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Chambers v. Stihl Incorporated USA
4:22-cv-00688
E.D. Ark.
Aug 11, 2023
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Background

  • Plaintiff (Chambers) sued Stihl in Arkansas state court alleging only violations of the Magnuson-Moss Warranty Act (MMWA) based on warranties that allegedly bar third‑party repairs/parts.
  • Stihl removed the case to federal court under CAFA (28 U.S.C. § 1332(d)), asserting diversity class-action jurisdiction.
  • Plaintiff moved to remand, arguing the MMWA’s own federal‑court jurisdictional prerequisites apply (individual claim minimums and a 100‑named‑plaintiff rule) and that CAFA cannot override them.
  • Alternatively, Plaintiff argued Stihl failed to carry the burden of showing the CAFA $5,000,000 amount‑in‑controversy threshold was met.
  • Stihl submitted declarations and calculations (including potential injunctive relief, declaratory relief, and attorneys’ fees) to show the aggregate controversy plausibly exceeds $5,000,000.
  • The court denied remand: it concluded CAFA jurisdiction can govern and found Stihl met the preponderance‑of‑the‑evidence showing that the amount‑in‑controversy exceeds $5,000,000; Plaintiff failed to prove to a legal certainty the case falls below that threshold.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether MMWA’s own jurisdictional thresholds bar federal jurisdiction absent meeting them MMWA’s subsection (d)(3) controls; CAFA cannot supplant MMWA’s stricter thresholds CAFA provides an alternate basis for federal jurisdiction; once CAFA thresholds are met, MMWA’s additional thresholds need not be satisfied Court held CAFA can supply jurisdiction; MMWA thresholds need not be independently met when CAFA applies
Whether the CAFA $5,000,000 amount‑in‑controversy is satisfied Stihl did not prove the controversy exceeds $5,000,000 Stihl’s declarations and valuation of requested injunctive/declaratory relief plus attorneys’ fees plausibly and preponderantly show > $5,000,000 Court held Stihl met its preponderance burden; Plaintiff failed to show to a legal certainty the amount is below $5,000,000

Key Cases Cited

  • Rowland v. Bissell Homecare, Inc., 73 F.4th 177 (3d Cir.) (argues MMWA’s jurisdictional rules conflict with CAFA)
  • Floyd v. Am. Honda Motor Co., 966 F.3d 1027 (9th Cir.) (holds CAFA should not override MMWA absent clear intent)
  • Leflar v. Target Corp., 57 F.4th 600 (8th Cir.) (assumes without deciding CAFA can suffice such that MMWA thresholds need not be independently met)
  • Lizama v. Victoria’s Secret Stores, LLC, 36 F.4th 762 (8th Cir.) (describes burdens for establishing amount‑in‑controversy)
  • Westerfield v. Independent Processing, LLC, 621 F.3d 819 (8th Cir.) (summarizes CAFA jurisdictional requirements)
  • Dack v. Volkswagen Grp. of Am., 565 F. Supp. 3d 1135 (W.D. Mo.) (applies CAFA over MMWA thresholds)
Read the full case

Case Details

Case Name: Chambers v. Stihl Incorporated USA
Court Name: District Court, E.D. Arkansas
Date Published: Aug 11, 2023
Citation: 4:22-cv-00688
Docket Number: 4:22-cv-00688
Court Abbreviation: E.D. Ark.