Murrey Life Insurance & Endowment Trust v. Kohl's, Inc.

Summary

The United States District Court for the Southern District of California denied the plaintiff's application to proceed in forma pauperis and dismissed the complaint and motion for a temporary restraining order. The court held that a trustee may not represent a trust pro se and that the complaint did not establish federal-question or diversity jurisdiction. The dismissal under Federal Rule of Civil Procedure 12(b)(1) was without prejudice, and the court permitted refiling of an amended complaint by September 3, 2025.

Holdings

1. A trustee may not proceed pro se on behalf of a trust; the trust must obtain counsel to represent its interests.
2. A claim arising under the Uniform Commercial Code does not, without more, present a federal question because the UCC is state law.
3. The complaint did not establish diversity jurisdiction because Plaintiff failed to show an amount in controversy greater than $75,000.
4. The court may dismiss an action sua sponte under Federal Rule of Civil Procedure 12(b)(1) when subject-matter jurisdiction is absent, and the dismissal is without prejudice.

Questions Presented

1. Whether a trustee may proceed pro se on behalf of a trust and obtain in forma pauperis status.
2. Whether the complaint established federal-question jurisdiction based on a claim arising under the Uniform Commercial Code.
3. Whether the complaint established diversity jurisdiction, including the requirement that the amount in controversy exceed $75,000.
4. Whether the court could dismiss the action sua sponte under Federal Rule of Civil Procedure 12(b)(1) for lack of subject-matter jurisdiction.

Disposition

dismissed