Greco v. Jones

992 F. Supp. 2d 693, 2014 WL 177410, 2014 U.S. Dist. LEXIS 5770
CourtDistrict Court, N.D. Texas
DecidedJanuary 16, 2014
DocketCase No. 3:13-CV-1005-M
StatusPublished
Cited by5 cases

This text of 992 F. Supp. 2d 693 (Greco v. Jones) is published on Counsel Stack Legal Research, covering District Court, N.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Greco v. Jones, 992 F. Supp. 2d 693, 2014 WL 177410, 2014 U.S. Dist. LEXIS 5770 (N.D. Tex. 2014).

Opinion

MEMORANDUM OPINION AND ORDER

BARBARA M.G. LYNN, District Judge.

This case raises interesting and challenging questions of jurisdiction under the Class Action Fairness Act of 2005 (“CAFA”). Having carefully considered Plaintiffs’ Motion to Remand [Docket Entry # 11], the Court concludes that it should retain jurisdiction over this action. For the following reasons, Plaintiffs’ Motion is DENIED.

I. FACTUAL AND PROCEDURAL BACKGROUND.

On February 6, 2011, Defendants allegedly denied, relocated, and delayed the seating of, and/or directed to seats with obstructed views, thousands of ticket holders to Super Bowl XLV. Pis.’ Original Pet. ¶ 4.39. On February 5, 2013, 237 affected ticketholders filed suit against Defendants in state court, stating claims for breach of contract, fraudulent inducement, fraudulent concealment, negligent misrepresentation, violations of the Texas Deceptive Trade Practices Act (“DTPA”), and negligence. Id. at ¶¶ 2.5, 5.1-11.7.

On March 7, 2013, Defendants removed the state court action to this Court, arguing that this case is properly removable as a “mass action” under CAFA. Defs.’ Notice of Removal at ¶¶ 2-10. Plaintiffs seek remand because (1) Defendants have not established that each Plaintiff seeks in excess of $75,000, and (2) this action is exempted from CAFA’s definition of “mass action” pursuant to the “event or occurrence” exception. Pis.’ Mot. to Remand at 3-8.

II. ANALYSIS.

A district court has subject matter jurisdiction over mass actions under CAFA. See 28 U.S.C. § 1332(d)(ll)(A) (“For purposes of this subsection ... a mass action shall be deemed to be a class action removable under paragraphs (2) through (10) if it otherwise meets the provisions of those paragraphs.”). A mass action is defined as “any civil action ... in which monetary relief claims of 100 or more persons are proposed to be tried jointly on the ground that the plaintiffs’ claims involve common questions of law or fact.” 28 U.S.C. § 1332(d)(ll)(B)(i). The statute further provides that jurisdiction “shall exist only over those plaintiffs whose claims in a mass action” exceed $75,000. Id. Thus, to be removable as a mass action under CAFA, a civil action must, at the very least: (1) satisfy CAFA’s minimal diversity requirement (ie., at least one plaintiff and one defendant must be citizens of different states); (2) have an amount in controversy exceeding $5,000,000; and (3) involve claims of monetary relief of at least 100 persons that involve common questions of law or fact. See 28 U.S.C. § 1332(d)(2); 28 U.S.C. § 1332(d)(11)(A); 28 U.S.C. § 1332(d)(11)(B)(i).

“CAFA does not change the traditional rule that the party seeking to remove the case to federal court bears the burden of establishing federal jurisdiction.” Joseph v. Unitrin, Inc., No. 1:08-CV-077, 2008 WL 3822938, at *4 (E.D.Tex. Aug. 12, 2008) (internal citation and quotation marks omitted); see also Preston v. Tenet Healthsystem Mem’l Med. Ctr., Inc., 485 F.3d 793, 797 (5th Cir.2007). However, once federal jurisdiction under CAFA is established, the burden shifts to the objecting party to prove, by a preponderance of the evidence, the absence of jurisdiction. See Laffin v. Nat’l Football League, No. [696]*6963:11-CV-345-M, 2011 WL 1396887, at *1 (ND.Tex. Apr. 12, 2011) (Lynn, J.).

1. Defendants must only show that at least one Plaintiff seeks in excess of $75,000 to properly remove this action under CAFA.

The parties do not dispute that this action satisfies the three threshold jurisdictional requirements enumerated above.1 Rather, they disagree over whether Defendants can establish mass action jurisdiction without demonstrating that each of the 237 Plaintiffs seek in excess of $75,000. See 28 U.S.C. § 1332(d)(ll)(B)(i) (“[Jurisdiction shall exist only over those plaintiffs whose claims in a mass action satisfy the jurisdictional amount requirements under subsection (a) [i.e., exceed $75,000].”). Plaintiffs argue that Defendants can establish federal jurisdiction only if they meet their burden of doing so now. If Plaintiffs are correct, then this case must be remanded, because Defendants have not established that each Plaintiff in this case pursues claims satisfying this amount.

Defendants argue, eontrarily, that they must only make a threshold showing that at least one Plaintiff brings claims in an amount exceeding $75,000. Cf. Abrego Abrego v. Dow Chem. Co., 443 F.3d 676, 687 (9th Cir.2006) (finding remand appropriate where defendant had not “established that even one plaintiff satisfie[d] the $75,000 jurisdictional amount requirement of § 1332(a), applicable to mass actions by virtue of § 1332(d)(11)(B)(i),” and concluding that “the case cannot go forward unless there is at least one plaintiff whose claims can remain in federal court”) (emphasis in original).

This Circuit recently held that 28 U.S.C. § 1332(d)(ll)(B)(i) requires defendants to show that at least one plaintiff pursues claims in excess of $75,000. Hood ex rel. Miss. v. JP Morgan Chase & Co., 737 F.3d 78, 86 (5th Cir.2013). Hood left unanswered, however, “whether at least 100, or only one of the plaintiffs must satisfy the individual amount in controversy requirement in order to confer CAFA jurisdiction.” Id., n. 4. Unbridled by any precedent from this Circuit to the contrary, the Court rejects Plaintiffs’ assertion that the $75,000 provision forecloses jurisdiction over the entire case if the removing party does not prove that each Plaintiff asserts claims greater than that amount.

This argument has already been called into doubt by at least one other court in this Circuit, and for reasons this Court finds persuasive. See Hamilton v. Burlington N. Santa Fe Ry. Co., No. A-08CA-132-SS, 2008 WL 8148619, at *6-8 (W.D.Tex. Aug. 8, 2008). In Hamilton, Judge Sparks concluded that defendants “made a prima facie case for removal pursuant to CAFA’s mass action provisions” because plaintiffs’ claims totaled “more than $5,000,000 as specified in § 1332(d)(2).”2 Id. at *8. Relevant here, the court dismissed plaintiffs’ argument that their claims were not subject to mass [697]*697action removal because defendants had failed to show that each plaintiffs’ claims exceeded $75,000:

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
992 F. Supp. 2d 693, 2014 WL 177410, 2014 U.S. Dist. LEXIS 5770, Counsel Stack Legal Research, https://law.counselstack.com/opinion/greco-v-jones-txnd-2014.