Dart Cherokee Basin Operating Co., LLC v. Owens
United States Supreme Court
574 U.S. 81, 133 S.Ct. 547, 190 L.Ed.2d 495 (2014)

- Written by Catherine Cotovsky, JD
Facts
Brandon Owens (plaintiff) filed a putative class action against Dart Cherokee Basin Operating Company, LLC (Dart) and Cherokee Basin Pipeline, LLC (CBP) (defendants) in Kansas state court for underpayment on oil and gas leases, seeking damages of a fair and reasonable amount on behalf of the class. Dart filed a notice of removal to the federal district court, in which Dart stated that the case met the requisite number of plaintiffs, minimal diversity, and amount in controversy to invoke federal jurisdiction via the Class Action Fairness Act (CAFA). Dart’s notice indicated, without evidentiary support, that the amount in controversy exceeded $8 million. Owens moved to remand the case back to state court on the grounds that Dart failed to include evidence to support its claim that damages exceeded the $5 million minimum required by CAFA for removal and later argued that the deficient notice could not be cured by supplemental evidence of damages. Owens’s motion to remand was granted based on Tenth Circuit precedent that required defendants to include evidence of the amount in controversy in their notices to remove under CAFA. Dart petitioned for permission to appeal but was denied review by both a panel and the circuit court en banc. Dart then successfully petitioned for certiorari to the United States Supreme Court.
Rule of Law
Issue
Holding and Reasoning (Ginsburg, J.)
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