Leonel Espinoza v. Caliber Holdings LLC, et al.

District Court, C.D. California·Decided July 7, 2026·No. 2:25-cv-01952·Unknown

Opinion

Case No. 2:25-cv-01952-CV (RAOx)

Plaintiff, ORDER DENYING PLAINTIFF’S v. MOTION TO REMAND CALIBER HOLDINGS LLC, et al., [DOC. # 11] Defendants. Before the Court is Plaintiff Leonel Espinoza’s (“Plaintiff”) April 3, 2025 Motion for Order Remanding Action to State Court. Doc. # 11 (“Motion”). Defendant Caliber Holdings LLC, (“Caliber”) filed an opposition on May 23, 2025. Doc. # 13 (“Opposition”). With its opposition, Caliber also filed declarations from Alec Fumurescu, Bobby McBride, and Jon Travis Grubbs. Doc. ## 13-1, 13-2, 13-3. On May 30, 2025, Plaintiff filed a reply, a supplemental declaration of Jasmin K. Gill, and evidentiary objections. Doc. ## 14 (“Reply”), 14-1, 14-2. On June 6, 2025, the Court took the Motion under submission, finding it was appropriate for decision without oral argument. Doc. # 15; see also, Fed. R. Civ. P. 78; C.D. Cal. L. Civ. R. 7-15. For the reasons stated below, the Court DENIES the Motion. A. Plaintiff’s Allegations Plaintiff filed this action in Los Angeles County Superior Court on January 23, 2025. Doc. # 1-1 at 6. Plaintiff alleges that he is a California resident who worked for Caliber Holdings L.L.C. and Caliber Holdings of California LLC (“Defendants”)1 as a non-exempt employee from approximately October 2022 through approximately August 2024. Id. ¶ 2. Plaintiff seeks to represent a class of “all current and former non- exempt employees of Defendant within the State of California at any time commencing four (4) years preceding the filing of Plaintiff’s complaint up until the time that notice of the class action is provided to the class.” Id. ¶ 22. The Complaint asserts nine causes of action against Defendants: (1) failure to pay overtime wages, Cal. Lab. Code §§ 510, 1194, and 1199 (id. ¶¶ 32–38); (2) failure to pay minimum wages, Cal. Lab. Code §§ 1197 and 1199 (id. ¶¶ 39–44); (3) failure to provide meal periods, Cal. Lab. Code §§ 226.7 and 512 (id. ¶¶ 45–52); (4) failure to provide rest periods, Cal. Lab. Code § 226.7 (id. ¶¶ 53–60); (5) failure to pay all wages 1 In its Notice of Removal, Caliber asserts that Plaintiff erroneously served his complaint on “Caliber Holdings of California LLC,” which Caliber asserts is not a legal entity and not a proper defendant, and that the complaint also improperly names “Caliber Holdings L.L.C.” as a defendant rather than “Caliber Holdings LLC.” Doc. # 1 at 2 n.1. due upon termination, Cal. Lab. Code §§ 201–203 (id. ¶¶ 61–68); (6) wage-statement violations, Cal. Lab. Code § 226 (id. ¶¶ 69–76); (7) failure to timely pay wages during employment, Cal. Lab. Code § 204 (id. ¶¶ 77–83); (8) failure to indemnify, Cal. Lab. Code § 2802 (id. ¶¶ 84–90); and (9) unfair competition, Cal. Bus. & Prof. Code § 17200 (id. ¶¶ 91–95). Plaintiff seeks class certification; unpaid wages; liquidated damages; meal and rest period premiums; statutory penalties; waiting-time penalties; reimbursement damages; injunctive relief; restitution; pre- and post-judgment interest; attorney’s fees; costs; and other relief. Id. at 26–27. As relevant here, the Complaint alleges that, for at least four years before this action was filed and continuing to the present, Defendants “at times” failed to pay overtime wages to Plaintiff and Class Members, “or some of them.” Doc. # 1-1 ¶ 12. Plaintiff alleges that Plaintiff and Class Members worked shifts exceeding eight hours in a workday, forty hours in a workweek, or seven consecutive workdays in a workweek without receiving all overtime wages owed. Id. ¶¶ 12, 36–37. The Complaint identifies several alleged mechanisms for the unpaid overtime, including failure to accurately track or pay for all hours worked at the proper overtime rate; off-the-clock pre-shift and post-shift work; work beyond scheduled hours; work during meal periods; walkie- talkie-related work; failure to include all remuneration, including commissions and incentive pay, in the regular rate of pay; and editing or manipulation of time entries to show fewer hours than actually worked. Id. ¶¶ 12, 36. Plaintiff alleges that, as a result, Plaintiff and Class Members were deprived of overtime wages in amounts to be determined at trial. Id. ¶ 38. B. Caliber’s Removal Caliber removed the action on March 5, 2025 under the Class Action Fairness Act of 2005 (“CAFA”), 28 U.S.C. §§ 1332(d), 1453. Doc. # 1 ¶¶ 11–40. Caliber alleges that CAFA’s minimal-diversity requirement is satisfied because Plaintiff is a California citizen and Caliber is a citizen of Delaware and Texas. Id. ¶¶ 15–21. Caliber also alleges that the proposed class contains more than 100 members. Id. ¶¶ 12, 24–25. As relevant here, Caliber calculated the amount in controversy for Plaintiff’s overtime claim by assuming one unpaid overtime hour per week, applying the 2021 California minimum wage of $14.00, applying the overtime multiplier of 1.5, and multiplying that figure by 320,760 workweeks. Id. ¶ 32. This calculation produces $6,735,960 attributable to Plaintiff’s overtime wage claim. Id. Caliber also calculated approximately $18,151,200 in waiting-time penalties and included a 25% attorney-fee estimate. Id. ¶¶ 33–37. In sum, Caliber estimated that the total amount in controversy here is “at least $31,108,950.” Id. ¶ 37. C. Caliber’s Evidence in Opposition to Remand2 In support of its opposition to the Motion, Caliber submitted declarations concerning the employment data underlying its calculations. Jon Travis Grubbs is Caliber’s Vice President of IT Enterprise Applications. Doc. # 13-3 ¶ 2. He states that Caliber uses Workday: a human-resources information system that can generate employment-history reports showing employee names, job titles, hire dates, termination dates, active dates in job positions, and overtime-exempt status. Id. ¶ 3. Grubbs states that Caliber generated Workday reports in May 2024 and February 2025 identifying non-exempt employees who worked for Caliber in California during the relevant periods. Id. ¶¶ 4–5. Alec Fumurescu is a data analyst at Morgan Lewis (counsel of record for Caliber in this case). Doc. # 13-1 ¶ 2. He states that he analyzed the Workday employment- history reports produced by Caliber. Id. ¶¶ 3–6. Based on that analysis, Fumurescu states that more than 6,750 non-exempt employees worked for Caliber in California between May 27, 2022 and May 3, 2024, and that those employees worked more than

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Leonel Espinoza v. Caliber Holdings LLC, et al., (C.D. Cal. 2026).

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