Valerie Maerowitz v. Club Med Sales, Inc.
2:25-cv-03581
C.D. Cal.May 27, 2025Background
- Valerie Maerowitz filed a lawsuit in the Central District of California against Club Med Sales, Inc. and other defendants.
- Defendants removed the case to federal court based on alleged diversity jurisdiction under 28 U.S.C. § 1332(a).
- The court, upon review of the Notice of Removal, questioned whether the amount in controversy meets the $75,000 jurisdictional threshold required for federal diversity jurisdiction.
- The court ordered both parties to show cause why the case should not be remanded to state court for lack of subject matter jurisdiction.
- The order emphasizes that federal jurisdiction is limited and the removing party must establish jurisdiction by a preponderance of the evidence.
- Defendants are specifically tasked with demonstrating the amount in controversy exceeds $75,000 through both facial and factual sufficiency.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether federal jurisdiction exists | Jurisdiction lacking: amount unclear | Jurisdiction exists; meets threshold | Court questions sufficiency, seeks proof |
| Sufficiency of amount in controversy allegations | Amount not proven by defendants | Allegations in Notice sufficient | Allegations not shown by preponderance |
| Requirement to prove jurisdictional amount | Defendants must show evidence | Jurisdiction presumed by removal | Proof by preponderance of evidence needed |
| Remedy if jurisdiction is not established | Action should be remanded | Removal should stand | Potential remand if insufficient showing |
Key Cases Cited
- Kokkonen v. Guardian Life Ins. Co. of Am., 511 U.S. 375 (1994) (federal courts have limited jurisdiction, requiring affirmative authority)
- DaimlerChrysler Corp. v. Cuno, 547 U.S. 332 (2006) (presumption against federal jurisdiction unless expressly shown)
- Ruhrgas AG v. Marathon Oil Co., 526 U.S. 574 (1999) (federal courts must ensure jurisdiction before ruling on merits)
- Gaus v. Miles, Inc., 980 F.2d 564 (9th Cir. 1992) (any doubt about removal justifies remand)
