Robert Hurst v. Nissan North America
511 F. App'x 584
8th Cir.2013Background
- Hurst filed a statewide Missouri class action against Nissan for allegedly defective dashboards (Dec 14, 2009).
- Nissan removed to federal court under CAFA after class was certified and trial set; remand denied by district court based on CAFA amount in controversy ($5M+) not met.
- District court determined the amount in controversy at removal was at most $2,858,000, so CAFA jurisdiction was not satisfied.
- Hurst proposed punitive-damages jury instructions shortly before trial; Nissan removed arguing CAFAS amount satisfied and removal was timely.
- Court held punitive damages were not pleadable under Missouri law at the time of removal, so damages were not recoverable in excess of $5M.
- Nissan sought appellate review under 28 U.S.C. § 1453; the Eighth Circuit affirmed the remand order.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether CAFA removal was proper given punitive damages were not pleadable. | Hurst contends damages could not exceed $5M because punitive damages were not plead. | Nissan argues punitive damages could be awarded if later plead, making case removable. | Remand affirmed; not removable at time of removal. |
| Whether removal was timely under 28 U.S.C. § 1446(b)(3). | N/A (not challenged for timing by plaintiff on appeal). | Removal timely because it followed Hurst's punitive-damages instruction proposal. | Removal timely; the timing issue resolved in Nissan's favor. |
Key Cases Cited
- Standard Fire Ins. Co. v. Knowles, 133 S. Ct. 1345 (2013) (CAFA jurisdiction under preponderance standard)
- Bell v. Hershey Co., 557 F.3d 953 (8th Cir. 2009) (burden on proponent to show amount in controversy at removal)
- Hargis v. Access Capital Funding, LLC, 674 F.3d 783 (8th Cir. 2012) (time of removal controls jurisdictional inquiry)
- Green v. Study, 286 S.W.3d 236 (Mo. App. 2009) (punitive damages require pleadings to be recoverable under Missouri law)
- Benson v. Jim Maddox Nw. Imports, Inc., 728 S.W.2d 668 (Mo. App. 1987) (punitive damages necessitate separate pleading)
