Marx v. FCA US LLC

Summary

The United States District Court for the Northern District of California denied Joshua and Elizabeth Marx’s motion to remand their Song-Beverly Act and fraud action against FCA US LLC. The court held that the plaintiffs’ challenge to subject-matter jurisdiction was not waived by their delay in seeking remand. It further concluded that FCA established by a preponderance of the evidence that the amount in controversy exceeded $75,000 based on actual damages, a potential civil penalty, and recoverable attorneys’ fees.

Holdings

1. A challenge to subject matter jurisdiction, including the existence of diversity jurisdiction, cannot be waived by delay in seeking remand.
2. FCA established by a preponderance of the evidence that the amount in controversy exceeded $75,000.

Questions Presented

1. Whether the Marxes waived their challenge to subject matter jurisdiction by litigating in federal court for approximately eight months before moving to remand.
2. Whether FCA established by a preponderance of the evidence that the amount in controversy exceeded $75,000 for purposes of diversity jurisdiction.

Disposition

other