The Class Action Fairness Act of 2005 created a new basis for federal diversity jurisdiction over class action litigation, both as a matter of original and removal jurisdiction. 28 U.S.C. � 1332(d); Class Action Fairness Act of 2005, Pub. L. No. 109-2, 119 Stat. 4. The act confers federal court jurisdiction over class actions where at least one member of the plaintiff class is a citizen of a different state than any defendant and the total amount in controversy exceeds $5 million. 28 U.S.C. �1332(d)(1).
This new statutory provision effects two changes in the federal courts’ diversity jurisdiction under 28 U.S.C. �1332(a). First, the class action provision authorizes federal courts to adjudicate class litigation where there is “minimal diversity” among the parties to the litigation. Hence, there need not be complete diversity for a federal court to hear a class action. Second, �1332(d)(1) requires a different amount in controversy for class actions; the amount in controversy for ordinary diversity actions is $75,000; class action litigation must exceed $5 million.
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