This document is a notice of removal filed by SunTrust Bank Company to remove a civil case from the Superior Court for the District of Columbia to the United States District Court for the District of Columbia. The case involves a dispute over a property owned by SunTrust that includes an open plaza. SunTrust argues that diversity jurisdiction exists because the plaintiffs (two citizens associations of DC) are diverse from SunTrust (a Georgia corporation) and the amount in controversy exceeds $75,000. SunTrust notes that non-diverse defendants were recently dismissed from the case by the Superior Court, establishing complete diversity between the remaining parties.
This document is a notice of removal filed by SunTrust Bank Company to remove a civil case from the Superior Court for the District of Columbia to the United States District Court for the District of Columbia. The case involves a dispute over a property owned by SunTrust that includes an open plaza. SunTrust argues that diversity jurisdiction exists because the plaintiffs (two citizens associations of DC) are diverse from SunTrust (a Georgia corporation) and the amount in controversy exceeds $75,000. SunTrust notes that non-diverse defendants were recently dismissed from the case by the Superior Court, establishing complete diversity between the remaining parties.
This document is a notice of removal filed by SunTrust Bank Company to remove a civil case from the Superior Court for the District of Columbia to the United States District Court for the District of Columbia. The case involves a dispute over a property owned by SunTrust that includes an open plaza. SunTrust argues that diversity jurisdiction exists because the plaintiffs (two citizens associations of DC) are diverse from SunTrust (a Georgia corporation) and the amount in controversy exceeds $75,000. SunTrust notes that non-diverse defendants were recently dismissed from the case by the Superior Court, establishing complete diversity between the remaining parties.
This document is a notice of removal filed by SunTrust Bank Company to remove a civil case from the Superior Court for the District of Columbia to the United States District Court for the District of Columbia. The case involves a dispute over a property owned by SunTrust that includes an open plaza. SunTrust argues that diversity jurisdiction exists because the plaintiffs (two citizens associations of DC) are diverse from SunTrust (a Georgia corporation) and the amount in controversy exceeds $75,000. SunTrust notes that non-diverse defendants were recently dismissed from the case by the Superior Court, establishing complete diversity between the remaining parties.
Case 1:18-cv-00528 Document 1 Filed 03/07/18 Page 1 of 9
IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF COLUMBIA
KALORAMA CITIZENS ASSOCIATION,
P.O. Box 21311 Washington, DC 20009
and
ADAMS MORGAN FOR REASONABLE
DEVELOPMENT, Civil Action No. _____________ 2032 Belmont Road NW Suite 312 Washington, DC 20009
Plaintiffs,
v.
SUNTRUST BANK COMPANY,
303 Peachtree St., NE Atlanta, GA 20208
Defendant.
NOTICE OF REMOVAL
TO: THE HONORABLE JUDGES OF THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA
Defendant SunTrust Bank Company (“SunTrust” or “Defendant”),1 by counsel, respect-
fully notifies the Court pursuant to 28 U.S.C. §§ 1332 and 1441 that it has this day removed this
action from the Superior Court for the District of Columbia, Civil Division (“Superior Court”).
Removal is based on grounds that diversity jurisdiction exists over this action, as there is complete
1 Plaintiffs’ Complaint identifies Defendant SunTrust Bank Company d/b/a SunTrust Bank a/k/a SunTrust Banks, Inc. SunTrust Bank is a wholly-owned subsidiary of SunTrust Bank Holding Company, which is a wholly owned subsidiary of Defendant SunTrust Banks, Inc. Case 1:18-cv-00528 Document 1 Filed 03/07/18 Page 2 of 9
diversity between Kalorama Citizens Association (“KCA”) and Adams Morgan for Reasonable
Development (“AMRD”) (collectively, “Plaintiffs”) and SunTrust, and the amount in controversy
exceeds $75,000.00.
BACKGROUND
1. This action was commenced by the filing of a Complaint for Declaratory and
Injunctive Relief (“Complaint”) by Plaintiffs in the Superior Court for the District of Columbia
(“Superior Court”) on June 15, 2017. The litigation pertains to real property owned by SunTrust
located at 1800 Columbia Road NW, Washington, DC, which is improved by a SunTrust bank
branch (the “Branch Property”). The Branch Property includes a large open plaza in front of the
SunTrust branch. A copy of the Complaint is attached as Exhibit A.
2. In addition to SunTrust, the Complaint named four other entities as defendants:
Columbia Road, LLC; and P.N. Hoffman & Associates, Inc. (collectively, “Developer
Defendants” and, with SunTrust, “Original State Court Defendants”).
3. Complete diversity amongst Plaintiffs and Original State Court Defendants
(collectively, “Parties”) did not exist at the time of filing of the Complaint due to Plaintiffs’
improper inclusion of the Developer Defendants in the Complaint. See, e.g., Smith v. Hendricks,
140 F. Supp. 3d 66, 72 (D.D.C. 2015) (“‘The fraudulent joinder doctrine allows the Court to
‘disregard, for jurisdictional purposes, the citizenship of certain nondiverse defendants, assume
jurisdiction over a case, dismiss the nondiverse defendants, and thereby retain jurisdiction.’”)
(citations omitted).
4. The Complaint alleged that SunTrust is Georgia corporation and the Developer
Defendants are citizens of the District of Columbia. (Compl. ¶¶ 8, 11-14). Plaintiffs alleged that
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the Developer Defendants held “directly or indirectly, an actual or contingent interest in the Plaza
(and the larger parcel containing the Plaza) . . .” (Id. ¶¶ 11-14).
5. On March 5, 2018, however, the Superior Court granted the motion for summary
judgment filed by the Developer Defendants and entered judgment in their favor. In the Court’s
Order granting summary judgment, attached hereto as Exhibit B, the Superior Court held that the
“Developer Defendants do not have a proprietary interest in the property at issue. They are subject
to an executory contract with SunTrust Bank for the development of the property until this case is
resolved.” The Court further entered Judgment in favor of the Developer Defendants, dismissing
them from the case. A copy of the Judgment is attached as Exhibit C.
6. Thus, on March 5, 2018, this action became immediately removable pursuant to 28
U.S.C. § 1441, because, upon that date, it could have been filed in this Court pursuant to the
diversity jurisdiction conferred by 28 U.S.C. § 1332.
DIVERSITY JURISDICTION
7. Federal diversity jurisdiction exists over this removed action pursuant to 28 U.S.C.
§ 1332, because the Parties, as of March 5, 2018, are diverse and the amount in controversy
exceeds $75,000.00, exclusive of interest and costs.
A. There Is Complete Diversity Among All Parties
8. As of March 5, 2018, complete diversity of citizenship among the Parties has
existed.
9. The so-called “time-of-filing” rule states that, once a complaint is filed, a
subsequent change in the law or the citizenship of the parties can neither cure nor destroy diversity.
See, e.g., Grupo Dataflux v. Atlas Global Grp., L.P., 541 U.S. 567, 570–71 (2004); E.R. Squibb &
Sons, Inc. v. Lloyd’s & Cos., 241 F.3d 154, 164 (2d Cir. 2001); Louisville, N.A. & C.R. Co. v.
Louisville Trust Co., 174 U.S. 552 (1899).
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10. Post-filing dismissal of one or more parties, however, triggers an exception to this
broad principle. E.g., Grupo, 541 U.S. at 572; see also Kaufman v. Allstate New Jersey Ins. Co.,
561 F.3d 144, 152-53 (3d Cir. 2009) (“[T]he time-of-filing rule admits exceptions in cases where
the parties change in contrast to cases in which the circumstances attendant to those parties
change.”).
11. In such cases, the existence of diversity is determined by looking solely at the
citizenship of the remaining parties. See, e.g., Jefferson v. Certain Underwriters at Lloyd’s
London, 658 F. App’x 738, 743 (5th Cir. 2016) (“Dismissals of non-diverse parties allow for the
exercise of diversity jurisdiction.”); Cont’l Data Sys., Inc. v. Exxon Corp., 638 F. Supp. 432, 441
(E.D. Pa. 1986) (“[N]othing prevents a plaintiff from dismissing claims against non-diverse
defendants, to create diversity jurisdiction.”). For purposes of this analysis, however, the date of
the original filing still controls. See Grupo, 541 U.S. at 572.
12. Accordingly, because the Superior Court has entered Judgment in favor of the
Developer Defendants, finding that the Developer Defendants are not proper parties and no
possibility that Plaintiffs could establish a cause of action against them, and dismissing the
Developer Defendants from the case, diversity for purposes of § 1332(a)(1) must be determined
by ascertaining the citizenship of SunTrust, KCA, and AMRD on June 15, 2017. See Walter E.
Campbell Co. v. Hartford Fin. Servs. Group, 48 F. Supp. 3d 53 (D.D.C. 2014).
13. KCA was and remains a tax-exempt organization, as defined by Section 501(c)(3)
of the United States Internal Revenue Code, that registered under the laws of the District of
Columbia on October 29, 1965, and has apparently operated almost exclusively within the District
of Columbia since that date. See Exhibit D; Compl. ¶ 2. It represents itself as the “chief advocate
for historic preservation” of Adams Morgan, a specific District of Columbia neighborhood.
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KALORAMA CITIZENS ASSOCIATION, http://kaloramacitizensassociation.org/. The District of
Columbia is thus KCA’s principal place of business and its jurisdiction of incorporation. In other
words, KCA is a citizen of the District of Columbia.
14. From this suit’s commencement, AMRD has purported to be a non-profit citizens
association organized pursuant to the District of Columbia’s Uniform Unincorporated Non-Profit
Association Act of 2010. See Compl. ¶ 4; AMRD describes itself as “a local community group”
focused entirely on the same D.C. neighborhood as KCA. THE ACTION NETWORK,
https://actionnetwork.org/petitions/save-our-plaza-mayor-bowser. On information and belief, its
individual members, including its leaders, are citizens of the District of Columbia. Cf. State Farm
Mut. Auto. Ins. Co. v. Dyer, 19 F.3d 514, 520 (10th Cir. 1994) (“[A] person’s place of residence is
prima facie evidence of his or her citizenship.”).
15. SunTrust was and remains a Georgia corporation with a principal place of business
at 303 Peachtree Street, Atlanta, Georgia 30308. Accordingly, SunTrust is not a citizen of the
District of Columbia for purposes of determining diversity jurisdiction.
16. Because Plaintiffs are citizens of District of Columbia and SunTrust is not, there is
complete diversity between Plaintiffs and Defendant in this matter. See 28 U.S.C. § 1332(a)(1).
B. The Amount in Controversy Exceeds $75,000.00
17. The Complaint meets the $75,000.00 amount-in-controversy requirement for
diversity jurisdiction.
18. Under § 1332, federal district courts possess “original jurisdiction of all civil
actions where the matter in controversy exceeds the sum or value of $75,000.00, exclusive of
interest and costs[.]” 28 U.S.C. § 1332.
19. Generally, the amount in controversy in declaratory relief or injunction cases is
measured by the value of the object of the litigation. Hunt v. Wash. State. Apple Adver. Commc’ns,
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432 U.S. 333, 347 (1977) (collecting cases); Klayman v. Judicial Watch, Inc., 185 F. Supp. 3d 67,
70 (D.D.C. 2016). “In assessing whether a complaint satisfies th[is] standard, a court may look
either to ‘the value of the right that plaintiff seeks to enforce or to protect’ or to the cost to the
defendants to remedy the alleged denial.” Smith v. Washington, 593 F.2d 1097, 1099 (D.C. Cir.
1978).
20. Only if it is “legally certain” that the recovery (from a plaintiff’s perspective) or the
cost of complying with the judgment (from a defendant’s) will be less than the jurisdictional floor
should a federal court refuse to exercise jurisdiction. E.g., Meridian Sec. Ins. Co. v. Sadowski, 441
F.3d 536, 543 (7th Cir. 2006).
21. In their Complaint, Plaintiffs seek a declaratory judgment and injunction against
SunTrust’s sale of the Branch Property.
22. In 2018, as determined by DC’s Office of Tax and Revenue, the property’s total
worth was pegged at $5,420,620, and the land itself was valued at $3,721,180. A copy of the
Property Detail from the Office of Tax and Revenue is attached hereto as Exhibit E.
23. Plaintiffs’ lawsuit thus seeks to prevent SunTrust from disposing of a property
worth in excess of $5,000,000 and thereby implicates a property right whose value far exceeds the
constitutional minimum of $75,000. See, e.g., Glenwood Light & Water Co v. Mutual Light, Heat
& Power Co., 239 U.S. 121, 126 (1915) (“[The c]omplainant sets up a right to maintain and operate
its plant and conduct its business free from wrongful interference by defendant. . . . The relief
sought is the protection of that right, now and in the future, and the value of that protection is
determinative of the jurisdiction.”); Concepcion-Navedo v. Putnam LAC Holding, LLC, 212 F.
Supp. 3d 297, 298 (D.P.R. 2015) (holding that calculations of the amount in controversy must take
into account the cost to defendants in complying with the proposed injunctive relief). Even if
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Plaintiffs’ claim that they are only seeking to encumber 25% of the Branch Property is to believed,
25% of its value exceeds $75,000. (See Pls.’ Opp. to Defs. Bond Mot. at 5). As such, if Plaintiffs
prevail, SunTrust’s loss will far outpace § 1332’s $75,000 threshold.
24. Therefore, diversity jurisdiction exists because the parties are diverse and the
amount in controversy exceeds $75,000.00.
VENUE
25. Venue for removal is proper in this district and division under 28 U.S.C. § 1441(a)
because this district and division embrace the Superior Court, the forum in which the removed
action was pending.
NOTICE
26. Concurrently with the filing of this Notice, Defendants will file a copy of this
Notice of Removal with the Clerk of the Superior Court. A copy of the Notice of Filing Notice of
Removal (without its exhibits) is attached hereto as Exhibit F.
27. Upon information and belief, Exhibit G represents all of the process, pleadings,
and orders served on SunTrust in this action.
28. If any questions arise as to the propriety of the removal of this action, SunTrust
requests the opportunity to present a brief and argument in support of its position that this case is
removable.
WHEREFORE, Defendant SunTrust Bank Company hereby removes this action to this
Court and seeks all other relief this Court deems equitable and just.
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Dated: March 7, 2018 Respectfully submitted,
SUNTRUST BANK COMPANY
By:/s/ Mary C. Zinsner
Mary C. Zinsner, Esq., DC Bar No. 430091 S. Mohsin Reza, Esq., DC Bar No. 985270 Troutman Sanders LLP 1850 Towers Crescent Plaza, Ste. 500 Tysons Corner, VA 22182 Tel: (703) 734-4363 Fax: (703) 448-6514 Email: mary.zinsner@troutman.com Email: mohsin.reza@troutman.com
Counsel for Defendant SunTrust Bank Company
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CERTIFICATE OF SERVICE
I hereby certify that on this 7th day of March, 2018, I served a copy of the foregoing by
Mary C. Zinsner, Esq., DC Bar No. 430091 S. Mohsin Reza, Esq., DC Bar No. 985270 Troutman Sanders LLP 1850 Towers Crescent Plaza, Ste. 500 Tysons Corner, VA 22182 Tel: (703) 734-4363 Fax: (703) 448-6514 Email: mary.zinsner@troutman.com Email: mohsin.reza@troutman.com
United States v. Max Pollack, Formerly D/B/A Max Pollack Co., and Shirley Mestel and Ida Mestel, D/B/A King Holding Company, 370 F.2d 79, 2d Cir. (1966)
