Michael Tighe v. Ferrellgas Partners, L.P.

Summary

The United States District Court for the Central District of California grants Plaintiff Michael Tighe’s motion to remand a PAGA employment action to California state court. The court concludes that the amount in controversy does not exceed $75,000 because only Tighe’s share of PAGA penalties and attributable attorneys’ fees may be counted. The court denies the motion to compel arbitration without prejudice, discharges the order to show cause, vacates the hearing, and directs the Clerk to close the case.

Holdings

1. The LWDA's portion of PAGA civil penalties may not be aggregated with the employee's portion when determining the amount in controversy in a PAGA removal action.
2. In a PAGA removal action, only the portion of attorneys' fees attributable to the individual plaintiff's claims may be included in the amount in controversy; defendants' speculative calculation based on anticipated hours was insufficient.
3. Defendants failed to establish that the amount in controversy exceeded $75,000, so the district court lacked diversity jurisdiction and was required to remand the action.
4. The motion to compel arbitration was denied without prejudice because the case was being remanded and the motion could be refiled in state court.

Questions Presented

1. Whether the California Labor and Workforce Development Agency's 75% share of PAGA civil penalties may be aggregated with the employee's share to satisfy the amount-in-controversy requirement for diversity jurisdiction.
2. Whether defendants adequately established the amount of attorneys' fees attributable to Tighe's individual PAGA claims for purposes of the amount in controversy.
3. Whether the amount in controversy exceeded $75,000 so that removal based on diversity jurisdiction was proper.
4. Whether the pending motion to compel arbitration should be decided by the federal court after remand.

Disposition

remanded