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Westerfeld v. Independent Processing, LLC

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Submitted: September 7, 2010

Before SMITH, BOWMAN, and GRUENDER, Circuit Judges.

Marlene Westerfeld, a Missouri resident, filed this class action in Missouri state court against Independent Processing, LLC, a Missouri limited liability company that processed residential mortgage documents, and Provident Funding Associates, LP, a California limited partnership that provided residential mortgages. Westerfeld alleged that when Independent and Provident charged her and other Missouri residents a “broker processing fee” and an “administrative fee,” respectively, in residential mortgage financing transactions, the two entities engaged in the unauthorized practice of law and violated the Missouri Merchandising Practices Act, Mo. Rev. Stat. §§ 407.010–407.1500. Provident removed the case to federal court pursuant to the Class Action Fairness Act of 2005 (CAFA).*fn1 Westerfeld then moved to remand the case based on an exception to CAFA jurisdiction, the local-controversy exception, 28 U.S.C. § 1332(d)(4)(A). The District Court granted Westerfeld’s motion, ordering the case remanded to the Circuit Court of St. Louis County. Provident filed a timely petition with this Court under 28 U.S.C. § 1453(c)(1) for leave to appeal the District Court’s remand order. We granted Provident’s motion, and reviewing the District Court’s interpretation of CAFA de novo, see Iowa 80 Grp., Inc. v. IRS, 406 F.3d 950, 952 (8th Cir. 2005) (standard of review), we now vacate the judgment of the District Court and remand the case for further consideration consistent with this opinion.

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