The Second Circuit, in a claim brought under the Magnuson-Moss Warranty -- Federal Trade Commission Improvement Act, held that the value of a contract, without offset, is the amount in controversy for purposes of a rescission claim that was brought under the Act, agreeing with the Third and Sixth Circuits. In Pyskaty v. Wide World of Cars, LLC
, the plaintiff sued the defendant, from whom she had purchased a car for violating the Act and under state law. The cost of the car was $51,195. The defendant claimed that the amount in controversy did not meet the jurisdictional threshold for a claim brought under the Act ($50,000), believing that the value of the claim was the amount paid under the contract minus the actual value of the car. While the district court agreed with the defendant and dismissed the claim, the Second Circuit reversed, holding that the value of the claim met the jurisdictional threshold.
A copy of the decision in this case can be found here