Opinion · Court of Appeals for the Ninth Circuit

Victor Garibay v. Archstone Communities LLC

539 F. App'x 763

Type
Opinion
Court
Court of Appeals for the Ninth Circuit
Jurisdiction
Federal
Date
2013-08-27
Topic
general

finding that the defendant improperly “assume[d] that each employee would be entitled to the maximum statutory penalty, but provide[d] no evidence supporting that assertion.” | finding that the defendant improperly JS-6 UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA CIVIL MINUTES - GENERAL Case No. CV 19-10222 PA (AFMx | holding insufficient a declaration by a payroll officer setting forth “only the number of employees during the relevant period, the number of pay periods, and general information about hourly employee wages”’ | holding similar calculation assumed that “every single member of the class would be entitled to recover penalties for every single pay period” was not supported by evidence and could not be used to calculate the amount in controversy | affirming order remanding case in wage-and-hour action removed pursuant to CAFA where "defendants rely on speculative and self-serving assumptions about key unknown variables" | rejecting an employer’s maximum wage statement penalty calculation because the employer provided no evidence to support its assertion | rejecting defendant’s assumption that each employee was entitled to maximum statutory penalty because the assumption was not supported by any evidence | rejecting defendants’ assumption that each employee would be entitled to the maximum penalty because defendants do not provide evidence to support that assertion | rejecting 25% in attorneys’ fees where the defendant 11 had not established that the underlying amount upon which the fee would be based was at least $4 12 million | affirming district court’s order of remand in a CAFA case where defendant’s argument that all plaintiffs would be entitled to the maximum statutory penalty under § 203 was unsupported by evidence | affirming district court’s order remanding case based on failure to show $5 million amount in controversy, finding the CENTRAL DISTRICT OF CALIFORNIA CIVIL MINUTES - GENERAL Case No. CV 25-3302 PA (MAAx | finding the defendants failed to provide evidence that the assumption of two rest 4 break violations per week was “more appropriate” than one violation per pay period or one 5 violation per month | finding the defendants failed to provide 1 evidence that the assumption of two rest break violations per week was “more 2 appropriate” than one violation per pay period or one violation per month | finding the defendants failed to provide evidence that the assumption of two rest 15 break violations per week was “more appropriate” than one violation per pay period or one 16 violation per month | finding the defendants failed to provide evidence that the assumption of two rest 15 break violations per week was “more appropriate” than one violation per pay period or one 16 violation per month | affirming the 22 lower court’s finding that defendant failed to meet their burden of proof with their 23 assumption that “every single member of the class would be entitled to recover 24 penalties for every single pay period” | affirming district court’s order remanding case based on failure to show $5 million amount in controversy, finding the defendant improperly “assume[d] that each employee would be entitled to the maximum statutory penalty, but provide[d] no evidence supporting that assertion.” | affirming district court’s order remanding case based on failure to show $5 million amount in controversy, finding the defendant improperly “assume[d] that each employee would be entitled to the maximum statutory penalty, but provide[d] no evidence supporting that assertion.” | affirming district court’s order remanding case based on failure to show $5 million amount in controversy, finding the defendant improperly “assume[d] that each employee would be entitled to the maximum statutory penalty, but provide[d] no evidence supporting that assertion.” | rejecting calculation of amount in controversy where the only evidence provided was “a declaration by [defendants’] supervisor of payroll, which set[ ] fort

Citator

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36 opinions

*764 MEMORANDUM ***

Archstone Communities, LLC and Arch-stone Property Management California, Inc. appeal the district court’s order granting Victor Gariba/s motion to remand his class action complaint, which alleges violations of various California wage and employment laws, to state court. We have jurisdiction under 28 U.S.C. § 1453(c), and we affirm.

The district court correctly held that the defendants did not meet their burden to prove by a preponderance of the evidence that the amount in controversy exceeds $5 million as required for federal jurisdiction under the Class Action Fairness Act, 28 U.S.C. § 1332(d). See Abrego Abrego v. The Dow Chem. Co., 443 F.3d 676, 685 (9th Cir.2006) (per curiam). The only evidence the defendants proffer to support their calculation of the amount in controversy is a declaration by their supervisor of payroll, which sets forth only the number of employees during the relevant period, the number of pay periods, and general information about hourly employee wages. Beyond this, the defendants rely on speculative and self-serving assumptions about key unknown variables. The district court correctly concluded that Archstone’s evidence was insufficient to support removal jurisdiction under CAFA.

For example, Garibay alleged violations of Cal. Labor Code § 226, which provides that employers who fail to provide employees with “an accurate itemized [wage] statement” are subject to fines. Arch-stone’s calculations assume that every single member of the class would be entitled to recover penalties for every single pay period. Garibay also alleges violations of Cal. Labor Code § 203, which provides that employers who fail to timely pay all earned wages upon termination are subject to a fine equal to the employee’s normal wages for each day the wages are late, up to a maximum of 30 days. Archstone assumes that each employee would be entitled to the maximum statutory penalty, but provides no evidence supporting that assertion. Along the same lines, Garibay alleged violations of Cal. Labor Code § 226.7, which provides that employers who fail to provide adequate meal or rest breaks must compensate the employee for an additional hour of pay. Archstone assumes that each class member was wrongly denied a break twice each week. As the district court correctly explained, Arch-stone failed to provide any evidence regarding why the assumption that each employee missed two rest periods per week was more appropriate than “one missed rest period per paycheck or one missed rest period per month.” Although Arch-stone correctly notes that 25% recovery is the “benchmark” level for reasonable attorney’s fees in class action cases, see Hanlon v. Chrysler Corp., 150 F.3d 1011, 1029 (9th Cir.1998), and that such fees are properly included in calculations of the amount in controversy, see Lowdermilk v. U.S. Bank Nat’l Ass’n, 479 F.3d 994, 1000 (9th Cir.2007); Cal. Labor Code § 218.5, Archstone has not established by a preponderance of the evidence that the underlying amount upon which those fees would be based is at least $4 million, as would be required to meet the $5 million minimum.

Finally, although the district court cited to Lowdermilk, 479 F.3d at 1002, which applied the heightened “legal certainty” standard, it relied on that case for the general proposition that we may not base our jurisdiction on mere speculation. Con *765 trary to Archstone’s assertions, the district court correctly identified and applied the preponderance of the evidence standard.

When it initially sought removal, Arch-stone did not have the benefit of our decision in Roth v. CHA Hollywood Med. Ctr., 720 F.3d 1121 (9th Cir.2013). Under Roth, if Archstone later discovers evidence that the jurisdictional bar is met, it may once again attempt to remove this case to federal court.

AFFIRMED.

***

This disposition is not appropriate for publication and is not precedent except as provided by 9th Cir. R. 36-3.