Dart Cherokee Basin Operating Co., LLC v. Owens

A defendant seeking to remove a case from state to federal court must file a notice of removal “containing a short and plain statement of the grounds for removal,” 28 U. S. C. 1446(a). Owens filed a putative class action in Kansas state court, seeking compensation for underpaid oil and gas lease royalties. Dart removed the case, invoking the Class Action Fairness Act (CAFA), which gives federal courts jurisdiction over class actions if the amount in controversy exceeds $5 million, 28 U. S. C. 1332(d)(2). Dart’s notice of removal alleged underpayments of more than $8.2 million. Following a motion to remand, Dart submitted a detailed declaration supporting an amount in controversy higher than $11 million. The district court granted Owens’ remand motion, reading Tenth Circuit precedent to require proof of the amount in controversy in the notice itself. The Tenth Circuit denied review. The Supreme Court vacated. Notice of removal need include only a plausible allegation that the amount in controversy exceeds the jurisdictional threshold; it need not contain evidentiary submissions. By borrowing Federal Rule of Civil Procedure 8(a)’s “short and plain statement” standard, Congress intended that courts apply the same liberal rules to removal allegations as to other pleadings. The amount-in-controversy allegation of a plaintiff is accepted if made in good faith. No anti-removal presumption attends cases invoking CAFA. View "Dart Cherokee Basin Operating Co., LLC v. Owens" on Justia Law