David D Amico v. N and D Restaurants, LLC et al

Filing 12

MINUTES ORDER (IN CHAMBERS): ORDER SUA SPONTE REMANDING CASE TO STATE COURT by Judge David O. Carter: On the Court's own motion, the Court hereby REMANDS this case to the Superior Court of California, County of Orange. [See document for further information.] Terminated. Made JS-6 (es)

JS-6

UNITED STATES DISTRICT COURT

CENTRAL DISTRICT OF CALIFORNIA
CIVIL MINUTES – GENERAL
Case No. 8:23-cv-02103-DOC-JDE

Date: November 14, 2023

Title: DAVID D’AMICO V. N AND D RESTAURANTS, LLC ET AL
PRESENT:

THE HONORABLE DAVID O. CARTER, JUDGE
Karlen Dubon
Courtroom Clerk

Not Present
Court Reporter

ATTORNEYS PRESENT FOR
PLAINTIFF:
None Present

ATTORNEYS PRESENT FOR
DEFENDANT:
None Present

PROCEEDINGS (IN CHAMBERS): ORDER SUA SPONTE
REMANDING CASE TO STATE
COURT
On the Court’s own motion, the Court hereby REMANDS this case to the Superior
Court of California, County of Orange.
I.

Background

This is a premises liability action, concerning Plaintiff David D’Amico’s injury on
the premises of Defendant N and D Restaurants, LLC dba Olive Garden (“Defendant”).
Notice of Removal (“Notice”) (Dkt. 1), see also Complaint, Notice Ex. A (Dkt. 1-1)
(“Compl.”). Plaintiff alleges that while on the Defendant’s premises, “he was struck by a
hanging and/or loose extension cord and/or similar object, thereby causing Plaintiff to
endure severe injury and pain.” See Compl. at 6.
Plaintiff originally filed suit in the Superior Court of California, County of
Orange, on December 15, 2022. Notice at 2. On June 26, 2023, Plaintiff served
Defendants. Id. On August 16, 2023, Plaintiff provided to Defendants his Statement of
Damages. Notice Ex. F. The case was administratively dismissed by the Orange County
Court Clerk, but reinstated on October 25, 2023. Notice at 2. On November 8, 2023,
Defendant removed the action to this Court. See generally Notice.

UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA
CIVIL MINUTES – GENERAL
Case No. 8:23-cv-02103-DOC-JDE

II.

Date: November 14, 2023
Page 2

Legal Standard

“If at any time before final judgment it appears that the district court lacks subject
matter jurisdiction, the case shall be remanded.” 28 U.S.C. § 1447(c). Removal of a case
from state court to federal court is governed by 28 U.S.C. § 1441, which provides in
relevant part that “any civil action brought in a State court of which the district courts of
the United States have original jurisdiction, may be removed . . . to the district court of
the United States for the district and division embracing the place where such action is
pending.” 28 U.S.C. § 1441. This statute “is strictly construed against removal
jurisdiction,” and the party seeking removal “bears the burden of establishing federal
jurisdiction.” Ethridge v. Harbor House Rest., 861 F.2d 1389, 1393 (9th Cir. 1988)
(emphasis added) (citations omitted).
Federal diversity jurisdiction requires that the parties be citizens of different states
and that the amount in controversy exceed $75,000. 28 U.S.C. § 1332(a). For diversity
jurisdiction purposes, a corporation is “deemed to be a citizen of every State and foreign
state by which it has been incorporated and of the State or foreign state where it has its
principal place of business.” 28 U.S.C. § 1332(c)(1). The presence of any single plaintiff
from the same state as any single defendant destroys “complete diversity” and strips the
federal courts of original jurisdiction over the matter. Exxon Mobil Corp. v. Allapattah
Servs., Inc., 545 U.S. 546, 553 (2005).
Generally, a removing defendant must prove by a preponderance of the evidence
that the amount in controversy satisfies the jurisdictional threshold. Guglielmino v.
McKee Foods Corp., 506 F.3d 696, 699 (9th Cir. 2008). If the complaint affirmatively
alleges an amount in controversy greater than $75,000, the jurisdictional requirement is
“presumptively satisfied.” Id. In that situation, a plaintiff who then tries to defeat removal
must prove to a “legal certainty” that a recovery of more than $75,000 is impossible. St.
Paul Mercury Indem. Co. v. Red Cab Co., 303 U.S. 283, 288-89 (1938); Crum v. Circus
Enters., 231 F.3d 1129, 1131 (9th Cir. 2000). This framework applies equally to
situations where the complaint leaves the amount in controversy unclear or ambiguous.
See Gaus v. Miles, Inc., 980 F.2d 564, 567 (9th Cir. 1992); Sanchez v. Monumental Life
Ins. Co., 102 F.3d 398, 403-04 (9th Cir. 1996).
A removing defendant “may not meet [its] burden by simply reciting some
‘magical incantation’ to the effect that ‘the matter in controversy exceeds the sum of
[$75,000],’ but instead, must set forth in the removal petition the underlying facts
supporting its assertion that the amount in controversy exceeds [$75,000].” Richmond v.

UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA
CIVIL MINUTES – GENERAL
Case No. 8:23-cv-02103-DOC-JDE

Date: November 14, 2023
Page 3

Allstate Ins. Co., 897 F. Supp. 447, 450 (S.D. Cal. 1995) (quoting Gaus, 980 F.2d at
567). If the plaintiff has not clearly or unambiguously alleged $75,000 in its complaint or
has affirmatively alleged an amount less than $75,000 in its complaint, the burden lies
with the defendant to show by a preponderance of the evidence that the jurisdictional
minimum is satisfied. Geographic Expeditions, Inc. v. Estate of Lhotka ex rel. Lhotka,
599 F.3d 1102, 1106-07 (9th Cir. 2010); Guglielmino, 506 F.3d at 699.
While the defendant must “set forth the underlying facts supporting its assertion
that the amount in controversy exceeds the statutory minimum,” the standard is not so
taxing so as to require the defendant to “research, state, and prove the plaintiff’s claims
for damages.” Coleman v. Estes Express Lines, Inc., 730 F. Supp. 2d 1141, 1148 (C.D.
Cal. 2010) (emphases added). In short, the defendant must show that it is “more likely
than not” that the amount in controversy exceeds the statutory minimum. Id. Summary
judgment-type evidence may be used to substantiate this showing. Matheson v.
Progressive Specialty Ins. Co., 319 F.3d 1089, 1090–91 (9th Cir. 2003); Singer v. State
Farm Mut. Auto. Ins. Co., 116 F.3d 373, 377 (9th Cir. 1997). For example, defendants
may make mathematical calculations using reasonable averages of hourly, monthly, and
annual incomes of comparable employees when assessing the amount in controversy in a
wrongful termination suit. Coleman, 730 F. Supp. 2d. at 1148–49.
If the court lacks subject matter jurisdiction, any action it takes is ultra vires and
void. See Gonzalez v. Crosby, 545 U.S. 524, 534 (2005); Steel Co. v. Citizens for a Better
Env’t, 523 U.S. 83, 94, 101–02 (1998). The lack of subject matter jurisdiction may be
raised at any time by either the parties or the court. Fed. R. Civ. P. 12(h)(3). If subject
matter jurisdiction is found to be lacking, the court must dismiss the action, id., or
remand pursuant to 28 U.S.C. § 1447(c). A court may raise the question of subject matter
jurisdiction sua sponte. See Snell v. Cleveland, Inc., 316 F.3d 822, 826 (9th Cir. 2002).
III.

Discussion

Here, Plaintiff does not expressly allege an amount in controversy over $75,000.
Accordingly, Defendant must show by a preponderance of the evidence that the
jurisdictional minimum is satisfied. See Geographic Expeditions, Inc., 599 F.3d at 110607; Guglielmino, 506 F.3d at 699.
Defendant argues that the Court has diversity jurisdiction because the amount in
controversy, as stated by Plaintiff, is in excess of $75,000. Notice ¶ 17. Defendant argues
that though Plaintiff did not expressly state his damages in the Complaint, his statement

UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA
CIVIL MINUTES – GENERAL
Case No. 8:23-cv-02103-DOC-JDE

Date: November 14, 2023
Page 4

of damages of $1,000,000 for general damges and $1,000,000 in special damages suffices
to meet the amount in controversy. The Court disagrees.
“[A]lthough a statement of damages pursuant to section 425.11 is not filed with
the court as part of the complaint, it is normally viewed as a serious estimate of the
damages in a given case.” Surber v. Reliance Nat. Indem. Co., 110 F. Supp. 2d 1227
(N.D. Cal. 2000). However, “[a]lthough the court normally defers to the statement of
damages presented in the complaint, the court also has an ‘independent obligation’ to
examine its jurisdiction where doubts arise.” Marchionna v. Ford Motor Company, 1995
WL 549124 (N.D.Ill. Sept. 8, 1995).
Here, Plaintiff’s statement of damages states only that she seeks general damages
in excess of $1,000,000 and special damages in excess of $1,000,000. Notice Ex. F (Dkt.
1-6).
Plaintiff’s Complaint states that Plaintiff’s injuries were the result of a being
struck by a hanging extension cord on Defendant’s premises. Compl. at 6. Plaintiff’s
Complaint alleges that due to this injury he “endured severe injury and pain” Id. Plaintiff
provides no documentation for any medical expenses or loss of earnings, however. See
generally Compl.
The unsubstantiated allegations of over $2,000,000 in damages are difficult to
credit without a single medical bill. “While a federal court must of course give due credit
to the good faith claims of the plaintiff, a court would be remiss in its obligations if it
accepted every claim of damages at face value, no matter how trivial the underlying
injury.” Diefenthal v. Civil Aeronautics Bd., 681 F.2d 1039, 1052 (5th Cir.1982). See
also Christensen v. Northwest Airlines, Inc., 633 F.2d 529 (9th Cir.1980) (affirming
dismissal on ground that injury was too small to establish requisite amount of
damages); Anthony v. Security Pac. Fin. Serv. Inc., 75 F.3d 311, 318 (7th Cir.1996).
While Plaintiff might have suffered $2,000,000 in damages as a result of
defendant’s failure, “the record currently before the Court does not support that
conclusion.” Surber, 110 F. Supp. 2d at 1231.
Further, the Court will not include speculative civil penalties or attorneys’ fees to
meet the amount in controversy requirement. See Galt G/S v. JSS Scandinavia, 142 F.3d
1150, 1156 (9th Cir. 1998) (“We hold that where an underlying statute authorizes an

UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA
CIVIL MINUTES – GENERAL
Case No. 8:23-cv-02103-DOC-JDE

Date: November 14, 2023
Page 5

award of attorneys’ fees, either with mandatory or discretionary language, such fees may
be included in the amount in controversy.”) (emphasis added).
The Court finds that Defendant has not shown by a preponderance of the evidence
that the amount in controversy exceeds $75,000. Thus, the Court finds that it lacks
diversity jurisdiction over this matter.
When remanding a case, a court may, in its discretion, “require payment of just
costs and any actual expenses, including attorney fees, incurred as a result of the
removal.” 28 U.S.C. § 1447(c); see also Jordan v. Nationstar Mortg. LLC, 781 F.3d
1178, 1184 (9th Cir. 2015). Typically, a court may only award fees and costs when “the
removing party lacked an objectively reasonable basis for seeking removal.” Id. (quoting
Martin v. Franklin Capital Corp., 546 U.S. 132, 141 (2005)). In making this
determination, courts should look at whether the removing party’s arguments are “clearly
foreclosed” by the relevant case law. Lussier v. Dollar Tree Stores, Inc., 518 F.3d 1062,
1066-67 (9th Cir. 2008). The Ninth Circuit has further clarified that “removal is not
objectively unreasonable solely because the removing party’s arguments lack merit,” id.
at 1065, though a court need not find the removing party acted in bad faith before
awarding fees under § 1447(c), Moore v. Permanente Med. Grp., 981 F.2d 443, 446 (9th
Cir. 1992). Here, while the Court finds that removal was improper, the Court concludes
that it was not so inconceivable as to meet the “objectively unreasonable” standard. As a
result, the Court declines to award Plaintiff attorneys’ fees.
IV.

Disposition

For the reasons set forth above, the Court hereby REMANDS this case to the
Superior Court of Orange, California.
The Clerk shall serve this minute order on the parties.
MINUTES FORM 11
CIVIL-GEN

Initials of Deputy Clerk: kdu