Pasoon v. Careerist

Background

Mirwiss Pasoon filed the lawsuit in state court in January 2024. The claims involved Careerist’s educational programs and loans and were brought against Careerist, Inc. and Midwest Fidelity Services, LLC. Careerist removed the case to federal court on June 20, 2025, asserting federal-question jurisdiction and diversity jurisdiction. Careerist admitted that it did not obtain Midwest’s consent before removing the case.

Remand ruling

The court granted Pasoon’s motion to remand. Federal law generally requires a defendant to remove a case within 30 days after receiving the initial pleading or another paper showing that the case is removable. The court found that Careerist was served no later than March 7, 2024. If federal-question jurisdiction existed, removal was therefore required within 30 days of service. For diversity jurisdiction, Careerist stated that it knew by March 2025 that the amount in controversy exceeded $75,000, based on Pasoon’s settlement demand. The court found that Careerist waited about three months after that point before removing the case.

The court also noted that diversity removal generally cannot occur more than one year after the case begins unless the plaintiff acted in bad faith to prevent removal. The court found no evidence of bad faith and noted that Careerist did not argue that Pasoon acted in bad faith. The court rejected Careerist’s argument that the removal period should instead run from May 23, 2025, when Pasoon confirmed that he would not file an amended complaint. The court concluded that the cited cases did not support delaying removal when Careerist acknowledged that removability was evident no later than March 2025.

Attorneys’ fees

The court found Careerist’s removal objectively unreasonable and awarded attorneys’ fees under 28 U.S.C. § 1447(c). Pasoon requested $4,840 for 8.8 hours of work at an hourly rate of $550. Applying the method that calculates fees by multiplying reasonable hours by a reasonable hourly rate, the court found the requested hours and fees reasonable. Careerist was ordered to pay Pasoon’s counsel $4,840 within 30 days of the order.

Disposition

Judge Haywood S. Gilliam, Jr. granted the motion to remand and remanded the case to the Superior Court of Alameda County. Careerist’s motion to dismiss was terminated as moot. The clerk was directed to remand the case and close the file.