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Posts tagged Removal.
U.S. Supreme Court Limited Authority to Remove Class Actions to Original Defendants, Third-Party Counterclaim Defendants May Not Remove Even Under CAFA

A defendant by any other name does not smell as sweet when it comes to removing class actions from state court to federal court, even under the Class Action Fairness Act of 2005 (“CAFA”). Congress passed CAFA to address perceived abuses in class action litigation and to provide an avenue for defendants to remove class actions filed in state courts to the more neutral ground of the federal court system. But, who can avail themselves of the removal authority provided by CAFA? The U.S. Supreme Court recently held in Home Depot U.S.A. , Inc. v. Jackson, 587 U. S. ____ (2019) that only the ...

Supreme Court: Companies Fighting State Class Actions Can Remove to Federal Court Without Evidence of Damages

The Class Action Fairness Act of 2005 (“CAFA”) has found its way to the steps of the U.S. Supreme Court several times in the last two years, as plaintiffs and defendants seek to define the parameters of the federal law enacted, in part, to rectify state and local court abuses of the class action process and demonstrated biases against out-of-state defendants.  CAFA provides that a defendant may remove a state class action to federal court if the matter in controversy exceeds $5,000,000, exclusive of interest and costs, and certain other criteria are met.  On December 15, the U.S ...

4th Circuit Offers Defendants Seeking Federal Jurisdiction Relief Denied by Other Circuit Courts: Remands to State Court Obtained by Fraud Can be Revoked and Attorneys Sanctioned

Last week, the Fourth Circuit Court of Appeals kicked off the holiday by giving thanks for the power to prevent parties from reaping the benefits of fraud perpetrated against the federal courts. The Fourth Circuit decided in Barlow v. Colgate Palmolive Co., et al., No. 13-1839, No. 13-1840, 2014 U.S. App. LEXIS 22324 (4th Cir. Nov. 25, 2014) that the reach of federal jurisdiction extends far enough to snatch a case back from state court if a plaintiff secured remand based on fraudulent misrepresentations to the federal court.  The court also clarified that attorneys engaging in such ...

If It Walks Like a Class or Mass Action…Is it Removable Under CAFA? (Part 2)

           We continue our exploration of removability under the Class Action Fairness Act of 2005 (“CAFA”) and the threshold question that has driven a split between the Circuit Courts of Appeals described as “intolerable as a matter of federalism,” carrying CAFA back to the steps of the U.S. Supreme Court.  Before determining whether any requirement for removal under CAFA is met, the critical question is: is the case at hand even a class or mass action?  CAFA debuted on the U.S. Supreme Court’s calendar last term with Standard Fire Ins. Co. v. Knowles, 133 S. Ct. 1345, 568 US __ (2013), and ...

A Unanimous U.S. Supreme Court Prevents Class Action Plaintiffs from Sidestepping Federal Jurisdiction under the Class Action Fairness Act

            Class action defendants hit a home run in Standard Fire Insurance Co. v. Knowles, 568 U.S. ___  (Mar. 19, 2013), one of the U.S. Supreme Court’s latest class action decisions and its first decision to address the Class Action Fairness Act of 2005 (“CAFA”).  Knowles questioned the power of class action plaintiffs to legally bind class members prior to class certification and, in particular, whether class action plaintiffs could avoid federal jurisdiction under CAFA by stipulating with the complaint that the class would not seek damages in excess of the $5 million CAFA ...

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