Darrell Beauford Ellis v. PennyMac Loan Services LLC

Summary

The United States District Court for the District of Arizona sua sponte dismissed Plaintiff Darrell Beauford Ellis’s mortgage-related complaint for lack of subject-matter jurisdiction. The court found that the complaint did not establish federal-question jurisdiction or diversity jurisdiction because it identified no federal cause of action, failed to establish the citizenship of the defendant LLC’s members, and did not allege the amount in controversy. The court granted Plaintiff 30 days to file a first amended complaint and warned that failure to comply could result in dismissal with prejudice.

Holdings

1. The complaint did not establish federal-question jurisdiction because it identified no federal statute or constitutional provision allegedly violated by Defendant, and the Declaratory Judgment Act, OCC guidelines, and MERS data did not independently confer federal jurisdiction or create a private right of action.
2. The complaint did not establish diversity jurisdiction because Plaintiff failed to allege the citizenship of each member of PennyMac Loan Services LLC and failed to allege the amount in controversy required by 28 U.S.C. § 1332(a).
3. Because the complaint adequately alleged neither federal-question nor diversity jurisdiction, the court was required to dismiss the action for lack of subject matter jurisdiction.
4. Plaintiff was granted 30 days to file a first amended complaint addressing the jurisdictional and pleading deficiencies.

Questions Presented

1. Whether the complaint adequately alleged federal-question jurisdiction.
2. Whether the complaint adequately alleged diversity jurisdiction.
3. Whether the complaint should be dismissed sua sponte for lack of subject matter jurisdiction.
4. Whether Plaintiff should be permitted to amend the complaint to cure the jurisdictional and pleading deficiencies.

Disposition

dismissed