Gutierrez Diaz v. Ford Motor Company

Background

Mario Gutierrez Diaz filed California lemon-law claims under the Song-Beverly Consumer Warranty Act in state court concerning his Ford vehicle. Ford Motor Company removed the case to the U.S. District Court for the Northern District of California. Gutierrez Diaz then moved to remand, meaning he asked the federal court to return the case to state court.

Court’s analysis

Gutierrez Diaz challenged only whether Ford removed the case on time. The court explained that removal timing is a procedural issue, not a limit on the court’s subject-matter jurisdiction.

The court found that federal diversity jurisdiction existed because the parties were diverse and Ford’s notice of removal included an unchallenged, plausible assertion that the amount in controversy exceeded $75,000.

Ordinarily, a defendant must remove a case within 30 days after receiving the initial pleading. If the initial pleading does not show that the case is removable, the 30-day period can begin when the defendant receives an amended pleading, motion, order, or other paper that makes removability clear.

Ford removed the case on March 30, 2023. The court treated February 28, 2023, as the relevant date because it was 30 days before removal. On that date, Ford received a copy of the vehicle sales contract referenced in the complaint. The court concluded that removability was not clear before Ford received that contract because the complaint did not state the sales price or any dollar amount at issue. Gutierrez Diaz did not identify an earlier document that made the case removable or argue that removability appeared on the face of the complaint.

Ruling

Judge Jacquelyn Corley denied Gutierrez Diaz’s motion to remand. The order also vacated the May 31, 2023 hearing and disposed of Docket No. 13.