INTRODUCTION TO THE CLASS ACTION FAIRNESS ACT OF 2005
What is the Class Action Fairness Act? The Class Action Fairness Act of 2005 is a federal statute which applies to any civil action commenced on
or after February 18, 2005. This Act adding 28 USCS sections 1453 and 1711 et seq., amending 28 USCS sections 1332, 1335, and 1603, and appearing in part as notes to 28 USCS sections 1332, 1711, 2071, and 2074 may be cited as the Class Action Fairness Act of 2005, as provided by Act Feb. 18, 2005, P.L. 109-2, section 1(a), 119 Stat. 4. Significantly, on April 11, 2005, the Tenth Circuit affirmed with opinion the district court's determination that
commenced for purposes of the Act is defined as the initial filing in state court and not commencement of proceedings in federal court following removal. The Court's interpretation is one that ensures that the Act is in no manner retroactive to any pending litigation but will apply only to cases instituted in state court on or after February 18, 2005. See
Pritchett v. Office Depot, Inc. 2005 U.S. App. LEXIS 5896 (10th Cir., April 11, 2005). The lower court's opinion is found at 2005 U.S. Dist. LEXIS 5166 (D. Colo., Mar. 9, 2005).
CAFA provides a number of new provisions which
- Expand Federal jurisdiction over multi-state class actions with a new definition of diversity in class actions
- Adopt restrictions on Coupon Settlements
- Provide protection against net loss settlements and discrimination among claimants based upon geographical location
- Require new notice requirements in class action settlements to state and federal officials as appropriate
- Provide for the Federal Judicial Conference to prepare and recommend best practices for class actions.
While the Act may be characterized by some as a removal statute, as commentators, Linda Mullenix and Paul D. Rheingold,[i] observe, it is primarily a modification of federal statutes related to federal court original diversity jurisdiction...