Cowan v. Devon Energy Corporation et al., No. 6:16-cv-00510-SPS (E.D. Ok. Nov. 8, 2017).

In this action, while granting the plaintiff’s motion to remand, a district court in Oklahoma found that in determining the six enumerated factors for the application of the discretionary exception, a ‘neutral’ factor should not weigh against remand.

The plaintiff, an oil and gas well owner, brought a putative class action in Pittsburg County, Oklahoma alleging that the defendants, operator of the well, violated Oklahoma statute that required payment of interest on delayed payment of revenue from oil and gas production. The plaintiff alleged that the defendants routinely delayed payment of production proceeds and denied owners the interest payments to which they were entitled as part of an overarching scheme to avoid its obligations under the Oklahoma Law.

Continue Reading A “Neutral” Factor Under 28 U.S.C. § 1332(D)(3)(A)-(F) Should Not Count Against Remand

Roberts v. Mars Petcare US Inc., No. 17-6122 (6th Cir. Nov. 2, 2017).

In this action, while reversing a district court’s denial of the plaintiff’s motion to remand, the Sixth Circuit found that a corporation cannot rely on its State of incorporation and ignore its principal place of business to create diversity under CAFA.

The plaintiff, a citizen of Tennessee, brought a putative class action on behalf of Tennessee citizens in Tennessee state court against the defendant, a citizen of Tennessee and Delaware, alleging that the defendant conspired with other pet food manufacturers, veterinarian chains, and a retailer to employ a “prescription-authorization requirement” to sell pet food at above market prices in violation of the Tennessee Trade Practices Act.

Continue Reading Section 1332(C)(1) Refers To Dual, Not Alternative, Citizenship For Corporations

Cedar Lodge Plantation LLC et al. v. CSHV Fairway View II LLC ,768 F.3d 425 (5th Cir. 2014).

The Fifth Circuit reversed an order remanding a class action to state court, holding that the application of the local controversy exception depends on the pleadings at the time the class action is removed, not on an amended complaint filed after removal.

The plaintiffs brought a putative class action on behalf of individuals and entities who were living or had lived, or who worked or owned property, in the immediate vicinity of an apartment complex. The original complaint alleged that the defendants, a group of apartment-owning and managing entities (the “Fairway Defendants”) exposed plaintiffs to underground sewage leaks that discharged higher than permitted levels of contaminants and hazardous substances. Continue Reading Local Controversy Exception to CAFA Cannot Be Invoked On the Basis of Post-Removal Amendments

Watson v. City of Allen, Tex., 821 F.3d 634 (5th Cir. 2016).

In Watson, the Fifth Circuit held that a plaintiff timely filed his motion to remand under the “local controversy” and “home state” exceptions to the Class Action Fairness Act, 28 USC 1332(d)(4)(A), (B). The court reasoned that these exceptions do not fall within the thirty-day deadline set by 28 U.S.C. § 1447(c), so remand motions based on sections (d)(4)(A) and (B) need only be brought within a reasonable time.

Continue Reading Remand Motions Invoking CAFA Exceptions Must Be Brought Within A “Reasonable Time”

Lauren_Hall_v__Welch_Foods__Inc__et_al., 2017 WL 4422418 (D.N.J. Oct. 5, 2017).

In this action, while denying Plaintiff Lauren Hall’s (“Plaintiff”) motion to remand, the United States District Court, District of New Jersey (the “District Court”), found post-removal amendments to a complaint which changes the nature or scope of the class have no bearing on the jurisdictional question.

Continue Reading The Operative Complaint at the Time of Removal Governs CAFA Jurisdiction

David_Landon_Speed_v__JMA_Energy_Company__LLC, 2017 WL 4342615 (10th Cir. Oct. 2, 2017).

In this action, while affirming the United States District Court for the Eastern District of Oklahoma’s (the “District Court”) decision remanding the case to Oklahoma state court, the United Court of Appeals for the Tenth Circuit (the “Tenth Circuit”) found the geographic dispersion of the class plaintiffs should not be overemphasized as a factor favoring federal jurisdiction.

Continue Reading When There Is Ample Connection To The Forum State, Only A Clear Abuse Of The Local Forum Could Possibly Justify A Refusal To Remand

Myrick v. WellPoint, Inc., 764 F.3d 662 (7th Cir. 2014).

The Seventh Circuit held that a District Court’s denial of plaintiffs’ motion to remand due to their failure to meet their burden of proof, was proper, notwithstanding plaintiffs’ contention that class citizenship discovery would have been too expensive.

Plaintiffs were former health insurance policy holders who filed a state court putative class action alleging violation of Illinois law in the cancellation of existing insurance policies by WellPoint, Inc. following its acquisition of RightCHOICE Managed Care, Inc. Defendants removed the action to the District Court under CAFA. Continue Reading Seventh Circuit- Lawyers Who Launch Class Actions Are Not In A Good Position To Complain About The Expenses They Entail

Hernandez v Starbucks Corporation, 2017 WL 2971858 (C.D. Cal. July 12, 2017)

A California court granted a plaintiff’s motion to remand, finding that the defendants’ amount in controversy calculation, made under an assumption of a 100% violation rate, was unreasonable. Continue Reading Defendants’ Assumption Of A 100% Violation Rate of Labor Laws in Calculation of Amount in Controversy Deemed Unreasonable

McCracken v Verisma Systems Inc, 2017 WL 2080279 (W.D.N.Y. May 15, 2017).

In retaining jurisdiction over the plaintiffs’ case pursuant to CAFA, a New York District Court found that the homestate exception refers to “primary defendants” in the plural; thus, the plain language of the statute requires remand only when all of the primary defendants were residents of the same state in which the action was originally filed.
Continue Reading CAFA’s Home-State Controversy Exception Applies When All “Primary Defendants” Are From the Same State

Pae v. Fox Restaurant Concepts, LLC, 2017 WL 3184464 (C.D. Cal. July 25, 2017).

In this action, while denying the plaintiff’s motion to remand, a district court in California found that the plaintiff must prove beyond conclusory statements that certain employees of a corporation direct, control, or coordinate its activities to establish the corporation’s principal place of business. Continue Reading Conclusory Statements that Certain Employees Direct, Control, or Coordinate a Corporation’s Activities Are Insufficient to Prove the Corporation’s Principal Place of Business