Class Action Fairness Act

Definition

The Class Action Fairness Act (CAFA) is a federal law enacted in 2005 that expands federal jurisdiction over class action lawsuits and mass tort cases. It aims to provide a fairer process for resolving such cases, ensuring that they are heard in federal courts rather than state courts when certain criteria are met, such as diversity of citizenship and a minimum amount in controversy. This act plays a critical role in the sources of civil procedure law and the framework for class actions, as it addresses concerns about potential abuses in state court systems and promotes more consistent standards in handling class actions.

5 Must Know Facts For Your Next Test

1. CAFA allows defendants to remove class action lawsuits from state court to federal court under certain circumstances, which often includes cases where the amount in controversy exceeds $5 million.
2. One of CAFA's key goals is to prevent forum shopping, where plaintiffs might choose state courts perceived as more favorable to their claims over federal courts.
3. The act applies to class actions with at least 100 members, which helps ensure that larger groups are treated fairly and uniformly in the judicial process.
4. CAFA has provisions that allow federal courts to decline jurisdiction if the primary defendants are citizens of the state where the lawsuit was filed, preserving some local control.
5. The passage of CAFA reflects concerns about excessive litigation and abuse of the class action system, aiming for more balance between plaintiffs' rights and defendants' protections.

Review Questions

• How does the Class Action Fairness Act impact the jurisdiction of class action lawsuits?
  • The Class Action Fairness Act significantly impacts jurisdiction by allowing for more class action lawsuits to be heard in federal courts instead of state courts. This change is intended to provide a more consistent and predictable legal environment for both plaintiffs and defendants. By meeting specific criteria such as diversity of citizenship and exceeding a minimum amount in controversy, CAFA expands the scope of federal jurisdiction and reduces potential bias that might occur in state courts.
• Discuss the reasons behind the enactment of the Class Action Fairness Act and its implications on litigation practices.
  • The Class Action Fairness Act was enacted due to concerns about perceived abuses in class action litigation, particularly regarding forum shopping where plaintiffs select state courts believed to be more sympathetic. By shifting more cases to federal courts, CAFA aims to create a fairer litigation environment with uniform standards. This shift has implications on litigation practices by potentially reducing the number of frivolous lawsuits and enhancing the quality of judicial oversight in class actions.
• Evaluate how the Class Action Fairness Act aligns with broader goals within civil procedure law regarding fairness and efficiency in judicial processes.
  • The Class Action Fairness Act aligns with broader goals within civil procedure law by promoting fairness and efficiency through its regulations on class action litigation. By expanding federal jurisdiction, CAFA aims to minimize inconsistencies between state laws that could lead to uneven application of justice. This move not only helps streamline procedures but also seeks to uphold the rights of both plaintiffs and defendants, ensuring that large-scale legal disputes are managed effectively while protecting against excessive claims and potential abuses.

Related terms

Class Action: A legal action in which a group of people with similar claims collectively bring a lawsuit against a defendant.

Jurisdiction:

The authority granted to a legal body to administer justice within a defined field of responsibility or geographical area.

Diversity Jurisdiction:

A form of jurisdiction that allows federal courts to hear cases where the parties are citizens of different states and the amount in controversy exceeds a specified threshold.