Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-2_05-cv-01092/USCOURTS-caed-2_05-cv-01092-0/pdf.json

Nature of Suit Code: 110
Nature of Suit: Insurance
Cause of Action: 28:1441 Petition for Removal- Breach of Contract

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UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF CALIFORNIA

LYLE B. LEONARD,

NO. CIV. S-05-1092 LKK/DAD

Plaintiff,

v. O R D E R

OMNI INSURANCE GROUP, INC.; 

and HARTFORD FINANCIAL

SERVICES GROUP, INC.,

Defendants.

 /

This matter is before the court on defendant Omni Insurance

Company’s (“defendant”) notice of removal predicated upon this

court’s diversity jurisdiction. See 28 U.S.C. § 1332. This court

has an independent duty to ascertain its jurisdiction, and may

remand sua sponte for lack of subject matter jurisdiction. See 28

U.S.C. § 1447(c); Libhart v. Santa Monica Dairy Co., 592 F.2d 1062,

1065 (9th Cir. 1979). In issues pertaining to removal, the

defendant bears the burden of establishing this court’s

jurisdiction. Emrich v. Touche Ross & Co., 846 F.2d 1190, 1195

Case 2:05-cv-01092-LKK -DAD Document 8 Filed 06/14/05 Page 1 of 3
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(9th Cir. 1988). Below, I explain why defendant has failed to meet

this burden. 

Diversity jurisdiction requires complete diversity of

citizenship among the parties, as well as a minimum amount in

controversy of more than $75,000. See id. While it appears that

diversity of citizenship is satisfied, defendant has not met its

burden in demonstrating that the amount in controversy exceeds

$75,000. Where the jurisdictional amount cannot be ascertained

from the allegations of the complaint, the burden is on the

defendant to prove the minimum jurisdictional amount by a

preponderance of the evidence. See Sanchez v. Monumental Life Ins.

Co., 95 F.3d 856, 860 (9th Cir. 1996).

Plaintiff filed suit against defendants alleging breach of

contract and breach of the implied covenant of good faith and fair

dealing. He alleges in his complaint that his damage totals a sum

in excess of the jurisdictional minimum of the Superior Court of

the State of California, i.e., $25,000. That is the only numerical

amount plaintiff assigns to his damages. Defendant’s removal

petition, however, states that “the matter in controversy exceeds

the sum of $75,000 . . .” because plaintiff is seeking recovery of

punitive damages and attorney’s fees in addition to general damages

in an unspecified amount for breach of contract. See Notice of

Removal at 2. In essence, defendant is speculating that the

damages sought meets the statutory requirement. Defendant provides

no further explanation or evidence in support of this speculation.

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“A speculative argument regarding the potential value of the award

is insufficient.” Conrad Assoc. v. Hartford Accident & Indemnity

Co., 994 F.Supp. 1996, 1198 (N.D. Cal. 1998)(citing Gaus v. Miles,

980 F.2d 564, 567 (9th Cir. 1992)). “Because the ‘removal statutes

are strictly construed against removal,’ Libhart, 592 F.2d 1062,

1064 (9th Cir. 1979), generally speaking doubts about removal must

be resolved in favor of remand.” Dodd v. John Hancock Life Ins.

Co., 688 F.Supp. 564, 566 (E.D. Cal. 1988); see also 28 U.S.C. 

§ 1447(c). Because defendant has not established the requisite

amount in controversy in the instant case, the court lacks subject

matter jurisdiction and must remand the case. Id. 

For the foregoing reasons, the court hereby ORDERS the abovecaptioned case REMANDED to the Superior Court of the State of

California in and for the County of Butte. 

IT IS SO ORDERED. 

DATED: June 13, 2005.

/s/Lawrence K. Karlton 

LAWRENCE K. KARLTON

SENIOR JUDGE

UNITED STATES DISTRICT COURT

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