California Case Summaries

Khorsandi v. Mercedes-Benz — Lemon-Law Case Returns to State Court for Lack of $75,000 in Controversy

Unreported / Non-Citable

Case
Khorsandi v. Mercedes-Benz USA, LLC
Court
U.S. District Court — Central District of California
Judge
David O. Carter (Bill Clinton, 1998)
Date Decided
2026-09-23
Docket No.
8:26-cv-02066
Status
Unreported / Non-Citable
Topics
removal, diversity jurisdiction, amount in controversy, Song-Beverly Act

Background

Ruben Khorsandi sued Mercedes-Benz in Orange County Superior Court under California’s Song-Beverly Consumer Warranty Act after a vehicle dispute. Mercedes removed the case to federal court based on diversity jurisdiction, which requires more than $75,000 genuinely in controversy.

The Court’s Holding

The court remanded the case because Mercedes did not carry its burden to establish the jurisdictional amount. Potential civil penalties and attorney fees could not simply be assumed at their theoretical maximum; the removing party needed evidence and a grounded calculation tied to the actual claims.

Key Takeaways

  • The removing defendant bears the burden of proving the amount in controversy.
  • Possible penalties do not automatically count at their maximum value.
  • Projected attorney fees require a reasonable factual basis rather than speculation.

Why It Matters

For California consumer and automotive litigators, the order reinforces that routine Song-Beverly cases do not become federal cases merely because the complaint seeks penalties and fees. Removal papers should include evidence supporting each component of the amount calculation, while remand motions should isolate unsupported assumptions.

Read the full opinion (PDF) · Court docket

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