United States District Court, N.D. Mississippi, Oxford Division
OPINION AND ORDER GRANTING MOTION TO DISMISS
DEBRA M. BROWN, District Judge.
This declaratory judgment and quiet title action is before the Court on the Rule 12(b)(1) motion to dismiss of Defendants Caliber Home Loans, Inc. f/k/a Vericrest Financial, Inc.; LSF7 Bermuda NPL V Trust; LSF7 Mortgage Acquisitions II, LLC; Merscorp Holdings, Inc. ("MERSCORP"); Mortgage Electronic Registration Systems, Inc. ("MERS"); U.S. Bank Trust, NA; Vericrest Opportunity Loan Trust 2011-NPL1; Volt 2011-NPL1 Holdings, LLC; VOLT NPL IX, LLC; VOLT NPL IX Asset Holdings Trust; and Wells Fargo Delaware Trust Company, NA (collectively, "Caliber Defendants"). Doc. #67. The Caliber Defendants contend that dismissal is required because this Court lacks subject matter jurisdiction over Plaintiffs' amended complaint. Id.
"Motions filed under Rule 12(b)(1)... allow a party to challenge the subject matter jurisdiction of the district court to hear a case. Lack of subject matter jurisdiction may be found in any one of three instances: (1) the complaint alone; (2) the complaint supplemented by undisputed facts evidenced in the record; or (3) the complaint supplemented by undisputed facts plus the court's resolution of disputed facts." Ramming v. U.S., 281 F.3d 158, 161 (5th Cir. 2001) (internal citations omitted). Because the burden of proof rests on the party asserting jurisdiction, when considering a motion to dismiss for lack of subject-matter jurisdiction, "the plaintiff constantly bears the burden of proof that jurisdiction does in fact exist." Id.
On March 11, 2013, Plaintiffs Rita Sahlein, Steven Sahlein, and Emeline Sahlein,  filed this action asserting numerous state and federal claims against a wide variety of defendants. Doc. #1. Plaintiffs claimed that the Caliber Defendants and Defendant Red Oak fraudulently represented to Plaintiffs that Red Oak loaned Plaintiffs money and that the same defendants fraudulently asserted that Plaintiffs' property ("Property") was subject to a Promissory Note signed by Rita and Hugo, and a Deed of Trust executed by Plaintiffs. See Doc. #1 at ¶ 30.
On September 13, 2013, the Caliber Defendants filed a motion to dismiss Plaintiffs' complaint. Doc. #21. Following a round of briefing, this Court issued an order granting the motion to dismiss and providing Plaintiffs an opportunity to file an amended complaint. Doc. #63.
On July 17, 2014, Plaintiffs filed an amended complaint. Doc. #64. Plaintiffs' amended complaint repeats the general allegations of their first complaint; that is, that Plaintiffs jointly own the Property and that Defendants fraudulently created the Promissory Note and Deed of Trust. Doc. #64. However, unlike the original complaint, the amended complaint asserts just two causes of action: (1) a claim seeking various declaratory judgments relating to the Property and the allegedly fraudulent Deed of Trust; and (2) a claim to quiet title in the Property. Plaintiffs' amended complaint does not allege any federal claims and pleads that Defendant Red Oak and Rita both are citizens of California. Id. at ¶¶ 2, 4.
On August 15, 2014, the Caliber Defendants filed a motion to dismiss for lack of subject matter jurisdiction. Doc. #67. Plaintiffs timely responded, Doc. #72, and the Caliber Defendants timely replied, Doc. #74.
"The basic statutory grants of federal-court subject-matter jurisdiction are contained in 28 U.S.C. §§ 1331 and 1332. Section 1331 provides for federal question' jurisdiction, § 1332 for diversity of citizenship' jurisdiction." Arbaugh v. Y&H Corp., 546 U.S. 500, 513 (2006) (internal quotation marks and punctuation omitted). Here, there is no dispute that Plaintiffs' amended complaint, which names a plaintiff and a defendant from California and does not raise any federal claims, does not implicate diversity or federal question jurisdiction. Nevertheless, Plaintiffs ask that this Court exercise its supplemental jurisdiction over the remaining claims ...