IVAN L.R. LEMELLE, District Judge.
Before the Court is Plaintiff Arnold Ryan's ("Plaintiff") Motion to Remand (Rec. Doc. No. 10) for lack of subject matter jurisdiction due to a failure to meet the amount in controversy necessary for diversity jurisdiction (Rec. Doc. No. 10-1), opposed by Defendant PHH Mortgage Corporation, d/b/a Century 21 Mortgage Corporation ("Defendant")(Rec. Doc. No. 20). Additionally before the court is Defendant's 12(b)(6) Motion to Dismiss (Rec. Doc. No. 7 & 16), opposed by Plaintiff(Rec. Doc. No. 16). For the reasons articulated below,
On or about January 5, 2012, Plaintiff filed suit against Defendant in the 24
In his complaint, Plaintiff alleged pursuant to LA. CODE CIV. P. art. 893(A)(1)
Plaintiff contends that it is the burden of Defendant, the removing party, to prove the amount in controversy and that Defendant has failed to do so by merely "suggest[ing] an amount in excess of $75,000.00 through a fairly questionable accounting method." (Rec. Doc. No. 10-1 at 3). Plaintiff asserts that the method Defendant uses, the total of the three agreed sale prices ($208,145) of the properties he was prevented from purchasing, is not indicated in his petition as his measure of damages. Id. at 4. Further, Plaintiff asserts that Defendant has proffered no evidence to prove that the amount in controversy was sufficient at the time of removal outside of conclusory statements in reference to Plaintiff's petition and the "questionable" aggregation of the failed purchase prices. Id. at 4-5. Plaintiff also requests that the Court award him reasonable attorney's fees and costs incurred with the improper removal. (Rec. Doc. No. 10 at 4).
Defendant asserts that it has met its burden of proving by a preponderance of the evidence that the Plaintiff's claims are likely to exceed $75,000. (Rec. Doc. No. 20 at 3). Moreover, Defendant asserts that it is facially apparent from Plaintiff's petition that the claims will exceed $75,000 and that Plaintiff has not met his burden of showing to a `legal certainty' that they will not. Id. at 7.
Defendant argues that the aforementioned prices should be used to determine the value of both the injunction and the amount in controversy and also that Plaintiff has offered no "reasonable argument why the agreed upon sales price of the properties lost... should not be considered." Id. at 5. In conjunction, Defendant presents case law from other district courts suggesting (1) that purchase prices stated in a petition for a redhibition could be considered for the amount in controversy,
Removal of a case to federal court is proper if the case could have originally been brought in federal court. 28 U.S.C. § 1441(a). Federal diversity jurisdiction exists where there is complete diversity of citizenship of the parties, and where the amount in controversy exceeds the sum or value of $75,000, exclusive of interest and costs. 28 U.S.C. § 1332(a). Motions to Remand are governed by 28 U.S.C. § 1447(c), which provides that: "[i]f at any time before the final judgment it appears that the district court lacks subject matter jurisdiction, the case shall be remanded." 28 U.S.C. § 1447(c).
Both parties concede that there is diversity of citizenship, but at issue is whether the Plaintiff's claims meet the amount in controversy requirement. Under LA. CODE CIV. P. art. 893(A)(1), plaintiffs in Louisiana are not allowed to plead a specific amount of damages. As such, the Plaintiff in this case has not alleged a specific amount.
When a case in which the plaintiff has alleged an indeterminate amount of damages is removed, the removing party bears the burden of establishing by a preponderance of the evidence that the amount in controversy exceeds $75,000 and, therefore, that federal jurisdiction exists and removal was proper. Manguno, 276 F.3d at 723; Allen v. R & H Oil & Gas Co., 63 F.3d 1326, 1335 (5th Cir. 1995). A defendant may satisfy its burden by either: (1) showing that it is facially apparent that the claim is likely to exceed $75,000, or (2) setting forth "summary judgment type evidence" of facts in controversy that support a finding of the jurisdictional amount. Manguno, 276 F.3d at 723; Allen, 63 F.3d at 1335; see Simon v. Wal-Mart Stores, Inc., 193 F.3d 848, 850 (5th Cir. 1999); Luckett v. Delta Airlines, Inc., 171 F.3d 295, 298 (5th Cir. 1999).
"To determine whether jurisdiction is present for removal, [the court must] consider the claims in the state court petition as they existed at the time of removal." Manguno, 276 F.3d at 723. Additionally, "[a]ny ambiguities are construed against removal because the removal statute should be construed in favor of remand." Id. Removal "cannot be based simply upon conclusory allegations." Allen, 63 F.3d at 1335. If a defendant satisfies its burden, the district court has jurisdiction unless the plaintiff can show with "legal certainty" that his claim is actually for an amount of $75,000 or less. De Aguilar, 47 F.3d at 1412.
A plaintiff may establish such legal certainty "by filing a binding stipulation" that limits recovery to less than $75,000. Manguno, 276 F.3d at 724; see De Aguilar, 47 F.3d at 1412. Furthermore, this Court has required a plaintiff with an ambiguous amount of damages to provide an affidavit stating that they will not accept nor seek to enforce a judgment of over $75,000 in order to grant a Motion to Remand, even when the defendant failed to meet their burden. Mercadel v. Fid. & Deposit Co. of Md., No. 07-6514, 2008 U.S. Dist. LEXIS 46408, *12-13 (E.D.La. 2008).
While it is true that Plaintiff did not assert that the amount in controversy is less than $75,000 as required by LA. CODE CIV. P. art. 893(A)(1), precedent places the burden on the defendant to show the amount is met.
Although Plaintiff indicates in his petition that at least $50,000 is in controversy by his request for a jury trial, that concession provides no indication for how Plaintiff's damages would amount to $75,000, or if they would at all. Without any evidence as to how Plaintiff's damages might actually be calculated so as to reach the minimum requirement, Defendant's various arguments are questionable "conclusory allegations" that would defeat removal. Allen, 63 F.3d at 1335.
Plaintiff additionally requests that the Court award him reasonable attorney's fees and costs incurred as a result of improper removal pursuant to 28 U.S.C. § 1447(c).
Importantly, a decision to award fees should uphold the objectives of the statute "to deter removals sought for the purpose of prolonging litigation and imposing costs on the opposing party, while not undermining" a defendant's right to remove. Martin, 546 U.S. at 140. However, "the district court may award fees even if removal is made in subjective good faith." Valdes, 199 F.3d at 292 (emphasis added). Given that the parties conceded their diversity, that Louisiana plaintiffs are prohibited from demanding a specific amount in their complaint, and that the damages asserted by Plaintiff were absent an indication of possible computation, it is both proper and within the discretion of this Court to deny Plaintiff's request.
Accordingly, and for the reasons articulated above,