Cutting Class: CAFA Creates a Host of Considerations for In-House Counsel

Looking to weaken the field of magnet jurisdictions and dial down the heat of judicial hellholes, five years ago last month the Class Action Fairness Act of 2005 (CAFA) took effect, creating a federal forum for most significant class actions, which previously were often brought--and would remain--in state court.

Side Effects

The modest increase of diversity class action filings, spread among the federal courts, isn't enough to make a huge impact or strain federal court resources. Tom Willging, an author of the ongoing FJC study, says there's no evidence things will ramp up.

Price is Right

One factor in that forum-shopping game is what Parasharami calls the No. 1 issue under CAFA for business and plaintiffs alike: determining whether the $5 million "amount in controversy" requirement is met. This area of CAFA has generated the most litigation, Parasharami says.

Associate Editor

Melissa Maleske

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