Here’s precisely why the Class Action Fairness Act was passed: in 2000, the Texas Supreme Court ruled that Texas law did not apply to out-of-state members of a putative nationwide class in a lawsuit filed against Texas business Compaq. So what do plaintiffs do? They just filed the same lawsuit in Oklahoma, and the Oklahoma Supreme Court disregarded the Texas Supreme Court opinion (as well as the constitutional requirements of the Full Faith and Credit Clause) to certify the exact same class that the Texas court rejected, holding that Texas law did apply to the nationwide class. Yesterday, the United States Supreme Court refused to intercede, and Hewlett-Packard will now face a class of 1.7 million customers: most risk-averse corporate defendants settle rather than attempt to vindicate their rights in such a circumstance. (AP/Law.com, Oct. 10). Such multiple bites at the apple would not be allowed if the suit were brought today.
Heads I win, tails don’t count files
Here’s precisely why the Class Action Fairness Act was passed: in 2000, the Texas Supreme Court ruled that Texas law did not apply to out-of-state members of a putative nationwide class in a lawsuit filed against Texas business Compaq. So what do plaintiffs do? They just filed the same lawsuit in Oklahoma, and the Oklahoma […]
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