Opinion
No. C 01-03169 WHA
July 26, 2002
ORDER GRANTING MOTION FOR REMAND AND VACATING HEARING
In this wrongful-death action removed from state court, the parties jointly move for remand. This order REMANDS the action back to the Superior Court of California, County of Alameda.
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Plaintiffs Lynda Rosenthal and Kerry G. Moore are the surviving parents of the decedent, Emily Rose Moore. The complaint alleges she was killed when struck by an Amtrak train in the City of San Leandro. Only state-law claims are asserted.
The action was commenced on June 28, 2001, in state court against defendants National Railroad Passenger Corporation aka Amtrak, Union Pacific Railroad Company, City of San Leandro and San Leandro Department of Recreation and Human Resources. Amtrak, with the consent of all other defendants, timely removed the action here under federal-question jurisdiction. In the notice of removal. Amtrak asserted that its special status as a federally chartered corporation wherein the United States owns more than 50 percent of its stock conferred subject-matter jurisdiction under 28 U.S.C. § 1331 pursuant to 28 U.S.C. § 1349. The action remained here on that basis. National Railroad Passenger Corporation v. Pennsylvania Public Utility Commission, 159 F. supp.2d 28,33 (E.D. Penn 2001); see also Hollus v. Amtrak Northeast Corridor, 937 F. Supp. 1110, 1113 (D.N.J. 1996) ("Because a majority of the capital stock of Amtrak is owned by the United States, the federal courts have subject matter jurisdiction over any action involving Amtrak."). Supplemental jurisdiction was exercised over the claims against the other defendants since all arose out of the same incident.
Section 1349 provides:
The district courts shall not have jurisdiction under any civil action by or against any corporation upon the ground that is was incorporated by or under an Act of Congress, unless the United States is the owner of more than one-half of its capital stock.
On June 9, 2002, plaintiffs entered into a settlement agreement with Amtrak and Union Pacific. On July 1, 2002, the Court granted a stipulated order dismissing the action with prejudice as to Amtrak and Union Pacific. The only remaining defendant is the City of San Leandro (since San Leandro Department of Recreation and Human Resources is a subdivision). Now, plaintiffs and the City jointly move for remand back to state court under 28 U.S.C. § 1367(c)(3).
Section 1367(c)(3) provides:
The district courts may decline to exercise supplemental jurisdiction over a claim under subsection (a) if —
the district court has dismissed all claims over which it has original jurisdiction.
The parties request is granted. "The discretion to remand enables district courts to deal with cases involving pendent claims in the manner that best serves the principles of economy, convenience, fairness, and comity which underlie the pendent jurisdiction doctrine." Carnegie-Mellon Univ. v. Cohill, 484 U.S. 343, 357 (1988), Plaintiffs and defendant both desire to be in state court. Alameda County is the place where plaintiffs reside, where defendant City is located, where the accident occurred and when the pertinent witnesses reside (Knowles ¶ 9). In addition, the Court is unfamiliar with the merits of the case since no substantive motions have been filed. Other than the case management order, an arbitration scheduling order, an order extending certain deadline and the July 1 dismissal order, no other orders have been issued. See Murphy v. Kodz, 351 F.2d 163, 167-68 (9th Cir. 1965) ("Where the federal head of jurisdiction has vanished from the case, and there has been no substantial commitment of judicial resources to the nonfederal claims it is, as Judge Merrill of this court has written, akin to `making the tail wag the dog' for the District Court to retain jurisdiction.").
Accordingly, this action is REMANDED back to the superior Court of California, County of Alameda. The hearing noticed for August 1, 2002, is VACATED.
IT IS SO ORDERED.