Class actio. laws10/28/2023 ![]() ![]() Instead of requiring that all opposing parties be citizens of different states or countries, it only requires that at least one class member be a citizen of a different state or country than any defendant. In addition, CAFA eases the requirements for diversity between plaintiffs and defendants. The law also only applies to class actions with 100 or more class members. CAFA sets this minimum amount at $5 million. Much like regular diversity jurisdiction, a class action must have a minimum amount in controversy. In a class action against a large corporation, even one plaintiff from the same state as the defendant could derail an attempt to establish diversity jurisdiction, at least under the law before CAFA.Įxpanded Diversity Jurisdiction Under the Class Action Fairness Act Lawsuits with large numbers of parties increase the likelihood of a lack of diversity. If the corporation maintains significant business operations in California, diversity jurisdiction could be trickier. A California citizen would probably be successful in arguing for diversity jurisdiction in a lawsuit against a corporation incorporated in Delaware and headquartered in New York. They are deemed to be "citizens" of the states where they are incorporated and where they maintain their headquarters. An individual citizen of California can establish diversity jurisdiction without much trouble in a lawsuit against an individual citizen of any other state or foreign country.Ĭorporations can make diversity jurisdiction more complicated. This is often easy to establish in lawsuits with a small number of parties. They typically require total diversity between the plaintiffs and the defendants.
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