Ernest Scoggan v. Costco Wholesale Corporation et al.

Summary

The Central District of California granted Plaintiff Ernest Scoggan’s motion to remand a putative class action against Costco Wholesale Corporation. The court held that Costco failed to establish by a preponderance of the evidence that the amount in controversy exceeded the Class Action Fairness Act’s jurisdictional threshold, relying on speculative assumptions about the frequency and amount of alleged online price increases. The case was remanded to the Superior Court of California, County of Los Angeles.

Holdings

1. Costco failed to establish by a preponderance of the evidence that the amount in controversy exceeded CAFA's jurisdictional threshold because the complaint did not provide a reliable basis for calculating classwide damages and Costco offered insufficient supporting evidence.
2. The case must be remanded to the Superior Court of California, County of Los Angeles because Costco did not establish that the federal court could properly exercise subject matter jurisdiction.

Questions Presented

1. Whether Costco established that the amount in controversy exceeded CAFA's jurisdictional threshold.
2. Whether Costco's damages calculations, based on assumptions that every qualifying order included an upcharge, were sufficiently supported by the complaint or other evidence to establish federal subject matter jurisdiction.

Disposition

remanded