Virginia Martin v. FCA US, LLC et al.

Summary

The United States District Court for the Central District of California sua sponte remands a Song-Beverly Consumer Warranty Act action to the Superior Court of California, County of Orange. The court concludes that the removing defendant failed to establish by a preponderance of the evidence that the amount in controversy exceeded $75,000, relying on claimed actual damages of $13,389.95 and declining to include speculative civil penalties or attorneys’ fees.

Holdings

1. Defendant failed to show by a preponderance of the evidence that more than $75,000 was in controversy. The only non-speculative damages shown were $13,389.95, which was below the jurisdictional threshold.
2. The court must remand a removed action when it determines before final judgment that subject matter jurisdiction is lacking, and it may raise the jurisdictional issue sua sponte.

Questions Presented

1. Whether the district court had diversity jurisdiction over the removed Song-Beverly Consumer Warranty Act action.
2. Whether Defendant established by a preponderance of the evidence that the amount in controversy exceeded the $75,000 jurisdictional threshold.
3. Whether the court should sua sponte remand the action for lack of subject matter jurisdiction.

Disposition

remanded