Applying The Class Action Fairness Act As Intended

CAFA - the Class Action Fairness Act - was designed to allow federal courts to entertain more of the major class actions that have plagued big business in recent years. Good idea, but in California, the execution may be leaving something to be desired.

Thus far, the California data is anecdotal but troubling. A growing number of trial courts are remanding the class actions, relying on case law creating a "strong presumption" against and an "aversion" to finding federal removal jurisdiction. In particular, they are ruling that the defendant failed to prove that the amount in controversy exceeds CAFA's $5 million jurisdictional minimum. Ironically, with CAFA, Congress intended a presumption in favor of retaining federal jurisdiction of class actions.

And to date, the 9th Circuit apparently has declined to hear any interlocutory appeals from the remand orders. Unless it changes that tack, it could be years before we see an actual opinion from the Court of Appeals. In the meantime, how many cases Congress intended to be litigated in federal court are being bounced back to the state?

For more information, or cites to some of the split district court opinions, contact: christina.imre@sdma.com