Schulcz v. Rocket Mortgage, LLC

Summary

The United States District Court for the Eastern District of California denied Plaintiff Francis Schulcz’s motion to remand an action against Rocket Mortgage, LLC. The court concluded that complete diversity existed and that the amount in controversy exceeded $75,000 based principally on potential treble damages under California Penal Code section 496(c). The court also denied Plaintiff’s request for attorney’s fees and costs and reset the mandatory scheduling conference for April 24, 2025.

Holdings

1. Complete diversity existed because the plaintiff was a California citizen and the removing defendant sufficiently established that Rocket Mortgage, LLC was a citizen of Michigan and Delaware through the citizenship of its members.
2. The amount in controversy exceeded $75,000 because the complaint alleged $40,297.95 in actual damages and entitlement to treble damages under California Penal Code section 496(c), resulting in a potential recovery of $120,893.85.
3. Attorney's fees and costs under 28 U.S.C. § 1447(c) were not warranted because Defendant had a reasonable basis for removal.

Questions Presented

1. Whether complete diversity of citizenship existed between the plaintiff and Rocket Mortgage, LLC.
2. Whether the amount in controversy exceeded $75,000 for purposes of diversity jurisdiction based on the plaintiff's alleged actual damages and potentially recoverable treble damages.
3. Whether the plaintiff was entitled to attorney's fees and costs incurred in opposing removal under 28 U.S.C. § 1447(c).

Disposition

other