Ayala v. Ford Motor Company

CourtDistrict Court, S.D. California
DecidedJune 28, 2021
Docket3:20-cv-02383
StatusUnknown

This text of Ayala v. Ford Motor Company (Ayala v. Ford Motor Company) is published on Counsel Stack Legal Research, covering District Court, S.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ayala v. Ford Motor Company, (S.D. Cal. 2021).

Opinion

1 2 3 4 5 6 7 8 9 10 UNITED STATES DISTRICT COURT 11 SOUTHERN DISTRICT OF CALIFORNIA 12 13 LEONARDO AYALA, Case No. 20-cv-02383-BAS-KSC

14 Plaintiff, ORDER DENYING MOTION TO 15 v. REMAND (ECF No. 5)

16 FORD MOTOR COMPANY, 17 Defendant. 18

19 Presently before the Court is Plaintiff Leonardo Ayala’s Motion to Remand this 20 action to state court. (ECF No. 5.) On December 7, 2020, Defendant Ford Motor Company 21 (“Ford”) removed this matter to federal court based on diversity jurisdiction. (ECF No. 1.) 22 Plaintiff contests removal arguing that Ford did not adequately prove diversity of 23 citizenship and that the minimum amount in controversy to satisfy diversity jurisdiction 24 under 28 U.S.C. § 1332 is not met. (Mot. to Remand 1:11–20.) 25 The Court finds this Motion suitable for determination on the papers submitted and 26 without oral argument. See Fed. R. Civ. P. 78(b); Civ. L. R. 7.1(d)(1). For the following 27 reasons, the Court finds removal was appropriate and DENIES Plaintiff’s Motion to 28 Remand. 1 I. BACKGROUND 2 On October 22, 2020, Plaintiff commenced this lawsuit in San Diego Superior Court 3 asserting claims under California’s Song-Beverly Consumer Warranty Act (“Song-Beverly 4 Act”), specifically California Civil Code sections 1793 and 1794. (Compl., Notice of 5 Removal Ex. A, ECF No. 1–3.) Plaintiff’s Complaint alleges he purchased/leased a 2019 6 Ford Mustang (“Vehicle”) on or about December 8, 2018. (Id. ¶ 4.) Plaintiff further alleges 7 the Vehicle “contained or developed nonconformity(s)” constituting a breach of 8 Defendant’s express warranty accompanying the Vehicle. (Id. ¶ 6.) Additionally, Plaintiff 9 alleges Defendant willfully failed to comply with its obligations to service or repair the 10 Vehicle under the Vehicle’s express warranty. (Id. ¶ 10.) In his Complaint, Plaintiff did 11 not include a specific dollar amount for damages, but alleges he is seeking restitution, civil 12 penalties, consequential and incidental damages, reasonable attorney’s fees, prejudgment 13 interest, and any other relief the Court may deem proper. (Id. at 6.) Ford is “a corporation 14 organized under the laws of the state of Delaware with its principal place of business in 15 Michigan.” (Notice of Removal ¶ 18, ECF No. 1.) 16 On October 22, 2020, Ford filed its Notice of Removal pursuant to 28 U.S.C. 17 §§ 1332, 1441(a), and 1446. (Id. at 1.) On January 6, 2021, Plaintiff filed a motion to 18 remand the action to state court. (Mot. to Remand 1.) 19 II. LEGAL STANDARD 20 “Federal courts are courts of limited jurisdiction.” Kokkonen v. Guardian Life Ins. 21 Co. of Am., 511 U.S. 375, 377 (1994). “They possess only that power authorized by 22 Constitution and statute, which is not to be expanded by judicial decree.” Id. (citations 23 omitted). “[A]ny civil action brought in a State court of which the district courts of the 24 United States have original jurisdiction, may be removed by the defendant or the 25 defendants, to the district court of the United States.” 28 U.S.C. § 1441(a). 26 In order to invoke a district court’s diversity jurisdiction, a party must demonstrate 27 there is complete diversity of citizenship between the parties and that the amount in 28 controversy exceeds the sum or value of $75,000, exclusive of interest and costs. See 28 1 U.S.C. § 1332; see also Caterpillar Inc. v. Lewis, 519 U.S. 61, 68 (1996). “The burden of 2 establishing federal jurisdiction is on the party invoking federal jurisdiction.” United States 3 v. Marks, 530 F.3d 799, 810 (9th Cir. 2008); see also Geographic Expeditions, Inc. v. 4 Estate of Lhotka, 599 F.3d 1102, 1106–07 (9th Cir. 2010) (“[I]n a case that has been 5 removed from state court to federal court . . . on the basis of diversity jurisdiction, the 6 proponent of federal jurisdiction—typically the defendant in the substantive dispute—has 7 the burden to prove, by a preponderance of the evidence, that removal is proper.”). 8 III. ANALYSIS 9 Both the complete diversity requirement and the amount in controversy requirement 10 are at issue here. (Mot. to Remand 1.) Plaintiff claims that Ford did not adequately allege 11 that there is complete diversity of citizenship, as Ford did not prove by a preponderance of 12 the evidence that Plaintiff is a California citizen. (Id. 4:23–24.) Additionally, Plaintiff 13 argues the amount in controversy is not met because Ford incorrectly includes civil 14 penalties in its calculations. (Id. 6:26–28.) The Court rejects both of these arguments. 15 A. Diversity of Citizenship 16 “When an action is removed based on diversity, complete diversity must exist at 17 removal.” Gould v. Mut. Life Ins. Co. of New York, 790 F.2d 769, 773 (9th Cir. 1986) 18 (citing Miller v. Grgurich, 763 F.2d 372, 373 (9th Cir. 1955)). Complete diversity exists 19 where “the citizenship of each plaintiff is diverse from the citizenship of each defendant.” 20 Caterpillar Inc., 519 U.S. at 68. When removing a case, defendants are “merely required 21 to allege (not to prove)” the citizenship of the parties. See Kanter v. Warner-Lambert 22 Co., 265 F.3d 853, 857 (9th Cir. 2001). Therefore, the Court must determine if Defendant 23 adequately alleged that Plaintiff is a citizen of California. 24 Ford is a citizen of Delaware and Michigan. (Notice of Removal ¶ 18.) In the Notice 25 of Removal, Ford states that Plaintiff is “a citizen and resident of California,” (id. ¶ 17), 26 and provides a purchase order that lists Plaintiff’s address in Spring Valley, California as 27 evidence, (id. Ex. D). This is enough to adequately allege diversity of citizenship exists. 28 See Kanter, 265 F.3d at 857. 1 Plaintiff contends Ford did not prove he is a citizen of California by a preponderance 2 of the evidence. (Mot. to Remand 4:23–24.) However, to remove to federal court, Ford 3 merely had to affirmatively allege that diversity of citizenship exists. See Kanter, 265 F.3d 4 at 857. If Plaintiff contests the truth of the allegation, then Ford may be required to provide 5 more evidence. See McNutt v. General Motors Acceptance Corp. of Ind., 298 U.S. 178, 6 189 (1936). Plaintiff, however, is only asserting that Ford did not meet the pleading 7 requirement. (Mot. to Remand 4:23–24.) Plaintiff never asserted that he is not in fact a 8 California citizen. Therefore, Ford only had to meet the initial requirement and simply 9 allege diversity exists. Thus, the Court finds Ford adequately alleged complete diversity 10 of citizenship. 11 B. Amount in Controversy 12 1.

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Ayala v. Ford Motor Company, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ayala-v-ford-motor-company-casd-2021.