Case 2:22-cv-06671-RGK-SK Document9 Filed 09/23/22 Pagelof2 Page ID #:89

JS-6 UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA CIVIL MINUTES - GENERAL Case No. 2:22-CV-06671-RGK-SK Date September 23, 2022 Title RICHARD J. SHEPPARD vy. FORD MOTOR COMPANY, et al

Present: The R. GARY KLAUSNER, U.S. DISTRICT JUDGE Honorable K. Pastrana Hernandez (Not Not Reported N/A Present) Deputy Clerk Court Reporter / Recorder Tape No. Attorneys Present for Plaintiff: Attorneys Present for Defendants: Not Present Not Present Proceedings: (IN CHAMBERS) Order Re: Order Remanding Action to State Court On August 17, 2022, Richard J. Sheppard (“Plaintiff”) filed a Complaint against Ford Motor Company (“Defendant”) alleging violations of the Song-Beverly Warranty Act and Magnusson-Moss Warranty Act. On September 16, 2022, Defendant removed the action to federal court alleging jurisdiction on the grounds of diversity of citizenship. Upon review of Defendant’s Notice of Removal, the Court hereby remands the action for lack of subject matter jurisdiction. Pursuant to

, district courts shall have original jurisdiction over any civil action in which the parties are citizens of different states and the action involved an amount in controversy that exceeds $75,000. Pursuant to

, a district court shall have original jurisdiction over any civil action “arising under the Constitution, laws, or treaties of the United States.” A federal question claim brought under the Magnuson-Moss Warranty Act also requires that the amount in controversy exceeds “$50,000 (exclusive of interests and costs) computed on the basis of all claims to be determined in this suit.”

(d)(3)(B). After a plaintiff files a case in state court, the defendant attempting to remove the case to federal court bears the burden of proving the amount in controversy requirement has been met. Lowdermilk v. United States Bank Nat’l Ass’n,

(9th Cir. 2007). If the complaint does not allege that the amount in controversy has been met, the removing defendant must plausibly allege in its notice of removal that the amount in controversy exceeds the jurisdictional threshold. Dart Cherokee Basin Operating Co., LLC v. Owens, 135 8S. Ct. 547, 553- 54(2014). In the complaint, Plaintiff seeks damages, including compensatory damages, restitution, statutory remedies, as well as attorneys’ fees and costs under the Song-Beverly Warranty Act and Magnusson- Moss Warranty Act. In support of its removal, Defendant calculates that based on the vehicle price of □□□□□□□□□□□□□□□□□□□□□ *#*®*~” CV □□□□□□□□□□□□□□□□□□□□□□ Pagelof2—

Case 2:22-cv-06671-RGK-SK Document9 Filed 09/23/22 Page 2of2 Page ID #:90

UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA CIVIL MINUTES - GENERAL Case No. 2:22-CV-06671-RGK-SK Date September 23, 2022 Title RICHARD J. SHEPPARD vy. FORD MOTOR COMPANY, et al

$50,000.00, plus civil penalties of two-times actual damages, the amount in controversy, excluding attorneys’ fees, already exceeds the Jurisdictional minimum for diversity jurisdiction. Defendant further states that the jurisdictional minimum is also met when considering possible mileage off-set. However, even assuming that the vehicle was not purchased on an installment contract, the evidence regarding mileage off-set at the beginning of the vehicle’s use indicates that the vehicle was presented for warranty maintenance, rather than warranty repair. Moreover, as Defendant points out, Plaintiff would be entitled to civil penalties and attorneys’ fees if the action succeeds. However, based on the allegations of the complaint, civil penalties of twice the amount of damages are overly speculative. Likewise, attorneys fees are speculative. Accordingly, the Court finds that Defendant has failed to plausibly allege that the amount in controversy meets the jurisdictional requirement of either diversity jurisdiction or the jurisdiction requirement contained within the Magnusson-Moss Warranty Act. In light of the foregoing, the action is hereby remanded to state court for all further proceedings. IT IS SO ORDERED.

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