The Class Action Fairness Act Goes to Court: Standard Fire Insurance Co. v. Knowles - Podcast

In this special Courthouse Steps edition of Teleforum, our expert, Chad A. Readler of Jones Day, discusses Standard Fire Insurance Co. v. Knowles, which presents the Supreme Court with its first look at the Class Action Fairness Act (CAFA), signed into law by President George W. Bush in 2005.  With the goal of reducing "forum shopping," CAFA gives federal courts jurisdiction over certain class actions that would otherwise reside in state court, in particular, class actions in which the amount in controversy exceeds $5 million.  In Standard Fire, the defendant insurance company, upon removing an Arkansas state court class action to federal court, presented the Court with evidence that the amount in controversy in the class action exceeded $5 million.  In response, plaintiff Knowles stipulated that he would not seek damages for himself or any other individual class member in excess of $75,000, and that he would not seek damages for the class in excess of $5 million.  The Court will resolve whether such stipulations are binding on all class members, thereby depriving the federal courts of jurisdiction under CAFA.

Featuring:

• Mr. Chad A. Readler, Partner, Jones Day

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