Alfredo Zavaleta v. Layne Christensen Company, et al.

Summary

The United States District Court for the Central District of California issued an order to show cause why the action should not be remanded for lack of subject matter jurisdiction. The court questioned whether the removing defendant had demonstrated by a preponderance of the evidence that the amount in controversy exceeded $75,000 and ordered written responses within fourteen days.

Holdings

1. A federal district court must examine its subject matter jurisdiction sua sponte before proceeding to the merits and must dismiss or remand when jurisdiction is absent.
2. When the court questions the amount-in-controversy allegations supporting removal, the parties must submit proof, and the party asserting federal jurisdiction must establish by a preponderance of the evidence that the amount exceeds $75,000.

Questions Presented

1. Whether the Notice of Removal adequately demonstrated that the amount in controversy exceeded $75,000 for purposes of diversity jurisdiction under 28 U.S.C. § 1332(a).
2. Whether the parties should be required to show cause why the action should not be remanded for lack of subject matter jurisdiction.

Disposition

other