The Western District of Missouri denied class certification in an action alleging three regional newspapers—the Kansas City Star, the Fort Worth Star Telegram, and the Belleville News-Democrat—unlawfully double billed some of their subscribers by shortening the length of their subscriptions. The named plaintiffs, subscribers to the Kansas City Star only, alleged that without providing proper notice, the newspapers deducted additional charges for special or premium ... Keep Reading »
Class Action Fairness Act (CAFA) Articles
The latest CAFA developments and trends, including news, key cases, and strategies.
Eleventh Circuit Holds Rule 23 Trumps State Law Precluding Private Class Actions
The Alabama Deceptive Trade Practices Act’s (ADTPA) restriction on private class actions does not apply in federal court. Federal Rule 23 controls. That’s what the Eleventh Circuit recently held, relying on Shady Grove Orthopedic Associates, P.A. v. Allstate Insurance Co., 559 U.S. 393, 130 S. Ct. 1431, 176 L.Ed.2d 311 (2010). Plaintiff contracted for installation of a wood fence. The manufacturer warranted that the wood was treated and would remain free from rot, ... Keep Reading »
Ninth Circuit Finds Local Controversy Exception to CAFA
The Ninth Circuit reversed the dismissal of a class action and instructed the district court to remand the case to state court, based on the local controversy exception to the Class Action Fairness Act (CAFA). In doing so, it held that a post-removal amended complaint may be considered to determine whether remand is appropriate. A group of Nevada citizens sued six separate entities in Nevada state court for illegal debt collection practices. After removal, the ... Keep Reading »
CAFA Local Controversy Exception Established Through Sampling and Statistics
An Illinois federal district court recently credited sampling data as evidence sufficient to establish the citizenship of putative class members for purposes of invoking the local controversy exception to CAFA jurisdiction. Plaintiffs filed a putative class action lawsuit in Illinois state court alleging that their property is being contaminated by silt particles released from defendants’ steel mill facility in Granite City, Illinois. They asserted common law claims ... Keep Reading »
Ninth Circuit Strictly Construes “Single Local Event” Exception to CAFA Jurisdiction for Mass Actions
In a recent decision, the Ninth Circuit Court of Appeals strictly construed the "single local event" exception to federal jurisdiction under CAFA as not encompassing "events or occurrences" that are of a continuing nature. Plaintiffs are Washington residents who filed a complaint in state court alleging that Boeing contaminated their groundwater and, together with its environmental remediation contractor, Landau, did not properly investigate, remediate, and clean up ... Keep Reading »
Middle District of Florida Remands Insurance Coverage Class Action, Reasoning Amount In Controversy Is Determined From Value Of Claim, Not Policy
The value of the claim at issue, not the value of the policy limit, is considered for purposes of determining the amount in controversy in an insurance coverage class action. That, the Middle District of Florida found, is the law in the Eleventh Circuit. The plaintiff in Faust v. Maxum Casualty Insurance Company filed in state court a class action against his insurer on behalf of persons covered for Medical Payments coverage under a Florida property, casualty, surety, ... Keep Reading »
Ninth Circuit Holds Defendant Can Remove Within 30-Days After CAFA Grounds Are Ascertained, Even Where Complaint Provided Basis For Federal Question Removal
A Ninth Circuit panel has held that a defendant may remove a case to federal court within 30 days after the CAFA ground for removal can first be ascertained, even where plaintiff's complaint, filed years earlier, provided a basis for removal based on federal question jurisdiction. On April 3, 2012, plaintiff filed her initial complaint against Nationstar in state court, alleging various causes of action, including a federal cause of action under the Fair Debt ... Keep Reading »
Ninth Circuit Holds That State Court’s Class Certification Order Creates New Occasion for CAFA Removal
The Ninth Circuit held that a state court's certification order, under which CAFA's amount in controversy would be met, created a new basis for defendant to remove the case to federal court. The plaintiff had filed a putative class action against Dollar Tree in California Superior Court alleging violations of the California Labor Code and California Business and Professions Code, Section 17200, based on Dollar Tree's purported failure to provide required paid rest breaks ... Keep Reading »
GCs facing more bet-the-company and higher exposure class actions
Across industries, companies spent $2 billion on class action lawsuits in 2014, slightly less than the $2.1 billion they spent in 2013. This year, spending is expected to return to 2013 levels. Companies’ class action dockets increased on average by one new case in 2014, bringing the average number of class actions managed to five. This total is expected to remain constant in 2015, as the number of new matters is likely to be offset by those resolved. As before, ... Keep Reading »
District Court for the District of Columbia Finds CAFA Jurisdiction Exists; Denies Remand For Lack of Local Controversy
The U.S. District Court for the District of Columbia denied a motion to remand an action removed pursuant to the Class Action Fairness Act (CAFA), where the plaintiff failed to show CAFA’s local controversy exception applied. Plaintiff sued a Washington, D.C. health club and several others for allegedly fraudulently taking out lines of credit against customers and billing against them without the customers’ knowledge or consent. The Plaintiff conceded minimal ... Keep Reading »