PER CURIAM:
Defendant-Appellant Vital Pharmaceuticals, Inc. appeals the district court's sua sponte order remanding this putative class action to state court for failure to establish the Class Action Fairness Act's (CAFA) requirement that at least $5 million is in controversy. We hold that we have appellate jurisdiction under 28 U.S.C. § 1453(c)(1) to consider the district court's sua sponte remand order, reverse the order remanding this case to state court, and remand to the district court with instructions to exercise jurisdiction over the case.
Plaintiff Gabe Watkins filed this class action in the California Superior Court, County of Los Angeles, alleging that defendant Vital Pharmaceuticals, Inc. distributed ZERO IMPACT protein bars that were erroneously marketed and labeled as having little to no impact on blood sugar. Watkins asserts claims under California law on behalf of a nationwide class of "thousands of consumers throughout the United States." The complaint states that "the aggregate damages sustained by the Class are likely in the millions of dollars" and seeks damages, restitution, disgorgement and attorney's fees and costs.
Vital timely removed this action to federal court under CAFA, 28 U.S.C. § 1332(d)(2). As evidentiary support for its assertion that CAFA's $5 million amount in controversy requirement is met, Vital filed two declarations. First, Vital submitted a declaration by trial counsel David J. Vendler that states:
Second, Vital submitted a declaration by Richard Cimino that states: "Nation-wide sales of the ZERO IMPACT® bars for the last four years exceed $5,000,000.
The district court sua sponte remanded the action to the state superior court. In its remand order, the district court concluded that Vital did not meet its burden of proving by a preponderance of the evidence that CAFA's amount in controversy requirement was met because Vital merely "aver[red in its Notice of Removal] that total sales of the Subject Bars in the last four years exceeded $5 million," and because Vendler's affidavit vaguely and conclusorily alleged that the amount in controversy is met. Although the district court's order expressly referred to the Vendler declaration, it made no mention of the Cimino declaration.
As a threshold matter, we first address whether CAFA permits an appeal from a district court's sua sponte remand
We do not read § 1453(c)(1)'s authorization of an appeal as limited only to district court orders made in response to a party's "motion."
On the merits, Vital argues that the Cimino declaration was sufficient to establish that CAFA's amount in controversy requirement is met. We review de novo the construction and applicability of CAFA. See United Steel v. Shell Oil Co., 602 F.3d 1087, 1090 (9th Cir.2010). As with all diversity cases — of which CAFA cases are a species, see 28 U.S.C. § 1332(d) — we review for clear error any factual determinations necessary to establish jurisdiction. See Co-Efficient Energy Sys. v. CSL Indus., Inc., 812 F.2d 556, 557 (9th Cir.1987). Therefore, we review de novo the district court's ultimate legal conclusion that the underlying factual allegations are insufficient to establish CAFA jurisdiction, and we review for clear error the district court's determination that Vital did not meet its burden of proving by a preponderance of the evidence that the amount in controversy here exceeds $5 million.
We agree with Vital that the undisputed Cimino declaration was sufficient to establish that CAFA's $5 million amount in controversy requirement is met in this case.
FISHER, Circuit Judge, concurring in part and dissenting in part:
I join in the per curiam opinion with the exception of the last paragraph, which reverses and remands to the district court to exercise jurisdiction over this case. Because it is not clear that the district court considered the Cimino declaration, and because I do not believe that the declaration is sufficient as a matter of law to establish that Vital met its burden of proving the amount in controversy by a preponderance of the evidence, I would vacate the district court's order and remand to the district court to determine in the first instance, in light of the Cimino declaration, whether Vital met its burden of proving that the amount in controversy exceeds $5 million.
Vital asserted in its Notice of Removal that CAFA's $5 million amount-in-controversy threshold is met. Aside from attempting to derive support from the allegations in plaintiff's complaint, the Notice alleged that "VITAL had total sales of ZERO IMPACT® Protein Bars in the last four years in excess of $5 Million," citing a declaration by Vital's controller, Richard Cimino. The district court's remand order, which was quite thorough, expressly referred to Vital's amount-in-controversy allegation in its Notice of Removal as a mere "aver[ment]" that was insufficient to establish that it is "more likely than not" that more than $5 million is in controversy. See Sanchez v. Monumental Life Ins. Co., 102 F.3d 398, 404 (9th Cir. 1996) (establishing "preponderance of the evidence" as the removing defendant's burden of proving the amount in controversy in cases where a plaintiff's state court complaint does not specify a particular amount of damages). The district court faulted Vital for not submitting "any documentation to support its claim that its sales exceeded $5 million," noting that a declaration by Vital's counsel, David Vendler, "only vaguely alleges that the amount in controversy is met." The court did not refer at all to Cimino's declaration, or explain why the controller's sworn statement was insufficient.
I have serious doubts that the court actually saw and evaluated Cimino's "documentary" evidence as support for the Notice's allegation, and whether it would have found the evidence insufficient had it done so.
My deference to the district court is not formalistic. Unlike my colleagues, I do not think Vital's cursory showing was sufficient as a matter of law. The Cimino declaration is plainly conclusory and devoid of business record documentation or other foundation. But he is the controller, and purports to have personal knowledge of the facts. Had the district court clearly confronted the shortcomings of Cimino's "evidence," I would have no trouble concluding