Standard Fire v. Knowles

Relying on the recent Supreme Court’s decision in Standard Fire that “to defeat CAFA jurisdiction, a stipulation must be binding, and a plaintiff bringing a proposed class action cannot bind members of the proposed class before it is certified,” Western District Court of Arkansas vacated its earlier remand order after remand from the Eighth Circuit.  View Full Post
In 2005, Congress passed the Class Action Fairness Act (CAFA), which creates federal jurisdiction over class actions involving more than 100 class members and $5 million in controversy. Plaintiffs have long attempted to avoid CAFA’s invocation of federal jurisdiction by stipulating to no more than $5 million in classwide damages. View Full Post
One of the issues raised by some legal commentators after the U.S. Supreme Court decided Standard Fire Insurance Company v. Knowles, 133 S. Ct. 1345 (2013) (blog post), was whether the Supreme Court’s opinion invalidating named plaintiffs’ stipulations regarding the amount in controversy would allow cases to be removed again, or removed after the 30-day period had expired. View Full Post
On Tuesday morning, a unanimous U.S. Supreme Court decisively closed a loophole in the Class Action Fairness Act, holding in Standard Fire Insurance Co. v. Knowles that a purported stipulation by the named plaintiff to seek less than the $5 million jurisdictional threshold was irrelevant for purposes of determining whether Federal jurisdiction over the class complaint existed. View Full Post