Vitalina Montes-Mendoza v. General Motors LLC, a Delaware Limited Liability Company; and Does 1-10, inclusive

Summary

The United States District Court for the Central District of California denied Plaintiff Vitalina Montes-Mendoza’s motion to remand her Song-Beverly Act, Magnuson-Moss Warranty Act, UCC, and CLRA action against General Motors LLC. The court held that diversity jurisdiction was adequately established because the amount in controversy, including estimated actual damages and potentially available civil penalties, exceeded $75,000. The court did not need to resolve whether anticipated attorney’s fees were adequately supported.

Holdings

1. Defendant established approximately $38,995.11 in actual damages based on the vehicle's purchase price and supported statutory and loan-related offsets, but that amount alone was insufficient to satisfy the $75,000 jurisdictional threshold.
2. Civil penalties may be included in the amount in controversy where the complaint alleges that the defendant acted willfully and seeks the full statutory penalty. Because Plaintiff alleged willfulness and sought a civil penalty of twice her actual damages, the court included the estimated civil penalty, bringing the amount in controversy to approximately $116,985.33.
3. Remand was not warranted because the parties were diverse and Defendant plausibly alleged, and then established by a preponderance of the evidence, an amount in controversy exceeding $75,000 through actual damages and alleged civil penalties.

Questions Presented

1. Whether the amount in controversy exceeded $75,000 for purposes of diversity jurisdiction.
2. Whether alleged Song-Beverly Act civil penalties could be included in calculating the amount in controversy when Plaintiff alleged willful violations and requested the maximum statutory penalty.
3. Whether Defendant established the amount in controversy by a preponderance of the evidence after Plaintiff contested removal.

Disposition

other