Sherry A. Chamberlain v. General Motors LLC

Summary

The United States District Court for the Central District of California remanded this Song-Beverly Warranty Act action to California state court because General Motors failed to establish that the amount in controversy exceeded $75,000 for diversity jurisdiction. The court found that the proposed civil penalties and attorneys’ fees were too speculative to include in the jurisdictional calculation, leaving only $23,883.54 in controversy. Plaintiff’s motion to remand was denied as moot, all dates were vacated, and the federal case was closed.

Holdings

1. The defendant failed to establish by a preponderance of the evidence that the amount in controversy exceeded $75,000, so the federal court lacked subject-matter jurisdiction and the action had to be remanded.
2. The defendant could not include the maximum Song-Beverly civil penalty in the amount in controversy merely by assuming that the penalty was available; the proposed penalty was too speculative and unsupported.
3. The defendant failed to establish that its estimated past and future attorney fees were properly includable in the amount in controversy.

Questions Presented

1. Whether the defendant established that the amount in controversy exceeded $75,000 for diversity jurisdiction under 28 U.S.C. § 1332(a).
2. Whether speculative Song-Beverly civil penalties could be included in the amount in controversy.
3. Whether estimated past and future attorney fees were sufficiently supported to be included in the amount in controversy.

Disposition

remanded