Reyes v. Dollar Tree Stores, Inc., No. 15-55176 (9th Cir. 2015)
Annotate this CasePlaintiff filed a class action in California state court alleging that Dollar Tree Stores Inc. violated California state law by denying proper rest breaks to its employees. Dollar Tree removed the case to federal court pursuant to the Class Action Fairness Act (CAFA). The district court granted Plaintiff’s request to remand back to California state court because the CAFA $5 million amount-in-controversy requirement was not satisfied. After remand, a California superior court certified a broader class. Dollar Tree again filed a notice of removal, arguing that the expanded class actually certified placed at least $5 million in controversy. The district court concluded that the second removal was untimely because the order was based on the same complaint that had been the subject of the first removal. A panel of the Ninth Circuit reversed, holding (1) the state court’s class certification order created a new occasion for removal, and the second removal was permissible; (2) the second removal was timely; and (3) because the jurisdictional requirements of CAFA were met, the district court had subject matter jurisdiction. Remanded.
Court Description: Class Action Fairness Act / Jurisdiction / Removal. The panel reversed the district court’s order remanding the case to state court, and remanded with instructions for the district court to exercise federal jurisdiction under the Class Action Fairness Act. Defendant Dollar Tree Stores removed the case from state to federal court in 2012 invoking jurisdiction under CAFA, and the district court granted plaintiff Richard Reyes’ request to remand back to state court because the CAFA $5 million amount-in-controversy requirement was not satisfied. In May 2014, a California superior court certified a broader class and the amount-in-controversy for the class actually certified exceeded $5 million. Dollar Tree again removed to federal court, and the district court found removal untimely because the order was based on the same complaint that was the subject of the first removal. The panel held that the state court’s class certification order created a new occasion for removal, and the second removal was permissible. The panel also held that the second removal was timely because Dollar Tree removed within thirty days of the class certification order. The panel concluded that because the jurisdictional requirements of CAFA were met, the district court had subject matter jurisdiction. REYES V. DOLLAR TREE STORES 3
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