Salloum Makhamre v. Mountain View Centers, et al.

Summary

The United States District Court for the Central District of California granted Plaintiff’s motion to remand an action involving California elder-abuse and negligence claims to Los Angeles Superior Court. The court held that the Federal Arbitration Act did not provide an independent basis for federal subject-matter jurisdiction or removal, and denied Plaintiff’s request for attorneys’ fees despite finding the removal objectively difficult to justify.

Holdings

1. The Federal Arbitration Act does not itself create federal subject matter jurisdiction, and 9 U.S.C. § 205 did not authorize removal because the case involved neither an arbitration agreement nor an international arbitration agreement or award. Because defendants identified no other basis for federal jurisdiction, remand was required.
2. The court denied attorney's fees because, despite finding defendants' removal extremely difficult to justify and objectively unreasonable in appearance, the record did not establish bad faith and counsel's circumstances warranted declining to exercise the court's discretion to award fees.

Questions Presented

1. Whether the Federal Arbitration Act supplied an independent basis for federal subject matter jurisdiction or otherwise authorized removal of this state-law action.
2. Whether plaintiff was entitled to attorney's fees under 28 U.S.C. § 1447(c) based on defendants' removal.

Disposition

remanded