What is the effect of the Class Action Fairness Act (CAFA) on federal jurisdiction over class actions?

• A. Expands federal jurisdiction for many class actions by aggregating claims and permitting removal from state court.
• B. Narrowly limits federal jurisdiction.
• C. Remains unchanged from prior law.
• D. Requires removal based on damages only.

Answer: (A)

CAFA broadens federal jurisdiction over class actions. It allows many class actions to be heard in federal court by aggregating all class members’ claims to reach a $5 million total in controversy and by permitting removal from state court when there is minimal diversity (any plaintiff from a different state than any defendant) and at least 100 class members. The key idea is that the class-wide value is what matters, not the damage amount of any single claim, so many cases that would have stayed in state court can be brought or removed to federal court. This expansion contrasts with the other options, which incorrectly suggest limits, no change, or removal based solely on per-claim damages.