STEVEN D. MERRYDAY, District Judge.
Alleging a violation of the Florida Private Whistleblower's Act, the plaintiff sued (Doc. 2) in state court. The defendant removes (Doc. 1) and alleges diversity jurisdiction under 28 U.S.C. § 1332. Arguing that the defendant has failed to show that the amount in controversy exceeds $75,000, the plaintiff moves (Doc. 6) to remand.
The removing defendant bears the burden of establishing facts supporting federal jurisdiction. See Allen v. Toyota Motor Sales, U.S.A., Inc., 155 F. App'x 480, 481 (11th Cir. 2005). If the complaint seeks an unidentified amount of damages, "the defendant seeking removal based on diversity jurisdiction must prove by a preponderance of the evidence that the amount-in-controversy" exceeds $75,000. Leonard v. Enterprise Rent-A-Car, 279 F.3d 967, 972 (11th Cir. 2002). "A conclusory allegation in the notice of removal that the jurisdictional amount is satisfied, without setting forth the underlying facts supporting such an assertion, is insufficient to meet the defendant's burden." Williams v. Best Buy Co., 269 F.3d 1316, 1319-20 (11th Cir. 2001). "The Court . . . must review the amount in controversy at the time of removal to determine whether plaintiff's claim meets this jurisdictional prerequisite." Pease v. Medtronic, Inc., 6 F.Supp.2d 1354, 1356 (S.D. Fla. 1998) (Gold, J.).
In this action, the defendant asserts that the amount in controversy exceeds $75,000 because the sum of the plaintiff's estimated back-pay and estimated front-pay exceeds $75,000. The defendant's removal relies on calculating the plaintiff's back-pay not through the date of removal but through a hypothetical May 2015 trial date. However, because the amount in controversy is determined at the time of removal, the defendant must exclude post-removal back-pay when computing the amount in controversy.
The defendant correctly cites several orders from district courts within the Eleventh Circuit that include (in calculating the amount in controversy) post-removal back-pay. However, the majority of orders that include post-removal back-pay justify that inclusion only by citation to other orders and not by independent justification. See, e.g., Sheehan v. Westcare Found., Inc., 2013 WL 247143 (M.D. Fla. Jan. 23, 2013); Penalver v. N. Elec., Inc., 2012 WL 1317621 (S.D. Fla. Apr. 17, 2012); Morris v. Plant Performance Servs., LLC, 2011 WL 6203497 (N.D. Fla. Dec. 13, 2011); Fusco v. Victoria's Secret Stores, LLC, 806 F.Supp.2d 1240, 1244 (M.D. Fla. 2011); Deel v. Metromedia Rest. Servs., Inc., 2006 WL 481667 (N.D. Fla. Feb. 27, 2006).
Orders that explain why the amount in controversy should include post-removal back-pay
Even assuming post-removal back-pay is in controversy at the time of removal, the defendant's estimation of the plaintiff's back-pay relies on trial occurring in May 2015. However, "experience and common sense" suggests that this action will resolve before trial. Abraham L. Wickelgren, The Effect of Settlement in Kaplow's Multistage Adjudication, 126 Harv. L. Rev. F. 145 (2013) ("In reality, of course, the vast majority of cases settle . . . ."). Indeed, not one of the seven actions — identified by the defendant or identified during a thorough search — that utilized post-removal back-pay for subject matter jurisdiction resulted in a trial, and six of the seven actions ended before the estimated trial date.
Also, establishing an amount in controversy that validates the defendant's removal requires a preemptive dismissal of the effect of mitigation. "Common sense" suggests that, during the next fourteen months, the typical plaintiff will either substantially mitigate his damages or fail to fulfill his obligation to mitigate his damages. In either circumstance, the amount in controversy is substantially smaller than the amount estimated by the defendant, and the defendant's estimate only barely exceeds $75,000. Moreland v. Suntrust Bank, 2013 WL 3716400 (M.D. Fla. July 15, 2013) (Steele, J.) ("[T]he correct calculation of back pay damages includes a reduction for the income from plaintiff's new employment.").
The claim in this action is the creation of a Florida statute. The Florida plaintiff who asserts the claim chose a Florida court. Nonetheless, if the defendant reliably establishes diversity jurisdiction, the district court should adjudicate the removed action. However, if the defendant's proposed calculation of the amount in controversy depends upon speculation, stretching, straining, puffing, or the tendentious summing of all the pluses without regard to any of the minuses, the district court should rely on only the solid, reliable, and balanced numbers and, absent a sound and enduring demonstration of the requisite amount in controversy, remand the action to state court. Reliance on an inflated, contingent, or otherwise unduly aggressive computation of the amount in controversy, an unseemly and undignified exercise for a federal court, ought not oust the undoubted jurisdiction of the state to adjudicate a state law claim.
The plaintiff's motion (Doc. 6) is GRANTED. Under 28 U.S.C. § 1447(c), this case is REMANDED for failure of the removing party to invoke federal jurisdiction. The clerk is directed (1) to mail a certified copy of this order, pursuant to 28 U.S.C. § 1447(c), to the clerk of the Circuit Court for Hillsborough County, (2) to terminate any pending motion, and (3) to close the case.
ORDERED.
Cordell cited, in addition to the precedent addressed in this order, Kok, which stated:
(citation omitted). Cordell admitted that Kok is somewhat "confusing" but believed that Kok affirmed a district court's use (in calculating the amount in controversy) of post-removal back-pay. Regardless of whether Cordell read Kok correctly, Kok is a per curiam, "unpublished" order that cites no supporting precedent and offers no explanation.
The only action that ended after the estimated trial date is Morgan v. Sears, Roebuck, & Co., 2012 WL 2523692 (S.D. Fla. June 29, 2012) (estimating trail would occur in May 2012, only five months after removal, but the parties settled in September 2012).
Three actions held that post-removal back-pay is in controversy but remanded the action for other reasons. Marcenaro v. Creative Hairdressers Inc., 2012 WL 1405690, at *2 n.2 (S.D. Fla. Apr. 23, 2012) (remanding for another reason); Morris v. Plant Performance Servs., LLC, 2011 WL 6203497 (N.D. Fla. Dec. 13, 2011) (same); Fusco v. Victoria's Secret Stores, LLC, 806 F.Supp.2d 1240, 1245 (M.D. Fla. 2011) (same).