Supreme Court will consider reach of Class Action Fairness Act

Insurance company wants to move class action suit from state court to federal court

With the start of its new term just a few weeks away, the Supreme Court on Friday agreed to hear a case that could alter corporate class actions.

In Standard Fire Insurance Co. v. Knowles, Greg Knowles filed a class action lawsuit against Hartford, Conn.-based Standard Fire Insurance Co. in Arkansas state court for allegedly underpaying his claims after his house sustained substantial hail damage. Standard Fire sought to move the case to federal court under the Class Action Fairness Act (CAFA) of 2005, a federal law that allows class action defendants to transfer cases involving more than $5 million from plaintiff-friendly state courts to federal courts, which traditionally offer greater protection to corporate defendants.

Ashley Post

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