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District Court Improperly Remanded Action That Was Removed Under CAFA
Monday, April 7, 2025

Perez v. Rose Hills Co., 2025 WL 811096 (9th Cir. 2025)

Elizabeth Perez sued her former employer (Rose Hills) in this putative class action involving alleged violations of various California wage and hour laws. Rose Hills removed the action to federal court under the Class Action Fairness Act (CAFA), but the district court remanded the action on the ground that Rose Hills had failed to satisfy CAFA’s $5 million amount‑in‑controversy requirement. The Ninth Circuit vacated the remand order and remanded the case to the district court for further consideration, holding that the removing defendant was permitted to rely on a chain of reasoning that includes reasonable assumptions to calculate the amount in controversy, including a computation based on the wage rate at which the employer is alleged to have committed various violations (citing Arias v. Residence Inn by Marriott, 936 F.3d 920 (9th Cir. 2010)).

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