The combination of a quirky procedural posture and broad language used by the Supreme Court in 1941 have left Home Depot trapped in a North Carolina state court defending against a class action, despite the removal provisions of the Class Action Fairness Act. On September 27, 2018, the Supreme Court granted certiorari to decide whether CAFA authorizes removal of class action counterclaims when its requirements are otherwise met.
On March 19, in The Standard Fire Insurance Company v. Knowles, No. 11-1450, the United States Supreme Court ruled that stipulations by a named plaintiff on behalf of a proposed class prior to certification cannot serve as the basis for avoiding federal jurisdiction under the Class Action Fairness Act of 2005 (“CAFA”).
On October 15, 2010, the Eleventh Circuit reversed course on a controversial decision interpreting the jurisdictional requirements of the Class Action Fairness Act of 2005 (“CAFA”). Vacating its earlier decision that was at odds with every other circuit to consider the issue, the Court held that CAFA plaintiffs are not required to allege that at least one of the plaintiffs suffered damages in excess of $75,000. In line with traditional CAFA interpretation, the Court held that plaintiffs need only satisfy the aggregate $5,000,000 amount in controversy requirement.