Back on the Bench: First Monday's come 'round again, and the Justices are starting the session with some of the less toothsome morsels on their plate this year: an
appeal from the Michigan Supreme Court that deals with the critical and high-profile issue of whether the effects of reciprocity agreements between states should be used to determine the amount of a state-imposed fee for the purposes of restricting current fees under 49 USC § 11506. (The state court's opinion, should you care, is
here.)
The other case,
Ford and Citibank v. McCauley, has to do with a 9th Circuit descision regarding removal to federal court of certain class actions under the diversity statute, a piece of legal arcana that has become a hot topic at the highest level over the past few years as companies try to get lawsuits moved out of state courts, where they fear they will be swamped by plaintiff-friendly juries and judges.
Under the diversity statute (28 USC § 1332), federal "district courts shall have original jurisdiction of all civil actions where the matter in controversy exceeds the sum or value of $75,000, exclusive of interest and costs" and is between,
inter alia, citizens of different states. This requirement can be satisfied in the 9th Circuit if paid in damages to the plaintiff, or if paid out in the process of complying with an injunction (the so-called "either viewpoint"). Exciting stuff, neh? Okay, it's not exciting. But it's good for you, like tasteless but vitamin-packed tubers.
Under rules adopted by the Supreme Court in
Zahn v. International Paper, the "amount in controversy" has to exceed $75,000 for every member of a class action. The 9th Circuit went even further, and decided that in class actions, the idea that either damages or cost of compliance could be used to satisfy diversity requirements conflicted with the
Zahn holding. To break the perceived impasse, the court held that they would not accept fixed costs of compliance as satisfying diversity requirements in a class action. The question is whether the court erred in effectively reducing the ability of a defendant to remove to federal court a class action case
vis a vis his ability to do so in a non-class action. (9th Circuit decision
here.)
Tomorrow, the Court will hear orals on the
Nextwave cases (discussed below), and Wednesday they'll dig into
Eldred v. Ashcroft, the copyright-extension case. Interesting stuff ahead.