Juan R. Loredo v. General Motors, LLC

Summary

The United States District Court for the Central District of California denied Juan R. Loredo’s motion to remand his Song-Beverly Consumer Warranty Act action against General Motors, LLC. The court held that GM established by a preponderance of the evidence that the amount in controversy exceeded $75,000, considering estimated actual damages, a potential civil penalty, and attorney’s fees. The court therefore found diversity jurisdiction and permitted the case to remain in federal court.

Holdings

1. The amount in controversy exceeded $75,000 because General Motors established a reasonable maximum potential recovery of at least $103,617.06.
2. The potential civil penalty sought under the Song-Beverly Act may be included in the amount in controversy without requiring the removing defendant to prove that the penalty will ultimately be awarded.

Questions Presented

1. Whether the court had diversity subject matter jurisdiction based on an amount in controversy exceeding $75,000.
2. Whether the amount in controversy could include estimated Song-Beverly Act actual damages, the maximum civil penalty, and recoverable attorney fees.
3. Whether General Motors established the amount in controversy by a preponderance of the evidence despite uncertainty regarding the amount Loredo had paid on the vehicle loan.