The Class Action Fairness Act of 2005 (CAFA) expands federal jurisdiction over class action suits and provides defendants another basis for removal to federal court. CAFA grants federal courts original jurisdiction over class actions involving at least 100 class members, with minimal or incomplete diversity of citizenship among the parties, and an amount in controversy exceeding $5 million. Since CAFA’s inception, the circuits have applied various standards to evaluate the amount in controversy under CAFA, creating a split among the federal Courts of Appeals.
Until Congress or the Supreme Court resolves the existing circuit split by declaring a uniform standard for evaluating the amount in controversy, defendants in state court class actions should remain aware of the evolving but conflicting views of the circuit courts as they evaluate whether removal can be accomplished in their jurisdictions. This article sets forth the framework under which courts evaluate the amount in controversy under CAFA, including a circuit by circuit overview of the application of the various standards.
Amount in Controversy
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