Supreme Court Rejects Plaintiff's Attempt to De-CAFA-nate Class Action Lawsuit

The Supreme Court held that a would-be class action plaintiff cannot avoid federal court by “stipulating” that he will seek damages that are less than the amount necessary to give rise to jurisdiction under the Class Action Fairness Act.  In Standard Fire Insurance Co. v. Knowles, the named plaintiff claimed that his homeowners insurer had shorted him and “hundreds [or] possibly thousands” of other policyholders in the putative class that he sought to represent by failing to include certain benefits when paying out claims.  Greg Knowles filed the case in Arkansas state court and attempted to avoid removal to federal court by including in his complaint and an accompanying affidavit from his counsel a statement that he would not seek more than $5,000,000 in damages on behalf of the class.   

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