Aggregation Aggravation: Cappuccitti’s Effect On CAFA
September 20, 2010, 2:58 PM EDT
Law360, New York (September 20, 2010, 2:58 PM EDT) -- On July 19 the U.S. Court of Appeals for the Eleventh Circuit struck a blow to jurisdiction under the Class Action Fairness Act. It held that the federal courts lack original diversity jurisdiction for CAFA class actions where putative class members merely aggregate their claims to exceed the amount-in-controversy threshold of $5 million.
Instead, at least one plaintiff now must allege an amount in controversy in excess of $75,000 for CAFA class actions originally filed in federal court.
Cappuccitti v. DirecTV Inc. involved subscribers who brought...