Counterclaims Can't Trigger CAFA Removal: 9th Circ.

Law360, New York (May 2, 2011, 8:04 PM EDT) -- The Ninth Circuit ruled Monday that the Class Action Fairness Act doesn't allow a party joined to an action as a counterclaim defendant to remove the case to federal court, affirming the remand of a student loan dispute with class counterclaims.

The appeals court held as a matter of first impression that an additional counterclaim defendant is not a "defendant" under CAFA's provision that class actions with more than $5 million in controversy with limited diversity can be removed from state court by “any defendant without...
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