VIRGINIA M. HERNANDEZ COVINGTON, District Judge.
Defendant Texas Roadhouse Holdings LLC removed this slip-and-fall case on January 25, 2019, asserting that the requirements for this Court's exercise of diversity jurisdiction have been satisfied. As discussed below, the Court sua sponte determines that it lacks subject matter jurisdiction over this action and remands this case to state court.
Before delving into the merits of any case, this Court must determine "whether subject-matter jurisdiction exists, even in the absence of a challenge from any party."
Under 28 U.S.C. § 1441, a defendant can remove an action to a United States District Court if that court has original jurisdiction over the action. 28 U.S.C. § 1441(a). United States District Courts have original jurisdiction over all civil actions between parties of diverse citizenship where the amount in controversy exceeds $75,000.
In removed cases, 28 U.S.C. § 1447(c) specifies, "If at any time before final judgment it appears that the district court lacks subject matter jurisdiction, the case shall be remanded." Removal statutes are strictly construed against removal.
In the Notice of Removal, Texas Roadhouse predicates federal jurisdiction on the diversity provisions of 28 U.S.C. § 1332. "For federal diversity jurisdiction to attach, all parties must be completely diverse . . . and the amount in controversy must exceed $75,000."
In his Amended Complaint, Plaintiff Steven Abbey maintains, "This is a cause of action for damages that exceeds Fifteen Thousand Dollars ($15,000.00), exclusive of interest, costs and attorneys' fees." (Doc. # 2 at ¶ 1). Abbey claims that as a result of Texas Roadhouse's alleged negligence, he:
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The Notice of Removal and attendant documents span 111 pages, but none come close to convincing the Court that the jurisdictional amount is met. Absent from the Court's file are any medical reports or records from a treating physician. The Court takes note of Abbey's interrogatory answer that he "sustained a back injury, neck injury, and cracked tooth." (Doc. # 1-3 at 45). The file also contains a demand letter authored by Abbey's counsel, seeking $75,000.00, wherein counsel specifies that Abbey has undergone physical therapy and "had a series of medical branch injections to the cervical region" by a pain management doctor. (
The Court recognizes that Abbey generally claims to have suffered a life-altering fall resulting in permanent injuries. However, the Court simply has not been provided with sufficiently specific information about these broad categories of damages to find that the amount in controversy has been met. And Abbey has described these categories of damages in such a vague and inexact manner that the Court would be required to engage in rank speculation to ascribe any monetary value to these damages.
For instance, Abbey seeks redress for "loss of ability to lead and enjoy a normal life," but he did not seek any medical treatment until ten days after the incident, and has not explained how the incident has resulted in changes to his daily life.
Overall, the record is devoid of evidence to suggest that Abbey's damages from this accident exceed the $75,000 amount in controversy threshold.
Next, Texas Roadhouse asserts that the amount in controversy is met because, in response to discovery, Abbey has not agreed to stipulate that his damages are less than $75,000. Among other discovery probes, Texas Roadhouse asked Abbey to admit that "The matter in controversy in this litigation does not exceed the sum or value of Seventy-Five Thousand Dollars." (Doc. # 1 at 7). In response, Abbey stated, inter alia: "Plaintiff has only alleged that the amount in controversy is over $15,000." (
A number of courts have determined that a plaintiff's discovery responses concerning the amount in controversy are not sufficient to support removal of a case to federal court.
As set forth in
Finally, in an attempt to bolster its woefully insufficient jurisdictional showing, Texas Roadhouse claims that Abbey's July 6, 2017, pre-suit demand letter satisfies the amount in controversy. A number of federal courts, including the present Court, have held that settlement offers stated in demand letters do not automatically establish the amount in controversy for purposes of diversity jurisdiction.
Instead, courts have analyzed whether demand letters merely "reflect puffing and posturing," or whether they provide "specific information to support the plaintiff's claim for damages" and thus offer a "reasonable assessment of the value of [the] claim."
Abbey's demand letter asks for $75,000. (Doc. # 1-3 at 82). The amount in controversy must exceed $75,000 to satisfy the requirements for diversity jurisdiction. Even if the Court were to overlook this, a closer look at the demand letter reveals that it does nothing to buttress federal jurisdiction. Like the operative Complaint and discovery responses, the demand letter only vaguely describes neck and back pain as well as a cracked tooth. The demand letter does not provide a reasonable assessment of the value of Abbey's claim and does not justify the removal of this negligence action.
In a case such as this, where "plaintiff makes an unspecified demand for damages in state court, a removing defendant must prove by a preponderance of the evidence that the amount in controversy more likely than not exceeds the . . . jurisdictional requirement."
Accordingly, it is
This action is remanded pursuant to 28 U.S.C. § 1447(c) for lack of federal subject matter jurisdiction. The Clerk is directed to remand this case to state court. After remand has been effected, the Clerk shall