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Civil Procedure • Class Actions
CIVPRO#066
Legal Definition
Under the Class Action Fairness Act, subject matter jurisdiction is established if: (1) any class member is diverse from any defendant; (2) the amount in controversy in the aggregate exceeds $5 million; and (3) there are at least 100 class members. However, there is no jurisdiction if the primary defendants are state or federal government entities or the case is based on securities law or relates to the internal affairs of a corporation.
Plain English Explanation
Under the Class Action Fairness Act (CAFA), subject matter jurisdiction for a class action case is established if the following conditions are met:
(1) Any class member is diverse from any defendant: This means that at least one member of the class must be from a different state than any of the defendants involved in the case.
(2) The amount in controversy in the aggregate exceeds $5 million: The total value of the claims made by all class members must be more than $5 million. This threshold ensures that larger class actions can be considered at the federal level.
(3) There are at least 100 class members: The class must consist of a minimum of 100 individuals, making it a significant group for the lawsuit.
However, there are some exceptions where jurisdiction under CAFA does not apply:
(1) If the primary defendants are state or federal government entities: In such cases, CAFA does not grant jurisdiction over the class action.
(2) If the case is based on securities law: Jurisdiction is also not established for cases specifically relating to securities regulations.
(3) If the case relates to the internal affairs of a corporation: Disputes concerning the internal management and operations of a corporation do not fall under CAFA jurisdiction.
(1) Any class member is diverse from any defendant: This means that at least one member of the class must be from a different state than any of the defendants involved in the case.
(2) The amount in controversy in the aggregate exceeds $5 million: The total value of the claims made by all class members must be more than $5 million. This threshold ensures that larger class actions can be considered at the federal level.
(3) There are at least 100 class members: The class must consist of a minimum of 100 individuals, making it a significant group for the lawsuit.
However, there are some exceptions where jurisdiction under CAFA does not apply:
(1) If the primary defendants are state or federal government entities: In such cases, CAFA does not grant jurisdiction over the class action.
(2) If the case is based on securities law: Jurisdiction is also not established for cases specifically relating to securities regulations.
(3) If the case relates to the internal affairs of a corporation: Disputes concerning the internal management and operations of a corporation do not fall under CAFA jurisdiction.
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