Heffington v. FCA US LLC
2:17-cv-00317
E.D. Cal.Aug 30, 2017Background
- Plaintiff Robert Heffington sued FCA US LLC in California state court asserting Song‑Beverly Act breach of warranty claims and fraudulent concealment regarding a 2011 Jeep Wrangler.
- FCA removed the case to federal court asserting diversity jurisdiction.
- Plaintiff moved to remand, arguing FCA failed to show complete diversity and that the amount in controversy exceeded $75,000.
- At hearing the court allowed supplemental briefing; FCA submitted a declaration and vehicle mileage records.
- The sales contract shows a total vehicle price of $40,607.25 and 31 miles at purchase; records show 40,357 miles at first relevant repair.
- The court denied remand, concluding FCA met its burden on both diversity of citizenship and amount in controversy.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Complete diversity of citizenship | Heffington is a California citizen; FCA’s removal paperwork and counsel declaration are insufficient to establish FCA’s citizenship | FCA is an LLC whose sole member chain leads to Fiat Chrysler Automobiles N.V., a Netherlands entity with principal place of business in England, establishing alien/foreign citizenship | Court found FCA proved citizenship of foreign parent; complete diversity exists |
| Amount in controversy > $75,000 | Plaintiff contends FCA failed to prove the amount in controversy requirement | FCA calculated actual price paid, mileage‑based use deduction, potential treble civil penalties under Song‑Beverly, and attorney’s fees to show the threshold is met | Court accepted FCA’s calculations: actual damages $26,961.18 plus possible civil penalties and fees, making the amount in controversy more likely than not over $75,000 |
| Proper measure of Song‑Beverly refund/damages | Heffington implicitly disputes defendant’s mileage/use calculation and evidence | FCA relied on contract price and repair‑date mileage to compute deduction under Cal. Civ. Code §1793.2(d)(2)(C) | Court used vehicle price and 40,357 miles at first repair to compute $13,646.07 use deduction and $26,961.18 maximum damages |
| Inclusion of attorney’s fees in amount in controversy | Plaintiff notes lack of evidence of actual or future fees | FCA contends fees are recoverable under Song‑Beverly and may be included in amount in controversy | Court noted fees are includable where statute allows, and even without specific fee evidence the combined damages and statutory penalties support jurisdiction |
Key Cases Cited
- City of Chicago v. Int’l Coll. of Surgeons, 522 U.S. 156 (1997) (removal permitted where case could have been filed originally in federal court)
- Caterpillar Inc. v. Williams, 482 U.S. 386 (1987) (distinguishes state law claims removable only when federal jurisdiction exists independently)
- Nevada v. Bank of Am. Corp., 672 F.3d 661 (9th Cir. 2012) (removal statutes strictly construed; doubts resolved against removal)
- Gaus v. Miles, Inc., 980 F.2d 564 (9th Cir. 1992) (defendant bears burden to establish federal jurisdiction)
- Abrego Abrego v. Dow Chem. Co., 443 F.3d 676 (9th Cir. 2006) (complete diversity requirement — one common state citizen defeats diversity)
- Johnson v. Columbia Props. Anchorage, LP, 437 F.3d 894 (9th Cir. 2006) (an LLC is a citizen of each member’s citizenship)
- Sanchez v. Monumental Life Ins. Co., 102 F.3d 398 (9th Cir. 1996) (burden to prove amount in controversy by preponderance)
- Lewis v. Verizon Comm. Inc., 627 F.3d 395 (9th Cir. 2010) (amount in controversy is estimate of total dispute assuming plaintiffs prevail)
- Galt G/S v. JSS Scandinavia, 142 F.3d 1150 (9th Cir. 1998) (attorney’s fees authorized by statute may be included in amount in controversy)