McMillon v. O’Reilly Auto Enterprises, LLC

Summary

The Southern District of California grants Noah McMillon’s motion to remand a representative California Private Attorneys General Act action against O’Reilly Auto Enterprises, LLC. The court holds that Defendant failed to establish by a preponderance of the evidence that the amount in controversy exceeded $75,000, applying pro rata treatment to PAGA penalties and attorney fees, and declines to award removal-related attorney fees.

Holdings

1. Defendant failed to establish by a preponderance of the evidence that the amount in controversy exceeded $75,000 because only Plaintiff's pro rata share of the PAGA penalties and attorney fees could be considered, and the resulting amount was well below the jurisdictional threshold.
2. The 65% share of PAGA penalties payable to the Labor and Workforce Development Agency should not be aggregated with Plaintiff's share when calculating the amount in controversy.
3. Viking River Cruises, Inc. v. Moriana does not require aggregation of Plaintiff's individual PAGA penalties or attorney fees in this remand proceeding.
4. Plaintiff was not entitled to attorney fees and costs incurred in seeking remand because Defendant had an objectively reasonable, colorable basis for removal.

Questions Presented

1. Whether Defendant established by a preponderance of the evidence that the amount in controversy exceeded $75,000 for purposes of diversity jurisdiction.
2. Whether PAGA civil penalties and attorney fees attributable to other aggrieved employees or the Labor and Workforce Development Agency could be aggregated with Plaintiff's individual share to satisfy the amount-in-controversy requirement.
3. Whether Viking River Cruises, Inc. v. Moriana required the court to treat Plaintiff's individual PAGA claim and associated attorney fees as independently recoverable for amount-in-controversy purposes.
4. Whether Plaintiff was entitled to attorney fees and costs incurred in obtaining remand.

Disposition

remanded