Dennis v. Hart

In these consolidated cases, plaintiffs filed shareholder derivative suits in California state court alleging that PICO's compensation policies violated state law. Defendants removed the cases to federal court, arguing that the Dodd-Frank Wall Street Reform and Consumer Protection Act, 15 U.S.C. 78n-1(a)(1), barred the suits. The court concluded that Section 27 of the Securities Exchange Act, 15 U.S.C. 78aa(a), did not confer federal jurisdiction; defendants identified no significant federal issue that would confer jurisdiction; and the doctrine of complete preemption did not apply. Therefore, removal was improper and the district court lacked jurisdiction to do anything other than remand them to state court. Accordingly, the court vacated with instructions to remand the cases to state court. The court dismissed defendants' cross appeals for lack of jurisdiction. View "Dennis v. Hart" on Justia Law