CAFA DIVERSITY JURISDICTION
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1 Cla Action 101: CAFA Divrity Juridiction at a Glanc By Kathryn Honckr Jun 20, 2013 In thi dition of Cla Action 101, w giv a viual guid to th Cla Action Fairn Act (CAFA), 28 U.S.C. 1332(d)(2), to hlp you dtrmin if your cla action i ubjct to th broad wp of fdral divrity juridiction providd undr CAFA. Hollingr v. Hom Stat Mut. In. Co., 654 F.3d 564, 569 (5th Cir. 2011) ( CAFA gratly xpand fdral juridiction ovr intrtat cla action lawuit. ). CAFA DIVERSIT JURISDICTION 28 U.S.C. 1332(d)(2) Do th propod cla contain mor than 100 mmbr? Do th aggrgat amount in controvry xcd $5 million? Fdral CAFA I at lat on plaintiff or cla mmbr from a tat diffrnt from on dfndant (minimal divrity)? Th fdral court ha CAFA juridiction: Rmoval i poibl unl an xcption or xcluion
2 Th Local Controvry Mandatory Abtntion Excption = Th Fdral Court Cannot Tak Juridiction 28 U.S.C. 1332(d)(4)(A) Ar mor than two-third of th propod cla mmbr citizn of th I at lat on dfndant a citizn of th Thi xcption i ovr th ca if no othr xcption Did that dfndant conduct form a ignificant bai for th claim? Fdral CAFA I th cla king ignificant rlif from that dfndant? Did th principal injuri occur in th Hav any othr cla action bn fild in th lat thr yar with imilar factual allgation againt any of th dfndant?
3 Th Hom Stat Mandatory Abtntion Excption = Th Fdral Court Cannot Tak Juridiction 28 U.S.C. 1332(d)(4)(B) Ar mor than two-third of th propod cla citizn of th * Thi xcption i ovr th ca if no othr xcption Ar th primary dfndant citizn of th *(but may b abl to k th prmiiv xcption t forth blow) Fdral CAFA
4 Th Prmiiv Excption = Th Fdral Court May Opt to Dclin Juridiction 28 U.S.C. 1332(d)(3) Ar mor than on-third but l than two-third of th propod cla citizn of th Thi xcption i ovr th ca if no othr xcption Ar th primary dfndant citizn of th (A) whthr th claim artd involv mattr of national or intrtat intrt; (B) whthr th claim artd will b govrnd by th forum tat or anothr tat; Th fdral court may dclin to xrci juridiction and allow claim to procd in tat court aftr conidring th following factor: (C) whthr th cla action ha bn pladd in a mannr that k to avoid fdral juridiction; (D) whthr th action wa brought in a forum with a ditinct nxu with th cla mmbr, th allgd harm, or th dfndant; (E) whthr th numbr of citizn of th forum tat i ubtantially largr than th numbr of citizn from any othr tat, and th citiznhip of th othr mmbr of th cla i diprd among a ubtantial numbr of tat; and (F) whthr, during th thr-yar priod bfor filing thi ca, on or mor othr cla action arting th am or imilar claim on bhalf of th am or othr pron hav bn fild.
5 Excluion = CAFA Juridiction Do NOT Apply in th Following Typ of Cla Action 28 U.S.C. 1332(d)(9) Do th ca olly involv a claim concrning a covrd curity undr 15 U.S.C. 78p(f)(3) and 15 U.S.C. 28(f)(5)(E)? Do th ca olly involv a claim that rlat to th intrnal affair or govrnanc of a corporation or othr form of buin ntrpri? Fdral CAFA Do th ca ari undr or by virtu of th law of th tat whr uch corporation or buin ntrpri i incorporatd or organizd? Do th ca olly involv a claim that rlat to th right, duti (including fiduciary duti), and obligation rlating to or cratd by or puruant to any curity? t: Fraud claim hav bn hld to not b includd. S,.g., Lincoln Nat l Lif In. Co. v. Bzich, 610 F.3d 448, 451 (7th Cir. 2010). Th xcluion ar ovr th ca unl an xcption
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