Mar 20, 2013

The Supreme Court Removes a Limit on Federal Court Jurisdiction Over Class Actions

In Standard Fire Ins. Co. v. Knowles, Case No. 11-1450 (decided Mar. 19, 2013), the United States Supreme Court removed a potential limit on the jurisdiction of federal courts over class actions.  The Court held that a potential class representative could not attempt to stipulate to the recovery of a lesser amount of damages in order to avoid hitting the threshold for a federal court’s exercising jurisdiction over the class action.  The Class Action Fairness Act of 2005 (“CAFA”) gives federal courts jurisdiction over class actions in which there is minimal diversity between the parties (one plaintiff and one defendants… Read more