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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: 3.1/day

Last Entry: September 22, 2014 at 06:01:28

Recent Entries: 826

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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...

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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...

The Elder Scrolls IV: Oblivion ? The Game Is On In Colorado

Posted on December 20, 2013
Edwards v. Zenimax Media Inc., No. 12-00411, 2013 WL 5420933 (D. Colo. Sept. 27, 2013). In this case, the United States District Court for the District of Colorado held that once a case is properly removed under CAFA, the subsequent striking of class allegations does not divest a federal court of subject matter jurisdiction...

Fifth Circuit Grants Petition to Determine The Meaning Of ?Significant Relief? Under CAFA

Posted on December 19, 2013
Opelousas General Trust Authority v. Multiplan, Inc., 2013 WL 3245169 (5th Cir. June 28, 2013). Because it had yet to fully explore the meaning of ?significant relief? in the context of CAFA?s local controversy exception, the Fifth Circuit granted the defendants? petition for leave to appeal a remand order to consider the question...

California District Court Avoids Addressing Controlling Standard for Determining Amount in Controversy

Posted on December 18, 2013
Ornelas v. Children?s Place Retail Stores, Inc., 2013 WL 2468388 (C.D.Cal. June 5, 2013). A District Court in California avoided addressing the effect of a recent Ninth Circuit decision on the controlling standard for determining the amount in controversy in a removed case where Plaintiff has pled less than the jurisdictional amount...

Supplemental Evidence from Removing Defendant May Be Considered To Defeat CAFA Removal

Posted on December 17, 2013
Steele v. W.W. Grainger, Inc., 2013 WL 2481476 (S.D. Cal. June 10, 2013). Removing defendants can undermine the basis for removal jurisdiction with their own subsequent submissions. A District Court in Southern California held that a court may consider supplemental evidence proffered by the removing defendant, which was not originally included in the removal notice [...

Defendant Cannot Be Asked To Confess Liability Under The Guise Of Calculating The Amount In Controversy

Posted on December 16, 2013
Raskas v. Johnson & Johnson, 2013 WL 3198177 (8th Cir. June 26, 2013) While reversing an order of remand, the Eighth Circuit held that when determining the amount in controversy, the question is not whether the damages are greater than the requisite amount, but whether a fact finder might legally conclude that they are...

The Seventh Circuit Resolves District Court Split Over Triggering the 30-day Removal Period

Posted on November 25, 2013
Walker v. Trailer Transit, Inc., 2013 WL 4488915 (7th Cir. Aug. 23, 2013). The Seventh Circuit resolves a district court split in the Seventh Circuit holding that the 30-day removal clock under 28 U.S.C. 1446(b)(3) is triggered only when the defendant receives a pleading or other paper that affirmatively and unambiguously reveals that the [...

A Defendant's Subjective Belief Does Not Trigger Removal

Posted on April 17, 2013
Roth v. CHA Hollywood Medical Center, L.P., 2012 WL 5456406 (C.D. Cal. Nov. 7, 2012). A District Court in California, addressing a motion to remand, was left with serious doubts as to the propriety of the removal because the defendants at no time referenced any 'paper' that they had received that allowed them to first ascertain that the case has become removable...

Individual Claims Removed Along with Class Claims Retain CAFA Jurisdiction Independent of Any Subsequent Dismissal or Transfer of Class Claims

Posted on April 16, 2013
Ellison v. Autozone, Inc., 2012 WL 5177478 (9th Cir. Oct. 19, 2012). In this racial discrimination and state wage laws violation action, the Ninth Circuit reiterated that the federal courts are not deprived of jurisdiction over individual claims through a subsequent dismissal or transfer of class claims when jurisdiction was proper at the time of removal...

If A Defendant Could Be Found Liable For The Plaintiff's Claims, Then He Is A Proper Defendant

Posted on April 15, 2013
Velasquez v. HMS Host USA, Inc., 2012 WL 6049608 (E.D. Cal. Dec. 5, 2012).   A District Court in California held that, if one could be found liable for civil penalties under the law asserted by the plaintiffs, then he is a proper defendant to the action and not joined fraudulently to defeat diversity jurisdiction...

The Real Story From the Unanimous Decision in Standard Fire Ins. Co. v. Knowles

Posted on April 12, 2013
Standard Fire Ins. Co. v. Knowles, 11-1450, 2013 WL 1104735 (U.S. Mar. 19, 2013). While we are not surprised by the unanimous decision of the Supreme Court in Knowles issued on March 19, 2013, we do find it interesting that most commentators on this case have missed what we think is the real story from the decision...

Trouble in Paradise? Emissions Of Hazardous Materials Has An Impact On CAFA Mass Action Jurisdiction As Well

Posted on April 09, 2013
Abraham v. St. Croix Renaissance Group, L.L.L.P., 2012 WL 60998502 (D.V.I. Dec. 7, 2012).   I've got 2 tickets to Paradise. Won't you pack your bags, we'll leave tonight! Well, if Paradise is St. Croix, then Eddie Money may want to read this case before going...

Controversies Are Not "Not Local" When The Defendants Are Vulnerable To Similar Claims in Other States

Posted on April 08, 2013
Villalpando v. Exel Direct Inc., 2012 WL 5464620 (N.D. Cal. Nov. 8, 2012). In a class action based on the alleged misclassification of drivers as independent contractors rather than employees, the Northern District Court of California held that the controversy was 'not local,' and it denied remand on the basis that the defendants engaged in conduct that could have injured consumers across the country making them vulnerable to similar claims in other states...

Defendants Cannot Ask the Court to Bushwhack but, Instead, May Blaze A More Enticing, Interpretive Trail Inviting the Court to Take the Road Less Traveled.

Posted on March 25, 2013
MyinfoGuard, LLC v. Sorrell, 2012 WL 5469913 (D. Vt. Nov. 9, 2012). Although the enactment of CAFA was meant to expand federal court jurisdiction over class actions, the Vermont district court did not deviate from the traditional 'whole complaint'/ wholesale approach analysis when evaluating whether the State is the real party in interest in this parens patriae action...

Extra! Extra! Read All About It! Get the Scoop on the First CAFA Supreme Court Case

Posted on January 15, 2013
Well, it took a few years, but the U.S. Supreme Court finally took a CAFA case:  Standard Insurance Co. v. Knowles.  As our brilliant readers already know, the Class Action Fairness Act has generated extensive litigation on damages stipulations since its 2005 enactment, but the law remains unsettled...

If the Burden is on you to Prove the Amount in Controversy, be Sure to Check your Math!

Posted on November 01, 2012
Kim v. Mosaic Sales Solutions Holding Co., No. 2:10-cv-03186-MCE-GGH, 2011 WL 775895 (E.D. Cal. Feb. 28, 2011).  As lawyers, sometimes we are not the best number crunchers. After all, many of us pursued degrees in Political Science because there was very little math required...

Guest Post: How the Class Action Fairness Act has Impacted Federal Courts

Posted on October 18, 2012
Here is our second guest post for the day.  This one is from Kevin Krist, a personal injury attorney located in Houston.   **************************************** The Class Action Fairness Act of 2005 was designed mainly to curtail abuses that class action lawsuits often made on the justice system...

Guest Post: Happy Birthday CAFA: Has It Improved the Federal Court System?

Posted on October 18, 2012
The CAFA Law Blog is pleased to publish another guest post.  This one is from Sarah Rawson.  Sarah, you have the floor.... ******************************************************* The Class Action Fairness Act of 2005 increased federal control of class action lawsuits...

Continuing Jurisdiction - You Can't Always Get what you Want, or what you Need....

Posted on October 08, 2012
Taragan v. Nissan N. Am., Inc., No: C 09-03660 SBA, 2011 WL 941132 (N.D. Cal. March 16, 2011).   After dismissal of class claims, it seems that both parties wanted to stay in federal court to decide the claims of the individual plaintiffs, but you can't always get what you want, or even what you need...

"No, You Just Thought You Were a Defendant," the Sixth Circuit Tells MERS

Posted on October 02, 2012
In Re Mortgage Electronic Registration Systems, Inc., 680 F.3d 849 (6th Cir. 2012). Here, the plaintiff, Kathy Hanson, obtained a loan from America's Wholesale Lender to purchase real property, and signed a mortgage with Mortgage Electronic Registration Systems (MERS) as the beneficial holder...

You Know That Award for Most Boring Case Ever Written? Yeah, We Have a Winner.

Posted on October 01, 2012
BlackRock Fin. Mgmt. Inc. v. Segregated Account of AMBAC Assur., 673 F.3d 169 (2d Cir. 2012). Here is a rare appellate snoozer that we have boiled down for you. The Bank of New York Mellon (BoNY), acting in its capacity as trustee of trusts established to hold residential mortgage-backed securities, settled claims that the originator and servicer had breached obligations owed to the trusts...

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