Unreported / Non-Citable
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.