Desert Schools Federal Credit v. Takysha Johnson

MEMORANDUM

In this case, plaintiff-appellee Desert Schools Federal Credit Union filed a claim in Arizona state court against defendants-appellants Takysha Tralisa Johnson and Nichelle Nicole Burton for breach of contract based on an overdrawn checking account. Defendants removed the case to the U.S. District Court for the District of Arizona claiming federal question jurisdiction under 28 U.S.C. § 1381 . They argued before the district court that federal question jurisdiction existed because as part of the state case, the credit union had disclosed a copy of the checking account contract which referred to the account being governed by United States laws and regulations and thus that the credit union had somehow “enlarged upon the allegations” in its complaint to include federal claims. Recognizing that the case was a “simple claim for breach of a written contract” which manifestly did not raise a federal question, the district court remanded the case. Two months later, the district court granted Desert Schools’ motion for sanctions under Federal Rule of Civil Procedure 11 based on the unreasonable removal and awarded sanctions against only defendants’ counsel Sylvia Thomas in the…