Generally, if a case has been removed to federal court based on diversity jurisdiction and the amount in controversy is subsequently determined to be less than $75,000, it is possible to request a remand to the state court.
In such a situation, the party seeking the remand would need to file a motion with the federal court requesting that the case be sent back to the state court. The motion would typically argue that the federal court lacks subject matter jurisdiction because the amount in controversy falls below the threshold for diversity jurisdiction.
Jurisdiction for removal to federal court falls 28 USC § 1441 (The district courts shall have original jurisdiction of all civil actions where the matter in controversy exceeds the sum or value of $75,000, exclusive of interest and costs). See 28 USC § 1441 and 1332.
Who has the burden to prove the amount in controversy?
In cases removed from State Court, the removing defendant has “always” borne the burden of establishing federal jurisdiction, including any applicable amount in controversy requirement. Abrego Abrego v. The Dow Chemical Co., 443 F.3d 676 (9th Cir. 2006) page 683. The evidence is that the amount in controversy is less than $75,000.
What the Plaintiff can argue to be remanded back to Washington State Superior Court?
If the case was not remanded and a judgment is entered for less than $75,000, then according to 28 USC § 1332 (b) the Court may “deny costs to the plaintiff and, in addition, may impose costs on the plaintiff.” This would unfairly burden the Plaintiff in this case as the value of the case is conceded at less than $75,000.