MBE Rules · Civil Procedure
Class Action Fairness Act
28 U.S.C. §1332(d) (CAFA)
The rule
CAFA gives federal jurisdiction over class actions with minimal diversity, at least 100 members, and over $5 million in aggregate controversy, subject to local-controversy carve-outs.
In plain English
The Class Action Fairness Act (CAFA) allows federal courts to hear class action lawsuits if there is minimal diversity between the parties, meaning at least one plaintiff is from a different state than one defendant. Additionally, the class must have at least 100 members and the total amount in controversy must exceed $5 million, although there are exceptions for local controversies.
Worked example
A class of 150 plaintiffs from California sues a corporation based in Delaware for $6 million in damages due to defective products. Since there is minimal diversity, the class exceeds 100 members, and the amount in controversy is over $5 million, the case is eligible for federal jurisdiction under CAFA.
Memory hook
CAFA: More than 100, over $5 million, and a dash of diversity!
The trap
Exams may present scenarios where the amount in controversy is close to $5 million or where the diversity of parties is ambiguous, leading students to misinterpret the jurisdictional requirements.
How examiners test it
Questions often test the thresholds of class size, amount in controversy, and diversity, sometimes including fact patterns that challenge the local-controversy exception.
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