Monday, October 18, 2010

Eleventh Circuit Court of Appeals reverses decision on class action jurisdiction

Earlier this year, we reported that the Eleventh Circuit Court of Appeals, a federal appellate court based in Atlanta, had significantly narrowed the scope of federal jurisdiction in class action matters under the Class Action Fairness Act, or CAFA.  On Friday, in light of the parties' motions for reconsideration, the court reversed its prior decision and held that “subsequent reflection has led us to conclude that our interpretation [of CAFA] was incorrect.”

As a result of the revised decision, federal jurisdiction is not dependent on any individual class member having a claim in excess of $75,000 (exclusive of interest and costs) so long as the entire class claim involves the jurisdictional minimum under CAFA of $5,000,000.  This is the case both under original and removal federal jurisdiction.

The text of the decision can be found on the Eleventh Circuit web site here.  The case is Cappuccitti v. DirecTV, Inc., No. 09-14107 (October 15, 2010).

Turkheimer & Hadden
Attorneys at Law
(404) 939-4525

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