Complex Litigation: CAFA Jurisdiction

Abstract

Commentary and analysis of special jurisdictional problems raised by provisions of the Class Action Fairness Act of 2005. CAFA created new federal diversity jurisdiction over class actions where the class members and defendants are citizens of different states, the amount in controversy exceeds $5 million, and there are at least 100 members in the class. This article addresses the particular issue that arises where a class action litigation is filed under CAFA, and the court either does not certify the proposed class action, or decertifies the class action. In these situations, may the federal court retain jurisdiction over portions of the case, or must the case be dismissed? The article examines the jurisdictional principles set forth in CAFA, 28 U.S.C. § 1332(d) and various federal court decisions that have reached conflicting decisions on the appropriate disposition of class actions that are not certified or decertified in the context of CAFA jurisdiction.