Lehman Bros. Inc. v. City of Lodi

MEMORANDUM AND ORDER

This matter is before the court on Lehman Brothers Inc.’s (“Lehman”) motion to remand pursuant to 28 U.S.C. § 1447 . Lehman contends defendants City of Lodi and Lodi Financing Corporation (collectively, the “City”) improperly removed this action because Lehman’s wholly state law claims do not, as the City maintains, (1) arise under the Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”) or any other federal law; (2) attack or undermine a federal court judgment or settlement; or (3) require resolution of threshold CERCLA issues. Lehman thus moves this court to remand the action to San Joaquin County Superior Court, from which it was removed, on the basis of lack of subject matter jurisdiction. Lehman further seeks its attorneys’ fees and costs incurred as a result of the removal. 28 U.S.C. § 1447 (c).

The court heard oral argument on the motion on July 9, 2004. For the reasons set forth below, Lehman’s motion is DENIED; its request for attorneys’ fees and costs is, accordingly, likewise DENIED.

BACKGROUND

1. Relevant History

In April 1989, the City first detected tetrachloroethene (“PCE”) in a water sample from a new water tank.…