Hilda Cortez v. Nissan North America, Inc.

District Court, C.D. California·Decided December 10, 2024·No. 2:24-cv-05909·Unknown

Opinion

O

United States District Court Central District of California

HILDA CORTEZ, Case № 2:24-cv-05909-ODW (PDx)

Plaintiff, ORDER DENYING MOTION TO

v. REMAND AND MOTION FOR LEAVE TO AMEND [12] NISSAN NORTH AMERICA, INC. et al.,

Defendants.

On November 9, 2023, Plaintiff Hilda Cortez initiated this action against Defendant Nissan North America, Inc. (“Nissan”) for violations of the Song-Beverly Consumer Warranty Act (“Song-Beverly Act”) in the Superior Court of California. (Decl. Stephen H. Dye (“Dye Decl. NOR”) ISO Notice Removal (“NOR”) Ex. 1 (“Complaint” or “Compl.”), ECF Nos. 1 to 1-2.) On July 12, 2024, Nissan removed this action to federal court based on diversity jurisdiction. (NOR ¶ 11.) Plaintiff now moves to remand and for leave to amend her Complaint to add Gardena Nissan, Inc. (“Gardena Nissan”) as a defendant. (Mot. Remand & Amend (“Motion” or “Mot.”), ECF No. 12.) For the reasons below, the Court DENIES Plaintiff’s Motion.1

1 After carefully considering the papers filed in support of and in opposition to the Motion, the Court deemed the matter appropriate for decision without oral argument. Fed. R. Civ. P. 78; L.R. 7-15. On or about February 23, 2022, Cortez purchased a 2022 Nissan Frontier (the “Vehicle”). (Compl. ¶ 5.) As part of the transaction, Nissan gave Cortez an express written warranty, providing, among other things, that Cortez could deliver the Vehicle for repair to a repair shop in the event the Vehicle developed a defect during the warranty period. (Id. ¶ 9.) Cortez alleges that during the warranty period, the Vehicle developed defects, including a defective engine, transmission system, and body system. (Id. ¶ 11.) Cortez further alleges that she provided Nissan “sufficient opportunity to service or repair the Vehicle,” but Nissan “was unable and/or failed to” do so “within a reasonable number of attempts.” (Id. ¶¶ 13–14.) On November 9, 2023, Cortez filed this suit in the Superior Court of the State of California, County of Los Angeles. (Compl.) In her Complaint, Cortez asserts five causes of action alleging that Nissan breached express and implied warranties in violation of the Song-Beverly Act. (Id. ¶¶ 18–40.) As relief, Cortez requests (1) actual damages, (2) restitution, (3) a civil penalty in the amount of two times her actual damages pursuant to the Song-Beverly Act; (4) consequential and incidental damages; (5) costs and attorneys’ fees; and (6) prejudgment interest. (Id., Prayer.) Nissan removed this action to federal court, alleging diversity jurisdiction under 28 U.S.C. § 1332(a). (NOR ¶ 11.) Cortez now moves to remand this action to Los Angeles County Superior Court for untimely removal. (Mem. P. & A. ISO Mot. (“Mem. Mot.”) 12–13, ECF No. 12-1.) Cortez also seeks to amend her Complaint and add a negligent repair claim against a new nondiverse defendant, Gardena Nissan. (Id. at 18–24; Proposed First Am. Compl. (“Proposed FAC”) ¶¶ 4, 42–47, ECF No. 12-6.) The Motion is fully briefed. (Opp’n Mot. (“Opp’n” or “Opposition”), ECF No. 13; Reply ISO Mot. (“Reply”), ECF No. 16.) The Court ordered Nissan to show cause why the case should not be remanded for lack of subject matter jurisdiction. (Min. Order, ECF No. 21.) On November 11, 2024, Nissan responded and submitted additional support for its contention that the amount in controversy in this case exceeds $75,000. (Resp., ECF No. 22.) Nissan submitted evidence that, after it removed the case to this Court, Cortez offered to settle this action for $145,000, excluding attorneys’ fees. (Decl. Stephen H. Dye ISO Resp. (“Dye Decl. Resp.”) Ex. 5, ECF No. 22-6.) Nissan responded with an offer to settle for $75,495, excluding attorneys’ fees, which expired without Cortez accepting the offer. (Dye Decl. Resp. Ex. 6 ¶ 2, ECF No. 22-7.) Federal courts are courts of limited jurisdiction and possess only that jurisdiction as authorized by the Constitution and federal statute. Kokkonen v. Guardian Life Ins. Co. of Am., 511 U.S. 375, 377 (1994). Under 28 U.S.C. § 1441(a), a party may remove a civil action brought in a state court to a district court only if the plaintiff could have originally filed the action in federal court. Federal district courts have original jurisdiction where an action arises under federal law, or where each plaintiff’s citizenship is diverse from each defendant’s citizenship (i.e., diversity is “complete”), and the amount in controversy exceeds $75,000. 28 U.S.C. §§ 1331, 1332(a). There is a strong presumption that a court is without jurisdiction until affirmatively proven otherwise. Fifty Assocs. v. Prudential Ins. Co. of Am., 446 F.2d 1187, 1190 (9th Cir. 1970); see Gaus v. Miles, Inc., 980 F.2d 564, 566 (9th Cir. 1992) (“Federal jurisdiction must be rejected if there is any doubt as to the right of removal in the first instance.”). When an action is removed from state court, the removing party bears the burden of demonstrating that removal is proper. Corral v. Select Portfolio Servicing, Inc., 878 F.3d 770, 773 (9th Cir. 2017). Removal is strictly construed, and any doubt as to removal is to be resolved in favor of remand. Id. at 773–74. The parties agree that the requirements for diversity jurisdiction existed at the time Nissan removed the case to this Court. (See Mem. Mot. 7, ECF No. 12-1; NOR ¶ 11.) There is complete diversity because Cortez is a California resident, and Nissan is a Delaware corporation with its principal place of business in Tennessee. (Compl. 2–3; NOR ¶¶ 12–14.) And the amount in controversy exceeds $75,000. See Cohn v. Petsmart, Inc., 281 F.3d 837, 840 (9th Cir. 2002) (“A settlement letter is relevant evidence of the amount in controversy if it appears to reflect a reasonable estimate of the plaintiff’s claim.”). Therefore, the Court DISCHARGES its order to show cause why the case should not be remanded for lack of subject matter jurisdiction. (Min. Order, ECF No. 21.) Cortez challenges removal on two grounds. First, Cortez argues that Nissan’s removal, which came 208 days after she first served Nissan with the Complaint, was untimely. (Mem. Mot. 11–17.) Second, even if Nissan’s removal was timely, Cortez seeks to amend her Complaint to add Gardena Nissan, the authorized Nissan dealership which serviced Cortez’s Vehicle and a California corporation, as a defendant. (Id. at 7–8, 18–24.) Such amendment, if permitted, would destroy diversity and divest this Court of subject matter jurisdiction. See 28 U.S.C. § 1447(e). A. Motion to Remand Nissan did not remove the case within thirty days of receiving Cortez’s Complaint. (See NOR ¶ 6.) Nissan alleges, however, that it first became aware that the amount in controversy exceeds $75,000 after it independently obtained and reviewed the Vehicle’s Retail Sales Installment Contract (“RISC”) (reflecting a purchase price of $69,995) and repair orders. (NOR ¶ 7; Opp’n 7–8.) Cortez counters that Nissan’s removal was untimely because it was facially apparent in the Complaint that the amount in controversy exceeds $75,000, (Mem. Mot. 13–16), and Nissan’s Notice of R

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