California Mother Infant Program v. California Department of Corrections

ORDER DENYING PLAINTIFF’S MOTION TO REMAND

BACKGROUND

Plaintiff California Mother Infant Program (“CMI”) is a California corporation that provides “alternative methods of incarceration for inmates who are the mothers of children 6 years of age and younger.” (First Am.Compl. (“Compl.”) at 2.) In 1985, CMI was assigned a contract with defendant California Department of Corrections (the “Department”), an agency of the state of California, under which CMI agreed to provide its services in return for compensation. See generally CaLPenal Code § 6258 (allowing the “Director of Corrections [to] contract for the establishment and operation of separate community correctional reentry centers for men and women”). The parties renewed the three-year contract in 1986, 1989, and 1992. From 1995 until 1997, they renewed the contract through one-year extensions. On June 30, 1997, the Department terminated contractual relations between the parties.

CMI filed suit in state court on June 29, 1998. CMI’s first amended complaint (“complaint”) alleges four causes of action. Three of these are state law claims. CMI’s fourth cause of action alleges race discrimination under 42 U.S.C. § 1981 and the…