Fifth Circuit Remands Parens Patriae Cases Removed Under Class Action Fairness Act

The Class Action Fairness Act of 2001 ("CAFA") allows defendants to remove to federal court large class actions filed in state court. The question before the Fifth Circuit in Hood v. JP Morgan Chase & Co., 2013 LEXIS 23993 (Dec. 2, 2013) was whether the statute applied to a parens patriae action. A parens patriae action is one brought by a state on behalf of its citizens.

The State of Mississippi sued in state court alleging six credit card companies violated the Mississippi Consumer Protection Act ("MCPA") by charging consumers for products they did not want or need. The state specifically disclaimed federal question subject matter jurisdiction, denying that the complaint alleged a "mass action" and affirmatively alleging that the amount in controversy for any individual Mississippi consumer was less than $75,000.