Tanz Billie Creswell v. Lowe's Home Centers, LLC

Summary

The United States District Court for the Central District of California granted the parties’ stipulation capping the plaintiff’s recovery at $75,000, exclusive of costs and interest. Because the cap reduced the amount in controversy below the jurisdictional threshold, the court concluded that it lacked subject matter jurisdiction and remanded the action to the San Bernardino County Superior Court.

Holdings

1. The parties' binding stipulation limiting plaintiff's total recovery to $75,000 or less, exclusive of costs and interest, eliminated the jurisdictional amount in controversy, so the district court lacked subject matter jurisdiction.
2. Remand was mandatory because the district court lacked subject matter jurisdiction after the parties' stipulation.
3. Plaintiff's total recovery was capped at $75,000, exclusive of costs and interest, and plaintiff waived and was barred from enforcing any amount exceeding that cap.

Questions Presented

1. Whether the parties' stipulation capping plaintiff's recovery at $75,000 eliminated the amount-in-controversy basis for federal subject matter jurisdiction.
2. Whether the action was required to be remanded to state court under 28 U.S.C. § 1447(c) after the stipulation.

Disposition

remanded