San Diego Family Housing, LLC, a California Limited Liability Corporation, et al. v. Lena Childs, et al.

This petition arises from the attempts of former military housing residents to hold the United States Navy’s government contractors under the Military Housing Privatization Initiative (“MHPI”), 10 U.S.C. §§2871-85, liable in state court for their military housing operational activities for the U.S. Navy under contracts and plans with, and under supervision and oversight by, the U.S. Navy. This case was immediately removed to federal court by Petitioners, as the federal officer removal statute allows for federal jurisdiction over civil actions against “any person acting under [an] officer of the United States for or relating to any act under color of such office.” This case proceeded in federal court until 2024, when the United States interjected itself into the proceeding to argue that Petitioners did not meet the “causal nexus” standard of the Ninth Circuit per Lake v. Ohana Mil. Communities, 14 F.4th 993 (9th Cir. 2021), as there was no “causal nexus” between “plaintiffs’ claims and the actions [it] took pursuant to a federal officer’s direction.” The District Court agreed, relying heavily on Lake, to remand the case. The Ninth Circuit also agreed, focusing on the “causal nexus” test and Lake to support its position. Petitioners sought rehearing en banc, which was also denied. The questions presented are: 1. Whether a causal nexus test of any variety, including that used by the Ninth Circuit, survives the 2011 amendment to the federal officer removal statute.