Case Explained: GUENTHER, ET AL. V. EMMONS, ET AL.

Court: United States Court of Appeals for the Ninth Circuit

Filed: 2026-07-14

Docket: 2:22-cv-00272-TOR

The Ninth Circuit reversed and remanded the district court’s denial of mandatory attorneys’ fees to the prevailing defendant-appellants under Washington law (RCW 4.84.250). The court held that a district court exercising diversity jurisdiction may award fees under RCW 4.84.250 if the “amount pleaded” falls below $10,000, even if the amount in controversy initially met federal diversity jurisdiction thresholds at the time of removal. Applying Washington law to interpret the state statute, the court determined that the “amount pleaded” requires only notice to the opposing party prior to trial that the claim is for $10,000 or less, rather than a formal amendment of the complaint under Federal Rule of Civil Procedure 15. Because the plaintiff provided such notice in a settlement-offer letter after dismissing union plaintiffs, the statutory requirement was satisfied. Consequently, the case is remanded for the district court to determine if defendants are entitled to fees under RCW 4.84.250 and, if so, to award additional reasonable attorneys’ fees for the appeal under RCW 4.84.290 and revisit the award of taxable costs.

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