Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
U.S. Supreme Court to Take Up Class Actions Again
Author: Scarinci Hollenbeck, LLC
Date: June 3, 2013
Key Contacts
Back
Class-action lawsuits continue to dominate the U.S. Supreme Court’s business docket. The justices recently agreed to consider Mississippi v. AU Optronics Corp.
The case involves price-fixing allegations by the Mississippi Attorney General against several electronics companies regarding the sale of liquid-crystal displays. The attorney general filed the lawsuit in state court and seeks to keep it there. Meanwhile, the LCD makers want to remove the case to federal court under the Class Action Fairness Act (CAFA).
As we have previously discussed on this Business Law Blog, the 2005 law gives federal district courts original jurisdiction over class actions in which the matter in controversy exceeds $5 million in sum or value. The goal is to ensure that large class-action lawsuits are decided in federal court and to deter abuse of the class-action process in state courts. To accomplish this goal, when more than $5 million is at stake, the CAFA allows class actions to be removed to federal court, giving defendants the benefit of federal procedural protections.
The question before the Supreme Court is whether Mississippi’s lawsuit is a “mass action” under the CAFA, given that the state is the sole plaintiff, the claims arise under state law, and the state attorney general possesses statutory and common-law authority to assert all claims in the complaint.
The Fifth Circuit Court of Appeals previously ruled that CAFA still applies, adopting a “claim by claim” approach. The court considered not only who filed the suit but also who would benefit. Using this framework, the appeals court concluded that because Mississippi consumers were parties in interest, the case should be removed to the federal court.
The current Supreme Court has been notoriously business friendly, particularly when it comes to class actions. We will be closely tracking this case and will let you know if the trend continues next term.
If you have any questions about this case or would like to discuss the legal issues involved, please contact me, Christine Vanek, or the Scarinci Hollenbeck attorney with whom you work.
- Practices: Litigation, Commercial Litigation - Business Litigation Attorney
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Top 5 Causes Leading to Construction Defect Litigation
The five most common causes of construction defect litigation are design defects, substandard materials, workmanship defects, code violations, and subsurface defects. Because these flaws can compromise a building’s integrity, functionality, or safety, they frequently lead to disputes involving multiple parties and high financial stakes. Key takeaways: What is Construction Defect Litigation? Construction litigation is complex, […]
Author: Paul Grossman
How to Protect Your New Jersey Business When Going through a Divorce
The most effective ways to protect your business in a divorce are put in place before one begins: a prenuptial or postnuptial agreement, clean separation of business and personal finances, and divorce contingencies built into your operating or buy-sell agreements. If divorce is already underway, the priorities shift to establishing how the business is classified […]
Author: Jay McDaniel
10 Common Issues in Franchise Disputes
The most common franchise disputes involve breach of contract, franchise termination and non-renewal, intellectual property rights, territorial encroachment, royalty and fee payments, franchisor support obligations, and violations of state franchise laws such as the New Jersey Franchise Practices Act. Franchisors and franchisees can often resolve these conflicts by providing written notice detailing the dispute and […]
Author: Paul Grossman
Reputational Risk and Legal Exposure: Why New Jersey Businesses Must Manage Them Together
New Jersey businesses must manage legal and reputational risk together because modern disputes play out on two fronts at once: the legal proceeding itself and the court of public opinion, where customers, employees, investors, and business partners often reach conclusions long before a judge or jury has had the opportunity to evaluate the facts. Success […]
Author: Sean M. Pena
Eviction Is Not Always the End: Understanding Post-Possession Rent Claims in New Jersey and New York
No. An eviction does not automatically end a tenant’s obligation to pay rent. Post-eviction rent claims are common because recovering possession resolves who has the right to occupy the premises, but it does not extinguish the tenant’s contractual obligations under the lease. Whether unpaid or future rent remains owed depends on three factors: the lease’s […]
Author: Donald M. Pepe
Company Dissolved? Legal and Financial Consequences to Expect
A company is dissolved; legally, it ceases to exist. Accordingly, dissolution results in significant legal and financial consequences. It is a process that must be properly managed to avoid continuing liability. The Corporate Dissolution Process Corporate dissolution is the legal process of formally closing a corporation, paying its debts and distributing the remaining assets. Most […]
Author: Jay McDaniel
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.