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ARTICLE · 26 AUGUST 2019

Class & Collective Action Newsletter - July 2, 2019

Cleary Gottlieb Steen & Hamilton LLP
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Welcome to the July 2, 2019 edition of our Class & Collective Action Group Newsletter, a briefing on developments in the class and collective action space.

United StatesLitigation, Mediation & Arbitration

SUPREME COURT

Decision in Home Depot U.S.A. Inc. v. Jackson

Key Issue

Whether the general removal statute or the removal provision in the Class Action Fairness Act (CAFA) permit third-party defendants to remove class-action claims from state to Federal court.

Background

Citibank sued George Jackson, the original defendant, in June 2016 in a debt-collection action in North Carolina state court. Jackson asserted an individual counterclaim against Citibank and named Home Depot and Carolina Water Systems, Inc. as additional third-party counterclaim defendants in a putative class action. Citibank dropped its claims, and Home Depot filed a notice of removal pursuant to CAFA. The plaintiff filed an amended complaint dropping Citibank from the action and moved to remand the case to state court. The District Court granted Jackson's motion to remand on the grounds that Home Depot was not entitled to remove the remaining class action.

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