Leslie Miedema v. Maytag CorporationLeslie Miedema v. Maytag Corporation
Wе previously accepted Defendant-Appellant Maytag Corporation’s petition for permission to appeal, pursuant to the Class Action Fairness Act (“CAFA”), Pub.L. No. 109-2, 119 Stat. 4 (2005) (codified in scattered sections of 28 U.S.C.), from the district court’s order granting Plaintiff-Appellee Leslie Miedema’s motion to remand for lack of subject matter jurisdiction. On appeal, Maytag contends that the district court erred by placing the burden of proving subject matter jurisdiction on Maytag and resolving all doubts in favor of remand. Maytag further objects that, even if it did have this burden, the district court applied too high a standard of proof with respect to CAFA’s amount in controversy requirement. Finally, Maytag claims that the district court erroneously relied upon a post-removal amended complaint in reaching its decision. After careful review of the record and the briefs, we affirm the judgment of the district court.
I. BACKGROUND
In October of 2005, Leslie Miedema filed a class action suit against Maytag in Florida statе court, alleging that various “ranges/ovens” designed and manufactured by Maytag contained a defective motorized door latch assembly that allowed heat to escape and damage other range/ oven components. Specifically, Miedema pleaded that she brought her action “on behalf of herself and all other similarly situated consumers of [Maytag] ranges/ ovens that incorporate the defective motorized door latch assembly, as a statеwide class action, pursuant to
Within a month of being served with Miedema’s complaint, Maytag filed a notice of removal in federal district court, invoking
Miedema responded by moving to remand for lack of subject matter jurisdiction. She argued that Maytag had the burden of establishing subject mattеr jurisdiction by a preponderance of the evidence, and that Maytag had failed to carry that burden with respect to the amount in controversy. For example, Miedema stated, Jarrett’s declaration did not specify whether each of the 6,729 ranges/ovens sold incorporated the allegedly defective motorized door latch assembly at issue, what Maytag meant by “total value,” or how that “total value” was calculated. Maytag opposed the motion tо remand, arguing, among other things, that any vagueness in its determination of the amount in controversy was due to the breadth of Miedema’s complaint. The district court, noting the existence of disagreement among courts as to which party bears the burden of establishing subject matter jurisdiction under CAFA, ordered additional briefing on the issue, as well as on whether the requisite amount in controversy had been established. Miedema then proceeded to depose Jodi Jarrett, and submitted this deposition аs additional evidence of Maytag’s failure to establish that more than $5,000,000 was in controversy.
After receiving the parties’ additional submissions, the district court issued an order granting Miedema’s motion to remand for lack of subject matter jurisdiction.
1
The district court adhered to the traditional rule in the CAFA context that a removing defendant bears the burden of establishing subject matter jurisdiction. The court then determined that Maytag did not satisfy that burden, finding that the Jarrett declaration and deposition were “flawеd” in this regard. Although Miedema also contributed to the uncertainty surrounding the amount in controversy, the court noted, it must ultimately resolve all doubts in favor of remand. We granted Maytag’s subsequent petition for permission to appeal the remand order,
see
II. STANDARD OF REVIEW
We review de novo the district court’s decision to remand for lack of subject matter jurisdiction.
Evans v. Walter Indus., Inc.,
III. DISCUSSION
A. CAFA Review of Remand Orders
1. 7-Day Application Rule
The CAFA permits a court of appeals to accept an application to appeal if the application is made to the court of appeals
“not less than
7 days after entry of the [district court’s] order” granting or denying a motion to remand a class action to the state court from which It was removed.
2. 60-Day Review Limit
The CAFA requires us to “complete all action on [this] appeal, including rendering judgment, not later than 60 days after the date on which such appeal was
B. Burden of Establishing Subject Matter Jurisdiction
The CAFA authorizes removal of a “class action” in accordance with
Maytag contends that the district court, in evaluating Miedema’s motion to remand, erred by applying the traditional rule that the removing defendant bears the burden of establishing subject matter jurisdiction. Maytag concedes “[t]he text of CAFA does not address which pаrty has the burden of proof in establishing federal jurisdiction when a class action is removed to federal court,” but argues the legislative history expresses a clear intent to require that an objecting plaintiff demonstrate removal was improvident, i.e., that all applicable jurisdictional requirements were not met. Specifically, Maytag points to language in the Senate Committee Report:
If a purported class action is removed pursuant to these jurisdictional provisiоns, the named plaintiff(s) should bear the burden of demonstrating that the removal was improvident (i.e., that the applicable jurisdictional requirements are not satisfied). And if a federal court is uncertain about whether “all matters in controversy” in a purported class action “do not in the aggregate exceed the sum or value of $5,000,000,” the courtshould err in favor of exercising jurisdiction over the case.
S.Rep. No. 109-14, at 42 (2005), as reprinted in 2005 U.S.C.C.A.N. 3, 40; see also 151 Cong. Rec. H728, H727 (2005) (statement of Rep. Sensenbrenner) (“If a purported class action is rеmoved under these jurisdictional provisions, the named plaintiff(s) should bear the burden of demonstrating that removal was improper. And if a federal court is uncertain about whether the $5 million threshold is satisfied, the court should err in favor of exercising jurisdiction over the case.”). Thus, Maytag concludes, the district court should have placed the burden on Miedema to prove that subject matter jurisdiction was lacking.
We disagree. The Seventh and Ninth Circuits have, in detailed opinions, rejected the very kind of argument Maytag now presents.
See Brill v. Countrywide Home Loans, Inc.,
For similar reasons, we also reject Maytag’s argument, based on the legislative history described above, that the district court should have resolved any doubts about the amount in controversy in favor of finding jurisdiction. As with the burden of proof, CAFA itself is silent on the matter. The rule of construing removal statutes strictly and resolving doubts in favor of remand, however, is well-established.
See, e.g., Shamrock Oil & Gas Corp. v.
Maytag contends that adherence to ■these well-established rules runs contrary to “one of the overriding purposes” of CAFA, which Maytag characterizes as “fixfing] the flaw in
For the foregoing reasons, we conclude that the district court did not err by placing the burden of establishing subject matter jurisdiction on Maytag, or by invoking the rule that doubts are to be resolved in favor of remand.
C. Amount in Controversy
1. Standard of Proof
Maytag contends that, in order to satisfy its burden of proof with respect to the amount in controvеrsy (minimal diversity is not in dispute), the district court erroneously required it to “prove with certainty” the following: (1) “how many of the ovens listed in [Miedema’s] complaint were actually defective”; (2) “the number of ovens located in Florida”; and (3) “the price that each Florida customer paid for their Maytag oven.” Such a high standard of proof, Maytag argues, essentially renders it impossible for manufacturers to meet CAFA’s amount in controversy requirement. The district court, however, did not purport to require that Maytag prove the requisite amount in controversy “with certainty.” To the contrary, the district court properly invoked the rule that “[w]here, as here, the plaintiff has not pled a specific amount of damages, the removing defendant must prove by a
preponderance of the evidence
that the amount in controversy exceeds the jurisdictional requirement.”
Williams v. Best Buy Co., Inc.,
2. Evidence
In order to establish the amount in controversy, Maytag’s notice of removal relied upon Jodi Jarrett’s declaration that “a total of 6,729 of the models of ranges/ovens identified in paragraph 22 of the Complaint were sold in Florida,” and “[t]he total value of those ranges/ovens is
Paragraph 21 of the complaint makes clear that Plaintiff is only pursuing relief “on behalf of herself and all other similarly situated consumers of Maytag ranges/ovens that incorporate the defective motorized latch assembly, as a statewide class action.” (Emphasis added). Contrary to Defendant’s contention, Plaintiff did not claim that all of the ranges/oven[s] of the models identified in paragraph 22 contained the defect. The affidavit attached to the Notice of Removal fails to confirm that each of the 6,729 units had the defective motorized door latch assembly. Instead, the affidavit only claims that “6,729 of the models of ranges/ovens identified in paragraph 22 of the Complaint were sold in Florida.” Paragraph 22 of the complaint is a list of the model numbers at issue. Further, the affidavit fails to define what is meant by the “total value” of those ranges/ovens.
Maytag challenges this analysis, noting that paragraph 22 of Miedema’s original complaint simply identifies the putative class as
“[afll
purchasers of Maytag ranges/ovens, in the State of Florida,” that bear any of the listed model numbers, (emphasis added). When considered in conjunction with paragraph 21 of the original complaint, Maytag argues, paragraph 22 necessarily implies that
every
range/ oven which bears one of the listed model numbers and was purchased in Florida contains the motorized latch assembly alleged to be defective. The district court, Maytag suggests, must have confused paragraph 22 of Miedema’s original complaint with paragraph 22 of her post-removal amended complaint, which identifies the putative class as
“all
purchasers of Maytag ranges/ovens, in the State of Florida,
which contain the allegedly defective motorized door latch assembly”
and bear any of the listed model numbers, (emphasis added). This new class definition would better support the district court’s reasoning, but may not be considered for purposes of determining subject matter jurisdiction.
See Burns,
While we are not persuaded that the district court did in fact rely upon paragraph 22 of the post-removal amended complaint, we agree that, under the most logical reading of the original complaint, Miedema was alleging that all of the listed range/oven models sold in Florida contained the alleged defective motorized latch assembly. Thus, the district court should not have faulted Maytag for “fail[ing] to confirm that each of the 6,729 units had the defective motorized door latch assembly.” Notwithstanding this error, we agree with the district court that Maytag did not establish the requisite amount in controversy by a preponderance of the evidence.
As the district court pointed out, Jarrett’s declaration offered no explanation as to how she arrived at the cоnclusion that the 6,729 range/oven units had a “total value” of $5,931,971. It appears from Jarrett’s deposition that she was provided with the most recent manufacturer’s suggested retail price (“MSRP”) for each model type at issue, but it is unclear whether those MSRPs would in any way
Given the particular facts and circumstancеs of the instant case, the district court did not err when it found that “great uncertainty” remained about the amount in controversy, resolved that uncertainty in favor of remand, and concluded that Maytag had not established, by a preponderance of the evidence, that the amount in controversy exceeded $5,000,000. Accordingly, remand for lack of subject matter jurisdiction was appropriate.
IV. CONCLUSION
In resolving the issue of subject matter jurisdiction, the district court properly placed the burden of proof on the Maytag, the removing party, and did not err by applying the principle that doubts about jurisdiction are to be resolved in favor of remand. Furthermore, the district court did not err when it concluded Maytag had not established, by a preponderance of the evidence, that the amount in controversy exceeded $5,000,000, as required by CAFA. We therefore affirm the judgment of the district court.
Unless held by an active judge of this court, the mandate shall issue on June 22, 2006.
AFFIRMED.
Notes
. The district court’s ordеr also denied all other pending motions as moot and administratively closed the case.
. If a final judgment on the appeal is not issued before the end of the 60-day period, plus any extension of that period under
. The one-year limitation in
.While this grant of jurisdiction does not apply to a class action in which “the number of members of all proposed plaintiff classes in the aggregate is less than 100,”
see
. Maytag cites
Corning Glass Works v. Brennan,
. In fact, § 2(b) of CAFA describes its purposes as fоllows: (1) "[to] assure fair and prompt recoveries for class members with legitimate claims”; (2) "[to] restore the intent of the framers of the United States Constitution by providing for federal court consideration of interstate cases of national importance under diversity jurisdiction”; and (3) "[to] benefit society by encouraging innovation and lowering consumer prices.”
. "The unanimity requirement mandates that in cases involving multiple defendants, all defendants must consent to removal.”
Russell Corp. v. Am. Home Assur. Co.,
. Notably, the standards urged by Maytag would leave courts with lingering doubts about the existence of subject matter jurisdiction. The mere fact that a plaintiff failed to prove that subject matter jurisdiction did
not
exist, for example, would not necessarily mean that subject matter jurisdiction
did
exist. As a result, class actions could conceivably proceed through removal, an initial
. The district court also found it significant that Maytag's calculation of the amount in controversy did not account for the effect of any applicable statutes of limitations. When determining the amount in controversy for jurisdictional purposes, however, courts cannot look past the complaint to the merits of a defense that has not yet been established.
See Johns-Manville Sales Corp. v. Mitchell Enters., Inc.,