CAFA - Not With Standing?


We were just reading an interesting, relatively new, decision from our home Circuit, Reilly v. Ceridian Corp., 664 F.3d 38 (3d Cir. 2011), and our reaction to it wasn’t quite what most readers would expect.  The defendant won, but we were still troubled.

Sometimes defendants can lose by winning – as we discussed that some time ago on the question of punitive damages and choice of law, pointing out that while having all punitive damages issue decided under a single state’s law sounds great as long as you like that state’s law, it’s not so great when the next plaintiff brings a class action – or the next client is headquartered in a state with less favorable law.

While that particular problem has faded, largely due to the Supreme Court’s constitutional punitive damages jurisprudence virtually precluding class actions for such damages, the truth of the general proposition remains.

As a defendant, be careful what you ask for, you might just get it.

Please see full article below for more information.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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