Aldama v. General Motors LLC, a Delaware limited liability company

Filing 27

ORDER DENYING 15 MOTION TO REMAND; GRANTING 12 MOTION TO DISMISS WITH LEAVE TO AMEND. Signed by Judge Beth Labson Freeman on 2/28/2024. (blflc3, COURT STAFF)(Filed on 2/28/2024)

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UNITED STATES DISTRICT COURT

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NORTHERN DISTRICT OF CALIFORNIA

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SAN JOSE DIVISION

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ADRIAN ALDAMA,
Plaintiff,

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United States District Court
Northern District of California

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Case No. 23-cv-04326-BLF

v.
GENERAL MOTORS LLC,
Defendant.

ORDER DENYING MOTION TO
REMAND; GRANTING MOTION TO
DISMISS WITH LEAVE TO AMEND
[Re: ECF Nos. 12, 15]

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Plaintiff Adrian Aldama (“Aldama”) filed this suit against Defendant General Motors LLC

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(“GM”) in Santa Clara County Superior Court, asserting fives causes of action related to an

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allegedly defective Chevrolet Bolt. ECF No. 1-1 (“Compl.”). Defendant removed the case to

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federal district court based on diversity jurisdiction. ECF No. 1 (“Not. of Removal”) ¶ 1.

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Two motions are before the Court. Plaintiff moves to remand the case to state court,

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arguing that GM has not shown that the parties are diverse, the amount in controversy exceeds

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$75,000, or removal was proper. ECF No. 15 (“MTR”); ECF No. 22 (“MTR Reply”); ECF No. 23

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(“MTR Objections”). Defendant opposes. ECF No. 21 (“MTR Opp.”). Defendant also brings a

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motion to dismiss Plaintiff’s fourth cause of action for fraud and fifth cause of action for violation

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of the “fraud prong” of California Business & Professions Code section 17200 (“UCL”). ECF No.

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12 (“MTD”). Plaintiff acknowledges the pleading deficiencies and seeks leave to amend, ECF

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No. 19 (“MTD Opp.”), which Defendant does not oppose.

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The Court finds the motions appropriate for disposition without oral argument, and hereby

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VACATES the hearing scheduled for March 21, 2024. See Civ. L.R. 7-1(b). For the reasons

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described below, the Court DENIES Plaintiff’s motion to remand and GRANTS Defendant’s

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motion to dismiss WITH LEAVE TO AMEND.

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I.

On or about December 18, 2019, Plaintiff leased a new Chevrolet Bolt from a General

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Motors’ franchised dealership. Compl. ¶ 9. According to the complaint, “the subject vehicle is

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not safe or functional because the batteries may ignite when they are either fully charged or fall

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below seventy (70) miles remaining mileage” and “the vehicle also cannot be parked inside

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overnight due to fire risk.” Id. ¶ 16. The complaint alleges that “Plaintiff has been forced to make

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unforeseen accommodations and take precautions that interfere with their normal and expected use

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of the vehicle” due to “fear of the vehicle igniting and causing serious bodily harm or death.” Id.

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¶¶ 29–32. The complaint also alleges that Defendant “marketed the subject vehicle in a false and

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misleading manner by advertising it as safe and function.” Id. ¶ 17.
On July 27, 2023, Plaintiff filed this action in the Santa Clara County Superior Court. Id.

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United States District Court
Northern District of California

BACKGROUND

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The complaint alleges five causes of action: 1) Violation of the Song-Beverly Act - Breach of

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Express Warranty, id. ¶ 35–46; 2) Violation of the Song-Beverly Act - Breach of Implied

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Warranty, id. ¶ 47–54; 3) Violation of the Song-Beverly Act - Section 1793.2, id. ¶ 55–67; 4)

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Fraud, id. ¶ 68–82; 5) Violation of the UCL, id. ¶ 83–120.
On August 23, 2023, Defendant initiated this federal action by filing a Notice of Removal

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with this Court. See Not. of Removal. On September 13, 2023, Defendant moved to dismiss

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Plaintiff’s fourth cause of action and fifth cause of action (based on fraud). MTD; ECF No. 12-3

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at 1. On September 21, 2023, Plaintiff moved to remand the case to state court. MTR.

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II.

LEGAL STANDARD

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A.

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“A defendant may remove an action to federal court based on federal question jurisdiction

Motion to Remand

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or diversity jurisdiction.” Hunter v. Philip Morris USA, 582 F.3d 1039, 1042 (9th Cir. 2009)

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(citing 28 U.S.C. § 1441). “The mechanics and requirements for removal are governed by 28

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U.S.C. § 1446.” Kuxhausen v. BMW Fin. Servs. NA LLC, 707 F.3d 1136, 1139 (9th Cir. 2013). A

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party who contests removal may file a motion to remand. See 28 U.S.C. § 1447(c). “A motion to

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remand the case on the basis of any defect other than lack of subject matter jurisdiction must be

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made within 30 days after the filing of the notice of removal[.]” Id. “[T]he burden is on the party
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United States District Court
Northern District of California

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removing the case from state court to show the exercise of federal jurisdiction is appropriate.”

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Kuxhausen, 707 F.3d at 1141.

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B.

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Under Federal Rule of Civil Procedure 12(b)(6), a court must dismiss a complaint if it fails

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to state a claim upon which relief can be granted. To survive a Rule 12(b)(6) motion, the plaintiff

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must allege “enough facts to state a claim to relief that is plausible on its face.” Bell Atl. Corp. v.

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Twombly, 550 U.S. 544, 570 (2007). A claim is facially plausible when the plaintiff pleads facts

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that allow the court to “draw the reasonable inference that the defendant is liable for the

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misconduct alleged.” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (citation omitted). There must

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be “more than a sheer possibility that a defendant has acted unlawfully.” Id. While courts do not

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require “heightened fact pleading of specifics,” a plaintiff must allege facts sufficient to “raise a

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right to relief above the speculative level.” See Twombly, 550 U.S. at 555, 570.

Motion to Dismiss

When determining whether a claim has been stated, the Court accepts as true all well-pled

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factual allegations and construes them in the light most favorable to the plaintiff. Reese v. BP

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Expl. (Alaska) Inc., 643 F.3d 681, 690 (9th Cir. 2011). However, the Court need not “accept as

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true allegations that contradict matters properly subject to judicial notice” or “allegations that are

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merely conclusory, unwarranted deductions of fact, or unreasonable inferences.” In re Gilead

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Scis. Sec. Litig., 536 F.3d 1049, 1055 (9th Cir. 2008) (internal quotation marks and citations

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omitted). On a motion to dismiss, the Court’s review is limited to the face of the complaint and

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matters judicially noticeable. MGIC Indem. Corp. v. Weisman, 803 F.2d 500, 504 (9th Cir. 1986);

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N. Star Int’l v. Ariz. Corp. Comm’n, 720 F.2d 578, 581 (9th Cir. 1983).

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III.

DISCUSSION
Plaintiff’s Motion to Remand

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A.

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Plaintiff’s motion summarizes the procedural and substantive requirements for removal,

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but makes only boilerplate arguments that Defendant does not meet the standard. See MTR.

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Defendant responds that it meets the amount in controversy, that the parties are diverse, and that it

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met the proper substantive requirements. Plaintiff’s Reply, like the MTR, contains boilerplate

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arguments that fail to substantively engage with Defendant’s argument or evidence. MTR Reply.
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Plaintiff separately filed several evidentiary objections. MTR Objections. The Court addresses

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the objections first, then the requirements for removal.

United States District Court
Northern District of California

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i.

Evidentiary Objections

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Plaintiff objects to three statements from the Declaration of Timothy M. Kuhn, counsel at

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GM. MTR Objections. The statements are: 1) “GM is a Delaware limited liability company that

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has its principal place of business in the State of Michigan,” ECF No. 21-3 (“Kuhn Decl.”) at

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1:16–17; 2) “GM is 100% owned by General Motors Holdings LLC. General Motors Holdings

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LLC is a Delaware limited liability company with its principal place of business in Michigan.

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General Motors Holdings LLC is 100% owned by General Motors Company,” id. 1:18–21; 3)

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“General Motors Company is a Delaware Corporation that has its principal place of business in the

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state of Michigan,” id. at 1:22–23. Plaintiff makes two objections for each statement: that they

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lack foundation under Fed. R. Evid. 602 and are conclusory.

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As an initial matter, Plaintiff’s objections violate the Civil Local Rules and this Court’s

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Standing Order “which require that objections be contained within the objecting party’s brief.”

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Standing Order, Section IV.I; Civil L.R. 7-3(a), (c). As such, the Court strikes Plaintiff’s

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objections.

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Even if the Court allowed the objections, they are wholly without merit. In evaluating the

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existence of diversity jurisdiction on a motion to remand, courts “consider . . . summary-

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judgment-type evidence relevant to the amount in controversy at the time of removal.” Fritsch v.

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Swift Transp. Co. of Arizona, LLC, 899 F.3d 785, 793 (9th Cir. 2018). “An affidavit or declaration

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used to support or oppose a motion [for summary judgment] must ... set out facts that would be

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[but not necessarily are] admissible in evidence . . . .” Fed. R. Civ. P. 56(c)(4). Thus, “when

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evidence is not presented in an admissible form in the context of a motion for summary judgment,

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but it may be presented in an admissible form at trial, a court may still consider that evidence.”

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Burch v. Regents of Univ. of Cal., 433 F. Supp. 2d 1110, 1120 (E.D. Cal. 2006) (emphasis in

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original) (citing Fraser v. Goodale, 342 F.3d 1032, 1037 (9th Cir. 2003)).

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Courts regularly allow declarations from employees, including counsel, to establish facts
like corporate structure and location. See, e.g., Self-Realization Fellowship Church v. Ananda
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Church of Self-Realization, 206 F.3d 1322, 1330 (9th Cir. 2000) (“Personal knowledge can be

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inferred from an affiant’s position.”); Kan v. Gen. Motors LLC, No. 5:23-cv-01731-JLS-RAO,

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2023 WL 8168953, at *1 (C.D. Cal. Oct. 24, 2023) (“the Court assumes that a lawyer in

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Defendant’s general counsel’s office is aware of basic corporate-structure facts, including where

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Defendant’s parent corporation is incorporated and has its principal place of business.”); Simonson

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v. Allstate Ins. Co., No. CV 12-4918 CAS (MANx), 2012 WL 3073918, *2 (C.D. Cal. July 27,

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2012) (admitting the declaration of Allstate’s assistant general counsel, which asserted that

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Allstate’s “nerve center” was located where “the important corporate decisions are made, and

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where its executive and administrative functions are performed”).

United States District Court
Northern District of California

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The Court has no reason to discount Mr. Kuhn’s statements. Courts regularly rely on

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declarations by the parties’ attorneys such as Mr. Kuhn. The Court can presume that he, in his

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position as counsel at GM, is well-versed in such basic facts as GM’s corporate headquarters, state

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of incorporation, and corporate structure. Kuhn Decl. ¶¶ 1, 4–6. Even if the Court did not strike

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the objections for failure to comply with the Civil Local Rules and Standing Order, the Court

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would overrule these objections as baseless and borderline frivolous.

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ii.

Amount in Controversy

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Next, the Court addresses amount in controversy. The amount in controversy required for

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diversity jurisdiction is $75,000. 28 U.S.C § 1332. As discussed above, Plaintiff’s opening brief

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lists procedural and substantive removal requirements, but makes no substantive argument that the

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complaint does not plead and amount in controversy greater than $75,000. MTR at 11. Defendant

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argues that the total damages sought exceed $75,000. MTR Opp. at 3–6. Plaintiff’s reply brief

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does not dispute any of Defendant’s argument or evidence regarding amount in controversy.

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Plaintiff’s Complaint seeks damages for 1) the amount paid or payable for the subject

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vehicle; 2) a civil penalty of “two times” that amount; 3) attorneys’ fees; and 4) punitive damages

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on their fraud-based claim. See Compl. ¶¶ 37–38, 43, 46. The Court assesses each in turn.

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First, Defendant has presented evidence that Plaintiff purchased the vehicle for a cash price
of $41,800. See ECF No. 21-2 at 2.
Second, a civil penalty of twice the amount paid or payable is $83,600.
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Third, the Court assesses attorneys’ fees. “In calculating the amount in controversy, a

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court must include a reasonable amount of a potential award of attorney’s fees to a plaintiff, if

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such an award is permitted under the statutory or common law basis for a plaintiff’s claims.”

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Cotoc v. Dolex Dollar Express, Inc., No. LA CV20-06066 JAK (MAAx), 2021 WL 3783581, at

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*6 (C.D. Cal. Aug. 25, 2021) (citing Fritsch v. Swift Transp. Co. of Ariz., LLC, 899 F.3d 785, 794

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(9th Cir. 2018)). Defendant avers that it is common for plaintiffs’ counsel to claim hourly rates of

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$350 to $500 and seek attorneys’ fees exceeding $50,000. See ECF No. 1-3 ¶ 11; see also

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Selinger, 2023 WL 2813510, at *11 (finding $50,000 a reasonable estimate of attorneys’ fees for

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Song-Beverly vehicle cases). Plaintiff does not dispute this number. Thus, the Court accepts

United States District Court
Northern District of California

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Defendant’s unchallenged estimate of $50,000 for attorneys’ fees.

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Finally, the court addresses punitive damages. Courts in similar cases have found $50,000

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to be a reasonable estimate of plaintiffs’ punitive damages award based on fraud claims in similar

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cases. See Selinger, 2023 WL 2813510, at *10; In re Volkswagen, 2019 WL 693234, at *7

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(analyzing jury verdicts in several cases alleging a “global car manufacturer [ ] deceived its

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customers about the characteristics of its car” and finding that “[a]t least $50,000 in punitive

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damages is at stake in each of the . . . cases”). Thus, assuming the truth of Plaintiff’s allegations,

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it is reasonable to assume that Plaintiff could recover at least $50,000 in punitive damages.

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Court thus finds, by adding together the four sources of damages pled in the complaint,
that Defendant met its burden in showing that the amount in controversy exceeds $75,000.
iii.

Diversity of the Parties

Next, the Court addresses diversity. As discussed above, Plaintiff’s opening brief lists

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procedural and substantive removal requirements, but makes no substantive argument that

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Defendant fails to show that the parties are diverse. In response, Defendant provides evidence that

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the parties are residents of different states. MTR Opp. at 2; Compl. ¶ 1; Kuhn Decl. ¶¶ 4–6.

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Defendant notes that Plaintiff did not challenge Defendant’s citizenship in the opening brief, even

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though Defendant supplied it in the Notice or Removal. MTR Opp. at 2 n.1; Not. of Removal ¶

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12. Plaintiff replies that “Defendant has submitted no admissible evidence proving Plaintiffs’

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citizenship at the time the action was filed or at the time of the removal.” MTR Reply at 5.
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Beyond Plaintiff’s stricken and baseless objections, Plaintiff makes no substantive argument

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regarding Defendant’s citizenship.

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“citizens of different States.” Defendant has provided evidence that Plaintiff is a resident of

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California and Defendant is a resident of Michigan. MTR Opp. at 2; Compl. ¶ 1 (“Plaintiff is an

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individual residing in the City of SAN JOSE, County of SANTA CLARA, and the State of

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CALIFORNIA”); Kuhn Decl., ¶¶ 4–6. Plaintiff has provided no evidence to the contrary. Thus,

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Defendant has met its burden of showing that the parties are diverse.

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United States District Court
Northern District of California

The Court agrees with Defendant. Parties are diverse under 28 U.S.C § 1332 if they are

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Procedural Requirements

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Finally, the court address procedure. Plaintiff argues that Defendant must satisfy the

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procedural requirements for removal under 28 U.S.C. § 1446, but points to no procedural defect in

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Defendant’s efforts to remove the case. See MTR. Defendant responds that it was served on July

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27, 2023 and timely filed the notice of removal on August 23, 2023. MTR Opp. at 6–7. Plaintiff

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replies that Defendant did not properly submit evidence of when it was served. MTR Reply at 3.

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28 U.S.C. § 1446 requires that a notice of removal “contain[] a short and plain statement of

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the grounds for removal, together with a copy of all process, pleadings, and orders served upon

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such defendant or defendants in such action.” “Section 1446(b) identifies two thirty-day periods

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for removing a case.” Kuxhausen, 707 F.3d at 1139 (internal quotation marks and citation

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omitted). “The first thirty-day removal period is triggered if the case stated by the initial pleading

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is removable on its face.” Id. (internal quotation marks omitted).

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Defendant filed the Notice of Removal on August 23, 2023, fewer than 30 days after

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service on August 2, 2023. See ECF No. 1-2 at 7. Furthermore, Defendant attached copies of all

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process, pleadings, and orders served on Defendant in accordance with 28 U.S.C. § 1446(a). See

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Not. of Removal. Thus, Defendant has shown that removal was procedurally proper.

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Defendant has met its burden in showing that the amount in controversy exceeds $75,000,

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that the parties are diverse, and that removal was procedurally proper. Accordingly, Plaintiff’s

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motion to remand is denied.
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B.

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Defendant moves to dismiss Plaintiff’s Fourth Cause of Action for fraud and Fifth Cause

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of Action for violation of the UCL (based on the “Fraud Prong”). MTD at 4–11. Defendant’s

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motion does not challenge Plaintiff’s Fifth Cause of Action based on the UCL’s “Unfair Prong,”

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Compl. ¶ 87–100, or “Unlawful Prong,” id. ¶ 110–120. Plaintiff’s opposition acknowledges

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potential deficiencies in its pleading and “request[s] leave to file a First Amended Complaint,”

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arguing that “Plaintiff can allege in an amended complaint that General Motors knew of issues

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with battery and did not disclose said knowledge through dealership personnel” and “can establish

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a transactional relationship” to allege fraud. MTD Opp. at 5–6. Defendant did not file a reply

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brief or otherwise oppose Plaintiff’s request.
Since Defendant does not object to amendment, the Court grants Defendant’s motion to

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United States District Court
Northern District of California

Defendant’s Motion to Dismiss

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dismiss Plaintiff’s fraud claims with leave to amend.

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IV.

ORDER

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For the foregoing reasons, IT IS HEREBY ORDERED that:

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1. Plaintiff’s motion to remand is DENIED.

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2. Defendant’s motion to dismiss Plaintiff’s Fourth Cause of Action is GRANTED WITH
LEAVE TO AMEND.

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3. Defendant’s motion to dismiss Plaintiff’s Fifth Cause of Action (based on fraud) is
GRANTED WITH LEAVE TO AMEND.

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Any amended complaint shall be filed within 14 days of the issuance of this order. Plaintiff may

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only amend consistent with this order. Plaintiff shall also file a redlined version of any amended

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complaint.

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Dated: February 28, 2024
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BETH LABSON FREEMAN
United States District Judge

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