Demarest v. HSBC Bank USA

The Ninth Circuit affirmed the district court's exercise of diversity jurisdiction over an action stemming from the foreclosure of plaintiff's property. The panel held that the Supreme Court's decision in Navarro Savings Ass'n v. Lee, 446 U.S. 458, 458 (1980), which held that a trustee is a real party to the controversy for purposes of diversity jurisdiction when he possesses certain customary powers to hold, manage, and dispose of assets for the benefit of others, was still controlling and the Supreme Court's decision in Americold Realty Trust v. ConAgra Foods, Inc., 136 S. Ct. 1012 (2016), did not upset the holding in Navarro or the panel's precedent. In this case, HSBC and the other defendants were not, like plaintiff, citizens of California and therefore there was complete diversity. Accordingly, the court properly exercised diversity jurisdiction. View "Demarest v. HSBC Bank USA" on Justia Law