Dixon et al v. USDA Rural Development et al

IN THE UNITED STATES DISTRICT COURT
WESTERN DISTRICT OF ARKANSAS
HOT SPRINGS DIVISION
BRITTANY DIXON and
KELTON DIXON 	PLAINTIFF
v. 	Case No. 6:24-cv-6093
USDA RURAL DEVELOPMENT;
GRAY REI, LLC; and 117 HOT SPRINGS DR.,
ARKADELPHIA CLARK COUNTY, ARKANSAS,
in rem 	DEFENDANTS
ORDER
Before the Court is the Report and Recommendation filed by the Honorable Barry A.
Bryant, United States Magistrate Judge for the Western District of Arkansas. ECF No. 21. Judge
Bryant recommends that the Court grant the Motion to Dismiss (ECF No. 8) filed by Separate
Defendant USDA Rural Development because it is entitled to sovereign immunity. Further, Judge
Bryant recommends that the Court deny without prejudice the Motion to Dismiss (ECF No. 5)
filed by Separate Defendant Gray REI, LLC and remand the remaining state law claims against
Gray REI, LLC back to the Circuit Court of Clark County, Arkansas.
Separate Defendant Gray REI, LLC has filed an objection, arguing that because the Court
is declining supplemental jurisdiction over the remaining state law claims, the Court should abstain
from ruling on Gray REI, LLC’s Motion to Dismiss and remand this matter to state court for further
proceedings, included but not limited to a ruling on Gray REI, LLC’s Motion to Dismiss (ECF No.
8).1 The Court agrees with Gray REI, LLC and finds that the Court should decline to exercise its
supplemental jurisdiction over the state law claims and abstain from ruling on REI LLC’s Motion
to Dismiss (ECF No. 8).
1This case was removed to this Court under 28 U.S.C. § 1442, which provides for the removal of a civil action
commenced in state court against an agency of the United States or its officers. If the Court dismisses USDA Rural
Development, this case will only involve state law claims between non-diverse parties.
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2
Upon review, the Court ADOPTS the Report and Recommendation (ECF No. 21) in part.
The Court finds that the Motion to Dismiss (ECF No. 8) filed by USDA Rural Development should
be and hereby is GRANTED. USDA Rural Development is DISMISSED from this case. The
Court abstains from ruling on REI LLC’s Motion to Dismiss (ECF No. 8).
Because the Court has dismissed all claims over which it has original jurisdiction, the Court
will decline to exercise supplemental jurisdiction over the remaining state law claims. 	See 28
U.S.C. § 1367(c)(3). Thus, the Court instructs the Clerk of Court to immediately REMAND this
matter to the Circuit Court of Clark County, Arkansas, for further disposition.
IT IS SO ORDERED, this 27th day of March, 2025.
/s/ Susan O. Hickey
Susan O. Hickey
Chief United States District Judge
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