Thursday, July 29, 2010

11th Circuit CAFA Ruling Already Creating Ripple Effects.

Absence of Jurisdiction                                                              

Judge Tjoflat's CAFA jurisdictional ruling is having the expected effects below:  a rush of motions seeking to have cases dismissed for lack of subject matter jurisdiction.

In the massive Checking Overdraft MDL, for example, which Judge King has presided over with his usual decisiveness and authority for more than a year, several defendant banks immediately filed a motion just days after the 11th Circuit ruling:
The Cappuccitti decision is binding law in this Circuit as of the date of its publication.  Further, each of the above-captioned cases is subject to its rule. In each of these cases, plaintiffs filed complaints in federal district court, claiming subject matter jurisdiction on the basis of diversity and the CAFA provisions relating to class actions with aggregate claims exceeding $5,000,000. But none of these complaints, all of which have been answered, pleaded that any plaintiff has an individual claim of $75,000. Accordingly, under the rule of Cappuccitti, this Court would lack subject matter jurisdiction.
Personally, I think the 11th ought to step in en banc and take another look at this before all hail breaks loose.

But I'm just a putzy legal blogger, what do I know?


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