Stephenson v. Jaguar Land Rover North America, LLC

Background

Jaguar Land Rover North America, LLC removed the case from Santa Clara County Superior Court to the U.S. District Court for the Northern District of California on September 11, 2025. The court issued an order requiring the removing defendant to show cause—that is, explain in writing—why the case should not be remanded to state court for lack of subject-matter jurisdiction.

Jurisdictional issue

Federal district courts have limited jurisdiction. The removal papers relied on diversity jurisdiction, which requires complete diversity of citizenship between the parties and an amount in controversy greater than $75,000. The court found that the papers provided enough information to establish that the amount-in-controversy requirement was satisfied.

The court concluded, however, that the papers did not adequately allege the plaintiffs’ state citizenship. The papers referred to the plaintiffs’ residence, but citizenship for diversity purposes depends on domicile—the person’s permanent home and intended continuing connection—not residence alone. Because Jaguar Land Rover North America did not allege where the plaintiffs were domiciled, the court could not determine whether complete diversity existed.

Order

The court ordered Jaguar Land Rover North America to file a written response by September 26, 2025, explaining why the case should not be remanded to state court for lack of subject-matter jurisdiction. The plaintiffs may respond by October 3, 2025. The order did not itself remand the case.