Lowell Dunlap, Jr. et al. v. Episource LLC

Summary

The United States District Court for the Central District of California granted Plaintiffs' motion to remand a putative class action arising from the Episource data breach. The Court held that the Class Action Fairness Act's minimal-diversity requirement was not satisfied because all parties were California citizens, and it rejected the argument that overlapping federal class actions could supply jurisdiction. The Court denied Plaintiffs' request for attorney's fees and costs and ordered the action removed from the consolidated federal litigation and remanded to Sacramento County Superior Court.

Holdings

1. The court lacked CAFA jurisdiction because the removed civil action did not include a class member who was a citizen of a state different from the defendant; all parties were California citizens.
2. The court could not use policy considerations, overlapping federal lawsuits, or the artful-pleading doctrine to expand CAFA jurisdiction beyond the statute's clear minimal-diversity requirement.
3. The court denied Plaintiffs' request for attorney's fees and costs under 28 U.S.C. § 1447(c).

Questions Presented

1. Whether CAFA conferred federal subject-matter jurisdiction when the putative class action contained only California plaintiffs and a California defendant.
2. Whether allegations and plaintiffs in overlapping federal class actions could be considered to establish CAFA jurisdiction in the removed action despite the absence of minimal diversity in the operative complaint.
3. Whether Plaintiffs were entitled to attorney's fees and costs incurred because of the removal under 28 U.S.C. § 1447(c).

Disposition

remanded