Hernandez v. Delta Star, Inc.
- Vince Chhabria
- 3:22-cv-07354
- U.S. District Court · Northern District of California
- 3
In Hernandez v. Delta Star, Inc., Judge Chhabria remanded Hernandez’s California labor-penalty case because the court lacked subject-matter jurisdiction.
Isaac Hernandez and Delta Star, Inc.; the case returns to San Mateo County Superior Court rather than proceeding in federal court.
What happened
In Hernandez v. Delta Star, Inc., Isaac Hernandez brought a California-law PAGA action against Delta Star, and Delta Star removed it to federal court. Hernandez asked the court to send the case back to state court.
The court found no federal-question jurisdiction because the claim was not transformed into a federal claim by the collective bargaining agreement. It also found no diversity jurisdiction because Delta Star did not show that the amount in controversy exceeded $75,000, including attorney’s fees.
The court ordered the case remanded to San Mateo County Superior Court. Judge Vince Chhabria did not decide whether California was the real party in interest for diversity purposes because the amount requirement was not met.
The detailed version
- Hernandez v. Delta Star, Inc. · No. 3:22-cv-07354
- Vince Chhabria
- Feb. 2, 2023
Background
Isaac Hernandez brought a PAGA action under California law against Delta Star, Inc. Delta Star removed the case to federal court. Hernandez moved to remand, meaning he asked the federal court to return the case to state court.
Federal-question jurisdiction
The court held that federal-question jurisdiction was absent. A state-law claim can become a federal claim through complete preemption when the claim depends on a right created solely by a collective bargaining agreement or when resolving the claim requires interpreting the agreement. The court found neither circumstance here. Hernandez himself was not covered by a collective bargaining agreement, and Delta Star did not identify any active dispute over the meaning of the agreement’s terms. The court therefore found no need to interpret the agreement.
Diversity jurisdiction
The court also held that diversity jurisdiction was absent because the amount-in-controversy requirement was not satisfied. The opinion states that Hernandez is a California citizen, while Delta Star is incorporated in Delaware and has its principal place of business in Virginia.
The court did not decide whether California was the real party in interest or whether that issue prevented complete diversity. Instead, it concluded that this issue did not need to be resolved because the amount in controversy was too low. Based on Delta Star’s records showing that Hernandez worked for eight pay periods, the court calculated his individual claim at $13,850. Attorney’s fees can count toward the amount in controversy, but Delta Star had to establish the amount. The court found Delta Star’s fee calculation too high because it treated the matter as a standard wage-and-hour case and did not account for a parallel class action being litigated by the same plaintiff’s counsel. The court stated that the other case would likely create enough time savings to reduce the fees significantly, bringing the total below $75,000.
Disposition
The court granted the motion to remand because there was no subject-matter jurisdiction. It ordered the case remanded to San Mateo County Superior Court. Judge Vince Chhabria did not dismiss the case or resolve the merits of Hernandez’s claims.
Read the full 3-page opinion on CourtListener, the free public archive maintained by the Free Law Project.