In Law360, Aaron Van Oort Evaluates Supreme Court Ruling on Class Action Suits

On March 19, 2013, the Supreme Court decided Standard Fire Insurance Co. v. Knowles, No. 11-1450, holding that class-action plaintiffs cannot avoid federal jurisdiction under the Class Action Fairness Act of 2005 (CAFA) by stipulating that they will not seek in excess of $5 million in relief because their stipulation cannot bind members of the proposed class. Companies aiming to evade class actions may see the ruling favorably as it could keep class actions out of state courts, which tend to rule in favor of plaintiffs.

Speaking to Law360, Aaron Van Oort pointed out that the ruling confirms that class action attorneys owe a responsibility to the entire class of possible claimants when a lawsuit is filed. "Now, plaintiffs cannot evade federal jurisdiction simply by selling out the people they claim to represent," Van Oort said.

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