Bank’s attempt to avoid CAFA jurisdiction in overdraft class action rejected

August 6, 2012 by

Judge James Lawrence King of the U.S. District Court for the Southern District of Florida recently concluded that the Court had subject-matter jurisdiction under the Class Action Fairness Act (CAFA) over putative class claims against United Bank, a West Virginia bank, despite the submission of some proof by the defendant that the three exceptions to CAFA applied.  In re Checking Account Overdraft Litigation, No. 09-MD-2036-JLK (S.D. Fla. July 25, 2012). 

Explaining that Congress intended CAFA jurisdiction to be construed broadly, the court found that the defendant had not met the burden of establishing the citizenship of the putative class, despite the submission of a declaration that 92% of putative class members had West Virginia addresses and census data showing that most West Virginians intended to remain in West Virginia. The court, however, indicated that the issue could be revisited at class certification or summary judgment once additional information was developed.

Steve Larson
An experienced trial lawyer who handles both hourly and contingent fee cases, Steve has expertise in class actions, consumer cases, antitrust litigation, securities litigation, corporate disputes, intellectual property disputes, unfair competition claims, employment matters, and disputes involving family wealth. Steve regularly represents individuals and businesses in federal and state court and has obtained class-wide recovery in multiple class actions. A veteran practitioner, Steve's clients value his creative approach to resolving complex litigation matters.

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