Local Exceptions In CAFA For In-State Class Actions

Law360, New York (January 16, 2014, 9:14 PM EST) -- The Third Circuit recently clarified the home state and local controversy exceptions to the Class Action Fairness Act, remanding proceedings in a case involving Marcellus Shale oil and gas leases to a Pennsylvania trial court. While CAFA provides broad federal jurisdiction in class actions where there is more than $5 million at stake and when there is minimum diversity, it contains two mandatory exceptions that may apply when there are in-state defendants. These exceptions raise important considerations for any party to a class action that has or may have nondiverse defendants....

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