Celena King v. Great American Chicken Corp.
903 F.3d 875
| 9th Cir. | 2018Background
- King filed a putative class action in Los Angeles Superior Court on behalf of current and former non-exempt California GAC employees alleging California wage-and-hour violations; class potentially ~6,000 members.
- GAC removed under CAFA; removal undisputedly proper (amount-in-controversy, class size, at least one out-of-state class member).
- King sought jurisdictional discovery on class members’ last-known addresses and citizenship to show CAFA’s local/home-state controversy exceptions applied (requiring > two-thirds of class to be California citizens).
- GAC resisted discovery but offered a stipulation that at least two-thirds (described alternatively as at least 67%) of putative class members had last-known addresses in California; King declined.
- The district court accepted the stipulation in lieu of discovery and granted remand to state court; GAC appealed.
- The Ninth Circuit vacated the remand because the stipulation and record did not supply sufficient evidence by a preponderance that > two-thirds were California citizens at removal, and remanded for additional proceedings allowing King jurisdictional discovery and to renew remand.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether King met her burden to prove by a preponderance that > two-thirds of putative class members were California citizens at removal for CAFA local/home-state exceptions | King relied on GAC’s stipulation that at least two-thirds (or at least 67%) of last-known addresses were in California and asked court to infer citizenship from addresses | GAC argued the stipulation (and addresses) would not prove citizenship; pointed to known out-of-state domiciliaries and other uncertainties and resisted broad discovery | Remand vacated: stipulation and record insufficient to prove > two-thirds were California citizens; King must be allowed jurisdictional discovery and may renew remand motion |
Key Cases Cited
- Mondragon v. Capital One Auto Fin., 736 F.3d 880 (9th Cir. 2013) (district court must base CAFA citizenship findings on at least some facts in evidence; cannot rely on mere class definition)
- Kanter v. Warner-Lambert Co., 265 F.3d 853 (9th Cir. 2001) (state citizenship for diversity purposes requires U.S. citizenship and is established by domicile, not mere residence)
- Lew v. Moss, 797 F.2d 747 (9th Cir. 1986) (citizenship determinations are essentially factual)
- Standard Fire Ins. Co. v. Knowles, 568 U.S. 588 (2013) (CAFA’s primary objective favors federal adjudication of interstate class actions)
- Serrano v. 180 Connect, Inc., 478 F.3d 1018 (9th Cir. 2007) (discussing CAFA home-state controversy exception)
