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Class Action

CAFA Law Blog - Information, cases and insights regarding the Class Action Fairness Act of 2005 CAFA Law Blog - Information, cases and insights regarding the Class Action Fairness Act of 2005

The CAFA Law Blog is an online resource for information, cases and insights regarding the Class Action Fairness Act of 2005, or “CAFA.”

Post Frequency: 2.9/day

Last Entry: October 24, 2014 at 06:00:34

Recent Entries: 856

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Dissent in Dart Cherokee Basin Operating Co., LLC v. Owens Paves Way For Third Supreme Court CAFA Decision

Posted on August 26, 2014
Dart Cherokee Basin Operating Co., LLC v. Owens, 730 F.3d 1234 (10th Cir. 2013), cert. granted, 134 S.Ct. 1788, 188 L.Ed. 2d 757 (2014) In this appeal, four circuit judges ? Judges Hartz, Kelly, Tymkovich, and Phillips ? dissented from the Tenth Circuit?s refusal to grant rehearing with respect to a Tenth Circuit panel?s previous [...


Local Controversy Exception, Not Home State Exception Wins the Day

Posted on August 19, 2014
Vodenichar v Halcon Energy Properties Inc., 733 F.3d 497 (3d Cir. Aug. 16, 2013). In this action, the Third Circuit affirmed the remand of the case based on a local controversy exception rather than the applying the home state exception as the basis for the district court?s remand...


Approved Settlement of Federal and State Wage Claims Did Not Implicate CAFA

Posted on August 15, 2014
Juvera v. Salcido, 2013 WL 6628039 (D. Ariz. Dec. 17, 2013) A District Court in Arizona granted approval to a $157,000 settlement holding that the Settlement Agreement reflected a fair and reasonable resolution of wage issues in the action. Current and former cashiers who were employed with the defendants brought this action alleging violations of [...


Ninth Circuit?s Lowdermilk?s Legal Certainty Standard is Irreconcilable with Standard Fire

Posted on August 14, 2014
Rodriguez v. AT&T Mobility Services, LLC, 2013 WL 4516757 (9th Cir. Aug. 27, 2013). The Ninth Circuit?s decision that Lowdermilk?s imposition of the legal certainty standard was clearly irreconcilable with Standard Fire is a boon to defendants seeking to remove cases to federal court under CAFA...


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Setting the Edges: Defending Against Plaintiff End Runs Around CAFA

Posted on August 13, 2014
Edward S. Sledge, IV & Christopher S. Randolph, Jr., Setting the Edges: Defending Against Plaintiff End Runs Around CAFA, 80 Def. Couns. J. 178 (April 2013). In this article, Edward S. Sledge, IV, a shareholder at Maynard, Cooper & Gale, P.C. in Birmingham, Alabama, discusses the abusive practice that has allowed plaintiffs? attorneys to evade [...


Probation Company is not a Government Entity for the Purpose of CAFA

Posted on August 12, 2014
McGee v. Sentinel Offender Servs., LLC, 2013 WL 2436658 (11th Cir. June 6, 2013). A question arose before the Eleventh Circuit if a probation company is a government entity so that it could not assert federal jurisdiction under CAFA. The Eleventh Circuit held that the probation company who is contracted by the state for services [...


Amount in Controversy Need Not Be Proved to Absolute Certainty

Posted on August 08, 2014
Stephenson v. Consolidated Rail Corp., 2013 WL 1750005 (D.N.J. April 23, 2013). The plaintiffs brought this class action in the Superior Court of New Jersey, Gloucester County, alleging that huge quantities of toxic, dangerous, and ultra-hazardous substances were released when defendants bridge collapsed and train derailed...


Ambiguity Goes In Favour Of The Non-Removing Party

Posted on August 06, 2014
Salazar v. Avis Budget Group, Inc., 2013 WL 1728275 (S.D. Cal. April 23, 2013). Plaintiffs, a group of mechanics, filed a putative wage-and-hour class action in the Superior Court of California, San Diego County. Defendants quickly removed the action to the District Court under CAFA, and plaintiffs then filed their First Amended Complaint (?FAC?)...


Only Concrete Evidence Can Keep a Defendant?s Case Afloat Under CAFA?S Legal Certainty Standard

Posted on July 02, 2014
Bell v. Home Depot U.S.A., Inc., 2013 WL 1791920 (E.D.Cal. April 26, 2013). As amended by CAFA, 28 U.S.C. 1332(d) vests district courts with original jurisdiction of any civil action in which the amount in controversy exceeds $5,000,000, the aggregate number of proposed plaintiffs is 100 or greater, and any member of the plaintiff [...


Forum Shopping May Not Qualify as Bad Faith

Posted on May 23, 2014
Deaver v. BBVA Compass Consulting & Benefits, Inc., 2013 WL 2156280 (N.D. Cal. May 17, 2013). The U.S. District Court for the Northern District of Florida determined whether the Supreme Court?s recent decision in Standard Fire Insurance Company v...


District Court Can Stay Its Remand Order Pending Appeal

Posted on May 22, 2014
Dalton v. Walgreen Co., 2013 WL 2367837 (E.D. Mo. May 29, 2013). Staying its remand order to facilitate the defendant to prefer an appeal, the U.S. District Court for the Eastern District of Missouri held that it had jurisdiction to reopen the case for the limited purpose of staying the remand order, because to hold [...


Appellate Court Opinion in a Wholly Separate Case Does Not Reset the 30-Day Removal Window

Posted on May 21, 2014
Brown v. MHN Government Services, Inc., 2013 WL 2321509 (W.D. Wash. May 28, 2013). The U.S. District Court for the Western District of Washington held that a recent Supreme Court opinion in a wholly separate case does not reset the 30-day removal window under 28 U...


Limited Liability Companies Are like Corporations for Purposes of Determining Citizenship under CAFA

Posted on May 20, 2014
Heckemeyer v. NRT Missouri, LLC, 2013 WL 2250429 (E.D. Mo. May 22, 2013). The U.S. District Court for the Eastern District of Missouri held that Congress chose to treat limited a limited liability company (?LLC?) like a corporation for purposes of determining citizenship under CAFA; thus, an LLC is deemed to be a citizen of [...


Facts Outside of the Complaint and Notice of Removal Are Irrelevant for Deciding CAFA Jurisdiction

Posted on May 19, 2014
Owens v. Dart Cherokee Basin Operating Co., LLC, 2013 WL 2237740 (D. Kan. May 21, 2013). The U.S. District Court of Kansas has held that reference to factual allegations or evidence outside of the complaint and notice of removal is not permitted to determine the amount in controversy...


Smith v. Honeywell International, Inc., 2013 WL 2181277 (D.N.J. May 20, 2013)

Posted on May 16, 2014
Smith v. Honeywell International, Inc., 2013 WL 2181277 (D.N.J. May 20, 2013). The plaintiffs sued defendants, PPG Industries, Inc. (?PPG?) and Honeywell International Inc. (?Honeywell?), alleging that the chromium ore processing residue (?COPR?) used by the defendants to fill in residential and commercial areas in Jersey City exposed the class members to hazardous materials which [...


Spillman v. RPM Pizza, LLC, 2013 WL 2286076 (M.D. La. May 23, 2013)

Posted on May 15, 2014
Spillman v. RPM Pizza, LLC, 2013 WL 2286076 (M.D. La. May 23, 2013). The plaintiff brought an action under the Telephone Consumer Protection Act (TCPA) on behalf of a class of persons who received automated telephone calls to their cellular phone numbers made by or on behalf of the defendant, RPM Pizza, LLC or one [...


The Supreme Court?s Knowles Ruling Is Not ?Other Paper? Within the Meaning of 28 U.S.C. 1446(b)(3)

Posted on April 08, 2014
Henry v. Michaels Stores, Inc., 2013 WL 2208070 (N.D. Ohio May 20, 2013). The District Court held that the Supreme Court?s recent opinion in Standard Fire Insurance Co. v. Knowles, 133 S. Ct. 1345 (2013), is not an ?other paper,? which could make a previously un-removable case removable under 28 U...


Is A Continuing Tort An ?Event Or Occurence? Under CAFA?s Mass Action Provisions?

Posted on March 18, 2014
Eleanor Abraham, et al v. St. Croix Renaissance, Group, L.L.L.P., 719 F.3d 270 (3d Cir. 2013). In this appeal, the Third Circuit held that CAFA?s phrase ?an event or occurrence,? as it appears in the mass-action exclusion, is not limited to something that happened at a particular moment in time...


Citizenship, not Residency bring cases to Federal Court

Posted on March 17, 2014
Villa v. United Site Servs. of California, Inc., 2013 WL 2436605 (N.D. Cal. June 4, 2013). District Judge Jon S. Tigar, writing for the Northern District of California remanded an action for failure to establish minimal diversity, holding that the relevant inquiry for determining whether minimal diversity exists is the citizenship of the parties, which [...


Amount in Controversy adequately supported by Defendant?s Affidavit

Posted on March 14, 2014
Turnage v. Old Dominion Freight Line, Inc, 2013 WL 2950836 (N.D. Cal. June 14, 2013). The plaintiff, truck driver, brought a wage and hour action in violation of California Labor Code, and Industrial Welfare Commission Wage Orders. The plaintiff also brought a representative claim under the Private Attorney General Act, and a cause of action [...


Individual Claims are Immaterial because CAFA Aggregates the Class Claims

Posted on March 13, 2014
Stella v. Hertz Corp, 2013 WL 2456042 (S.D. Cal. June 5, 2013). Establishing that the named plaintiff?s individual claims exceeds $75,000 is immaterial to CAFA jurisdiction. What is important under CAFA is that the claim of the class should exceed $5 million...


Severance Under Rule 21 May Defeat CAFA Jurisdiction

Posted on March 13, 2014
State of Louisiana v. American National Property And Casualty Company, 2013 WL 5201146 (E.D. La. Sept. 11, 2013). In this case, the District Court for the Eastern District of Louisiana held that, while subject matter jurisdiction is generally determined at the onset of litigation, when an action is severed under Federal Rule of Civil Procedure [...


Standard Fire v Knowles at Use in Practice in Arkansas

Posted on March 12, 2014
Standard Fire at Use in Practice in Arkansas Deaton v. Frito-Lay N. America, Inc., 2013 WL 2455941 (W.D. Ark. June 5, 2013). Relying on the recent Supreme Court?s decision in Standard Fire that ?to defeat CAFA jurisdiction, a stipulation must be binding, and a plaintiff bringing a proposed class action cannot bind members of the [...


Can A Complaint Be Mislabeled To Avoid CAFA?

Posted on March 11, 2014
Erie Insurance Exchange v. Erie Indemnity Company, 722 F.3d 154 (3d Cir. 2013). In this appeal, a majority of a Third Circuit panel held that an action brought by an insurance exchange ? an entity, not a conglomerate of individuals ? was not class action under CAFA...


California Case! ? only 25% of California Labor Code Penalties can be considered for Amount in Controversy Requirement

Posted on March 10, 2014
Walker v Corepower Yoga LLC, 2013 WL 2338675 (S.D. Cal. May 28, 2013). In absence of the Ninth Circuit precedent on the issue, a the District Court for the Southern District of California, remanded an action to the state court and held that only 25 percent of the total potential California Labor Code Private Attorney [...


Defendant?s Amount In Controversy Award Scrutinized for Time Barred and Other Inapplicable Damage Claims

Posted on February 18, 2014
Smith v. Lux Retail North America, Inc., 2013 WL 2932243 (N.D.Cal. June 13, 2013) In calculating damages, the defendant in this action had added damages that were outside the statute of limitations and otherwise inapplicable. Rejecting the defendant?s calculations, a District Court in California remanded the action to state court...


Better Late Than Never: Defendant Allowed To Raise CAFA?s Home State Exception Three Years After Filing Complaint

Posted on January 02, 2014
Gold v. New York Life Ins. Co., 730 F.3d 137 (2nd Cir. 2013). In this appeal, the Second Circuit held (1) that CAFA?s home state exception is not jurisdictional and must be raised within a reasonable time, and (2) that the district court?s discovery schedule, which required the defendant to complete individual discovery before commencing [...


Defendant Lacked Energy To Maintain Jurisdiction Under CAFA

Posted on December 30, 2013
Zuckman v. Monster Beverage Corp., No. 12-1978, 2013 WL 3992932 (D.D.C. Aug. 6, 2013). The District Court for the District of Columbia held that an action brought under the private attorney general provision of the District of Columbia?s Consumer Protection Procedures Act was not a removable class action under CAFA...


CAFA?s General Public Exception Does Not Apply To Action Brought By Mississippi?s Attorney General

Posted on December 27, 2013
Hood v. Bristol-Myers Squibb Co., No. 12-00179, 2013 WL 3280267 (N.D. Miss. June 27, 2013). In this case, the District Court for the Northern District of Mississippi found that an action brought by Mississippi?s Attorney General on behalf of the State of Mississippi, as well as individual, Mississippi consumers, did not fall within the scope [...


Seventh Circuit Refuses to Exalt Form Over Substance in Decision Reversing District Court?s Remand Order

Posted on December 23, 2013
Addison Automatics, Inc. v. Hartford Cas. Ins. Co., 731 F.3d 740 (7th Cir. 2013). In this appeal, the Seventh Circuit found that the substance, not form, of a plaintiff?s complaint determined whether the district court had subject matter jurisdiction under CAFA...


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