BARBARA M.G. LYNN, District Judge.
This case raises interesting and challenging questions of jurisdiction under the Class Action Fairness Act of 2005 ("CAFA"). Having carefully considered Plaintiffs' Motion to Remand [Docket Entry #11], the Court concludes that it should retain jurisdiction over this action. For the following reasons, Plaintiffs' Motion is
On February 6, 2011, Defendants allegedly denied, relocated, and delayed the seating of, and/or directed to seats with obstructed views, thousands of ticket holders to Super Bowl XLV. Pls.' Original Pet. ¶ 4.39. On February 5, 2013, 237 affected ticketholders filed suit against Defendants in state court, stating claims for breach of contract, fraudulent inducement, fraudulent concealment, negligent misrepresentation, violations of the Texas Deceptive Trade Practices Act ("DTPA"), and negligence. Id. at ¶¶ 2.5, 5.1-11.7.
On March 7, 2013, Defendants removed the state court action to this Court, arguing that this case is properly removable as a "mass action" under CAFA. Defs.' Notice of Removal at ¶¶ 2-10. Plaintiffs seek remand because (1) Defendants have not established that each Plaintiff seeks in excess of $75,000, and (2) this action is exempted from CAFA's definition of "mass action" pursuant to the "event or occurrence" exception. Pls.' Mot. to Remand at 3-8.
A district court has subject matter jurisdiction over mass actions under CAFA. See 28 U.S.C. § 1332(d)(11)(A) ("For purposes of this subsection ... a mass action shall be deemed to be a class action removable under paragraphs (2) through (10) if it otherwise meets the provisions of those paragraphs."). A mass action is defined as "any civil action ... in which monetary relief claims of 100 or more persons are proposed to be tried jointly on the ground that the plaintiffs' claims involve common questions of law or fact." 28 U.S.C. § 1332(d)(11)(B)(i). The statute further provides that jurisdiction "shall exist only over those plaintiffs whose claims in a mass action" exceed $75,000. Id. Thus, to be removable as a mass action under CAFA, a civil action must, at the very least: (1) satisfy CAFA's minimal diversity requirement (i.e., at least one plaintiff and one defendant must be citizens of different states); (2) have an amount in controversy exceeding $5,000,000; and (3) involve claims of monetary relief of at least 100 persons that involve common questions of law or fact. See 28 U.S.C. § 1332(d)(2); 28 U.S.C. § 1332(d)(11)(A); 28 U.S.C. § 1332(d)(11)(B)(i).
"CAFA does not change the traditional rule that the party seeking to remove the case to federal court bears the burden of establishing federal jurisdiction." Joseph v. Unitrin, Inc., No. 1:08-CV-077, 2008 WL 3822938, at *4 (E.D.Tex. Aug. 12, 2008) (internal citation and quotation marks omitted); see also Preston v. Tenet Healthsystem Mem'l Med. Ctr., Inc., 485 F.3d 793, 797 (5th Cir.2007). However, once federal jurisdiction under CAFA is established, the burden shifts to the objecting party to prove, by a preponderance of the evidence, the absence of jurisdiction. See Laffin v. Nat'l Football League, No.
The parties do not dispute that this action satisfies the three threshold jurisdictional requirements enumerated above.
Defendants argue, contrarily, that they must only make a threshold showing that at least one Plaintiff brings claims in an amount exceeding $75,000. Cf. Abrego Abrego v. Dow Chem. Co., 443 F.3d 676, 687 (9th Cir.2006) (finding remand appropriate where defendant had not "established that even one plaintiff satisfie[d] the $75,000 jurisdictional amount requirement of § 1332(a), applicable to mass actions by virtue of § 1332(d)(11)(B)(i)," and concluding that "the case cannot go forward unless there is at least one plaintiff whose claims can remain in federal court") (emphasis in original).
This Circuit recently held that 28 U.S.C. § 1332(d)(11)(B)(i) requires defendants to show that at least one plaintiff pursues claims in excess of $75,000. Hood ex rel. Miss. v. JP Morgan Chase & Co., 737 F.3d 78, 86 (5th Cir.2013). Hood left unanswered, however, "whether at least 100, or only one of the plaintiffs must satisfy the individual amount in controversy requirement in order to confer CAFA jurisdiction." Id., n. 4. Unbridled by any precedent from this Circuit to the contrary, the Court rejects Plaintiffs' assertion that the $75,000 provision forecloses jurisdiction over the entire case if the removing party does not prove that each Plaintiff asserts claims greater than that amount.
This argument has already been called into doubt by at least one other court in this Circuit, and for reasons this Court finds persuasive. See Hamilton v. Burlington N. Santa Fe Ry. Co., No. A-08-CA-132-SS, 2008 WL 8148619, at *6-8 (W.D.Tex. Aug. 8, 2008). In Hamilton, Judge Sparks concluded that defendants "made a prima facie case for removal pursuant to CAFA's mass action provisions" because plaintiffs' claims totaled "more than $5,000,000 as specified in § 1332(d)(2)."
See id. at *6-8. In so holding, the court expressly adopted the reasoning of Lowery v. Ala. Power Co., 483 F.3d 1184, 1204 (11th Cir.2007), and the Senate Report on CA FA. Id. at *8.
In Lowery, the Eleventh Circuit panel concluded that requiring a showing that each plaintiff holds claims exceeding $75,000 — i.e., the requirement Plaintiffs urge the Court to adopt here — would "fail to give effect to every word and clause in CAFA" and render the $5,000,000 aggregate amount in controversy threshold "mere surplusage."
Hamilton held, as does this Court, that this interpretation
S.REP. NO. 109-14, at 46-47 (2005), reprinted in 2005 U.S.C.C.A.N. 44. That statement of legislative intent is relevant to the Court's determination as to what the statute means. This Court concludes that, although Defendants must show that Plaintiffs' claims exceed $5,000,000 in the aggregate to establish jurisdiction, they do not also bear the burden of establishing that each Plaintiff seeks recovery in excess of $75,000. Defendants must, however, still prove the jurisdictional threshold requirement that at least one Plaintiff's claims exceed $75,000. See Hood, 737 F.3d at 86. They have done so here.
Plaintiffs allege in their Original Petition that no individual Plaintiff seeks recovery in excess of $74,000 — i.e., Plaintiffs would appear to disavow recovery in an amount greater than the jurisdictional minimum of 28 U.S.C. § 1332(a). Pls.' Original Pet. ¶ 13.5. Not only does this contravene then-existing Texas pleading standards,
Thus, the Court's inquiry into whether the amount in controversy has been satisfied as to at least one Plaintiff does not end simply because Plaintiffs allege recovery below $75,000. See De Aguilar, 47 F.3d at 1411. Instead, when a plaintiff specifically pleads he seeks damages less than $75,000, the Fifth Circuit permits a removing defendant to demonstrate, by a preponderance of the evidence, that the amount in controversy actually exceeds the jurisdictional minimum. See id.; see also Beasley v. Liberty Ins. Corp., No. 3:10-CV-631-M, 2010 WL 2697151, at *1 (N.D.Tex. July 7, 2010) (Lynn, J.). Consequently, this Court lacks jurisdiction unless Defendants can demonstrate that Plaintiffs' disclaimer of recovery exceeding the jurisdictional minimum of 28 U.S.C. § 1332(a) is inconsistent with the facts with respect to at least one Plaintiff. De Aguilar, 47 F.3d at 1411-12 ("[I]f a defendant can show that the amount in controversy actually exceeds the jurisdictional amount, the plaintiff must be able to show that, as a matter of law, it is certain that he will not be able to recover more than the damages for which he has prayed in the state court complaint.").
A defendant may establish that the amount in controversy satisfies the jurisdictional minimum in two different ways. "First, it may show that it is `facially apparent' that the amount in controversy exceeds $75,000, by demonstrating that the plaintiff's claims, if vindicated, would yield damages greater than this amount. Second, if the amount in controversy is not facially apparent, the defendant may produce summary judgment-type evidence to show that the amount in dispute satisfies the jurisdictional minimum." Cox v. Liberty Mut. and Credit Collection Servs., No. 3:10-CV-1956-M, 2011 WL 98374, at *2 (N.D.Tex. Jan. 12, 2011) (Lynn, J.).
Defendants have shown, by a preponderance of the evidence, that the $75,000 individual amount in controversy is met as to at least one Plaintiff. Plaintiffs filed this action on behalf of 237 individuals. Pls.' Original Pet. ¶ 2.5. Plaintiffs allege, no less than six times, that Defendants have caused them "substantial damages including but not limited to the cost of their tickets, travel-related expenses, loss of vacation time, and other expenses in a total amount exceeding $5,000,000 to be determined according to proof at trial." Id. at ¶¶ 6.8, 7.7, 8.6, 9.6, 10.8, 11.6. It is thus apparent from the face of Plaintiffs' Original Petition that, on average, each Plaintiff seeks compensatory damages of least $21,097.00.
Although otherwise disclaiming Lowery as dicta, Plaintiffs claim that this analysis is far too speculative to establish that any plaintiff seeks in excess of $75,000. Plaintiffs cast the facts of Lowery as follows:
Pls.' Supp. Br. Submitted in Resp. to Court's Order Dated Dec. 11, 2013 at 7. The Court reads the facts of Lowery differently.
Contrary to Plaintiffs' rendition, the plaintiffs in Lowery did not allege a total sum of damages of at least $5,000,000 in their operative complaint, as did the Plaintiffs here. See Lowery, 483 F.3d at 1220 ("Whatever indications of value can be gleaned from the plaintiffs' pleadings are insufficient to support a conclusion that the plaintiffs' claims were potentially valued at $5,000,000 or more in the aggregate."). In Lowery, the court considered both plaintiffs' initial and third amended complaints to determine whether these pleadings demonstrated that the aggregate amount in controversy was met. Id. at 1218-20. As to the third amended complaint, the court found "no unambiguous statement on the face of the [third] amended complaint that would be sufficient to establish that plaintiffs' claims potentially exceed $5,000,000 in aggregate." Id. at 1219. As to the initial complaint, the court held that "it would be improper to bind plaintiffs by the prayer for relief in their initial pleading," as it had since been amended, thereby superseding any amount initially claimed. Id. at 1219-20.
Such is not the case here. Plaintiffs have filed in state court only an Original Petition, which repeatedly alleges that Plaintiffs incurred damages exceeding this aggregate amount. See supra at 8. The Lowery defendants were not basing their "mathematical calculation" on any similar statement, but, rather, on their argument that each of the 400 plaintiffs needed to recover an average of $12,500 to reach
Because the Court concludes that it is facially apparent from Plaintiffs' Petition that the amount in controversy is met as to at least one Plaintiff, it declines to consider the independent evidence that Defendants provided to further assert this Court's jurisdiction. The Court notes, however, that Plaintiffs have submitted evidence demonstrating that Plaintiff Carre Covell lacks standing to pursue claims in this case, such that the Court would be required to remand her claims on the basis that they do not exceed $75,000.
Plaintiffs also argue that the "event or occurrence" exception bars the Court from asserting jurisdiction over this action. The "event or occurrence" exception excludes from the definition of "mass actions" any civil action in which "all of the claims in the action arise from an event or occurrence in the State in which the action was filed, and that allegedly resulted in injuries in that State or in States contiguous to that State." 28 U.S.C. § 1332(d)(11)(B)(ii)(I). Plaintiffs bear the burden of proving the applicability of this jurisdictional exception. See Laffin, 2011 WL 1396887, at *1. The Court concludes that they have not done so.
While Plaintiffs' claims undeniably share similar facts, they simply do not arise from an "event or occurrence" as that term is used in § 1332(d)(11)(B)(ii)(I). "The [C]ourt cannot ignore the singular usage of `event' and the singular usage of `occurrence.'" See Adams v. Macon Cnty. Greyhound Park, Inc., 829 F.Supp.2d 1127, 1134-37 (M.D.Ala.2011) (rejecting plaintiffs' argument that an "event or occurrence" is not limited to a single, discrete incident). Although Plaintiffs argue that all of their claims arise from the singular "event or occurrence" of Super Bowl XLV, the Court finds the question much more nuanced.
As was the case in Macon County, this action may fairly be described as one involving claims based on separate events or occurrences, rather than on a single event or occurrence. In Macon County, 816 plaintiffs sued to void gambling contracts and recover losses incurred while playing defendants' electronic bingo machines. Id. at 1131. Like Plaintiffs in this case, plaintiffs in Macon County argued that the "event or occurrence" exception required
Id. at 1136-37. Recognizing that plaintiffs suffered their injuries at the same location, and that their injuries were similar in nature, the court nevertheless held that that plaintiffs' claims were "not the type ... that constitute `an event or occurrence,' within the meaning of § 1332(d)(11)(B)(ii)(I)." Id. at 1136. The court found that "[i]t would stretch the limits of the statutory phrase, `an event or occurrence,' to include within its parameters Defendants' formation of separate contracts with different plaintiffs." Id.
Although recognizing the differences between its facts and those before the Court, the Court nevertheless finds Macon County instructive. Here, 237 Plaintiffs bring claims based on discrete seating denials, delays, relocations, and/or obstructed views associated with the individual tickets that they separately purchased or acquired to attend Super Bowl XLV. See, e.g., Pls.' Original Pet. ¶ 4.55. Without question, Defendants' complained-of actions affected Plaintiffs in at least some similar ways. There is also no doubt that Plaintiffs' allegations are similarly founded on their attendance at Super Bowl XLV. However, rather than to arise from any one, singular "event or occurrence," Plaintiffs' claims are predicated on hundreds of separate ticket purchases and/or acquisitions and different problems that occurred. See, e.g., Pls.' Original Pet. ¶ 4.39 ("[T]housands of ticket holders to Super Bowl XLV never got what they bargained for or what was promised to them.") (emphasis added). The fact remains that the seating problems alleged in connection with these game tickets form separate events or occurrences for which recovery is sought.
For the aforementioned reasons, Plaintiffs' Motion to Remand is