Matthew Michelson v. Mercedes-Benz USA, LLC, et al.

Summary

The United States District Court for the Central District of California ordered the parties to show cause why the action should not be remanded for lack of subject matter jurisdiction. The court questioned whether the removing defendant had established by a preponderance of the evidence that the amount in controversy exceeded $75,000, and directed the parties to respond within fourteen days.

Holdings

1. A federal district court must examine its subject matter jurisdiction sua sponte before proceeding to the merits.
2. The Notice of Removal did not presently establish by a preponderance of the evidence that the amount in controversy exceeded $75,000, so the parties were required to show cause why the action should not be remanded.

Questions Presented

1. Whether the Notice of Removal adequately established federal subject matter jurisdiction under 28 U.S.C. § 1332(a), particularly whether the amount in controversy exceeds $75,000.
2. Whether the action should be remanded for lack of subject matter jurisdiction.

Disposition

other