Barbara Gerl v. Sheraton Operating, LLC, et al.

Summary

The United States District Court for the Central District of California denied Barbara Gerl’s motion to remand a putative class action concerning alleged discrepancies between hotel in-room dining prices displayed on television menus and prices charged to guests. The court held that the defendants established the amount-in-controversy requirement for jurisdiction under the Class Action Fairness Act. The court also concluded that Gerl failed to establish the local controversy or home-state exceptions to CAFA jurisdiction.

Holdings

1. Defendants established by a preponderance of the evidence that the amount in controversy exceeded $5 million.
2. The local-controversy exception did not require remand because Gerl failed to prove that more than two-thirds of the putative class members were California citizens and failed to show that PH Finance was a significant defendant.
3. Neither the mandatory nor discretionary home-state exception required or warranted remand.

Questions Presented

1. Whether defendants established by a preponderance of the evidence that the amount in controversy exceeded $5 million for CAFA jurisdiction.
2. Whether the local-controversy exception to CAFA required the district court to decline jurisdiction.
3. Whether the mandatory or discretionary home-state exceptions to CAFA required or permitted remand.

Disposition

other