4:19-cv-08029
N.D. Cal.Feb 18, 2020Background:
- Clare Lindquist filed a negligence/premises-liability complaint in Marin County Superior Court on November 8, 2018; she was served November 14, 2018.
- Target served a California Civil Code § 425.11 request for a statement of damages on December 27, 2018; Lindquist objected on January 9, 2019.
- Target contends Lindquist first disclosed a $360,000 settlement demand (indicating > $75,000 in controversy) on November 21, 2019.
- Target removed the case to federal court on December 9, 2019, more than one year after commencement.
- Lindquist moved to remand as untimely under 28 U.S.C. § 1446(c)(1); Target argued the bad-faith exception applied because Lindquist allegedly concealed the amount in controversy.
- The district court remanded the action to state court, finding Target failed to show Lindquist acted in bad faith; each party bears its own costs.
Issues:
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Timeliness under the one-year removal rule (28 U.S.C. § 1446(c)(1)) | Lindquist: Removal barred because Target removed >1 year after filing | Target: Lindquist concealed damages; only disclosed amount in Nov. 2019, so bad-faith exception applies | Remand. Target failed to prove plaintiff acted in bad faith to prevent removal |
| 30-day removal clock after notice of removability | Lindquist: Even if one-year exception applied, Target also missed the 30-day window | Target: Removal was timely after notice (November demand) | Court did not reach this argument (declined to decide) |
Key Cases Cited
- Bush v. Cheaptickets, Inc., 425 F.3d 683 (9th Cir. 2005) ("commencement" for the one-year removal rule means when the action was initiated under state procedures)
- Abrego Abrego v. The Dow Chem. Co., 443 F.3d 676 (9th Cir. 2006) (removing defendant bears the burden to establish federal jurisdiction and to prove plaintiff acted in bad faith)
