Engel: Class Actions At The Circuit Courts: November Lessons
Earlier this year, the U.S. Court of Appeals for the Ninth Circuit ruled that if a plaintiff files a lawsuit in state court seeking only equitable relief and the case is properly removed to federal court, a defendant can defeat remand on equitable jurisdiction grounds by waiving the adequate-remedy-at-law issue. The case, Ruiz v. Bradford Exchange Ltd., was one discussed by Shook Partner Mitch Engel in an article for Law360 titled “Class Actions At The Circuit Court: November Lessons.” In his monthly column, Engel provides takeaways from recent class action litigation.
In Ruiz, a plaintiff alleged that he'd purchased a snow globe collectible from Bradford's website but was then charged 11 more times without being informed he had purchased a subscription for additional collectibles. Bradford removed the case to federal court under the Class Action Fairness Act, then the plaintiff sought remand to state court, which the lower court granted. The Ninth Circuit reversed.
“It first held that when a case is removed from state court and the district court concludes it lacks equitable jurisdiction, the court has the authority to remand the case to state court — and that courts are not required to dismiss such cases without prejudice,” Engel says. “The key takeaway is that the Ninth Circuit then held that a defendant can defeat remand if it waives its adequate-remedy-at-law defense.”
Read the article at Law360 >>
In Ruiz, a plaintiff alleged that he'd purchased a snow globe collectible from Bradford's website but was then charged 11 more times without being informed he had purchased a subscription for additional collectibles. Bradford removed the case to federal court under the Class Action Fairness Act, then the plaintiff sought remand to state court, which the lower court granted. The Ninth Circuit reversed.
“It first held that when a case is removed from state court and the district court concludes it lacks equitable jurisdiction, the court has the authority to remand the case to state court — and that courts are not required to dismiss such cases without prejudice,” Engel says. “The key takeaway is that the Ninth Circuit then held that a defendant can defeat remand if it waives its adequate-remedy-at-law defense.”
Read the article at Law360 >>
