Debra Jones v. Wells Fargo Company, 671 F. App'x 153

Debra S. Jones sued her former employer (Wells Fargo) and supervisor in North Carolina state court for negligence, seeking damages "in excess of $10,000" for past/future mental suffering, treatment costs, and lost wages.
Defendants removed the case to federal court asserting diversity jurisdiction and arguing the individual supervisor was fraudulently joined, and that the amount in controversy exceeded $75,000.
Jones moved to remand the case to state court and the district court denied remand, granted defendants' motion to dismiss, and found the individual defendant fraudulently joined and that the amended complaint established the jurisdictional amount.
The Fourth Circuit reviewed subject-matter jurisdiction de novo, noting that the removing party bears the burden to prove federal jurisdiction and that removal is strictly construed.
The Fourth Circuit concluded defendants failed to prove by a preponderance of the evidence that the amount in controversy exceeded $75,000 and therefore vacated and remanded with instructions to remand the action to state court.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether the individual defendant was fraudulently joined	Jones contended the supervisor was properly joined and state-law claims should remain in state court	Defendants argued the supervisor was fraudulently joined to defeat federal diversity jurisdiction	Court did not decide fraudulent joinder (unnecessary); remand ordered on alternate grounds
Whether the amount in controversy exceeds $75,000	Jones asserted complaint sought only "in excess of $10,000" and did not establish $75,000; she presented no additional proof but complaint’s allegations did not establish the threshold	Defendants argued the amended complaint on its face made clear damages exceeded $75,000 and shifted burden to plaintiff to refute	Defendants failed to meet their burden to prove amount in controversy by a preponderance; remand required

Johnson v. Am. Towers, LLC, 781 F.3d 693 (4th Cir. 2015) (subject-matter jurisdiction and fraudulent-joinder review are de novo)
King v. Marriott Int’l, Inc., 337 F.3d 421 (4th Cir. 2003) (defendants may remove certain state claims to federal court under § 1441)
Hoschar v. Appalachian Power Co., 739 F.3d 163 (4th Cir. 2014) (removing party bears burden of establishing federal jurisdiction)
Dixon v. Coburg Dairy, Inc., 369 F.3d 811 (4th Cir. 2004) (removal jurisdiction must be strictly construed; doubtful cases remanded)
Francis v. Allstate Ins. Co., 709 F.3d 362 (4th Cir. 2013) (when complaint does not specify damages, defendant must prove amount in controversy by a preponderance of the evidence)