Urbino
Urbino v. Orkin Servs. of California, Inc.
Opinion
Lead Opinion
Hawkins, J.
This interlocutory appeal deals with a unique statute concerning the claims of California residents against the owners and operators of California-based enterprises. Brought originally in state court, it has been removed to federal court on the theory that the individual claims, when aggregated, meet the minimum requirements of diversity jurisdiction. We have jurisdiction to review the district court’s refusal to remand the dispute back to state court. Because we determine that the recoveries at issue cannot be aggregated to meet the amount in controversy requirement, we vacate the district court order and remand with instructions to return the dispute to the California courts for resolution.
*1121 I.BACKGROUND
With passage of the Private Attorneys General Act of 2004 (“PAGA”), the California Legislature fundamentally altered the state’s approach to collecting civil penalties for labor code violations. Though the Labor and Workforce Development Agency (“LWDA”) retained primacy over private enforcement efforts, under PAGA, if the LWDA declines to investigate or issue a citation for an alleged labor code violation, an aggrieved employee may commence a civil action “on…
Dissenting Opinion
Thomas, J.
dissenting:
Because I conclude that claims under the Labor Code Private Attorney General Act of 2004 (“Private Attorney General Act,” “the Act,” or “PAGA”), Cal. Lab. Code § 2698 et seq., can be aggregated in determining whether diversity jurisdiction exists, I respectfully dissent.
“Our starting point for determining the amount in controversy is to characterize the [aggrieved employees’] claims under California state law.” Eagle v. Am. Tel. & Tel. Co., 769 F.2d 541, 545 (9th Cir.1985) (citing Horton v. Liberty Mut. Ins. Co., 367 U.S. 348, 352-53 , 81 S.Ct. 1570 , 6 L.Ed.2d 890 (1961)). Thus, we look to “the source” of plaintiffs’ claims to determine whether they are subject to aggregation. Id. at 546.
Under California law, a representative action under the Private Attorney General Act “is fundamentally a law enforcement action designed to protect the public and not to benefit private parties.” Arias v. Superior Court, 46 Cal.4th 969 , 95 Cal.Rptr.3d 588 , 209 P.3d 923, 934 (2009) (internal quotation marks and citation omitted). The Act neither creates nor vindicates substantive rights of individual aggrieved employees. Amalgamated Transit Union, Local 1756, AFL-CIO v. Superior…