New opinion: class-action-removal standards

A policyholder brought a class-action suit against an insurance company in state court, and the insurance company removed the case to federal court under CAFA. The policyholder moved to remand, and the district court granted the motion. Today, CA3 reversed in part in an opinion focused on the burdens of proof for class-action-removal jurisdiction. CA3 held that the district court erred by failing put on the remand-proponent the burden of proof on CAFA numerosity and erred in finding that numerosity was not satisfied. It held that the district court correctly found that that the remand-opponent failed to meet its burden of proof on amount-in-controversy, but left the door open for them to fix that on remand.

The case is Judon v. Travellers Property. Opinion by Smith, joined by Hardiman and Krause. Arguing counsel were Suzanne Tighe of Haggerty Goldberg for the policyholder and Joseph Kernen of DLA Piper for the insurance company.