Cox v. FCA US LLC

Background

David Cox filed the lawsuit in San Mateo Superior Court on May 7, 2020. He brought three California-law claims concerning alleged defects in a new 2013 Jeep Wrangler purchased in March 2013: breach of the implied warranty of merchantability under the Song-Beverly Warranty Act, breach of express warranty under that Act, and fraudulent inducement by concealment.

FCA removed the case to federal court under the federal removal statute, asserting diversity jurisdiction under 28 U.S.C. § 1332. Diversity jurisdiction generally requires complete diversity of citizenship and an amount in controversy exceeding $75,000, excluding interest and costs. The parties did not dispute complete diversity; they disputed only the amount in controversy.

Arguments and Analysis

Cox moved to remand, arguing that the amount in controversy was too speculative. His complaint alleged that the amount in controversy exceeded $25,000 and requested, among other relief, actual, incidental, consequential, exemplary, and punitive damages, attorney fees, and a Song-Beverly civil penalty of up to twice his actual damages. Cox argued that the possible civil penalty could not establish an amount above $75,000 because the actual damages were uncertain. He did not file a reply to FCA’s opposition.

The court agreed that the complaint itself did not clearly allege more than $75,000 because its amount-in-controversy statement was ambiguous. The court therefore applied the rule requiring FCA to prove by a preponderance of the evidence that more than $75,000 was at stake.

FCA submitted evidence that the vehicle’s dealer invoice price was $33,976. FCA asserted that a mileage offset of $3,397.60 would produce an alleged repurchase amount of at least $30,578.40. Adding a possible civil penalty of twice that amount would produce $91,735.20, before considering punitive damages or attorney fees. FCA also submitted a declaration from its attorney stating that he had tried three Song-Beverly cases in which plaintiffs sought more than $150,000 in fees. Cox did not challenge these assertions in a reply.

Ruling

The court concluded that FCA had provided unrebutted evidence establishing that the amount in controversy exceeded $75,000. It held that federal diversity jurisdiction was proper and denied Cox’s motion to remand. The opinion’s analysis refers to the post-offset amount as both $30,578.40 and, later, at least $30,578.20; the court’s stated total with the civil penalty was $91,735.20.