Kevin L. Swincher and Dawn Swincher v. Fay Servicing, LLC et al.

Summary

The United States District Court for the Western District of Kentucky denied Plaintiffs’ renewed motion to remand and granted their motion for leave to amend. The court held that federal-question jurisdiction remained because the proposed amended complaint sought relief under RESPA and that diversity jurisdiction also existed; the amended complaint was filed as of record.

Holdings

1. Remand was not required because the proposed amended complaint continued to seek declaratory relief under federal law, including federal mortgage-servicing regulations under RESPA.
2. Diversity jurisdiction existed because Plaintiffs alleged that they were Kentucky citizens, Defendants were nonresidents, and the amount in controversy exceeded $75,000.
3. Leave to amend was granted because Plaintiffs did not appear to act in bad faith or for purposes of delay, the amendment added no new claims, and Defendants would not suffer prejudice.

Questions Presented

1. Whether the proposed amended complaint eliminated the federal question supporting federal jurisdiction so that the case had to be remanded.
2. Whether diversity jurisdiction independently supported federal subject-matter jurisdiction.
3. Whether Plaintiffs should be granted leave to amend under Federal Rule of Civil Procedure 15(a)(2).

Disposition

other