their original jurisdiction over the action" and that, as a consequence, "a federal court's jurisdiction does not end `by the rendition of its judgment, but continues until that judgment shall be satisfied.'" Id. The court then concluded that "[s]ince [plaintiff] is seeking to enforce a federal judgment, this court has jurisdiction over this action." Id. Importantly, the court's conclusion that its jurisdiction was based on the enforcement of a federal judgment almost certainly was based on the fact that the court itself had issued the judgment. Nothing in the court's holding suggests that the court found it had subject matter jurisdiction over a judgment issued by any district court. And more to the point, the court cited no authority for the proposition. Accordingly, the Court finds CAP Holdings both unpersuasive and inapposite.
Relying on Caterpillar v. Williams, 482 U.S. 386, 107 S.Ct. 2425, 96 L.Ed.2d 318 (1987), Defendant also argues that this action was properly removed because Plaintiff could have chosen to register the judgment with this Court, but did not, and that registration therefore is not necessary to render removal proper. (Dkt. 16 at 2 ("That [Plaintiff] elected to register [the judgment] with a state court does not change the fact that this could have been done within the federal system, and thus this Court has jurisdiction.") (citing Caterpillar, 482 U.S. at 392, 107 S.Ct. 2425) ("Only state-court actions that originally
The proper question for the Court in considering whether removal was proper is not whether, given certain hypothetical scenarios, a plaintiff could have crafted an action that could have been brought pursuant to the Court's original subject matter jurisdiction. Rather, the question is whether the State court action as filed by the plaintiff is one that could have been brought in federal court. See Caterpillar, 482 U.S. at 392 n. 7, 107 S.Ct. 2425 ("Of course, the party who brings a suit is the master to decide what law he will rely upon.... Jurisdiction may not be sustained on a theory that the plaintiff has not advanced .... The plaintiff may by the allegations of his complaint determine the status with respect to removability of a case.") (internal citations, quotations, and alterations omitted).
For these reasons, the Court finds no basis or legal authority to assert enforcement ancillary jurisdiction over the Western District of Missouri's judgment, which Plaintiff has chosen not to register with this Court, instead seeking to pursue the New York statutory post-judgment interest rate in New York state court. In the absence of registration pursuant to 28 U.S.C. § 1963, Plaintiff's enforcement action could not have been brought here originally, and the Court lacks subject matter jurisdiction over this removal action. Accordingly, Defendant's motion to deem the judgment satisfied or to dismiss this action is denied, and Plaintiff's motion to remand this action to state court is granted. The Clerk of Court respectfully is directed to remand this matter to the state court from which it came and to terminate this action.
SO ORDERED.