December 23, 2014
Last week, the United States Supreme Court held that a notice of removal from state court to federal court requires only pleading good faith allegations that the amount in controversy exceeds a jurisdictional threshold. The removing party need not include evidence establishing the amount. The matter in question is Dart Cherokee Basin Operating Co., LLC v. Owens. The Court reversed a decision of the Tenth Circuit Court of Appeals declining review of the district court’s remand order.

The Court’s holding that liberal pleading standards apply to notices of removal should make removal less burdensome when suits are filed in state court. The case is particularly helpful in the class action context as the removal pleading must merely allege in good faith that the $5 million dollar threshold in CAFA is met. Proof of the amount in controversy requirement need only be introduced when questioned by the plaintiff or the court.

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