Mario Banuelos v. FleetPride, Inc., et al.

District Court, E.D. California·Decided July 28, 2026·No. 1:25-cv-00308·Unknown

Opinion

MARIO BANUELOS, Case No. 1:25-cv-00308 JLT FJS

Plaintiff, ORDER DENYING MOTIONS TO REMAND AND COMPEL ARBITRATION v. (Docs. 6, 16) FLEETPRIDE, INC., et al., Defendants. Mario Banuelos moves to remand this case to state court (Doc. 6), and defendant FleetPride, Inc. moves to compel arbitration under the Federal Arbitration Act (Doc. 16). Both motions are DENIED. FleetPride distributes and resells heavy-duty truck and trailer parts. (Docs. 1-1 ¶ 16, 16-3 ¶ 3.) Banuelos worked for FleetPride in one of its distribution centers as an hourly worker from 2022 to 2024. (Doc. 1-1 ¶ 17.) He alleges the company was “engaged in an ongoing and systematic scheme of wage abuse” and asserts several wage and hour claims under the California Labor Code and Business and Professions Code, both on his own behalf and on behalf of a proposed class of similarly situated workers. (See id. at 4–7, 12–21.) Banuelos originally filed this case in state court. (Id. at 1.) FleetPride removed it to this Court based on its allegations that the proposed class included more than 100 members, that the parties were citizens of different states, and that the case put more than $5 million in controversy. (See Doc. 1 at 5–20.) The parties have now each filed motions that would, if granted, effectively send their dispute to a different venue. Banuelos moves to remand the case to state court where he filed it. (Doc. 6.) He does not dispute FleetPride’s allegations about the size of the proposed class and the parties’ citizenship; he contends only that FleetPride relied on insufficient evidence and unreasonable assumptions in estimating the amount in controversy. (See id.) FleetPride opposes the motion, and it is now fully briefed. (Docs. 7, 8.) FleetPride moves for its part to compel arbitration of Banuelos’s claims on an individual basis. (Doc. 16.) Banuelos opposes the company’s motion, which is now also fully briefed. (See Docs. 18, 19.) The Court begins with the motion to remand the case to state court because it represents a jurisdictional dispute. Federal law allows a defendant to remove a case from a state court to the appropriate federal district court if that court would have had jurisdiction over the case originally. 28 U.S.C. § 1441(a). To accomplish the removal, the defendant must file a notice in the federal district court, which must contain among other things “a short and plain statement of the grounds for removal.” Dart Cherokee Basin Operating Co., LLC v. Owens, 574 U.S. 81, 83 (2014) (quoting 28 U.S.C. § 1446(a)). It is not necessary for the defendant to submit evidence with this notice. Plausible allegations suffice. See Arias v. Residence Inn by Marriott, 936 F.3d 920, 925 (9th Cir. 2019). If, as in this case, the plaintiff contests the defendant’s allegations about the amount in controversy, then the defendant must prove “by a preponderance of the evidence that the aggregate amount in controversy exceeds $5 million,” i.e., that the amount in controversy is more likely to exceed the $5 million threshold than to fall short of it. Ibarra v. Manheim Investment, Inc., 775 F.3d 1193, 1197 (9th Cir. 2015). The defendant can, for example, offer declarations, exhibits, and other “summary-judgment-type evidence.” Id. (citation omitted). A defendant can also rely on reasonable assumptions, including those based on the plaintiff’s own allegations. Harris v. KM Indus., Inc., 980 F.3d 694, 701 (9th Cir. 2020); Arias, 936 F.3d at 926–27. It may not rely on speculation or conjecture, however, nor assumptions “pulled from thin air.” Ibarra, 775 F.3d at 1199. An assumption must have “some reasonable ground” beneath it. Id. Plaintiffs may respond by submitting their own evidence in reply or by explaining why the defendants’ assumptions are unreasonable. See Harris, 980 F.3d at 699. The court then weighs the evidence, considers whether the defendant’s assumptions are reasonable, and decides whether the amount in controversy is more likely to exceed the jurisdictional threshold than to fall short of it. See id. at 701. As noted, Banuelos contends that the company has relied on unreasonable assumptions and insufficient evidence to support its allegations about the amount in controversy. The company’s estimate of the amount in controversy is based primarily on summary statistics provided by its director of human resources. (See Doc. 1-4 at 2–4.) She offered these statistics in a declaration attached to the company’s notice of removal. (See id.) Banuelos did not raise many concerns specific to that declaration in his original motion. He contended more generally that the company had pulled its estimates out of thin air, had overread his complaint, and had “failed to provide any evidence whatsoever.” (See, e.g., Doc. 6 at 11–13.) In reply, however, after the company reiterated its position and cited the previously filed declaration, Banuelos argued for the first time that the declaration was “self-serving,” “deficient,” “conclusory,” contained “vague estimates,” and lacked a foundation. (See Doc. 8 at 5.) By holding these arguments in reserve, Banuelos inappropriately deprived the company of a fair opportunity to respond. He could and should have raised his objections in connection with his original motion. It would be appropriate to overrule them summarily for that reason, but they are not compelling in any event. The company’s human resources director explained that she personally reviewed its personnel, payroll, and wage records for the employees who would be members of the proposed class. (See Doc. 1-4 at 2–3.) She is also among the employees who maintain those records in the ordinary course of business. (See id.) And as she explains, the data includes information about how many days employees worked, on what dates, and at what hourly rates. (See id.) Federal courts commonly rely on similar evidence in disputes about the amount in controversy. See, e.g., Arias, 936 F.3d at 923–24. Turning back to the company’s estimate of the amount in controversy, its calculations are built on five of the claims in Banuelos’s complaint. The company took each of those claims in turn in its notice of removal. (See Doc. 1 at 9–18.) The Court will do the same here. In Banuelos’s first claim, he alleges the company did not pay him and other similarly situated employees for all of the hours they worked. (See Doc. 1-1 at 12–13.) The company’s director of human resources found that it had employed 514 people in California over the relevant time. (Doc. 1-4 at 3.) These employees worked a total of 34,499 workweeks in that time, and on average, they worked more than eight hours per day. (Id.) This means that by Banuelos’s allegation, any additional unpaid work would likely have been compensated at the overtime rate. The company assumed that Banuelos will attempt to prove in this case that employees in the proposed class worked about an hour per week of overtime without pay. To support this estimate, it relied on his allegations the company employed a “systematic scheme or wage abuse,” “regularly” required work off the clock, and had “policies” that were common to the whole of the proposed class. (Doc. 1-1 ¶¶ 21, 28, 29, 31, 32, 33.) The average regular hourly wage for the proposed class was $19.71, which translates to an overtime overly rate of $29.57. (See id.) One hour of unpaid work per week at a rate of $29.57 per hour over 34,499 weeks is about $1.0 million. (See Doc. 1 at 11.) These estimates and assumptions were reasonable. An hour

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Mario Banuelos v. FleetPride, Inc., et al., (E.D. Cal. 2026).

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