Yvonne Holliday v. Costco Wholesale Corporation

I. Background

Yvonne Holliday (“Plaintiff”) brings this motion to remand her claims against Costco Wholesale Corporation (“Costco”) and Costco Wholesale Membership, Inc. (“CWMI”) (together “Defendants”) which were removed to this Court by Costco. Plaintiff moves for remand on that basis that CWMI, like Plaintiff, is a California citizen. There is no dispute that CWMI is a California citizen, incorporated in California, but Costco claims CWMI was only joined as a sham defendant to defeat diversity jurisdiction. After considering the parties’ motions, the Court concludes no claim may be maintained against CWMI consistent with Plaintiff’s factual allegations, and the motion to remand is DENIED.

II. Motion to Remand

Under 28 U.S.C. § 1332, federal courts have original jurisdiction over “all civil actions where the matter in controversy exceeds the sum or value of $75,000, exclusive of interest and costs, and is between . . . citizens of different States [or] citizens of a State and citizens or subjects of a foreign state.” The proponent of subject-matter jurisdiction must establish its existence by a preponderance of the evidence. Leite v. Crane Co., 749 F.3d 1117, 1121 (9th…