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Kafka 1, CAFA 0

To get around the Class Action Fairness Act (CAFA) and its requirements that most interstate class actions be taken to federal court, just couch your class action as a counterclaim in response to some low-amount collections proceeding. You can even implead (perhaps as your real targets) new defendants who were not the ones who filed the original claim and thus had no role in selecting the state-court forum. That logic was enough to convince the Fourth Circuit, over a dissent from Judge Niemeyer, who also dissented from denial of en banc rehearing. [Dan Himmelfarb (Mayer Brown), "Fourth Circuit Ruling Permits Broad Circumvention of Class Action Fairness Act" (PDF), Washington Legal Foundation]



Rafael Mangual
Project Manager,
Legal Policy

Manhattan Institute


Published by the Manhattan Institute

The Manhattan Insitute's Center for Legal Policy.