Court unanimously rules for class action defendant in important CAFA case: The Standard Fire Insurance Co. v. Knowles, No. 11-1450
19 March 2013Class Action Alert
The Supreme Court unanimously held today that a class action plaintiff cannot defeat a defendant’s right of removal under the Class Action Fairness Act (CAFA) by stipulating that the class will not seek damages that meet the US$5 million CAFA prerequisite. This holding resolves a split among the lower courts, closes a potentially massive loophole in CAFA, and sends a signal that pleading strategies designed solely to defeat federal jurisdiction over class actions are not acceptable.