Cilian Henson v. Costco Wholesale Corporation, et al.

Summary

The Central District of California denied Cilian Henson’s motion to remand after concluding that Costco’s removal was timely and that diversity jurisdiction existed. The court found that the individual defendant, James Taef, was fictitious and therefore disregarded for diversity purposes. The court denied without prejudice Henson’s request to add a nondiverse defendant, Eric Sanchez, and ordered her to file a motion to amend addressing the Palestini factors by July 28, 2025.

Holdings

1. Costco's removal was timely because the case did not become unequivocally clear and certain as removable from plaintiff's discovery responses; the payroll declarations provided the information establishing removability, and Costco removed within thirty days of receiving that information.
2. The district court had diversity jurisdiction because the amount in controversy exceeded $75,000 and there was complete diversity between Henson and Costco after the fictitious defendant was disregarded.
3. Taef was disregarded for jurisdictional purposes because the evidence established that he was fictitious, and plaintiff did not argue that he should remain a defendant.
4. Plaintiff's request to join Eric Sanchez under 28 U.S.C. § 1447(e) was denied without prejudice because neither party addressed the Palestini factors.
5. Plaintiff was not entitled to attorney's fees under 28 U.S.C. § 1447(c) because Costco had an objectively reasonable basis for removal.

Questions Presented

1. Whether Costco's notice of removal was timely under 28 U.S.C. § 1446(b)(3).
2. Whether the district court had diversity jurisdiction based on an amount in controversy exceeding $75,000 and complete diversity after disregarding the fictitious defendant.
3. Whether plaintiff should be permitted under 28 U.S.C. § 1447(e) to join Eric Sanchez as a nondiverse defendant and thereby require remand.
4. Whether plaintiff was entitled to attorney's fees under 28 U.S.C. § 1447(c) based on the removal.

Disposition

other