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MEMORANDUM OPINION
I. BACKGROUND
II. DISCUSSION
A. Applicable Legal Principles
B. Application
III. CONCLUSION

Mena v. Frito LayMena v. Frito Lay

District Court, Virgin Islands
Jan 13, 2023
1:18-cv-00051
Versions:650 F.Supp.3d 337

Attorneys:

Eugenio W.A. Geigel-Simounet, Esq.,
St. Croix, U.S.V.I.
For Plaintiff

Adam G. Christian, Esq.,
St. Croix, U.S.V.I.
For Defendant

MEMORANDUM OPINION

Lewis, District Judge

THIS MATTER comes before the Court sua sponte following Putative Defendant PepsiCo. Caribbean Inc.s (“PCI“) removal of this action from the Superior Court of the Virgin Islands. For the reasons that follow, the Court concludes that it lacks subject mattеr jurisdiction over this action and will remand this case to the Superior Court.

I. BACKGROUND

On February 15, 2015, Plaintiff Edward R. Mena allegedly bit into a staple that was in a bag of Chicharrones that he had purchased from a grocery store in Frederiksted, St. Croix. (Dkt. No. 1-1 (Compl.) at paragraphs 4-5). Two years later, Mena filed a lawsuit against “Frito Lay” and unknown defendant “XYZ” in the Superior Court of the Virgin Islands, in which he seeks damages that he allegеdly sustained as a result of this incident. (Dkt. No. 1-1 (Compl.)). Putative Defendant PCI is licensed to do business in the United States Virgin Islands under the tradename “Frito Lay Quaker.” (Dkt. No. 8-2 (Perez Dec.) at paragraph 9). PCI appeared in the Superior Court action and subsequently removed the action to this Court, invoking the Courts diversity jurisdiction. (Dkt. No. 1 (Notice of Removal) at 16).

II. DISCUSSION

A. Applicable Legal Principles

“Removal of cases from state to federal courts is governеd by 28 U.S.C. paragraph 1441 [“Section 1441“].” Samuel-Bassett v. KIA Motors Am., Inc., 357 F.3d 392, 396 (3d Cir. 2004). Pursuant to Section 1441, a defendant may remove “any civil action brought in a State court of which the district courts of the United States have original jurisdiction[.]” 28 U.S.C. paragraph 1441(a). Under the doctrine of diversity jurisdiction applicable here, fеderal district courts have original jurisdiction over civil actions between citizens of different states where the amount in controversy exceeds $75,000. 28 U.S.C. paragraph 1332(a).

In a removal case, the party asserting fedеral jurisdiction “bears the burden of showing, at all stages of the litigation, that the case is properly before the federal court.” Frederico v. Home Depot, 507 F.3d 188, 193 (3d Cir. 2007). “If at any time before final judgment it appears that the district court lаcks subject matter jurisdiction, the case shall be remanded.” 28 U.S.C. paragraph 1447(c) [“Section 1447(c)“]. As the Third Circuit has noted, Section 1447(c), “allows and indeed compels a district court to address the question of jurisdiction, even if the parties do not raise the issue.” Liberty Mut. Ins. Co. v. Ward Trucking Corp., 48 F.3d 742, 750 (3d Cir. 1995); see also id. (observing district сourts “obligation to satisfy themselves of their subject matter jurisdiction and to decide the issue sua sponte” applies in removal cases); Arbaugh v. Y&H Corp., 546 U.S. 500, 500-01 (2006) (“[S]ubject-matter jurisdiction, because it involves a courts power to hear a case, can never bе forfeited or waived.” (quoting United States v. Cotton, 535 U.S. 625, 630 (2002))). “The removal statute should be strictly construed ‍‌‌​‌​‌‌‌‌‌‌‌​​‌‌​‌‌​‌‌‌‌​‌​​​​​‌‌​​​​‌​‌​‌‌​​​‌‌‍and all doubts resolved in favor of remand.” Johnson v. SmithKline Beecham Corp., 724 F.3d 337, 346 (3d Cir. 2013) (quoting Brown v. Francis, 75 F.3d 860, 864-65 (3d Cir. 1996)). “[A]nything otherwise would curtail the power of the state courts to decide actions рroperly before them.” Boyd v. Burlington Coat Factory of Pennsylvania, LLC, No. 16-CV-04990, 2017 WL 412849, at *2 (E.D. Pa. Jan. 31, 2017) (citing Merrell Dow Pharms., Inc. v. Thompson, 478 U.S. 804, 809 (1986)).

The amount in controversy requirement for diversity jurisdiction is governed by 28 U.S.C. paragraph 1446 (“Section 1446“). In 2011, Congress enacted the Federal Court Jurisdiction and Venue Clarification Act (the “Act“), Pub. L. No. 112-63, 125 Stat. 758 (2011) (codified at, inter alia, 28 U.S.C. paragraph 1446). The Act amended Section 1446 to clarify the standard governing the determination of the amount in controversy for federal jurisdiction purposes. See Jesmar Energy, Inc. v. Range Res. Appalachia, LLC, No. 17-CV-00928, 2017 WL 457256, at *3 (W.D. Pa. Oct. 13, 2017) (explaining that the Act “clarified the standard for satisfying the amount in controversy when a case is removed to federal court“). Section 1446(c) provides:

(2) If removal of a civil action is sought on the basis of the jurisdiction conferred by section 1332(a), the sum demanded in good faith in the initial рleading shall be deemed to be the amount in controversy, except that—

(A) the notice of removal may assert the amount in controversy if the initial pleading seeks—

(i) nonmonetary relief; or

(ii) a money judgment, but the State рractice either does not permit demand for a specific sum or permits recovery of damages in excess of the amount demanded; and

(B) removal of the action is proper on the basis of an amount in controversy asserted under subparagraph (A) if the district court finds, by the preponderance of the evidence, that the amount in controversy exceeds the amount sрecified in section 1332(a).

28 U.S.C. paragraph 1446(c)(2).

Accordingly, the preponderance of the evidence standard governs whether ‍‌‌​‌​‌‌‌‌‌‌‌​​‌‌​‌‌​‌‌‌‌​‌​​​​​‌‌​​​​‌​‌​‌‌​​​‌‌‍the amount in controversy requirement has been met here. See Dart Cherokee Basin Operating Co., LLC v. Owens, 574 U.S. 81, 88-89 (2014) (observing that “when a defendant sеeks federal-court adjudication, the defendants amount-in-controversy allegation should be accepted when not contested by the plaintiff or questioned by the court,” and that Section 1446(c) sets forth the appropriate standard when the allegation is contested or questioned); see also Scaife v. CSX Transportation, Inc., No. 19-CV-00060, 2019 WL 3353727, at *6 (W.D. Pa. July 25, 2019) (applying preponderance of the evidence standard and explaining that thе “legal certainty” standard articulated by the Third Circuit in Frederico v. Home Depot, 507 F.3d 188, 196 (3d Cir. 2007) and Morgan v. Gay, 471 F.3d 469, 474 (3d Cir. 2006) “was the previously applicable standard for determining the amount in controversy upon removal, [but] the standard changed in 2011 when Congress enactеd the Federal Court Jurisdiction and Venue Clarification Act“); Karlberg v. Santander Bank, N.A., No. 17-CV-03561, 2017 WL 4810800, at *3-4 (E.D. Pa. Oct. 25, 2017) (same).

B. Application

“In removal cases, determining the amount in controversy begins with a reading of the complaint filed in the state court.” Samuel-Bassett, 357 F.3d at 398. Such an anаlysis contemplates a “reasonable reading of the value of the rights being litigated,” Angus v. Shiley Inc., 989 F.2d 142, 146 (3d Cir. 1993), meaning “estimations of the amounts recoverable must be realistic,” Samuel-Bassett, 357 F.3d at 403. “The inquiry should be objective and not based оn fanciful, pie-in-the-sky, or simply wishful amounts, because otherwise the policy to limit diversity jurisdiction will be frustrated.” Id.

As PCI recognizes in its Notice of Removal, “Plaintiffs factual allegations are scant.” (Dkt. No. 1 at paragraph 12). As accurately characterized by PCI, Plaintiff “essentially alleges that he purchased a food product and, while eating it, bit into a staple. Plaintiff alleges that this incident caused him physiсal damages, pain and suffering, and emotional distress, for which he requests compensatory and punitive damages.” Id. Notably, Plaintiffs Complaint does not specify the injuries he sustained; nor does he allege that hospitalization or medical treatment was required to treat his injuries; that lost wages resulted from his injuries; or that his injuries are or were in any way serious or severe. (Dkt. No. 1-1 at 1-2). A reasonable reading of the Complaint therefore does not permit the Court to conclude that Plaintiffs claims exceed the jurisdictional threshold. Cf. Penn v. Wal-Mart Stores, Inc., 116 F. Supp. 2d 557, 567 (D.N.J. 2000) (reasoning that, while “such general considerations as [the plaintiffs] allegation of a ‘severe’ knee injury ... may indicate that it is possible for ‍‌‌​‌​‌‌‌‌‌‌‌​​‌‌​‌‌​‌‌‌‌​‌​​​​​‌‌​​​​‌​‌​‌‌​​​‌‌‍[the plaintiffs] claims to exceed the minimal amount requirement, they certainly do not demonstrate that it is more likely than not that they do.“); Rosado v. Encompass Ins. Co., No. 10-CV-01877, 2010 WL 2431829 at *2-3 (E.D. Pa. June 10, 2010) (finding amount in controversy requirement was not satisfied where the defendant relied only on the plaintiffs general allegations about severe injuries and loss of earnings); Stevenson v. Wal-Mart Stores, Inc., No. 14-CV-04073, 2015 WL 158811, at *3 (E.D. Pa. Jan. 13, 2015) (same).

However, as PCI rightly notes, Plaintiffs complaint does not specify the dollar amount of damages that Plaintiff seeks because ad damnum clauses are barred under Virgin Islands law. (Dkt. No. 1 at 12 (citing 5 V.I.C. paragraph 5)). Accordingly, PCI may assert the аmount in controversy in its Notice of Removal. 28 U.S.C. paragraph 1446(c)(2)(A). PCI has done just this. Id. at paragraph 16 (“Defendant submits that the amount in controversy . exceed[s] $75,000.00 for purposes of diversity of citizenship and removal.“). The Court must thereforе determine whether PCIs Notice of Removal establishes by a preponderance of the evidence that Plaintiffs claims exceed $75,000. 28 U.S.C. paragraph 1446(c)(2)(B). The Court finds that it does not.

PCI contends in its Notice of Removal that the amount in controversy requirement is satisfied here because “the amounts of plaintiffs verdicts in personal injury cases vary widely where [a] plaintiff alleges he/she bit into a food product containing a foreign object and suffered injuries,” and “the U.S. Virgin Islands is a plaintiff-friendly jurisdiction with high jury verdicts.” (Dkt. No. 1 at paragraphs 14-15). In support of its contention that the amount of plaintiffs verdicts vary widely in similar cases, PCI cites to five cases. Id. at paragraph 14. Two of these cases handily exceed the jurisdictional threshold. Id. (citing Jackson-Levy v. Eateries, Inc., JVR No. 449030, 2006 WL 2641142 (Unknown Miss. St. Ct. Mar. 2006) ($375,000.00 jury award); and Hoydilla v. Rustic Oak, Inc., CV86/0248424S, 1990 Conn. Jury Verdicts Review LEXIS 29 (Conn. Super. Ct. June 5, 1990) ($244,393.00 jury award)). Conversely, the three other cases that PCI cites involve awards falling short of the jurisdiction minimum. Id. (citing Pollan v. Colony Delicatessen, Inc., 1991 Nat‘l Jury Verdict Review LEXIS 968 ‍‌‌​‌​‌‌‌‌‌‌‌​​‌‌​‌‌​‌‌‌‌​‌​​​​​‌‌​​​​‌​‌​‌‌​​​‌‌‍(Fla. Dade Cnty. Ct. Feb. 12, 1991) ($26,000 jury award); Harcarik v. Friendly Ice Cream Corp., JVR No. 1104130033, 2004 WL 6019873 (Pa. C.P. Ct. July 30, 2004) ($22,500.00 settlement); and Cain v. Oroweat Foods Co., 89-2-01146-2, 2000 Wa. Arb. Dec. LEXIS 11317 (Aug. 31, 1990) ($2,284.00 arbitration award)).

While these five cases amply demonstrate that plaintiffs verdicts vary widely, these cases do not aid Defendant in еstablishing by a preponderance of the evidence that the amount in controversy threshold is met here. Indeed, the two cases that exceed the jurisdictional minimum—Jackson-Levy and Hoydilla—are not helpful to the Courts analysis. As a general matter, both cases are of limited utility because neither was decided under Virgin Islands law. See Samuel-Bassett, 357 F.3d at 398 (explaining that, in determining the amount in controversy, the court must apply state law); Scaife, 2019 WL 3353727, at *6 (deеming a case unpersuasive for purposes of determining the amount in controversy because it was litigated under the law of a different state). Moreover, the Jackson-Levy case does not indicate the injuries sustained by the plaintiff or the basic facts of the case, which prevents the Court from determining the degree to which it may or may not be analogous. See Scaife, 2019 WL 3353727, at *6 (“[A]lthough Defendant cites [an] opinion for its list of jury awards to certain plaintiffs, [that] oрinion does not indicate the types of injuries suffered by those plaintiffs. The Court thus cannot compare the injuries in [that case] to the alleged injuries in this case to determine the potential damаges“). Contrariwise, while the basic facts of the Hoydilla case are available, it is clear that the case involved a plaintiff with a temporomandibular joint disorder who required five additional surgeries over a four-year period after biting into a foreign object in a potato skin. There is no indication that such circumstances are present here.

Ultimately, PCI has not cited to a single instructive case exceeding the jurisdictional minimum, and the Court places little stock in PCIs contention that it should find that the threshold is exceeded here simply by virtue of the Virgin Islands alleged reputation as a plaintiff-friendly jurisdiction. PCIs arguments thus leave the Court guessing as to whether the amount in controversy requirement is satisfied. The Court, therefore, cannot conclude that it is more likely than not that Plaintiffs claims exceed thе jurisdictional threshold. See Heffner, 2013 WL 5416164, at *14-15 (“Where the court is left to guess at whether the jurisdictional threshold has been met, then a removing defendant has not carried its burden.“); Dorley v. Save-A-Lot, No. 16-CV-04510, 2016 WL 6213074, at *2-4 (E.D. Pa. Oct. 25, 2016) (“The Court cannot substitute Defendаnts expectations—nor its own assumptions—for the evidence necessary ‍‌‌​‌​‌‌‌‌‌‌‌​​‌‌​‌‌​‌‌‌‌​‌​​​​​‌‌​​​​‌​‌​‌‌​​​‌‌‍to support federal jurisdiction.“). Because “all doubts” must be “resolved in favor of remand,” Johnson, 724 F.3d at 346, the Court will therefore remand this case.

III. CONCLUSION

Because the Court finds that it lacks subject matter jurisdiction over this action, the Court will remand the case to the Superior Court of the Virgin Islands.

An appropriate Order accompanies this Memorandum Opinion.

Date: January 13, 2023

/s/

WILMA A. LEWIS

District Judge

Case Details

Case Name: Mena v. Frito Lay
Court Name: District Court, Virgin Islands
Date Published: Jan 13, 2023
Citations: 650 F.Supp.3d 337; 1:18-cv-00051
Docket Number: 1:18-cv-00051
Court Abbreviation: D.V.I.
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