In class actions involving more than one defendant and at least one local defendant, two exceptions to jurisdiction under the Class Action Fairness Act (CAFA) potentially come into play. The “home state” exception applies if two-thirds or more of the proposed class members and the “primary defendants” are citizens of the state where suit was
Class Action Fairness Act
Eleventh Circuit Provides New Guidance on Class Action Settlements
By Wystan Ackerman on
Suppose that the central issue in a putative class action is a legal issue pending before the Supreme Court. Depending on how the Supreme Court rules, the plaintiffs will recover either nothing or up to $600 million. But rather than rolling the dice and waiting for that decision, the parties agree to a class action…
Pendent Appellate Jurisdiction in Class Actions Addressed by Fourth Circuit
By Wystan Ackerman on
Posted in Class Action Fairness Act
When a class certification decision overlaps with merits issues, can a court of appeals deciding an interlocutory appeal from a class certification order also review an earlier decision on a motion to dismiss if it was integral to the class certification order? Yes, according to a new Fourth Circuit decision.
Class Action Fairness Act (CAFA) Local Controversy Exception Is Narrower Than You Might Think, According to the Fifth Circuit
By Wystan Ackerman on
Posted in Class Action Fairness Act
Think twice about whether the Class Action Fairness Act’s “local controversy” exception applies to your case. Even if more than two-thirds of the proposed class members are citizens of the forum state, there is a significant in-state defendant and the claims asserted arise from conduct in that state, that is not necessarily enough for the…
Class Action Fairness Act Pleading Requirements for Removal Addressed by Ninth Circuit
By Wystan Ackerman on
Posted in Class Action Fairness Act
A recent Ninth Circuit decision highlights the importance of the defendant clearly pleading the basis for alleging the amount in controversy in a notice of removal under the Class Action Fairness Act (CAFA). In this case, after the defendant prevailed on a summary judgment motion and the plaintiff appealed, the Ninth Circuit vacated and remanded…
CAFA Appeals Cannot Address Other Jurisdictional Issues, According to the Fifth Circuit
By Wystan Ackerman on
Posted in Class Action Fairness Act
The Fifth Circuit recently addressed the scope of appellate jurisdiction under the Class Action Fairness Act (CAFA). CAFA allows federal courts of appeals to hear, on a discretionary basis, appeals from “an order of a district court granting or denying a motion to remand a class action.” 28 U.S.C. § 1453(c)(1). The Fifth Circuit has…
Class Action Fairness Act Does Not Override the Federal Arbitration Act, According to the Sixth Circuit
By Wystan Ackerman on
Posted in Class Action Fairness Act
A recent Sixth Circuit decision caught my eye because it addressed an important issue on which I have not seen any other appellate decisions (and none were cited in the opinion). The plaintiff argued that the Class Action Fairness Act (CAFA) should be interpreted as overriding the Federal Arbitration Act (FAA), effectively precluding the enforcement…
Some Class Action Fairness Act Remand Decisions Are Appealable as of Right
By Wystan Ackerman on
Posted in Class Action Fairness Act
Federal district court orders remanding cases to state court are generally not appealable, as provided by 28 U.S.C. § 1447(d). One exception to this is that the Class Action Fairness Act (CAFA) allows a court of appeals, in its discretion, to accept an appeal from an order granting or denying a motion to remand a…
Class Action Fairness Act: Punitive Damages and Local Controversy Exception Addressed in Recent Seventh Circuit Decision
By Wystan Ackerman on
Posted in Class Action Fairness Act
A recent Seventh Circuit decision made two rulings on issues arising under the Class Action Fairness Act (CAFA) that defendants may find useful in other cases. First, potential punitive damages exceeding a single-digit ratio may be considered in determining whether the class claims satisfy the $5 million threshold if compensatory damages are small or where…
Does the Class Action Fairness Act Allow Appeals of Sua Sponte Remand Orders?
By Wystan Ackerman on
Posted in Class Action Fairness Act
A recent Eleventh Circuit decision on the Class Action Fairness Act (CAFA) caught my eye. It involves the kind of question legislators (and their staffs) probably never think about when drafting a statute. Law professors dream up these types of questions when trying to find a way to puzzle their students on an exam. It’s…