In a significant blow to business, the Supreme Court ruled Wednesday that certain class actions barred or limited by state laws may proceed in federal courts. A 5-4 majority of the Court held that the federal class action rule, Civil Procedure Rule 23, trumped a New York law prohibiting class actions that seek to recover statutory penalties or minimal recoveries. The case presented a classic civil procedure conundrum that only law professors could love, and produced splintered voting and unusual alignments of the justices.
Supreme Court Ruling Opens Federal Courts to More Class Actions
The National Law Journal
April 1, 2010