Summary
The United States District Court for the Central District of California granted Plaintiff Clifford Larsen’s motion to remand a putative wage-and-hour class action. The court held that Defendants failed to establish by a preponderance of the evidence that the amount in controversy exceeded $75,000, relying on speculative damages calculations and improperly attributing class-related attorney’s fees solely to the named plaintiff. The case was remanded to state court.
Holdings
- Defendants failed to establish by a preponderance of the evidence that the amount in controversy exceeded $75,000, because their damages calculations rested on unsupported assumptions and conclusory statements rather than evidence.
- In a putative class action, anticipated attorneys' fees may not be attributed solely to the named plaintiff when calculating the amount in controversy; the fees must be allocated among the putative class members.
Questions Presented
- Whether defendants established by a preponderance of the evidence that the amount in controversy exceeded $75,000 for purposes of diversity jurisdiction.
- Whether defendants could attribute $58,000 in anticipated attorneys' fees to the named plaintiff individually rather than allocate the fees among the putative class members.
- Whether the case should be remanded because defendants relied on speculative, unsupported assumptions concerning damages and attorneys' fees.
Disposition
remanded
Cases Cited (12)
- Exxon Mobil Corp. v. Allapattah Servs., Inc., 545 U.S. 546, 553 (2005)(followed)
- Strawbridge v. Curtiss, 7 U.S. 267, 267 (1806)(followed)
- Gaus v. Miles, Inc., 980 F.2d 564, 566 (9th Cir. 1992)(followed)
- Shamrock Oil & Gas Corp. v. Sheets, 313 U.S. 100, 108-09 (1941)(followed)
- Prize Frize, Inc. v. Matrix, Inc., 167 F.3d 1261, 1265 (9th Cir. 1999)(followed)
- Ibarra v. Manheim Invs., Inc., 775 F.3d 1193, 1197, 1199 (9th Cir. 2015)(followed)
- Sanchez v. Monumental Life Ins. Co., 102 F.3d 398, 404 (9th Cir. 1996)(followed)
- Anderson, 556 F. Supp. 3d at 1136(followed)
- Nolan v. Kaya Oil Co., No. 11-cv-00707-MEJ, 2011 WL 2650973, at *4 (N.D. Cal. 2011)(followed)
- Dupre v. General Motors, No. 10-cv-00955-RGK (Ex), 2010 WL 3447082, at *4 (C.D. Cal. 2010)(followed)
Showing top 10 of 12.
Cited In (0)
No citing cases on record yet.
Court Document
Open PDFLoading document…