Gau v. Hillstone Restaurant Group, Inc.

District Court, N.D. California·Decided February 26, 2021·No. 5:20-cv-08250·Unknown

Opinion

EDWARD SCOTT GAU, et al., Case No. 20-cv-08250-SVK

Plaintiffs, ORDER DENYING PLAINTIFFS' v. MOTION TO REMAND

HILLSTONE RESTAURANT GROUP, Re: Dkt. No. 11 INC., Defendant. Before the Court is the motion of Plaintiffs Edward Scott Gau and Brandy Foster-Gau to remand this case to state court. Dkt. 11. All parties have consented to the jurisdiction of a magistrate judge. Dkt. 9, 10. Pursuant to Civil Local Rule 7-1(b), the Court deems this matter suitable for determination without oral argument. For the reasons that follow, the Court DENIES Plaintiffs’ motion to remand. Plaintiffs are former employees of the Los Altos Grill restaurant in Los Altos, California, which is owned and/or operated by Defendant Hillstone Restaurant Group, Inc. See Ex. B to Dkt. 1 (Complaint) ¶ 9. On September 30, 2020, Plaintiffs filed a class and representative action for wage and hour law violations in Santa Clara County Superior Court. The Complaint defines the putative classes as follows:

(i) all current and former non-exempt restaurant employees of Defendants in the State of California who worked at least 3.5 hours in any work shift since April 6, 2016 (the “Rest Period Class”), and

(ii) all current and former non-exempt restaurant employees of Defendants in the State of California who worked more than 5.0 hours in any work shift since April 6, 2016 (the “Meal Period Class”). Id. ¶ 17. Following service, Defendant Hillstone Restaurant Group, Inc. filed an Answer on On November 23, 2020, Defendant removed the case to this Court, asserting that this Court has jurisdiction over this case under the Class Action Fairness Act, 28 U.S.C § 1332(d) (“CAFA”) and that this case may be removed pursuant to 28 U.S.C. § 1441(a). Dkt. 1 (Notice of Removal) ¶ 2. Defendant’s notice of removal also asserts that to the extent the Court concludes it lacks original subject matter jurisdiction over any of Plaintiffs’ claims, it should exercise supplemental jurisdiction over such claims pursuant to 28 U.S.C. § 1367(a). Id. ¶ 52.1 Plaintiffs now move to remand this action pursuant to 28 U.S.C. § 1447 on the grounds that the Court lacks subject matter jurisdiction. Dkt. 11. Defendant opposes the motion to remand. Dkt. 13. A. Removal Jurisdiction Pursuant to CAFA A defendant who seeks to remove a case to federal court must file a notice of removal “containing a short and plain statement of the grounds for removal.” 28 U.S.C. § 1446(a). The Supreme Court has explained that “Congress, by borrowing the familiar ‘short and plain statement’ standard from Rule 8(a), intended to ‘simplify the “pleading” requirements for removal’ and to clarify that courts should ‘apply the same liberal rules [to removal allegations] that are applied to other matters of pleading.’” Dart Cherokee Basin Operating Co. v. Owens, 574 U.S. 81, 87 (2014) (quoting H.R. Rep. No. 100–889, at 71 (1988)). “Under CAFA, a federal court may exercise subject matter jurisdiction over a class action where (1) the parties are minimally diverse; (2) the proposed class has at least 100 members; and (3) the amount in controversy exceeds $5 million.” Prado v. Dart Container Corp. of Cal., 373 F. Supp. 3d 1281, 1285 (N.D. Cal. 2019) (citing 28 U.S.C. § 1332(d)). In the removal context, the Court must evaluate whether the parties’ citizenship was sufficiently diverse and the amount in controversy requirement was met both when the case is first filed and when the case is removed. See Strotek Corp. v. Air Transp. Ass'n. of Am., 300 F.3d 1129, 1131 (9th Cir. 2002); see also Chess v. CF Arcis IX LLC, No. 20-CV-01625-CRB, 2020 WL 4207322, at *2 (N.D. Cal. July 22, 2020), appeal dismissed, No. 20-16621, 2020 WL 6802843 (9th Cir. Sept. 21, 2020). “[N]o antiremoval presumption attends cases invoking CAFA” because “CAFA’s primary objective is to ensure Federal court consideration of interstate cases of national importance.” Dart, 574 U.S. at 89 (internal quotation marks and citations omitted). Nevertheless, even under CAFA, “the party seeking federal jurisdiction on removal bears the burden of establishing that jurisdiction.” Abrego Abrego v. Dow Chem. Co., 443 F.3d 676, 686 (9th Cir. 2006). Plaintiffs argue that this case should be remanded because Defendant has not established that the diversity of citizenship or amount in controversy requirements under CAFA are satisfied. Dkt. 11. B. Diversity of citizenship CAFA’s requirement of minimal diversity of citizenship between the parties is satisfied where “any member of a class of plaintiffs is a citizen of a State different from any defendant.” 28 U.S.C. § 1332(d)(2)(A); Chan Healthcare Grp. PS v. Liberty Mut. Fire Ins. Co., 844 F.3d 1133, 1137 (9th Cir. 2017). Plaintiffs argue that Defendant has failed to carry its burden of establishing that the parties are diverse because Defendant has not established Plaintiffs’ state(s) of citizenship. Dkt. 11 at 2-3. Plaintiffs also argue that even if they are found to be citizens of California, the diversity requirement still is not satisfied because Defendant’s principal place of business is California, not Arizona. Id. at 4-6. The Court now addresses each argument. 1. Plaintiffs’ citizenship Generally, a “natural person’s state citizenship is … determined by her domicile, not her state of residence.” Kanter v. Warner-Lambert Co., 265 F.3d 853, 857 (9th Cir. 2001). “A person’s domicile is her permanent home, where she resides with the intention to remain or to which she intends to return.” Id. Thus, “[a] person residing in a given state is not necessarily domiciled there, and thus is not necessarily a citizen of that state.” Id. Because a person’s domicile hinges in part on his or her intent, “[r]esidence is not an immutable condition of domicile.’” Id. (citation omitted). The Complaint does not allege the citizenship of Plaintiffs. Defendant has not presented Court’s diversity determination—the date the case was first filed in state court (September 30, 2020) or the date the case was removed to this Court (November 23, 2020). However, Defendant’s Vice President, Tino Ciambriello, states as follows in his declaration in support of Defendant’s Notice of Removal:

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Gau v. Hillstone Restaurant Group, Inc., (N.D. Cal. 2021).

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