Attempting To Counter A CAFA Loophole

Home Depot filed a certiorari petition in the United States Supreme Court aimed at closing an emerging loophole in CAFA jurisprudence in various circuits. According to the petition, some circuits have "narrowly construed CAFA's removal statute to forbid removal by a newly-added counterclaim defendant in an otherwise removable class action."

This litigation began as a collection dispute brought by the original plaintiff against certain customers, the original defendants. The class action aspect was only introduced when the original defendants filed a counterclaim against the original plaintiff claiming fraud. Later, the original defendants amended and added Home Depot as a counterclaim defendant. Home Depot timely removed the case under CAFA. The district court remanded and Home Depot appealed to the Seventh Circuit Court of Appeals.