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FJC's Study of Diversity Jurisdiction Class Actions
In November 2008, as part of its ongoing study of the impact of the Class Action Fairness Act of 2005 (“CAFA”) upon federal courts, the Federal Judicial Center (“FJC”) published Preliminary Findings from Phase Two's Pre-CAFA Sample of Diversity Class Actions. That report studied 231 diversity jurisdiction class actions filed in or removed to federal court in the two years prior to Feb. 18, 2005, CAFA's effective date.
The report concluded that diversity jurisdiction class actions often involved little litigation activity. Plaintiffs filed motions to certify a class in less than 25% of the 231 cases. In 56% of the cases, one or zero motions were filed. Of the cases removed to federal court, more than half were remanded back to state court. Of those cases not remanded, the most frequent disposition was a voluntary dismissal, which occurred in 38% of the cases not remanded. The study reports “that many of the class actions filed or removed in the two years prior to CAFA's effective date did not have a large impact on the resources of the federal courts.” Emery G. Lee and Thomas E. Willging, Preliminary Findings from Phase Two's Pre-CAFA Sample of Diversity Class Actions, p. 7 (Federal Judicial Center 2008), available at http://www.fjc.gov/public/pdf.nsf/lookup/cafa1108.pdf/$file/cafa1108.pdf (last visited Sept. 3, 2009).
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