Joe Montoya v. Flatiron Dragados USA, Inc.

Summary

The United States District Court for the Central District of California sua sponte remands Joe Montoya’s California employment action to the Superior Court of California, County of Orange. The court concludes that Defendant did not establish by a preponderance of the evidence that the amount in controversy exceeded the $75,000 threshold for diversity jurisdiction. The court vacates all further hearings and directs the Clerk to serve the minute order on the parties.

Holdings

1. When the complaint does not clearly allege an amount in controversy exceeding $75,000, the removing defendant must establish by a preponderance of the evidence that the jurisdictional minimum is satisfied.
2. For purposes of the amount-in-controversy calculation in this case, the court counted lost wages from the termination date through the removal date rather than through an estimated future trial date.
3. Defendant failed to establish by a preponderance of the evidence that more than $75,000 was in controversy, so the district court lacked diversity jurisdiction and was required to remand the action.

Questions Presented

1. Whether the district court had diversity jurisdiction when the complaint did not expressly allege that more than $75,000 was in controversy.
2. Whether Defendant established by a preponderance of the evidence that the amount in controversy exceeded $75,000.
3. Whether speculative damages, including front pay and other asserted damages and awards, could be included in the amount-in-controversy calculation on the record presented.

Disposition

remanded