Granato v. Apple Inc.

CourtDistrict Court, N.D. California
DecidedJuly 19, 2023
Docket5:22-cv-02316
StatusUnknown

This text of Granato v. Apple Inc. (Granato v. Apple 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
Granato v. Apple Inc., (N.D. Cal. 2023).

Opinion

1 2 3 4 UNITED STATES DISTRICT COURT 5 NORTHERN DISTRICT OF CALIFORNIA 6 SAN JOSE DIVISION 7 8 JESSE GRANATO, et al., Case No. 5:22-cv-02316-EJD

9 Plaintiffs, ORDER GRANTING MOTION TO REMAND 10 v.

11 APPLE INC., Re: ECF No. 20 Defendant. 12

13 This putative class action relates to Defendant Apple Inc.’s (“Apple”) alleged anti-repair 14 measures and asserts four claims under California’s Unfair Competition Law, the Magnuson-Moss 15 Warranty Act, California’s Consumers Legal Remedies Act, and for unjust enrichment. Apple 16 removed this class action from the Santa Clara County Superior Court pursuant to the Class 17 Action Fairness Act. Plaintiffs now move to remand the matter back to state court. 18 For the following reasons, the Court GRANTS Plaintiffs’ Motion to Remand. 19 I. BACKGROUND 20 Plaintiffs allege that, for years, Apple has taken several measures to discourage its 21 customers from repairing their own Apple devices or paying third parties to repair those devices. 22 Apple’s Notice of Removal (“Not. Removal”), Ex. 1 (“Compl.”) ¶ 1, ECF No. 1-1. These anti- 23 repair measures include threatening to terminate warranty coverage; withholding parts, tools, and 24 repair manuals; placing “booby traps” and other repair impediments in its devices; refusing to 25 service devices that have been previously repaired; and disparaging independent repair shops and 26 aftermarket replacement parts. Id. ¶ 24. Because Plaintiffs and other Apple customers would not 27 be able to readily prolong the lives of their devices through third-party or self-repair, they would 1 need to replace or upgrade their devices with new Apple devices more frequently. Id. ¶¶ 21–23. 2 On March 11, 2022, Plaintiffs filed this putative class action against Apple in the Santa 3 Clara County Superior Court. Not. Removal ¶ 1. The Complaint asserts four claims for violations 4 of California’s Unfair Competition Law (“UCL”); the federal Magnuson-Moss Warranty Act 5 (“MMWA”); California’s Consumers Legal Remedies Act (“CLRA”); and for unjust enrichment. 6 Id. ¶¶ 5–6. Plaintiffs seek both damages and equitable relief, though damages are only sought 7 under the MMWA; the UCL, CLRA, and unjust enrichment claims only request equitable relief. 8 Compl. ¶¶ 96–97, 106, 115, 122; see also Pls.’ Mot. Remand (“Mot.”) 3 (“Except for the MMWA 9 claim, Plaintiffs seek only equitable relief pursuant to the UCL and CLRA violations and the 10 claim for unjust enrichment.”), ECF No. 20. 11 On April 13, 2022, Apple timely removed the Complaint to federal court, invoking the 12 Court’s original jurisdiction pursuant to the Class Action Fairness Act of 2005 (“CAFA”). Not. 13 Removal ¶¶ 8–22. On May 13, 2022, Plaintiffs filed the present Motion to Remand. ECF No. 20. 14 II. LEGAL STANDARDS 15 Federal courts are courts of limited jurisdiction and may only exercise jurisdiction over 16 those matters authorized by the Constitution or by Congress. See, e.g., Kokkonen v. Guardian Life 17 Ins. Co., 511 U.S. 375, 377 (1994). A suit filed in state court may be removed to federal court if 18 the federal court would have had original jurisdiction over the suit. 28 U.S.C. § 1441(a). The 19 party seeking removal bears the burden of establishing jurisdiction, and courts typically construe 20 the statute against removal jurisdiction. Gaus v. Miles, Inc., 980 F.2d 564, 566 (9th Cir. 1992). 21 CAFA is one such statute that provides district courts with original jurisdiction to hear 22 certain class actions. 28 U.S.C. § 1332(d)(2). To invoke diversity jurisdiction pursuant to CAFA, 23 a party must establish that (1) at least one plaintiff and one defendant are citizens of different 24 states; (2) that the class has more than 100 members; and (3) that the aggregate amount in 25 controversy exceeds $5,000,000, exclusive of interests and costs. Id. “[U]nder CAFA the burden 26 of establishing removal jurisdiction remains, as before, on the proponent of federal jurisdiction.” 27 Abrego Abrego v. The Dow Chem. Co., 443 F.3d 676, 685 (9th Cir. 2006). 1 III. DISCUSSION 2 Plaintiffs move to remand the MMWA claim for lack of subject matter jurisdiction and to 3 remand the UCL, CLRA, and unjust enrichment claims for lack of equitable jurisdiction. They 4 argue that remand is a more appropriate and efficient recourse for a lack of equitable jurisdiction 5 than dismissal from an eventual Rule 12(b)(6) motion. The Court addresses these issues in turn. 6 A. Magnuson-Moss Warranty Act (“MMWA”) Claim 7 Plaintiffs first contend that Apple’s satisfaction of CAFA’s diversity jurisdictional 8 requirements does not also satisfy the MMWA’s more stringent numerosity requirement. Mot. 4– 9 5; see 15 U.S.C. § 2310(d)(3) (“No claim shall be cognizable in a suit brought under paragraph 10 (1)(B) of this subsection—(C) if the action is brought as a class action, and the number of named 11 plaintiffs is less than one hundred.”) (emphasis added). Apple responds that the Court has original 12 jurisdiction over Plaintiffs’ state law claims per CAFA, which then permits the Court to exercise 13 supplemental jurisdiction over the MMWA claim. Apple’s Opp. (“Opp.”) 14–15, ECF No. 22. 14 Alternatively, Apple argues that the Court may exercise original jurisdiction over Plaintiffs’ 15 individual MMWA claims, which are not subject to the class numerosity requirements. Id. at 15. 16 As an initial point, Apple appears to concede that the Court does not have original 17 jurisdiction over the MMWA class claim because there is no dispute that the Complaint names 18 less than one hundred plaintiffs. 15 U.S.C. § 2310(d)(3)(C); Opp. 15 (acknowledging that 19 “[s]upplemental jurisdiction only comes in to play when there is no original jurisdiction”); see 20 also generally Floyd v. Am. Honda Motor Co., 966 F.3d 1027 (9th Cir. 2020). Additionally, 21 although the Complaint occasionally mentions that Plaintiffs are bringing the action “on behalf of 22 themselves and on behalf of the . . . proposed Class” (Opp. 16 n.7 (citing Compl. ¶¶ 82, 101, 23 106)), the Complaint does not expressly purport to advance any individual MMWA claims, and 24 Plaintiffs have explicitly disavowed any intention to pursue MMWA claims in their individual 25 capacities. See Reply 3 n.2; Decl. Rosemary M. Rivas ¶¶ 3–5. Accordingly, the key question 26 remaining for the MMWA claim is whether the Court may exercise supplemental jurisdiction over 27 it, notwithstanding the fact that the Complaint names fewer than one hundred plaintiffs. 1 The Court concludes that, based on the Ninth Circuit’s reasoning in Floyd, the MMWA’s 2 class numerosity requirement cannot be circumvented using the supplemental jurisdiction statute. 3 In Floyd, the Ninth Circuit was asked to resolve a purported conflict between the MMWA and 4 CAFA jurisdictional requirements, namely that “[c]ontrary to the Magnuson-Moss Warranty Act, 5 CAFA does not require naming all one hundred plaintiffs.” 966 F.3d at 1033 (comparing 15 6 U.S.C. § 2310(d)(3)(C) with 28 U.S.C.

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Granato v. Apple Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/granato-v-apple-inc-cand-2023.