Ninth Circuit Holds Defendant Can Make Reasonable Assumptions About Violation Rate to Establish Amount In Controversy for Removal Jurisdiction under CAFA

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On 3/14/25, in Perez v. Rose Hills Co., the Ninth Circuit Court of Appeals vacated a district court order remanding to state court and action removed to federal under the Class Action Fairness Act (CAFA), but remanded the case to the district court for further proceedings, after the district court found that it lacked jurisdiction because the removing defendant did not meet the $5 million amount in controversy under CAFA. The Ninth Circuit panel held that the removing defendant was permitted to rely on reasonable assumptions to calculate the amount in controversy by providing evidence of the number of nonexempt employees employed during the class period and then computing the amount in controversy by making reasonable assumptions about the alleged rate of violations based on the language of the complaint.

https://cdn.ca9.uscourts.gov/datastore/opinions/2025/03/14/25-68.pdf

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