Rodriguez v. AT&T Mobility Services LLC

Defendant removed plaintiff's putative class action to federal court, contending that there was federal jurisdiction over the action under the Class Action Fairness Act of 2005 (CAFA), Pub. L. No. 109-2, 119 Stat. 4, and 28 U.S.C. 1332(d)(2). Plaintiff alleged that the amount in controversy did not exceed $5 million and waived any claim by the class in excess of the amount. The district court granted plaintiff's motion to remand based on plaintiff's waiver. The court held that a lead plaintiff of a putative class could not reduce the amount in controversy on behalf of absent class members, so there was no justification for assigning to the allegation weight so significant that it affected a defendant's right to a federal forum under section 1332(d)(2). The court also held that the legal certainty standard in Lowdermilk v. U.S. Bank National Association had been effectively overruled and that the proper burden of proof imposed upon a defendant to establish the amount in controversy was the preponderance of the evidence standard pursuant to Standard Fire Ins. Co. v. Knowles. Accordingly, the court vacated and remanded to the district court to apply the preponderance standard to the amount-in-controversy evidence. View " Rodriguez v. AT&T Mobility Services LLC" on Justia Law