Auston Waldrop, individually and behalf of all those similarly situated v. Basic American, Inc., a Delaware corporation

District Court, E.D. Washington·Decided December 18, 2025·No. 2:25-cv-00382·Unknown

Opinion

1 FILED IN THE U.S. DISTRICT COURT EASTERN DISTRICT OF WASHINGTON 2 Dec 18, 2025 3 SEAN F. MCAVOY, CLERK 4 5 UNITED STATES DISTRICT COURT 6 EASTERN DISTRICT OF WASHINGTON 7 AUSTON WALDROP, individually and behalf of all those similarly No. 2:25-CV-00382-MKD 8 situated, ORDER DENYING PLAINTIFF’S 9 Plaintiff, MOTION TO REMAND

10 v. ECF No. 10 11 BASIC AMERICAN, INC., a Delaware corporation, 12 Defendant. 13 Before the Court is Plaintiff’s Motion to Remand. ECF No. 10. Douglas 14 Han, Shunt Tatavos-Gharajeh, and April Rhéaume represent Plaintiff. Aaron 15 Doyer and James Shore represent Defendant. The Court has reviewed the motion 16 and record and is fully informed. For the reasons discussed below, the Court 17 denies Plaintiff’s motion. 18 BACKGROUND 19 Plaintiff, on behalf of himself and all others similarly situated, initiated this 20 class action suit in Grant County Superior Court on July 11, 2025. ECF No. 1 at 1 29-44. Plaintiff alleges Defendant “engaged in a systemic scheme of wage and 2 hour abuses against its Washington hourly-paid or non-exempt employees,”

3 including by: 4 (1) failing to provide employees with the rest breaks to which they are entitled; (2) failing to provide employees with the meal breaks to which they 5 are entitled; (3) failing to pay all minimum wages to employees for all hours worked; (4) failing to pay all overtime wages to employees when they work 6 more than 40 hours in a workweek; and (5) failing to accrue sick leave for and failing to allow for the usage of paid sick leave for qualifying absences 7 by employees; and (6) making unlawful deductions and rebates from employees’ wages. 8 Id. at 30 ¶ 1.1. Plaintiff’s proposed class consists of “[a]ll hourly-paid or non- 9 exempt employees of Defendant in the State of Washington at any time during the 10 period from three years preceding the filing of this Complaint to final disposition 11 of this action.” Id. at 31 ¶ 4.1. Plaintiff asserts eight Washington statutory claims 12 and seeks compensatory and exemplary damages, attorneys’ fees and costs, and 13 pre-judgment and post-judgment interest. Id. at 38-44. 14 On September 24, 2025, Defendant removed this action by invoking the 15 Court’s jurisdiction under the Class Action Fairness Act (“CAFA”). ECF No. 1 at 16 1-20. First, Defendant maintained the proposed class “would include 17 approximately 337 current and former employees.” Id. at 4 ¶ 8 (citing ECF No. 2 18 at 2 ¶ 2). Next, Defendant noted the parties were minimally diverse: Plaintiff is a 19 citizen of Washington and Defendant is incorporated in Delaware and is 20 headquartered in California. Id. at 6 ¶¶ 12, 14-15 (citing ECF No. 1 at 31 ¶ 3.1; 1 ECF No. 2 at 2 ¶ 3). Third, Defendant estimated the amount in controversy as 2 exceeding $12,261,322, above and beyond CAFA’s $5,000,000 floor. Id. at 9-18.

3 In support of its amount in controversy estimate, Defendant reasoned four of 4 Plaintiff’s causes of action “would themselves exceed” CAFA’s amount in 5 controversy requirement. Id. at 9 ¶ 21. For Plaintiff’s first, second, and third

6 claims for relief, Defendant estimated the value of alleged violations as 7 $4,904,529, not including attorneys’ fees and costs. Id. at 15-16 ¶ 41. Adding 8 Plaintiff’s eight claims for relief, Defendant estimated the total value of alleged 9 violations would be $9,809,058. Id. at 16 ¶ 42. Finally, using a benchmark of

10 25% of Plaintiff’s potential recovery, Defendant estimated attorneys’ fees would 11 equal at least $2,452,264—bringing the total amount in controversy, for just four 12 out of eight causes of action, to $12,261.322. Id. at 18 ¶ 45.

13 Plaintiff, disputing Defendant’s amount in controversy estimation, filed the 14 instant motion to remand on October 24, 2025. ECF No. 10. 15 LEGAL STANDARD 16 In general, “any civil action brought in a State court of which the district

17 courts of the United States have original jurisdiction, may be removed by the 18 defendant or the defendants, to the district court.” 28 U.S.C. § 1441(a). “Congress 19 enacted [CAFA] to facilitate adjudication of certain class actions in federal court.”

20 Dart Cherokee Basin Operating Co. v. Owens, 574 U.S. 81, 89 (2014). CAFA 1 permits a defendant to remove a class action to federal court if there is minimal 2 diversity between the parties, if the class contains at least 100 members, and, if the

3 amount in controversy exceeds $5 million. See 28 U.S.C. §§ 1332(d), 1453(b). 4 A removing defendant’s “notice of removal need include only a plausible 5 allegation that the amount in controversy exceeds the jurisdictional threshold.”

6 Dart Cherokee, 574 U.S. at 89. “Evidence establishing the amount is required ... 7 only when the plaintiff contests, or the court questions, the defendant’s allegation.” 8 Id. “If the allegation is disputed, then the party seeking removal—and invoking 9 the jurisdiction of the federal courts—bears the burden of demonstrating by a

10 preponderance of the evidence that the amount in controversy exceeds $5 million.” 11 Perez v. Rose Hills Co., 131 F.4th 804, 808 (citing Ibarra v. Manheim Invs., Inc., 12 775 F.3d 1193, 1199 (9th Cir. 2015)). “The district court’s task is simply to

13 determine if the defendant’s ‘reasoning and underlying assumptions are 14 reasonable.’” Id. (quoting Jauregui v. Roadrunner Transp. Servs., Inc., 28 F.4th 15 989, 993 (9th Cir. 2022)). 16 DISCUSSION

17 The parties do not dispute two out of three of CAFA’s jurisdictional 18 requirements. First, the size of the putative class exceeds 100 people. ECF No. 1 19 at 4 ¶ 8 (citing ECF No. 2 at 2 ¶ 2). Second, there is minimal diversity of

20 citizenship: Plaintiff is a citizen of Washington and Defendant is organized under 1 the laws of Delaware and has its principal place of business in California. Id. at 6 2 ¶¶ 12, 14-15 (citing ECF No. 1 at 31 ¶ 3.1; ECF No. 2 at 2 ¶ 3). Plaintiff argues,

3 however, that the $5 million amount in controversy is not met. The Court thus 4 determines whether Defendant’s assumptions are reasonable considering the 5 allegations in the Complaint. Perez, 131 F.4th at 808; see Ibarra, 775 F.3d at 1198

6 (noting courts must consider “real evidence and the reality of what is at stake in the 7 litigation, using reasonable assumptions underlying the defendant’s theory of 8 damages exposure”). As discussed below, the Court finds Defendant has proven, 9 by a preponderance of the evidence, that the amount in controversy exceeds $5

10 million. 11 1. First, Second, Third, and Eighth Claims for Relief 12 In its opposition to Plaintiff’s motion, Defendant estimates the value of these

13 claims to be $4,708,350.1 ECF No. 12 at 13. Defendant’s calculation is 14 reproduced here: 15

16 1 As noted above, Defendant’s Notice of Removal employs higher figures for these 17 claims and, in turn, estimated attorneys’ fees. See ECF No. 1 at 15-16 ¶¶ 41-42, 18 18 ¶ 45. The Court need not assess the reasonableness of those estimates, however, 19 because Defendant’s assumptions made in opposition to Plaintiff’s motion satisfy

20 CAFA’s amount of controversy and are both reasonable and amply supported. 1 Defendant’s Calculation, Assuming a 100% Violation Rate $4,904,529 2 Reduced from 50 Weeks to 48 Weeks $4,708,350

3 Reduced to 50% Violation Rate $2,354,175 4 Including Willfulness Damages $4,708,350 5 Id.

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Auston Waldrop, individually and behalf of all those similarly situated v. Basic American, Inc., a Delaware corporation, (E.D. Wash. 2025).

Auston Waldrop, individually and behalf of all those similarly situated v. Basic American, Inc., a Delaware corporation (Auston Waldrop, individually and behalf of all those similarly situated v. Basic American, Inc., a Delaware corporation) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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