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ARTICLE · 19 JUNE 2019

Facing A Class Action Complaint As A Third-Party Defendant? Time To Get Comfortable In State Court

From the class action defense perspective, companies and counsel alike are almost always looking for an angle to move a state-filed putative class action to the more rigorous environment of the federal courts.

United StatesLitigation, Mediation & Arbitration

From the class action defense perspective, companies and counsel alike are almost always looking for an angle to move a state-filed putative class action to the more rigorous environment of the federal courts.  Congress appreciated the benefits of a federal court environment and the potential biases facing out of state defendants in state courts when Congress enacted the Class Action Fairness Act in 2005 ("CAFA").  CAFA provided, among other things, relaxed standards for removal of class actions to the federal courts.  However, the Supreme Court's decision in Home Depot U.S.A., Inc. v. Jackson has now limited access to the federal courthouse by a third-party counterclaim defendant (a party brought into a lawsuit through a counterclaim filed by the original defendant). In yet another 5-4 decision this term, Justice Thomas, writing for the majority with an unusual coalition of Justices Breyer, Ginsburg, Kagan, and Sotomayor, applied a strict textual view of the general

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