Page 9 of A Walking Shadow

“Why do they need to know Krav Maga?”

This was a question Sasha didn’t want to consider too carefully because there were no good reasons. Just a few years ago a member of a different sovereign citizen group had shot and killed a police officer. Much like the world at large, this group seemed to lean toward violence.

“I don’t know,” she finally said. “It’s not material. What is material is that Boone and Daniel entered into a contract, and after Daniel performed the work, Mr. Boone tried to pay him using a negotiable redemption note.”

Ellie scrawled the words then stopped and looked up at Sasha with tented eyebrows. “I’ve never heard of a negotiable redemption note.”

“That’s because it doesn’t exist. The complaint cites the definition section of the U.C.C., claiming it defines a negotiable redemption note. It does no such thing, although itdoesdefine various negotiable instruments. Simmons literally pulled discrete words from several definitions to cobble together a description.”

“Is it a fake check or pretend money or what?” Ellie wondered.

Sasha flipped to the back of the complaint and pointed to an exhibit. “Here’s a copy of it. It looks more like a certificate. I should have thought to get the original from Daniel.”

“I’ll call him when we’re done here,” Ellie said. “Is it okay to send a messenger over for it?”

“Absolutely.” The tension in Sasha’s shoulders eased the tiniest bit as Ellie took on the task without being asked to or given instructions for how to do it. “And, thank you.”

“Of course. So I’m guessing Mr. Boone tried to pay Daniel with this funny money, and Daniel rejected it?”

“Dead on. They went around and around for three months. Finally Daniel told Boone the invoice was ninety days past due.Daniel gave him an ultimatum: pay it in legal U.S. tender or Daniel would file in small claims court. Boone didn’t pay, and Daniel filed.”

“And Simmons removed it to federal court?” Ellie guessed.

“No, Boone did nothing. He let Daniel get a default judgment against him, and then he filed a new original action in federal court.”

Ellie was shaking her head, and Sasha knew what question was coming.

There were only two ways to get a case in front of a federal court: diversity jurisdiction, which requires that the parties be residents of different states and the amount in controversy exceed seventy-five thousand dollars, and federal question jurisdiction, which requires the claim to arise under federal law and be supported by a well-pleaded complaint. On its face, Boone’s complaint met none of these requirements.

She explained, “He filed under federal question jurisdiction, citing the Constitution, internal Federal Reserve guidelines, and the good old U.C.C. It’s the antithesis of a well-pleaded complaint.”

“So we’re going to ask the court to remand it back to the state court? Or will you ask for dismissal?”

“We need to research this, but my inclination is to answer the complaint and file a counterclaim.”

“Counterclaim? What grounds?”

Sasha was curious to see what she’d come up with on her own. “Take a guess.”

Ellie tapped her pen against her lips and thought. “Well, it’s financial fraud.”

“It is,” Sasha agreed. “Which is a crime. So we could refer that to the Department of Justice but we can’t bring a criminal cause of action in a civil case.”

A frown creased Ellie’s lips, and a matching furrow appeared on her forehead. Sasha sipped her coffee and waited for her to think it through.

Finally, she ventured another guess. “So, what are you thinking? Fraud in the inducement?”

“Exactly. The contract didn’t specify the payment method. It’s reasonable for Daniel to have relied on payment being in the form of generally accepted currency.”

“You really want to stay in federal court?”

“I do. We have a better chance of getting the DOJ to take a close look at this group if there’s a pending federal action. While our primary goal is to ensure Daniel is paid, we might as well try to shut down this group, too, if we can.”

“I love it. This is great!”

She clearly meant it. She was bouncing in her chair with excitement. Sasha imagined this case was probably more interesting than anything Ellie had worked on until now.

“Hang onto that energy, because you’re going to need it. When you read the complaint, you’ll see. It borders on gibberish.”

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