Class Actions

Question 1

Test for Certification of a Class Action

Answer 1

Four elements:

(1) numerosity
(2) commonality
(3) typicality
(4) adequacy of representation
(5) Plus one of the following: risk of inconsistent results; injunctive or declaratory relief are appropriate; or common questions among the class predominate over other claims

Question 2

Class Actions Qualifying for Diversity Jurisdiction

Answer 2

It is OK to shop for a plaintiff to maintain diversity.

Alternatively, actions may qualify under Class Action Fairness Act:

(1) any class member is diverse from any defendant;
(2) the amount in controversy in the aggregate exceeds $5 million; and
(3) there are at least 100 class members.

Question 3

When a Federal Court Must Decline Diversity Jurisdiction

Answer 3

When 2/3 of the class are citizens of the state in which the action is filed, a defendant against whom significant relief is sought is a citizen of the same state, and the principal injuries were incurred in that same state.