Frank Rassaii v. Copart, Inc. and AAA Auto Sales, Inc.

Summary

The United States District Court for the Northern District of California ordered Defendant Copart, Inc. to show cause why the action should not be remanded to state court. The court identified inadequate support for the amount-in-controversy requirement for diversity jurisdiction and the absence of information showing unanimous consent to removal by all defendants.

Holdings

1. When the state-court complaint does not clearly establish that the amount in controversy exceeds $75,000, a removing defendant must provide sufficient evidence to establish by a preponderance of the evidence that the jurisdictional threshold is satisfied; Copart's conclusory allegation was insufficient.
2. For an action removed solely under 28 U.S.C. § 1441(a), all defendants who have been properly joined and served must join in or consent to removal; Copart was required to explain whether AAA Auto Sales, Inc. was properly joined and served and had consented.

Questions Presented

1. Whether Copart established by a preponderance of the evidence that the amount in controversy exceeds $75,000 for diversity jurisdiction.
2. Whether all properly joined and served defendants consented to removal as required by 28 U.S.C. § 1446(b)(2)(A).

Disposition

other