Garza v. Brinderson Constructors, Inc.

178 F. Supp. 3d 906, 2016 U.S. Dist. LEXIS 46087, 2016 WL 1298390
CourtDistrict Court, N.D. California
DecidedApril 4, 2016
DocketCase No. 15-cv-02661-RMW
StatusPublished
Cited by19 cases

This text of 178 F. Supp. 3d 906 (Garza v. Brinderson Constructors, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Garza v. Brinderson Constructors, Inc., 178 F. Supp. 3d 906, 2016 U.S. Dist. LEXIS 46087, 2016 WL 1298390 (N.D. Cal. 2016).

Opinion

ORDER GRANTING MOTION TO REMAND

Re: Dkt. Nos. 37, 42

Ronald M. Whyte, United States District Judge

Plaintiff Daniel Garza filed a class action complaint in Monterey County Superior Court on April 16, 2015, alleging that defendants failed to provide meal and rest periods, failed to pay premium wages for unprovided meal and rest periods, failed to pay at least minimum wages for all hours worked, failed to pay overtime wages, failed to reimburse for all necessary business expenses, and failed to provide accurate written wage statements. Dkt. No. 1-1. On June 12, 2015, defendants Brinder-son L.P., Inc. and Brinderson Constructors, Inc. removed to federal court on the basis of diversity jurisdiction under the Class Action Fairness Act. Dkt. No. 1. Plaintiff now moves to remand. Dkt. No. 37. Brinderson L.P. opposes the motion to remand and also moves to consolidate this action with Daniel Garza v. Brinderson Constructors, Inc., Brinderson L.P, Brinderson L.P., Inc. and Chevron U.S.A., Inc., N.D. Cal., Case No. 15-cv-05742-HRL. Dkt. Nos. 40, 42. The court grants plaintiffs motion to remand because Brin-derson has not established that the parties are diverse. Furthermore, even if Brinder-son had established diversity jurisdiction, the court finds that the home state controversy exception would require remand. Be[909]*909cause the case is remanded, the court does not reach Brinderson’s motion to consolidate.

I. BACKGROUND

Plaintiff originally filed this action in state court, alleging violations of the California Labor Code and the California Business & Professions Code against defendants Brinderson Constructors, Inc., Brinderson, L.P., Inc., and Chevron, Inc. Dkt. No. 1-1. Plaintiffs allegations include failure to provide meal and rest periods, failure to pay hourly and overtime wages, failure to reimburse for cell phone charges and uniforms, and failure to provide accurate wage statements. Id. Before defendants removed to federal court, plaintiff amended the complaint to add an eighth cause of action for civil penalties. See Dkt. No. 1-2. Both the original complaint and the amended complaint indicate that the aggregate claim of the putative class is under the $5,000,000.00 threshold for federal jurisdiction under the Class Action Fairness Act of 2005. See Dkt. No. 1-1 ¶3 .; Dkt. No. 1-2 ¶3.

In the notice of removal, Brinderson L.P., Inc. and Brinderson Constructors, Inc. claim that the jurisdictional requirements 28 U.S.C. § 1332(d) are met because 1) there are 100 or more putative class members; 2) the matter in controversy exceeds the sum or value of $5 million, exclusive of interest and costs; and 3) members of the putative class are citizens of a state different from defendants. Dkt. No. 1 ¶ 16.

Following removal, the parties stipulated to allow plaintiff to file a Second Amended Complaint (“SAC”) in order to 1) remove the allegations against Brinderson Constructors, Inc.; 2) correct'the naming of defendant “Brinderson L.P., Inc.” to “Brinderson L.P.” and 3) correct the naming of “Chevron, Inc.” to “Chevron U.S.A., Inc.” See Dkt. No. 25. In the SAC, plaintiff alleges that “[t]his Court has subject matter jurisdiction to hear this case because Defendant has removed this case pursuant to the Class Action Fairness Act of 2005, 28 U.S.C. § 1332(d).” Dkt. No. 26 ¶2. The SAC does not allege an amount in controversy.

' II. ANALYSIS

Plaintiff argues that this case must be remanded because Brinderson has failed to establish 1) that the amount in controversy exceeds $5,000,000, and 2) that the parties are diverse. Plaintiff further argues that even if Brinderson could meet the jurisdictional requirements of 28 U.S.C. § 1332(d)(2), this court must decline to exercise jurisdiction because of the home state controversy exception. See 28 U.S.C. § 1332(d)(4)(B). Brinderson responds that it has met its burden for both the amount in controversy and diversity requirements, and that plaintiff has failed to meet his burden to show that the home state controversy exception applies.

Brinderson suggests that this court should view plaintiffs arguments regarding lack of subject matter with “extreme skepticism” because plaintiff waited six months from removal to move to remand and admitted in the Second Amended Complaint that this court “has subject matter jurisdiction to hear this case because Defendant has removed the case pursuant to the Class Action Fairness Act of 2005, U.S.C. § 1332(d).” Dkt. No. 40 at 5 (citing SAC ¶ 2). While a district court may rely on a judicial admission by plaintiff as to the amount in controversy, the Ninth Circuit has made it clear that “a defect in jurisdiction” cannot “be avoided by waiver or stipulation,” Singer v. State Farm Mut. Auto. Ins. Co., 116 F.3d 373, 376-77 (9th Cir.1997) (citing Cripps v. Life Ins. Co. of North America, 980 F.2d 1261, 1264 (9th Cir.1992)); see also 28 U.S.C. [910]*910§ 1447 (“If at any time before final judgment it appears that the district court lacks subject matter jurisdiction, the case shall be remanded.”)- The court' does not read the SAC as a judicial admission as to the amount of controversy or any other fact underlying the existence of subject matter jurisdiction under the CAFA. See Redding v. Hitachi Am., Ltd., 69 Fed.Appx. 887, 888 (9th Cir.2003) (affirming district court’s holding that defendant’s statement in its answer that “the citizenship of the litigants is diverse” not a factual admission”). The court considers the merits of plaintiffs subject matter jurisdiction arguments.

A. Removal Jurisdiction under the Class Action Fairness Act

Brinderson, as the removing party, has the burden of establishing a prima facie showing of federal jurisdiction under the CAFA. Serrano v. 180 Connect, Inc., 478 F.3d 1018, 1021 (9th Cir.2007) (citing Abrego Abrego v. The Dow Chem. Co., 443 F.3d 676, 683-85 (9th Cir.2006)). However, “no antiremoval presumption attends cases invoking CAFA, which Congress enacted to facilitate adjudication of certain class actions in federal court.” Dart Cherokee Basin Operating Co., LLC v. Owens, — U.S. -, 135 S.Ct. 547, 554, 190 L.Ed.2d 495 (2014). A “court may properly consider evidence the removing party submits in its opposition to remand, even if this evidence was not submitted with the original removal petition.” Altamirano v. Shaw Indus., Inc., No. C-13-0939 EMC, 2013 WL 2950600, at *3 (N.D.Cal. June 14, 2013) (citing Cohn v. Petsmart, Inc., 281 F.3d 837, 840 n. 1 (9th Cir.2002)).

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178 F. Supp. 3d 906, 2016 U.S. Dist. LEXIS 46087, 2016 WL 1298390, Counsel Stack Legal Research, https://law.counselstack.com/opinion/garza-v-brinderson-constructors-inc-cand-2016.