Juan Carlos Herrera v. C & J Clark America Inc, et al.

Summary

The United States District Court for the Northern District of California denied Juan Carlos Herrera’s motion to remand a putative California wage-and-hour class action removed under the Class Action Fairness Act. The court held that Defendants established, by a preponderance of the evidence, the required class size, minimal diversity, and aggregate amount in controversy exceeding $5 million. In calculating the amount in controversy, the court declined to reduce wage-statement and waiting-time penalties based on potential statutes-of-limitations defenses.

Holdings

1. It is improper for a district court to consider a potential statute of limitations defense to reduce the amount in controversy because the amount in controversy represents the amount at stake in the litigation, not the likely liability.
2. Defendants met their burden of proving by a preponderance of the evidence that the aggregate amount in controversy exceeds $5 million, as Plaintiff's requested wage statement penalties and waiting time penalties alone place at least $7 million in controversy.

Questions Presented

1. Whether Defendants met their burden of proving the amount in controversy exceeds $5 million under CAFA for removal jurisdiction
2. Whether statutes of limitations may be considered when calculating the amount in controversy in a CAFA removal

Disposition

denied