Standard Fire Ins. Co. v. Knowles
United States Supreme Court
133 S. Ct. 1345 (2012)
Knowles (plaintiff) filed a proposed class action in Arkansas state court against Standard Fire (defendant), stipulating that he and the class would seek less than $5 million in aggregate damages; the insurer removed the case to federal court under CAFA, and although the trial court found the actual amount in controversy would likely exceed $5 million, it accepted Knowles's stipulation and remanded to state court, a decision the insurer unsuccessfully sought to appeal before the Supreme Court granted review.
Whether, under the Class Action Fairness Act, a plaintiff's pre-certification stipulation about damages sought can bind class members and overcome a finding that the amount in controversy exceeds the jurisdictional threshold.