Blackburn v. FCA US LLC et al
Filing
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ORDER Granting 6 Unopposed Motion to Remand. The Court lacks jurisdiction over the underlying matter and the case is remanded to San Diego Superior Court. Signed by Judge Anthony J. Battaglia on 8/8/2016. (Certified copy sent to State Court via US Mail Service.) (dls)
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UNITED STATES DISTRICT COURT
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SOUTHERN DISTRICT OF CALIFORNIA
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MICHELLE BLACKBURN,
Case No.: 16cv1507 AJB (WVG)
Plaintiff,
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ORDER GRANTING UNOPPOSED
MOTION TO REMAND
v.
FCA US LLC, a Delaware Limited
Liability Company; and DOES 1 through
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(Doc. No. 6)
Defendants.
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INTRODUCTION
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Presently before the Court is Plaintiff Michelle Blackburn’s (“Plaintiff”)
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unopposed motion to remand this mater to San Diego County Superior Court. (Doc. No.
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6.) Finding Defendant FCA US LLC (“Defendant”) has failed to carry its burden of
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establishing removal jurisdiction exists, Plaintiff’s motion to remand is GRANTED. As
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this matter is appropriate for resolution on the papers and without oral argument pursuant
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to Local Rule 7.1.d.1, the motion hearing presently set for October 13, 2016 is
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VACATED.
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16cv1507 AJB (WVG)
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BACKGROUND
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On May 17, 2016, Plaintiff filed suit against Defendant in San Diego County
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Superior Court for damages stemming from Plaintiff’s purchase of a new 2011 Jeep
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Grand Cherokee. (Doc. No. 1-2.) Plaintiffs asserts three causes of action sounding in state
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law for violations of the Song-Beverly Consumer Warranty Act and fraudulent
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concealment. (Id.) Defendant was served with the complaint on May 19, 2016, and filed a
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notice of removal on June 16, 2016. (Doc. No. 1.) Defendant asserts federal jurisdiction
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exists pursuant to 26 U.S.C. 1332(d), as the parties are diverse and the amount in
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controversy exceeds the jurisdictional minimum of $75,000. (Id. at 3.)
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On June 16, 2016, Plaintiff moved to remand arguing that Defendant has failed to
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establish diversity jurisdiction exists. (Doc. No. 6 at 2.) In addition to remand, Plaintiff
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seeks an award of costs and expenses, including attorney’s fees, incurred because of
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removal. (Id.) Defendant has not filed an opposition or otherwise addressed the
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arguments advanced in support of remand.
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DISCUSSION
Federal courts are courts of limited jurisdiction, having subject matter jurisdiction
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only over matters authorized by the Constitution and Congress. See Kokkonen v.
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Guardian Life Ins. Co., 511 U.S. 375, 377 (1994). A defendant may remove a civil action
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from state court to federal court only if the district court would have original jurisdiction
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over the matter. 28 U.S.C. § 1441(a). “Removal statutes are strictly construed against
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removal.” Luther v. Countywide Home Loans Serv., L.P., 533 F.3d 1031, 1034 (9th Cir.
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2008). There is also a “strong presumption” against removal jurisdiction, and the party
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seeking removal always has the burden of establishing that removal is proper. Gaus v.
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Miles, Inc., 980 F.2d 564, 566 (9th Cir. 1992). If there is any doubt as to the propriety of
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removal, federal jurisdiction must be rejected. Id. at 567.
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A. Amount in Controversy
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For a federal court to exercise diversity jurisdiction there must be “complete
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diversity” between the parties and the amount in controversy requirement of $75,000
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16cv1507 AJB (WVG)
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must be met. See 28 U.S.C. § 1332(a); Strawbridge v. Curtiss, 7 U.S. 267, 267 (1806).
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The amount in controversy is determined by reference to the complaint, and includes the
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amount of damages in dispute, as well as attorney’s fees, if authorized by statute or
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contract. Kroske v. U.S. Bank Corp., 432 F.3d 976, 980 (9th Cir. 2005). Where the
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complaint does not pray for damages in a specific amount, the defendant must prove by a
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preponderance of the evidence that the amount in controversy exceeds $75,000. Singer v.
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State Farm Mut. Auto. Ins. Co., 116 F.3d 373, 376 (9th Cir. 1997) (citing Sanchez v.
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Monumental Life Ins. Co., 102 F.3d 398, 404 (9th Cir. 1996)). If the amount is not
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facially apparent from the complaint, the Court may “require parties to submit summary-
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judgment-type evidence relevant to the amount in controversy at the time of removal.” Id.
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(citing Allen v. R & H Oil & Gas Co., 63 F.3d 1326, 1335–56 (5th Cir. 1995)).
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Plaintiff’s complaint does not allege a specific damages amount. Defendant,
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therefore, “bears the burden of establishing, by a preponderance of the evidence, that the
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amount in controversy exceeds $[75],000. Under this burden, [Defendants] must provide
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evidence establishing that it is ‘more likely than not’ that the amount in controversy
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exceeds that amount.” Sanchez v. Monumental Life Ins. Co., 102 F.3d 398, 404 (9th Cir.
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1996).
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In the notice of removal, Defendant asserts the amount in controversy is at least
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“three times the vehicle’s purchase price, or approximately $127,379.40, plus attorney’s
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fees and punitive damages.” (Doc. No. 1 ¶ 9.) This calculation, according to Defendant, is
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derived from Plaintiff’s request for “reimbursement of the price paid for the vehicle less
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that amount directly attributable to use by the Plaintiff, incidental, consequential, and
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general damages, and a civil penalty up to two times the amount of actual damages.” (Id.)
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(quoting Doc. No. 1-2 ¶¶ 140–143.) In support of remand, Plaintiff argues Defendant’s
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damage calculation does not consider Song-Beverly’s rules regarding damages
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calculations. (Doc. No. 6 at 8.) More specifically, Plaintiff contends she does not seek
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damages based on the total purchase price of the vehicle, and offers her own calculation
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of potential damages as the estimated amount in controversy.
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16cv1507 AJB (WVG)
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Given that the removal statute is strictly construed against removal, and that any
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doubts as to the propriety of federal jurisdiction are resolved in favor of remand, the
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Court finds Defendant has failed to establish the required jurisdictional amount in
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controversy. Although Defendant proposes a potential recovery amount in excess of
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$120,000, the means for calculating that sum are less than clear in the notice of removal.1
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Additionally, because the complaint does not affirmatively state the amount in
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controversy, Defendant bears the burden of establishing the jurisdictional threshold is met
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by a preponderance of the evidence. Failure to oppose the instant motion does not carry
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Defendant’s burden as the proponent of removal.2 Accordingly, the allegations in the
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notice of removal regarding the potential amount in controversy are insufficient to
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establish diversity jurisdiction. See Matheson v. Progressive Specialty Ins. Co., 319 F.3d
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1089, 1090–91 (9th Cir. 2003) (“Conclusory allegations as to the amount in controversy
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are insufficient.”).
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B. Diversity of Citizenship
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Removal based on diversity also requires that the citizenship of each plaintiff be
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diverse from the citizenship of each defendant (i.e. complete diversity). Caterpillar Inc.
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v. Lewis, 519 U.S. 61, 68 (1996). For purposes of diversity, a limited liability company
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(LLC) is a citizen of every state in which its “owners/members” are citizens. Johnson v.
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Columbia Prop. Anchorage, LP, 437 F.3d 894, 899 (9th Cir. 2006) (explaining that
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courts are to treat LLCs like partnerships, which have the citizenships of all of their
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members).
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Through its notice of removal, Defendant asserts that the parties are diverse as
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required for the Court to exercise jurisdiction under 28 U.S.C. § 1332. (Doc. No. 1 ¶¶ 6–
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8.) Defendant represents that it is a limited liability corporation, the sole member of
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(See Doc. No. 1 ¶ 9.)
See Civil Local Rule 7.1.f.3 (governing the failure to file an opposition as proscribed by
local rules).
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16cv1507 AJB (WVG)
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which is FCA North America Holding LLC. (Doc. No. 1-3 ¶ 3.) FCA Holding LLC is
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comprised solely of Fiat Chrysler Autmobiles, N.V., (“Fiat”) which Defendant represents
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is a publicly traded company incorporated under the laws of the Netherlands, and whose
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principal place of business is in London, England. (Id. ¶ 4.) Given that Plaintiff is deemed
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a citizen of the state of California, a fact not disputed by Plaintiff, Defendant contends
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complete diversity exists. Plaintiff argues that Defendant has not provided “any facts
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regarding the law under which Fiat is organized, its capacity to sue and be sued, and
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whether it is a recognized juridical person under the laws of the jurisdiction in which it is
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organized.” (Doc. No. 6 at 14.)
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Although the parties appear diverse, in light of Plaintiff’s challenges to Fiat’s
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citizenship, Defendant has failed to establish complete diversity as required for the Court
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to exercise jurisdiction. See Penetrante v. Jaguar Land Rover NA, LLC, No. CV162952,
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2016 WL 3457153, at *2–3 (C.D. Cal. June 24, 2016) (citing Cohn v. Rosenfeld, 733
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F.2d 625, 629 (9th Cir. 1984)). The notice of removal lacks information as to Fiat and
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whether it is considered a juridical person for the purposes of establishing diversity
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jurisdiction. See Cohn, 733 at 629. Thus, this matter is properly remanded to San Diego
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Superior Court.
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C. Award of Fees and Costs Incurred From Removal
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Plaintiff additionally seeks an award of attorney’s fees and costs incurred in
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moving to remand this action. 28 U.S.C. § 1447(c) permits the Court to order payment of
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“just costs and any actual expenses, including attorney fees, incurred as a result of the
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removal.” In deciding whether to order payment of costs, the Court must assess whether
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removal was “wrong as a matter of law.” Balcorta v. Twentieth Century–Fox Film Corp.,
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208 F.3d 1102, 1106 n.6 (9th Cir. 2000). “[A]bsent unusual circumstances, [costs] should
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not be awarded when the removing party has an objectively reasonable basis for
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removal.” Martin v. Franklin Cap. Corp., 546 U.S. 132, 136 (2005).
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Despite granting remand, the Court declines to award Plaintiff fees and costs
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associated with moving to remand. The Court cannot conclude that Defendant’s removal
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16cv1507 AJB (WVG)
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was “wrong as a matter of law” as Defendant asserted potentially viable grounds for
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removal. See Lussier v. Dollar Tree Stores, Inc., 518 F.3d 1062, 1065 (9th Cir. 2008)
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(noting “courts may award attorney’s fees under § 1447(c) only where the removing
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party lacked an objectively reasonable basis for seeking removal” and “when an
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objectively reasonable basis exists, fees should be denied”). Thus, absent unusual
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circumstances, remand of this matter does not mandate an award of fees and costs. See
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Martin v. Franklin Capital Corp., 546 U.S. at 132, 137 (2005) (holding that whether
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removal is improper is not dispositive in determining whether fees should be awarded
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under 28 U.S.C. § 1447(c)). Plaintiff’s request is therefore DENIED.
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CONCLUSION
Thus, finding the Court lacks jurisdiction over the underlying matter, the Court
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REMANDS the action to San Diego County Superior Court. The Clerk of Court is
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instructed to close this case.
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IT IS SO ORDERED.
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Dated: August 8, 2016
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16cv1507 AJB (WVG)
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