Northern District Of Georgia Rejects “Local Controversy” Exception To CAFA Jurisdiction

by Carlton Fields
Contact

In Anderson v. King America Finishing, Inc., No. 1:11-cv-2258-JEC, 2013 WL 1213267 (N.D. Ga. March 25, 2013), class action plaintiffs alleged that defendant released a toxic chemical into the Ogeechee River from its manufacturing plant in Dover, Georgia.  Plaintiffs alleged both damage to surrounding land and physical injuries to those who swam in the river.  The court rejected plaintiff’s attempt to remand based on the “local controversy” exception to CAFA jurisdiction.

The case was originally filed in Fulton County, but defendants later removed to federal court pursuant to CAFA. Plaintiffs agreed that that the case met the requirements for removal to federal court under CAFA, but they sought remand to state court under the “local controversy” exception to CAFA jurisdiction.  This exception provides for remand of a class action that “uniquely affects a particular locality to the exclusion of all others.” Id. at *1 (citations and quotations omitted).

Defendants agreed that plaintiffs met all but one of the requirements to establish a “local controversy” as defined by CAFA.  See 28 U.S.C. § 1332(d)(4)(A).  Specifically, the central issue was whether a greater than two-thirds of the class members were citizens of the state in which the action was originally filed.

The court analyzed the evidence presented by plaintiffs to meet their burden on this issue.  Specifically, plaintiffs sought to verify citizenship of individual and corporate class members by cross-referencing with tax records, voter registration records, individual interviews, and verifying addresses for the corporate plaintiffs with the Secretary of State.

The court recognized potential issues with using tax and voter registration records, but concluded  that these “might provide sufficient information to credibly adduce that two-thirds of the landowner class members are Georgia citizens.”  Id. at 3.  Moreover, as to the personal injury class plaintiffs, the court rejected defendant’s argument that each should be individually interviewed.  However, the court rejected plaintiff’s attempt to verify corporate citizenship through the address on file with the Secretary of State.  The court concluded that the Secretary of State merely lists a Georgia office address and does not shed any light on corporate citizenship (e.g., does not indicate that the corporation has its principal place of business in Georgia).

Ultimately, the court found that plaintiffs’ final calculations as to the number of Georgia citizens were inaccurate and that the total number of potential class plaintiffs was much larger than what plaintiffs suggested.  Thus, the number of Georgia citizens was not two-thirds of the overall class and the “local controversy” exception was not met.

Additionally, the court denied plaintiffs’ motion to amend the complaint to specify that the class included only Georgia citizens.  The court reasoned, in part, that jurisdiction is to be determined at the time of removal and plaintiffs would not be permitted to destroy jurisdiction by a post-removal amendment.

 

Written by:

Carlton Fields
Contact
more
less

Carlton Fields on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
Sign up using*

Already signed up? Log in here

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Privacy Policy (Updated: October 8, 2015):
hide

JD Supra provides users with access to its legal industry publishing services (the "Service") through its website (the "Website") as well as through other sources. Our policies with regard to data collection and use of personal information of users of the Service, regardless of the manner in which users access the Service, and visitors to the Website are set forth in this statement ("Policy"). By using the Service, you signify your acceptance of this Policy.

Information Collection and Use by JD Supra

JD Supra collects users' names, companies, titles, e-mail address and industry. JD Supra also tracks the pages that users visit, logs IP addresses and aggregates non-personally identifiable user data and browser type. This data is gathered using cookies and other technologies.

The information and data collected is used to authenticate users and to send notifications relating to the Service, including email alerts to which users have subscribed; to manage the Service and Website, to improve the Service and to customize the user's experience. This information is also provided to the authors of the content to give them insight into their readership and help them to improve their content, so that it is most useful for our users.

JD Supra does not sell, rent or otherwise provide your details to third parties, other than to the authors of the content on JD Supra.

If you prefer not to enable cookies, you may change your browser settings to disable cookies; however, please note that rejecting cookies while visiting the Website may result in certain parts of the Website not operating correctly or as efficiently as if cookies were allowed.

Email Choice/Opt-out

Users who opt in to receive emails may choose to no longer receive e-mail updates and newsletters by selecting the "opt-out of future email" option in the email they receive from JD Supra or in their JD Supra account management screen.

Security

JD Supra takes reasonable precautions to insure that user information is kept private. We restrict access to user information to those individuals who reasonably need access to perform their job functions, such as our third party email service, customer service personnel and technical staff. However, please note that no method of transmitting or storing data is completely secure and we cannot guarantee the security of user information. Unauthorized entry or use, hardware or software failure, and other factors may compromise the security of user information at any time.

If you have reason to believe that your interaction with us is no longer secure, you must immediately notify us of the problem by contacting us at info@jdsupra.com. In the unlikely event that we believe that the security of your user information in our possession or control may have been compromised, we may seek to notify you of that development and, if so, will endeavor to do so as promptly as practicable under the circumstances.

Sharing and Disclosure of Information JD Supra Collects

Except as otherwise described in this privacy statement, JD Supra will not disclose personal information to any third party unless we believe that disclosure is necessary to: (1) comply with applicable laws; (2) respond to governmental inquiries or requests; (3) comply with valid legal process; (4) protect the rights, privacy, safety or property of JD Supra, users of the Service, Website visitors or the public; (5) permit us to pursue available remedies or limit the damages that we may sustain; and (6) enforce our Terms & Conditions of Use.

In the event there is a change in the corporate structure of JD Supra such as, but not limited to, merger, consolidation, sale, liquidation or transfer of substantial assets, JD Supra may, in its sole discretion, transfer, sell or assign information collected on and through the Service to one or more affiliated or unaffiliated third parties.

Links to Other Websites

This Website and the Service may contain links to other websites. The operator of such other websites may collect information about you, including through cookies or other technologies. If you are using the Service through the Website and link to another site, you will leave the Website and this Policy will not apply to your use of and activity on those other sites. We encourage you to read the legal notices posted on those sites, including their privacy policies. We shall have no responsibility or liability for your visitation to, and the data collection and use practices of, such other sites. This Policy applies solely to the information collected in connection with your use of this Website and does not apply to any practices conducted offline or in connection with any other websites.

Changes in Our Privacy Policy

We reserve the right to change this Policy at any time. Please refer to the date at the top of this page to determine when this Policy was last revised. Any changes to our privacy policy will become effective upon posting of the revised policy on the Website. By continuing to use the Service or Website following such changes, you will be deemed to have agreed to such changes. If you do not agree with the terms of this Policy, as it may be amended from time to time, in whole or part, please do not continue using the Service or the Website.

Contacting JD Supra

If you have any questions about this privacy statement, the practices of this site, your dealings with this Web site, or if you would like to change any of the information you have provided to us, please contact us at: info@jdsupra.com.

- hide
*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.
Feedback? Tell us what you think of the new jdsupra.com!