82 F. Supp. 3d 133
D.D.C.2015Background
- Plaintiff Valerie McMullen, a D.C. resident and One World Fitness customer, sued Chase, Synchrony Bank, local gym owners (Bullen, Steward) and related D.C. businesses alleging a scheme to open and bill unauthorized credit lines; she asserted CPPA and related claims on behalf of a putative class.
- McMullen filed in D.C. Superior Court; defendants removed under CAFA to federal court alleging minimal diversity, class size >=100, and amount in controversy > $5 million.
- McMullen moved to remand (or for limited discovery), arguing defendants failed to prove class citizenship and amount in controversy; defendants opposed removal and discovery.
- The court found CAFA’s basic requirements satisfied: Chase’s business records showed 367 financed accounts and McMullen sought approximately $32,130 per class member, producing an aggregated amount > $5 million.
- The court held the presence of local defendants (One World Fitness, Bullen Wellness, Washington Chiropractic, and Steward) and that their alleged conduct forms a significant basis for the claims and that significant relief is sought from them.
- Because McMullen failed to produce evidence that >2/3 of class members are D.C. citizens, the court denied remand without prejudice, granted limited expedited discovery narrowly tailored to class citizenship, and allowed remand motion to be renewed after discovery.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Class size (CAFA numerosity) | Class size uncertain; plaintiff’s estimate insufficient | Chase produced records showing 367 Chase-financed accounts | Held: Chase met burden; numerosity satisfied (>=100) |
| Amount in controversy (> $5M) | Only individual damages shown; aggregate unclear without discovery | Multiply plaintiff’s per-member damages estimate ($32,130) by class size yields >$11.7M | Held: Amount in controversy satisfied based on plaintiff’s own per-member figure and Chase’s class size evidence |
| Local defendant status and significance | Local LLCs and Steward are D.C. defendants from whom significant relief is sought | Chase: LLC membership citizenship unknown; Steward may be Maryland resident and not properly considered | Held: Under CAFA §1332(d)(10) unincorporated D.C. businesses are D.C. citizens; Steward’s own sworn statement supports D.C. citizenship; local defendants meet the "significant basis" and "significant relief" prongs |
| Local controversy exception — class citizenship (>2/3 D.C. citizens) | Complaint defines class as One World Fitness customers "in the District of Columbia" and therefore >2/3 are D.C. citizens; requests discovery to prove it | Chase: class definition is broader; plaintiff provided no evidence of members’ citizenship | Held: Plaintiff failed to carry burden; no evidence that >2/3 are D.C. citizens; court ordered limited expedited discovery on class citizenship; remand denied with leave to renew |
Key Cases Cited
- Mississippi ex rel. Hood v. AU Optronics Corp., 134 S. Ct. 736 (2014) (CAFA expanded federal jurisdiction for certain class actions; minimal diversity standard)
- Dart Cherokee Basin Operating Co. v. Owens, 135 S. Ct. 547 (2014) (amount-in-controversy allegations by defendant are accepted when unchallenged; removal standards under CAFA)
- Standard Fire Ins. Co. v. Knowles, 133 S. Ct. 1345 (2013) (CAFA permits aggregation of class members’ claims to meet jurisdictional threshold)
- Mondragon v. Capitol One Auto Finance, 736 F.3d 880 (9th Cir. 2013) (plaintiff must present evidence to support findings on class-members’ citizenship for CAFA local controversy exception)
- Wexler v. United Air Lines, Inc., 496 F. Supp. 2d 150 (D.D.C. 2007) (defendant cannot rely solely on plaintiff’s estimate of class size to establish CAFA jurisdiction)