Filed: Dec. 23, 2019
Latest Update: Mar. 03, 2020
Summary: FILED NOT FOR PUBLICATION DEC 23 2019 UNITED STATES COURT OF APPEALS MOLLY C. DWYER, CLERK U.S. COURT OF APPEALS FOR THE NINTH CIRCUIT MELVIN AVILA, individually, and on No. 19-56300 behalf of all others similarly situated, D.C. No. 2:19-cv-01295-PJW Plaintiff-Appellee, v. MEMORANDUM* KIEWIT CORPORATION, a Delaware corporation, Defendant-Appellant, and DOES, 1 through 10, inclusive, Defendant. Appeal from the United States District Court for the Central District of California Patrick J. Walsh, M
Summary: FILED NOT FOR PUBLICATION DEC 23 2019 UNITED STATES COURT OF APPEALS MOLLY C. DWYER, CLERK U.S. COURT OF APPEALS FOR THE NINTH CIRCUIT MELVIN AVILA, individually, and on No. 19-56300 behalf of all others similarly situated, D.C. No. 2:19-cv-01295-PJW Plaintiff-Appellee, v. MEMORANDUM* KIEWIT CORPORATION, a Delaware corporation, Defendant-Appellant, and DOES, 1 through 10, inclusive, Defendant. Appeal from the United States District Court for the Central District of California Patrick J. Walsh, Ma..
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FILED
NOT FOR PUBLICATION
DEC 23 2019
UNITED STATES COURT OF APPEALS MOLLY C. DWYER, CLERK
U.S. COURT OF APPEALS
FOR THE NINTH CIRCUIT
MELVIN AVILA, individually, and on No. 19-56300
behalf of all others similarly situated,
D.C. No. 2:19-cv-01295-PJW
Plaintiff-Appellee,
v. MEMORANDUM*
KIEWIT CORPORATION, a Delaware
corporation,
Defendant-Appellant,
and
DOES, 1 through 10, inclusive,
Defendant.
Appeal from the United States District Court
for the Central District of California
Patrick J. Walsh, Magistrate Judge, Presiding
Argued and Submitted December 13, 2019
Pasadena, California
*
This disposition is not appropriate for publication and is not precedent
except as provided by Ninth Circuit Rule 36-3.
Before: N.R. SMITH and WATFORD, Circuit Judges, and KORMAN,** District
Judge.
Kiewit Corporation appeals the district court’s Order remanding this case to
state court. We have jurisdiction under 28 U.S.C. § 1453(c), and we reverse.
A remand order in a CAFA case is reviewed de novo. Arias v. Residence
Inn by Marriott,
936 F.3d 920, 924 (9th Cir. 2019). “To remove a case from a state
court to a federal court, a defendant must file in the federal forum a notice of
removal ‘containing a short and plain statement of the grounds for removal.’”
Dart Cherokee Basin Operating Co. v. Owens,
574 U.S. 81, 83 (2014) (quoting 28
U.S.C. § 1446(a)). In class action cases, the amount in controversy threshold for
removal is $5 million. 28 U.S.C. § 1332(d)(2). Where, as here, “the plaintiff’s
complaint does not state the amount in controversy, the defendant’s notice of
removal may do so.”
Dart, 574 U.S. at 84 (citing 28 U.S.C. § 1446(c)(2)(A)).
“The amount in controversy is simply an estimate of the total amount in
dispute, not a prospective assessment of defendant’s liability.”
Arias, 936 F.3d at
927 (quoting Lewis v. Verizon Commc’ns, Inc.,
627 F.3d 395, 400 (9th Cir. 2010)).
And because “the amount in controversy reflects the maximum recovery the
plaintiff could reasonably recover[,] [a]n assertion that the amount in controversy
**
The Honorable Edward R. Korman, United States District Judge for
the Eastern District of New York, sitting by designation.
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exceeds the jurisdictional threshold is not defeated merely because it is equally
possible that damages might be less than the requisite . . . amount.”
Id. (cleaned
up).
In this case, Plaintiff Avila’s Complaint does not state the amount in
controversy. Kiewit sought removal, estimating that just four of the seven causes
of action (exclusive of attorney’s fees) were potentially worth upwards of $37
million—far more than the $5 million threshold. Because Avila contests the
amount in controversy, “removal . . . is proper” only “if the district court finds, by
the preponderance of the evidence, that the amount in controversy exceeds” the $5
million jurisdictional threshold. 28 U.S.C. § 1446(c)(2)(B); see also
Dart, 574
U.S. at 88.
Kiewit “bears the burden to show by a preponderance of the evidence” that
its estimate “is a reasonable one” and meets the amount in controversy
jurisdictional threshold. Ibarra v. Manheim Invs., Inc.,
775 F.3d 1193, 1197 (9th
Cir. 2015). Such evidence can include declarations like those used by Kiewit in
this case. See
id. Additionally, though “a defendant cannot establish removal
jurisdiction by mere speculation and conjecture, with unreasonable assumptions,”
id., unproven “assumptions [can be] made part of the defendant’s chain of
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reasoning” so long as they “have ‘some reasonable ground underlying them,’”
Arias, 936 F.3d at 927 (quoting
Ibarra, 775 F.3d at 1199).
In its four-page Order remanding the case, the district court determined that
Kiewit “ha[d] not met its burden” in establishing the amount in controversy. The
district court concluded that the language of the Complaint “runs contrary to
Defendant’s assumption that all class members suffered at least one violation and
is enough to defeat removal under CAFA.” However, the qualifying language in
the Complaint that the district court quoted in support of this
conclusion—“frequently” and “regularly, but not always”—refers to the frequency
of the alleged violations, not whether each member of the class was at one time or
another subjected to the alleged violations. Based on the language of the
Complaint, Kiewit reasonably could have assumed that each of the class members
suffered the violations alleged.
Moreover, we conclude that Kiewit has carried its burden to show that its
assumptions in calculating the amount in controversy are “reasonable,” because
they are sufficiently grounded in the allegations of the Complaint and the evidence
provided. For example, Kiewit’s conservative estimate (related only to the
overtime compensation claim) is grounded in the declaration it provided, tied
directly to Avila’s broad allegations in the Complaint, and easily surpasses the $5
4
million jurisdictional threshold. Therefore, we reverse the district court’s Order of
removal, and hold that the district court has jurisdiction over this case.
REVERSED.
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