Diaz v. Ardagh Metal Beverage USA Inc.

CourtDistrict Court, E.D. California
DecidedAugust 16, 2022
Docket2:22-cv-00100
StatusUnknown

This text of Diaz v. Ardagh Metal Beverage USA Inc. (Diaz v. Ardagh Metal Beverage USA Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Diaz v. Ardagh Metal Beverage USA Inc., (E.D. Cal. 2022).

Opinion

1 2 3 4 5 6 7 UNITED STATES DISTRICT COURT 8 EASTERN DISTRICT OF CALIFORNIA 9 10 GRANT DIAZ, on behalf of himself and No. 2:22-cv-00100-TLN-KJN all others similarly situated, 11 12 Plaintiff, ORDER 13 v. 14 ARDAGH METAL BEVERAGE USA, INC., a Delaware corporation; and DOES 15 1–50, inclusive, 16 Defendants.

17 18 This matter is before the Court on Plaintiff Grant Diaz’s (“Plaintiff”) Motion to Remand. 19 (ECF No. 5.) Defendant Ardagh Metal Beverage USA, Inc. (“Defendant”) filed an opposition. 20 (ECF No. 6.) Plaintiff filed a reply. (ECF No. 8.) For the reasons set forth below, the Court 21 DENIES Plaintiff’s Motion to Remand. 22 /// 23 /// 24 /// 25 /// 26 /// 27 /// 28 /// 1 I. FACTUAL AND PROCEDURAL BACKGROUND 2 Defendant, a beverage can manufacturer, employed Plaintiff as a non-exempt employee 3 from approximately June 2012 until his termination on November 24, 2021. (ECF No. 1 at 19.) 4 On December 6, 2021, Plaintiff filed the instant class action against Defendant alleging violations 5 of the California Labor Code and California Business and Professions Code in the Solano County 6 Superior Court. (Id. at 16–17.) Plaintiff alleges Defendant: (1) failed to pay all minimum wages; 7 (2) failed to pay all overtime wages; (3) did not provide the requisite meal periods; (4) did not 8 provide the requisite rest periods; (5) provided inaccurate wage statements; (6) failed to timely 9 pay all compensation due and owing upon discharge; and (7) engaged in unfair competition. (Id.) 10 On January 18, 2022, Defendant removed the action to this Court pursuant to the Class 11 Action Fairness Act of 2005 (“CAFA”). (Id. at 1.) Defendant claims this action meets the CAFA 12 requirements of class size, minimal diversity, and the amount in controversy. (Id. at 3.) On 13 February 16, 2022, Plaintiff filed the instant motion to remand in which he only contests 14 Defendant’s asserted amount in controversy. (ECF No. 5 at 8.) On March 10, 2022, Defendant 15 filed an opposition. (ECF No. 6.) Plaintiff replied on March 15, 2022. (ECF No. 8.) 16 II. STANDARD OF LAW 17 A. Amount in Controversy 18 A civil action brought in state court, over which the district court has original jurisdiction, 19 may be removed by the defendant to federal court in the judicial district and division in which the 20 state court action is pending. 28 U.S.C. § 1441(a). CAFA gives federal courts original 21 jurisdiction over certain class actions only if: (1) the class has more than 100 members; (2) any 22 member of the class is diverse from the defendant; and (3) the aggregated amount in controversy 23 exceeds $5 million, exclusive of interest and costs. See 28 U.S.C. §§ 1332(d)(2), (d)(5)(B). 24 Congress enacted CAFA “specifically to permit a defendant to remove certain class or 25 mass actions into federal court” and intended courts to interpret CAFA “expansively.” Ibarra v. 26 Manheim Invs., Inc., 775 F.3d 1193, 1197 (9th Cir. 2015). As a general rule, removal statutes are 27 to be strictly construed against removal. Gaus v. Miles, Inc., 980 F.2d 564, 566 (9th Cir. 1992). 28 However, “no antiremoval presumption attends cases invoking CAFA.” Dart Cherokee Basin 1 Operating Co. v. Owens, 574 U.S. 81, 89 (2014). Nonetheless, “[i]f at any time before final 2 judgment it appears that the district court lacks subject matter jurisdiction, the case shall be 3 remanded” to state court. 28 U.S.C. § 1447(c). 4 A defendant seeking removal under CAFA must file in the federal forum a notice of 5 removal “containing a short and plain statement of the grounds for removal.” Dart Cherokee, 574 6 U.S. at 83 (quoting 28 U.S.C. § 1446(a)). The notice of removal “need not contain evidentiary 7 submissions,” but rather a defendant’s “plausible allegation that the amount in controversy 8 exceeds the jurisdictional threshold” suffices. Id. at 84, 89. When “a defendant’s assertion of the 9 amount in controversy is challenged . . . both sides submit proof and the court decides, by a 10 preponderance of the evidence, whether the amount-in-controversy requirement has been 11 satisfied.” Id. at 88. “The parties may submit evidence outside the complaint, including 12 affidavits or declarations, or other ‘summary-judgment-type evidence relevant to the amount in 13 controversy at the time of removal.’” Ibarra, 775 F.3d at 1197 (quoting Singer v. State Farm 14 Mut. Auto. Ins. Co., 116 F.3d 373, 377 (9th Cir. 1997)). 15 “[W]hen the defendant relies on a chain of reasoning that includes assumptions to satisfy 16 its burden of proof, the chain of reasoning and its underlying assumptions must be reasonable 17 ones.” LaCross v. Knight Transp. Inc., 775 F.3d 1200, 1202 (9th Cir. 2015). “CAFA’s 18 requirements are to be tested by consideration of real evidence and the reality of what is at stake 19 in the litigation, using reasonable assumptions underlying the defendant’s theory of damages 20 exposure.” Ibarra, 775 F.3d at 1198. Then “the district court must make findings of 21 jurisdictional fact to which the preponderance standard applies.” Dart Cherokee, 574 U.S. at 89 22 (internal citation omitted). 23 III. ANALYSIS 24 Plaintiff argues Defendant has not proven the amount in controversy exceeds $5,000,000 25 by a preponderance of the evidence. (ECF No. 5 at 8.) Specifically, Plaintiff contends 26 Defendant’s removal notice did not contain any evidence, and Plaintiff also challenges the 27 assumptions underlying Defendant’s amount in controversy calculations. (Id. at 8–18.) In the 28 opposition, Defendant asserts it was not required to submit evidence with its removal notice, 1 Plaintiff failed to produce any evidence to contest Defendant’s calculations, and Defendant’s 2 evidence and reasonable assumptions show the amount in controversy requirement is met. (ECF 3 No. 6 at 9–12.) With the opposition, Defendant also submits the declarations of Amy Haney 4 (“Haney Declaration”), Payroll Analyst for Defendant’s parent company, and Jennifer Kyle 5 (“Kyle Declaration”), Kronos Analyst for Defendant’s parent company. (ECF Nos. 6-1, 6-2.) In 6 the reply, Plaintiff contests the declarations and argues he was not required to submit evidence 7 with his motion and the assumptions Defendant uses are speculative. (ECF No. 8 at 4–8.) 8 As a preliminary matter, Defendant was not required to submit evidence with its notice of 9 removal. See Dart Cherokee, 574 U.S. at 84, 89 (holding the notice of removal “need not contain 10 evidentiary submissions” and defendant’s “plausible allegation that the amount in controversy 11 exceeds the jurisdictional threshold” is sufficient at that stage). Thus, to the extent Plaintiff 12 argues Defendant’s notice of removal is deficient because it did not contain any evidence, the 13 Court disagrees. 14 The Court will first address whether Plaintiff needed to submit evidence with his motion 15 and the sufficiency of the Haney Declaration and the Kyle Declaration before addressing whether 16 the amount in controversy requirement is satisfied. 17 A. Evidence in a Motion to Remand 18 Defendant argues CAFA requires both sides to submit proof. (ECF No. 6 at 10 (citing 19 Dart Cherokee, 574 U.S.

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Bluebook (online)
Diaz v. Ardagh Metal Beverage USA Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/diaz-v-ardagh-metal-beverage-usa-inc-caed-2022.