Rita Marquez-Lopez v. General Motors LLC

Summary

The United States District Court for the Central District of California ordered General Motors LLC to show cause why the amount-in-controversy requirement for diversity jurisdiction was satisfied. The court found that the removal notice did not plausibly establish an amount exceeding $75,000 based on the alleged actual damages, civil penalties, and attorneys’ fees, and required a written response within five days.

Holdings

1. Defendant failed to plausibly allege that the amount in controversy exceeded $75,000 because its estimated actual damages were only $26,170.75 and it offered no evidence supporting a civil-penalty or attorney-fee award sufficient to satisfy the jurisdictional threshold.
2. Because the notice of removal did not adequately establish the amount in controversy but the deficiency was subject to correction, the Court ordered Defendant to show cause in writing why the jurisdictional requirements were or were not satisfied rather than immediately remanding the action.

Questions Presented

1. Whether Defendant plausibly alleged that the amount in controversy exceeded $75,000 for purposes of diversity jurisdiction under 28 U.S.C. § 1332.
2. Whether the Court should give Defendant an opportunity to establish the jurisdictional requirements before remanding the removed action.

Disposition

other