FI L ED

U.S. COURT OF APPEAL S

EL EVENTH CI RCUI T

J UL Y 19, 2010

J OHN L EY

CL ERK [ P U B L I S H ]

I N T H E U N I T E D S T A T E S C O U R T O F A P P E A L S

F O R T H E E L E V E N T H C I R C U I T

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

N o

. 0 9

- 1 4 1 0 7

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

D

. C

. D o c k e t N o

. 0 9

- 0 0 6 2 7

- C V

- C A P

- 1

R E N A T O C A P P U C C I T T I

,

o n b e h a l f o f h i m s e l f a n d a l l

o t h e r s s i m i l a r l y s i t u a t e d

,

P l a i n t i f f

- A p p e l l e e

,

v e r s u s

D I R E C T V

, I N C

. ,

a C a l i f o r n i a C o r p o r a t i o n

,

D e f e n d a n t

- A p p e l l a n t

.

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

A p p e a l f r o m t h e U n i t e d S t a t e s D i s t r i c t C o u r t

f o r t h e N o r t h e r n D i s t r i c t o f G e o r g i a

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

( J u l y 1 9

, 2 0 1 0 )

B e f o r e T J O F L A T

, W I L S O N a n d E B E L

, C i r c u i t J u d g e s

. *

T J O F L A T

, C i r c u i t J u d g e :

Honora ble David M. Ebe l, United States Circuit J udg e for the Tenth Circuit, sitting by *

desig nation.I

.

T h i s i s a c l a s s a c t i o n b r o u g h t u n d e r t h e p r o v i s i o n s o f t h e C l a s s A c t i o n

F a i r n e s s A c t o f 2 0 0 5 ( “ C A F A ” )

, P u b

. L

. N o

. 1 0 9

- 2

, 1 1 9 S t a t

. 4 ( c o d i f i e d i n

s c a t t e r e d s e c t i o n s o f 2 8 U

. S

. C

. )

. R e n a t o C a p p u c c i t t i a n d D a v i d W a r d ( t o g e t h e r 1

“ C a p p u c c i t t i ” )

, c i t i z e n s o f G e o r g i a

, h a v e s u e d D i r e c T V

, I n c

. , a C a l i f o r n i a

c o r p o r a t i o n ( “ D i r e c T V ” )

, s e e k i n g t h e r e c o v e r y

, o n b e h a l f o f t h e m s e l v e s a n d

s i m i l a r l y s i t u a t e d D i r e c T V s u b s c r i b e r s i n G e o r g i a

, o f t h e f e e s D i r e c T V c h a r g e d i t s

s u b s c r i b e r s f

o r c a n c e l l i n g t h e i r s u b s c r i p t i o n s p r i o r t o t h e s u b s c r i p t i o n s ’ e x p i r a t i o n

.

T h e f e e s r a n g e d f

r o m $ 1 7 5 t o $ 4 8 0

. C a p p u c c i t t i a s s e r t s t h a t t h e f e e s a r e p r o s c r i b e d

b y G e o r g i a c o m m o n l a w a n d s e e k s d a m a g e s f o r h i m s e l f a n d t h e c l a s s i n e x c e s s o f

$ 5

, 0 0 0

, 0 0 0

. 2

T h e s u b s c r i b e r a g r e e m e n t s b e t w e e n C a p p u c c i t t i a n d t h e m e m b e r s o f h i s

c l a s s a n d D i r e c T V c o n t a i n a r b i t r a t i o n a n d c l a s s a c t i o n w a i v e r p r o v i s i o n s

. I n

r e s p o n d i n g t o C a p p u c c i t t i ’ s c o m p l a i n t

, D i r e c T V m o v e d t h e d i s t r i c t c o u r t t o c o m p e l

C a p p u c c i t t i t o s u b m i t t o a r b i t r a t i o n a n d

, a l t e r n a t i v e l y

, t o d i s m i s s h i s c l a i m s f o r

The plaintiffs invoked the district court’s subjec t matter jurisdiction under 28 U.S.C. § 1

1332(d)( 2), which inc orpora tes CAFA’ s provisions.

Cappucc itti’s amended complaint (w hich we r efe r to as the c omplaint) claims these 2

damag es in two counts, under theories of

money had and r ece ived (Count I ) and unjust

enric hment (Count I I ). The c omplaint also contains, in Count I I I , a cla im for dec lara tory and

injunctive relief

, on the theory

that the ea

rly canc ellation fee constitutes an unenf orce able

penalty

.

2d a m a g e s u n d e r F e d e r a l R u l e o f C i v i l P r o c e d u r e 1 2 ( b ) ( 6 )

. T h e c o u r t d e n i e d t h e

m o t i o n t o c o m p e l a r b i t r a t i o n

, b u t g r a n t e d t h e m o t i o n t o d i s m i s s C a p p u c c i t t i ’ s 3

c l a i m s f o r d a m a g e s f

o r f a i l u r e t o s t a t e a c l a i m

. D i r e c T V n o w a p p e a l s t h e d i s t r i c t 4

c o u r t ’ s d e n i a l o f i t s m o t i o n t o c o m p e l a r b i t r a t i o n

. W e h o l d t h a t t h e d i s t r i c t c o u r t 5

l a c k e d j u r i s d i c t i o n t o e n t e r t a i n t h e c o m p l a i n t

, v a c a t e i t s o r d e r

, a n d r e m a n d w i t h

i n s t r u c t i o n s t o d i s m i s s t h e c a s e

.

I I

.

W e r e v i e w d e n o v o a d i s t r i c t c o u r t ’ s d e n i a l o f a m o t i o n t o c o m p e l

a r b i t r a t i o n

. B e c k e r v

. D a v i s

, 4 9 1 F

. 3 d 1 2 9 2

, 1 2 9 7 ( 1 1 t h C i r

. 2 0 0 7 )

. W e b e g i n

, a s

w e a l w a y s m u s t

, b y c o n s i d e r i n g w h e t h e r t h e d i s t r i c t c o u r t p o s s e s s e d s u b j e c t m a t t e r

j u r i s d i c t i o n o v e r t h e a c t i o n

. S e e

, e

. g

. , S t e e l C o

. v

. C i t i z e n s f o r a B e t t e r E n v ’ t

, 5 2 3

U

. S

. 8 3

, 9 3

– 9 5

, 1 1 8 S

. C t

. 1 0 0 3

, 1 0 1 2

– 1 3 ( 1 9 9 8 ) ( e x p l a i n i n g “ [ t ] h e r e q u i r e m e n t

I n ref using to c ompel arbitra tion, the district court rea soned that althoug h the Fe dera l 3

Arbitration Ac t favors a

policy of ar bitration by

making arbitra tion clauses enf orce able in fe dera l

court, Da le v. Comcast Corp., 498 F.3d 1216, 1219 ( 11th Cir. 2007), the arbitra tion clause a

nd

class ac tion waiver in the subsc ription ag ree ments were unconsciona ble (a nd hence

unenfor cea

ble) be cause Cappucc itti’s tot al possible rec overy was fa r lower than the costs he

would have to pa

y to preva il ag ainst Direc TV, id. at 1223–24, and unde r Cappucc itti’s C ounts I

and I I claims, if Cappucc itti were the pr evailing party , he could not re cover attorney ’s fe es.

Direc TV did not move the district court to dismiss Cappuccitti’s Count I I I for 4

decla ratory and injunctive re lief. That c laim was there fore still pending when Dir ecT V took this

appea l. I n light of our

deter mination that the district court lacke d subject matter jur isdiction to

enter tain Cappucc itti’s complaint, however, w e will instruct the cour t to dism iss Count I I I

following rec eipt of our manda te.

We have jurisdiction pursuant to 9 U.S.C. § 16(a) (1)( B)

. 5

3t h a t j u r i s d i c t i o n b e e s t a b l i s h e d a s a t h r e s h o l d m a t t e r ” )

. I n d o i n g s o

, w e c o n c l u d e

t h a t s u b j e c t m a t t e r j u r i s d i c t i o n u n d e r C A F A w a s a b s e n t f r o m t h e m o m e n t

C a p p u c c i t t i b r o u g h t t h i s c a s e

.

I I I

.

C o n g r e s s e n a c t e d C A F A i n 2 0 0 5 w i t h a n e y e t o w a r d c u r b i n g “ a b u s e s o f t h e

c l a s s a c t i o n d e v i c e t h a t h a v e ( A ) h a r m e d c l a s s m e m b e r s w i t h l e g i t i m a t e c l a i m s a n d

d e f e n d a n t s t h a t h a v e a c t e d r e s p o n s i b l y ; ( B ) a d v e r s e l y a f f e c t e d i n t e r s t a t e

c o m m e r c e ; a n d ( C ) u n d e r m i n e d p u b l i c r e s p e c t f o r o u r j u d i c i a l s y s t e m

. ” P u b

. L

.

N o

. 1 0 9

- 2

, § 2 ( a ) ( 2 )

, 1 1 9 S t a t

. 4

, 4 ( 2 0 0 5 )

. I n p a r t i c u l a r

, C o n g r e s s p e r c e i v e d t h a t

s t a t e c o u r t s w e r e o v e r l y f r i e n d l y t o w a r d c l a s s c e r t i f i c a t i o n

, p r o v i d e d i n s u f

f i c i e n t

n o t i c e t o c l a s s m e m b e r s

, a n d f a v o r e d s o m e p l a i n t i f

f s o v e r o t h e r s i n m a k i n g c l a s s

a w a r d s

. I d

. , 1 1 9 S t a t

. a t 4

– 5

. T o r e m e d y t h e s e a b u s e s

, C o n g r e s s a m e n d e d e x i s t i n g

s e c t i o n s o f t h e p o r t i o n o f t h e U n i t e d S t a t e s C o d e g o v e r n i n g f e d e r a l c o u r t

j u r i s d i c t i o n t o s i t u a t e m o r e c l a s s a c t i o n s i n f e d e r a l c o u r t a b i n i t i o a n d t o m a k e i t

e a s i e r f o r d e f e n d a n t s i n a s t a t e c o u r t c l a s s a c t i o n t o r e m o v e t h e a c t i o n t o f e d e r a l

c o u r t

. S e e i d

. § 2 ( b ) ( 2 )

, 1 1 9 S t a t

. a t 5 ( s t a t i n g t h a t C A F A ’ s p u r p o s e s i n c l u d e

“ p r o v i d i n g f

o r F e d e r a l c o u r t c o n s i d e r a t i o n o f i n t e r s t a t e c a s e s o f n a t i o n a l

i m p o r t a n c e u n d e r d i v e r s i t y j u r i s d i c t i o n ” )

.

C A F A e f f e c t u a t e d C o n g r e s s ’ s g o a l s l a r g e l y b y a d d i n g a n e w s u b s e c t i o n t o

4t h e d i v e r s i t y j u r i s d i c t i o n s t a t u t e : 2 8 U

. S

. C

. § 1 3 3 2 ( d )

. T h i s s u b s e c t i o n p r o v i d e s 6

f e d e r a l c o u r t s w i t h o r i g i n a l j u r i s d i c t i o n “ o v e r c l a s s a c t i o n s i n w h i c h t h e a m o u n t i n

c o n t r o v e r s y e x c e e d s $ 5

, 0 0 0

, 0 0 0 a n d t h e r e i s m i n i m a l d i v e r s i t y ( a t l e a s t o n e

p l a i n t i f f a n d o n e d e f

e n d a n t a r e f

r o m d i f f e r e n t s t a t e s )

. ” E v a n s v

. W a l t e r I n d u s

. ,

I n c

. , 4 4 9 F

. 3 d 1 1 5 9

, 1 1 6 3 ( 1 1 t h C i r

. 2 0 0 6 )

. T h e s u b s e c t i o n d e f i n e s a “ c l a s s

a c t i o n ” a s “ a n y c i v i l a c t i o n f i l e d u n d e r r u l e 2 3 o f t h e F e d e r a l R u l e s o f C i v i l

P r o c e d u r e o r s i m i l a r S t a t e s t a t u t e o r r u l e o f j u d i c i a l p r o c e d u r e a u t h o r i z i n g a n a c t i o n

t o b e b r o u g h t b y 1 o r m o r e r e p r e s e n t a t i v e p e r s o n s a s a c l a s s a c t i o n

. ” 2 8 U

. S

. C

. §

1 3 3 2 ( d ) ( 1 ) ( B )

. T h e n e w s u b s e c t i o n a l s o s i m p l i f i e s t h e r e m o v a l o f s t a t e c o u r t c l a s s

a c t i o n s t o f

e d e r a l c o u r t b y e s t a b l i s h i n g o n l y m i n i m a l r e q u i r e m e n t s f o r r e m o v a l

, 2 8

U

. S

. C

. § 1 3 3 2 ( d ) ( 1 1 )

, w h i l e p r e s e r v i n g “ t h e t r a d i t i o n a l r u l e t h a t t h e p a r t y s e e k i n g

t o r e m o v e t h e c a s e t o f

e d e r a l c o u r t b e a r s t h e b u r d e n o f e s t a b l i s h i n g f e d e r a l

j u r i s d i c t i o n

. ” E v a n s

, 4 4 9 F

. 3 d a t 1 1 6 4 ; s e e a l s o M i e d e m a v

. M a y t a g C o r p

. , 4 5 0

F

. 3 d 1 3 2 2

, 1 3 2 9 ( 1 1 t h C i r

. 2 0 0 6 ) ( “ [ T ] h e t e x t o f C A F A p l a i n l y e x p a n d s f e d e r a l

j u r i s d i c t i o n o v e r c l a s s a c t i o n s a n d f a c i l i t a t e s t h e i r r e m o v a l

. ” )

.

T h i s c o u r t h a s e x t e n s i v e l y i n t e r p r e t e d C A F A ’ s j u r i s d i c t i o n a l r e q u i r e m e n t s i n

t h e r e m o v a l c o n t e x t

. L o w e r y v

. A l a

. P o w e r C o

. , 4 8 3 F

. 3 d 1 1 8 4 ( 1 1 t h C i r

. 2 0 0 7 )

.

I n L o w e r y

, n i n e n a m e d A l a b a m a p l a i n t i f f s b r o u g h t a n a c t i o n i n s t a t e c o u r t

, o n

CAFA r edesig nated the the n-cur rent § 1332(d) as § 1332(e ). 6

5b e h a l f o f a c l a s s

, a g a i n s t a g r o u p o f c o r p o r a t i o n s a n d f i c t i t i o u s e n t i t i e s

, a l l e g i n g

t h a t t h e d e f

e n d a n t s h a d p o l l u t e d t h e a i r a n d g r o u n d w a t e r

. T h e d e f e n d a n t s r e m o v e d

t h e c a s e u n d e r t h e “ m a s s a c t i o n ” p r o v i s i o n o f C A F A

, 2 8 U

. S

. C

. § 1 3 3 2 ( d ) ( 1 1 )

,

a s s e r t i n g t h a t § 1 3 3 2 ( d ) ( 1 1 ) ’ s j u r i s d i c t i o n a l r e q u i r e m e n t s h a d b e e n m e t

. I d

. a t

1 1 8 7

– 8 8

. T h e p l a i n t i f

f s m o v e d t o r e m a n d t h e c a s e t o s t a t e c o u r t

, a r g u i n g t h a t t h e

d e f e n d a n t s h a d n o t m e t t h e i r b u r d e n o f e s t a b l i s h i n g f e d e r a l j u r i s d i c t i o n b y

p r o v i d i n g e v i d e n c e o f t h e s p e c i f i c a m o u n t o f d a m a g e s t h e p l a i n t i f f s c l a i m e d

. I d

. a t

1 1 8 9

. T h e d i s t r i c t c o u r t o r d e r e d t h e c a s e r e m a n d e d

, a g r e e i n g w i t h t h e p l a i n t i f f s

t h a t t h e r e m o v i n g d e f

e n d a n t s b o r e t h e b u r d e n o f e s t a b l i s h i n g t h e j u r i s d i c t i o n a l

a m o u n t b y a p r e p o n d e r a n c e o f t h e e v i d e n c e

, a n d t h a t t h e d e f e n d a n t s d i d n o t p r o v e

t h a t t h e j u r i s d i c t i o n a l m o u n t s h a d b e e n s a t i s f i e d

. I d

. a t 1 1 9 2

.

R e v i e w i n g t h e d i s t r i c t c o u r t ’ s d e c i s i o n r e q u i r e d t h i s c o u r t t o w a d e t h r o u g h

t h e “ o p a q u e

, b a r o q u e m a z e o f i n t e r l o c k i n g c r o s s

- r e f e r e n c e s ” i n C A F A

. I d

. a t

1 1 9 8

. T h a t e x a m i n a t i o n c o n c l u d e d t h a t “ m a s s a c t i o n s ” r e m o v a b l e u n d e r C A F A

a r e c l a s s a c t i o n s t h a t m e e t t h e r e q u i r e m e n t s o f § 1 3 3 2 ( d ) ( 2 ) t h r o u g h ( 1 0 )

, t h e

p r o v i s i o n s o f w h i c h “ c o v e r a v a r i e t y o f t e r r a i n ” : a u t h o r i z i n g d i s t r i c t c o u r t s t o

d e c l i n e j u r i s d i c t i o n o v e r c a s e s w i t h p r i m a r i l y i n t r a s t a t e i m p a c t

, e x c e p t i n g s t a t e s

a n d s t a t e o f

f i c i a l s f r o m j u r i s d i c t i o n

, a n d p r o v i d i n g g u i d a n c e o n h o w t o t r e a t

c i t i z e n s h i p f

o r C A F A ’ s p u r p o s e s

. I d

. a t 1 1 9 9

– 1 2 0 0

. M a s s a c t i o n s a l s o i n c l u d e

6s e v e r a l r e q u i r e m e n t s a p p l i c a b l e t o c l a s s a c t i o n s i n v o k i n g C A F A j u r i s d i c t i o n

, s u c h

a s a $ 5

, 0 0 0

, 0 0 0 a g g r e g a t e a m o u n t i n c o n t r o v e r s y

, 2 8 U

. S

. C

. § 1 3 3 2 ( d ) ( 2 )

, ( 6 )

, a n d

m i n i m a l d i v e r s i t y

, i d

. § 1 3 3 2 ( d ) ( 2 )

. L o w e r y

, 4 8 3 F

. 3 d a t 1 2 0 1

. L o w e r y a l s o

c o n c l u d e d t h a t a m a s s a c t i o n r e q u i r e s 1 0 0 o r m o r e p l a i n t i f f s

, c o m m o n q u e s t i o n s o f

l a w o r f a c t

, a n d t h a t i t c a n n o t b e a c l a s s a c t i o n c e r t i f i e d u n d e r F e d e r a l R u l e o f C i v i l

P r o c e d u r e 2 3

. I d

. a t 1 2 0 2

– 0 3

. 7

I n t h i s c a s e

, w e f

a c e a s i t u a t i o n d i f

f e r e n t f r o m t h a t i n t h e c a s e s c i t e d

a b o v e

— L o w e r y

, M i e d e m a

, a n d E v a n s

— a s w e l l a s f r o m t h e m i n e r u n o f C A F A

c a s e s h e a r d i n f

e d e r a l c o u r t

, b e c a u s e C a p p u c c i t t i i n i t i a t e d t h i s c a s e i n f e d e r a l c o u r t ;

i t w a s n o t r e m o v e d f

r o m s t a t e c o u r t

. S u c h c a s e s a r e r e l a t i v e l y r a r e

, w h i c h i s n o t

s u r p r i s i n g g i v e n C o n g r e s s ’ s g o a l s i n e n a c t i n g C A F A

— t o p l a c e m o r e c l a s s a c t i o n s

i n f e d e r a l c o u r t b y l i f

t i n g b a r r i e r s t o t h e i r r e m o v a l ( w h i c h w o u l d r e s u l t i n m o s t

p u b l i s h e d C A F A c a s e s b e i n g h e a r d i n a r e m o v a l p o s t u r e )

. W e t h e r e f o r e n o w

c o n s i d e r w h a t j u r i s d i c t i o n a l r e q u i r e m e n t s C A F A i m p o s e s o n a p u t a t i v e c l a s s a c t i o n

o r i g i n a l l y f

i l e d i n f e d e r a l c o u r t ( a n “ o r i g i n a l C A F A a c t i o n ” )

. 8

T w o j u r i s d i c t i o n a l r e q u i r e m e n t s f o r o r i g i n a l C A F A a c t i o n s a r e c l e a r f r o m

L ower y aff irmed the district cour

t’s decision re manding the ac tion to st ate c ourt, albeit 7

on differ ent g rounds—namely , that the re moving de fenda nts did not “meet their burde n of

establishing the require ments for fe dera l jurisdiction over a mass a ction.” 483 F .3d at 1221.

I n this case, the bur den re sts with C appucc itti t o establish these jurisdictional 8

require ments by

a pre pondera

nce of the evidenc e, as he is the party seeking fede ral c ourt

jurisdiction.

7t h e f

a c e o f C A F A

, w h i c h p r o v i d e s t h a t

[ t ] h e d i s t r i c t c o u r t s s h a l l h a v e o r i g i n a l j u r i s d i c t i o n o f a n y c i v i l a c t i o n i n

w h i c h t h e m a t t e r i n c o n t r o v e r s y e x c e e d s t h e s u m o r v a l u e o f $ 5

, 0 0 0

, 0 0 0

,

e x c l u s i v e o f i n t e r e s t a n d c o s t s

, a n d i s a c l a s s a c t i o n i n w h i c h

—

( A ) a n y m e m b e r o f a c l a s s o f p l a i n t i f f s i s a c i t i z e n o f a S t a t e d i f f e r e n t

f r o m a n y d e f

e n d a n t ;

( B ) a n y m e m b e r o f a c l a s s o f p l a i n t i f f s i s a f o r e i g n s t a t e o r a c i t i z e n o r

s u b j e c t o f a f

o r e i g n s t a t e a n d a n y d e f e n d a n t i s a c i t i z e n o f a S t a t e ; o r

( C ) a n y m e m b e r o f a c l a s s o f p l a i n t i f f s i s a c i t i z e n o f a S t a t e a n d a n y

d e f e n d a n t i s a f

o r e i g n s t a t e o r a c i t i z e n o r s u b j e c t o f a f

o r e i g n s t a t e

.

2 8 U

. S

. C

. § 1 3 3 2 ( d ) ( 2 )

. T h u s

, § 1 3 3 2 ( d ) ( 2 ) p r o v i d e s t w o o f t h e r e q u i r e m e n t s f o r

o r i g i n a l C A F A j u r i s d i c t i o n : a n a m o u n t i n c o n t r o v e r s y o v e r $ 5

, 0 0 0

, 0 0 0 ( o b t a i n e d

b y a g g r e g a t i n g t h e c l a i m s o f t h e i n d i v i d u a l c l a s s m e m b e r s

, i d

. § 1 3 3 2 ( d ) ( 6 ) )

, a n d

m i n i m a l d i v e r s i t y

. I n a d d i t i o n

, t h e p r e c e d i n g s u b s e c t i o n a d d s a t h i r d r e q u i r e m e n t

,

w h i c h d i f

f e r s f r o m t h e r e m o v a b l e m a s s a c t i o n r e q u i r e m e n t : t h e c l a s s a c t i o n m u s t

h a v e b e e n f

i l e d u n d e r F e d e r a l R u l e o f C i v i l P r o c e d u r e 2 3

. I d

. § 1 3 3 2 ( d ) ( 1 ) ( B )

. 9

F o u r t h a n d f

i n a l l y

, s i n c e “ [ p ] a r a g r a p h s ( 2 ) t h r o u g h ( 4 ) s h a l l n o t a p p l y t o a n y c l a s s

a c t i o n i n w h i c h

. . . t h e n u m b e r o f m e m b e r s o f a l l p r o p o s e d p l a i n t i f f c l a s s e s i n t h e

a g g r e g a t e i s l e s s t h a n 1 0 0

, ” i d

. § 1 3 3 2 ( d ) ( 5 )

, a p l a i n t i f f b r i n g i n g a n a c t i o n u n d e r

C A F A m u s t a l l e g e t h a t t h e r e a r e 1 0 0 o r m o r e p l a i n t i f f s w i t h i n t h e p r o p o s e d

Certifica tion under Rule 23, or a state equiva lent there of, distinguishes a class ac tion 9

from a ma ss action re movable under § 1332(d)( 11). L ower

y , 483 F.3d a t 1202 (citing 28 U.S.C.

§ 1332(d)( 11)(B )(i))

.

8c l a s s ( e s )

.

T h u s

, m a n y o f t h e r e q u i r e m e n t s f o r a n o r i g i n a l C A F A a c t i o n r e s e m b l e t h o s e

f o r a m a s s a c t i o n r e m o v a b l e u n d e r C A F A

. B u t w h a t o f t h e i n d i v i d u a l c l a s s

m e m b e r s i n a n o r i g i n a l C A F A a c t i o n

— d o e s a t l e a s t o n e o f t h e m h a v e t o m e e t a

m i n i m u m a m o u n t i n c o n t r o v e r s y t o m a i n t a i n t h e a c t i o n ? C A F A d i d n o t a l t e r t h e

g e n e r a l d i v e r s i t y s t a t u t e ’ s r e q u i r e m e n t t h a t t h e d i s t r i c t c o u r t h a v e o r i g i n a l

j u r i s d i c t i o n “ o f a l l c i v i l a c t i o n s w h e r e t h e m a t t e r i n c o n t r o v e r s y e x c e e d s t h e s u m o r

v a l u e o f $ 7 5

, 0 0 0 ” a n d i s b e t w e e n c i t i z e n s o f d i f f e r e n t S t a t e s

. I d

. § 1 3 3 2 ( a )

. N o

c o u r t o f a p p e a l s c a s e o f w h i c h w e a r e a w a r e h a s e x p r e s s l y h e l d t h a t a t l e a s t o n e

p l a i n t i f f m u s t m e e t t h e § 1 3 3 2 ( a ) a m o u n t i n c o n t r o v e r s y r e q u i r e m e n t t o m a i n t a i n

a n o r i g i n a l C A F A a c t i o n

, a n d L o w e r y e x p r e s s l y r e s e r v e d t h e q u e s t i o n

. 4 8 3 F

. 3 d 1 0

a t 1 2 0 6 ( “ [ W ] e n e e d n o t d e c i d e t o d a y w h e t h e r t h e $ 7 5

, 0 0 0 p r o v i s i o n m i g h t y e t

c r e a t e a n a d d i t i o n a l t h r e s h o l d r e q u i r e m e n t t h a t t h e p a r t y b e a r i n g t h e b u r d e n o f

e s t a b l i s h i n g t h e c o u r t ’ s j u r i s d i c t i o n m u s t e s t a b l i s h a t t h e o u t s e t

, i

. e

. , t h a t t h e c l a i m s

o f a t l e a s t o n e o f t h e p l a i n t i f f s e x c e e d $ 7 5

, 0 0 0

. ” )

. W e a d d r e s s t h i s q u e s t i o n n o w

.

W e h o l d t h a t i n a C A F A a c t i o n o r i g i n a l l y f i l e d i n f e d e r a l c o u r t

, a t l e a s t o n e

o f t h e p l a i n t i f

f s m u s t a l l e g e a n a m o u n t i n c o n t r o v e r s y t h a t s a t i s f i e s t h e c u r r e n t

We note, howeve r, that one of our sister cir cuits has held that at lea st one plaintiff 1 0

must meet the $75,000 amount in controver sy require ment in the CAFA r emoval conte x t.

Abre g o Abre g o v. Dow Chem. Co., 443 F.3d 676, 689 ( 9th Cir. 2006), cited in L ower y , 483 F.3d

at 1206 n.51.

9c o n g r e s s i o n a l r e q u i r e m e n t f o r d i v e r s i t y j u r i s d i c t i o n p r o v i d e d i n 2 8 U

. S

. C

. §

1 3 3 2 ( a )

. S u c h a c o n c l u s i o n i s c o m p e l l e d b y t h e l a n g u a g e o f § 1 3 3 2 a s w e l l a s t h e

g e n e r a l p r i n c i p l e t h a t f

e d e r a l c o u r t s a r e t r i b u n a l s o f l i m i t e d j u r i s d i c t i o n w h o s e

p o w e r t o h e a r c a s e s m u s t b e a u t h o r i z e d b y t h e C o n s t i t u t i o n a n d b y C o n g r e s s

. S e e

,

e

. g

. , K o k k o n e n v

. G u a r d i a n L i f e I n s

. C o

. o f A m

. , 5 1 1 U

. S

. 3 7 5

, 3 7 7

, 1 1 4 S

. C t

.

1 6 7 3

, 1 6 7 5 ( 1 9 9 4 )

. I f w e h e l d t h a t § 1 3 3 2 ( a ) ’ s $ 7 5

, 0 0 0 r e q u i r e m e n t f o r a n

i n d i v i d u a l d e f

e n d a n t d i d n o t a p p l y t o § 1 3 3 2 ( d ) ( 2 ) c a s e s

, w e w o u l d b e e x p a n d i n g

f e d e r a l c o u r t j u r i s d i c t i o n b e y o n d C o n g r e s s ’ s a u t h o r i z a t i o n

. W e w o u l d e s s e n t i a l l y

t r a n s f o r m f e d e r a l c o u r t s h e a r i n g o r i g i n a l l y

- f i l e d C A F A c a s e s i n t o s m a l l c l a i m s

c o u r t s

, w h e r e p l a i n t i f

f s c o u l d b r i n g f

i v e

- d o l l a r c l a i m s b y a l l e g i n g g a r g a n t u a n c l a s s

s i z e s t o m e e t t h e $ 5

, 0 0 0

, 0 0 0 a g g r e g a t e a m o u n t r e q u i r e m e n t

. W h i l e C o n g r e s s

i n t e n d e d t o e x p a n d f

e d e r a l j u r i s d i c t i o n o v e r c l a s s a c t i o n s w h e n i t e n a c t e d C A F A

,

s u r e l y t h i s c o u l d n o t h a v e b e e n t h e r e s u l t i t i n t e n d e d

.

N o r d o e s i t r e q u i r e a n a l y t i c a l a c r o b a t i c s t o a p p l y § 1 3 3 2 ( a ) ’ s j u r i s d i c t i o n a l

r e q u i r e m e n t i n t h e C A F A c l a s s a c t i o n c o n t e x t

. W h i l e § 1 3 3 2 ( d ) m a y h a v e a l t e r e d

§ 1 3 3 2 ( a ) t o r e q u i r e o n l y m i n i m a l d i v e r s i t y i n C A F A a c t i o n s

, L o w e r y

, 4 8 3 F

. 3 d a t

1 1 9 3 n

. 2 4

, t h e r e i s n o e v i d e n c e o f c o n g r e s s i o n a l i n t e n t i n § 1 3 3 2 ( d ) t o o b v i a t e §

1 3 3 2 ( a ) ’ s $ 7 5

, 0 0 0 r e q u i r e m e n t a s t o a t l e a s t o n e p l a i n t i f f

. M o r e o v e r

, t h e $ 7 5

, 0 0 0 1 1

Congr ess’s primar

y conce rn in this reg ard w as that some cour ts of appea ls were 1 1

interpre ting Z ahn v. I nterna tional Paper Co., 414 U.S. 291, 94 S. Ct . 505 (1973), to re quire e ach

10r e q u i r e m e n t e x p r e s s l y a p p l i e s i n a c t i o n s r e m o v e d u n d e r C A F A

, 2 8 U

. S

. C

. §

1 3 3 2 ( d ) ( 1 1 ) ( B ) ( i )

, a n d w e c a n t h i n k o f n o r e a s o n w h y C o n g r e s s w o u l d h a v e 1 2

i n t e n d e d t h e r e q u i r e m e n t i n t h e c o n t e x t o f C A F A r e m o v a l j u r i s d i c t i o n b u t n o t

C A F A o r i g i n a l j u r i s d i c t i o n

. H o l d i n g o t h e r w i s e w o u l d c a u s e a n o n s e n s i c a l r e s u l t : a

c a s e i n w h i c h a p l a i n t i f

f c l a i m e d l e s s t h a n $ 7 5

, 0 0 0 i n c o n t r o v e r s y i n s t a t e c o u r t

c o u l d n o t e n t e r f

e d e r a l c o u r t b y r e m o v a l ( d e f e a t i n g C o n g r e s s ’ s p u r p o s e s i n

e n a c t i n g C A F A )

, b u t c o u l d

, i f t h e p l a i n t i f f c h o s e

, b e b r o u g h t i n f

e d e r a l c o u r t u n d e r

C A F A o r i g i n a l j u r i s d i c t i o n ( a s s u m i n g t h e c a s e m e t a l l o f C A F A ’ s o t h e r

r e q u i r e m e n t s )

. A g a i n

, w e h i g h l y d o u b t t h a t C o n g r e s s i n t e n d e d t h i s r e s u l t

.

plaintiff in a cla ss action to demonstrate the curr ent statutory jurisdiction requireme nt in

diversity class ac tions. S ee S. Rep. No. 109- 14, at 10 (2005), r eprinted in 2005 U.S.C.C.A.N. 3,

11 (“The Commi ttee believe s that requiring eac h plaintiff to rea ch the $75,000 mar k makes little

sense in the c lass action conte x t.”); see also Allapattah Ser vs. v. Ex x on Corp., 362 F.3d 739,

746–47 (11th Cir. 2004) (Tjofla t, J ., dissenting f rom denial of r ehea

ring en banc ) (pointing out,

prior to CAFA ’s ena ctment, the “de ep and a biding” split i n the fe dera l courts of a ppeals ove r

whether the supplemental jurisdiction statute, 28 U.S.C. § 1367, allowed for jurisdiction over

unnamed plaintiffs w ho did not satisfy § 1332(a) ’s amount in controve rsy require ment). This

require ment is differe nt in kind, however, f rom requir ing a

t least one plaintiff to mee t §

1332(a) ’s jurisdictional minimum

.

This subsection rea ds: 1 2

As used in subpara g raph ( A), the te rm “mass a ction” mea ns any civil action

(except a c ivil action within the scope of se ction 1711(2)) in which monetar y

relief claims of 100 or more persons a re pr oposed to be tried jointly on the g round

that the plaintiffs’ c laims involve common questions of law or fa ct, except that

jurisdiction shall ex ist only over those pla intiffs whose cla ims in a mass action

satisfy the jurisdictional amount require ments under subsec tion (a).

28 U.S.C. § 1332(d)(11)( B) (i) (e mphasis added) . I n turn, CAFA de fines a “ mass action” a s a

“cla ss action re movable under para g raphs ( 2) throug h (10) [of § 1332(d)] if it otherwise mee ts

the provisions of those par ag raphs.” I d. § 1332(d)( 11)(A)

.

11I n t h i s c a s e

, C a p p u c c i t t i h a s a l l e g e d t h a t t h e m a t t e r i n c o n t r o v e r s y e x c e e d s

$ 5

, 0 0 0

, 0 0 0

, t h a t i t i s a R u l e 2 3 c l a s s a c t i o n

, a n d t h a t m o r e t h a n t w o

- t h i r d s o f t h e

m e m b e r s o f t h e p r o p o s e d c l a s s a r e c i t i z e n s o f a s t a t e d i f f e r e n t f r o m D i r e c T V

.

T h e r e i s n o d i s p u t e o v e r d i v e r s i t y

, b e i t m i n i m a l o r c o m p l e t e

, a s D i r e c T V i s

i n c o r p o r a t e d a n d i t s p r i n c i p a l p l a c e o f b u s i n e s s i s i n C a l i f o r n i a

, a n d C a p p u c c i t t i i s

a G e o r g i a r e s i d e n t a s s e r t i n g c l a i m s o n b e h a l f o f a p u t a t i v e c l a s s o f o t h e r G e o r g i a

r e s i d e n t s

. T h o u g h C a p p u c c i t t i d o e s n o t s p e c i f i c a l l y a l l e g e t h a t t h e c l a s s c o n s i s t s o f

m o r e t h a n 1 0 0 p l a i n t i f

f s

, s u c h i s t h e n e c e s s a r y i m p l i c a t i o n f r o m t h e r a n g e o f

i n d i v i d u a l d a m a g e s h e a l l e g e s

— $ 1 7 5 t o $ 4 8 0 i n e a r l y c a n c e l l a t i o n f e e s p e r

p l a i n t i f f

. I f C a p p u c c i t t i i s c o r r e c t a b o u t h i s $ 5

, 0 0 0

, 0 0 0 a g g r e g a t e a m o u n t i n

c o n t r o v e r s y a l l e g a t i o n

, t h e r e m u s t b e b e t w e e n 1 0

, 4 1 7 a n d 2 8

, 5 7 2 p l a i n t i f f s i n t h e

c l a s s

. T h u s

, C a p p u c c i t t i ’ s c l a i m s a t i s f i e s m o s t o f t h e r e q u i r e m e n t s f o r b r i n g i n g 1 3

a n a c t i o n u n d e r C A F A ’ s p r o v i s i o n s i n f e d e r a l c o u r t

.

W h e r e C a p p u c c i t t i ’ s c l a i m f a l l s s h o r t

, h o w e v e r

, i s t h e r e q u i r e m e n t t h a t a t

l e a s t o n e p l a i n t i f

f a l l e g e a n i n d i v i d u a l a m o u n t i n c o n t r o v e r s y o v e r $ 7 5

, 0 0 0

.

N o w h e r e i n h i s c o m p l a i n t d o e s C a p p u c c i t t i m a k e s u c h a n a l l e g a t i o n

. N o r c o u l d

h e

— h e a l l e g e s t h a t t h e m a x i m u m e a r l y c a n c e l l a t i o n p e n a l t y s u f f e r e d b y a n y

i n d i v i d u a l p l a i n t i f

f w a s $ 4 8 0

. T h e r e i s s i m p l y n o t h i n g i n t h e c o m p l a i n t t o s a t i s f y

$480 x 10,417 = $5,000,160; $175 x 28,572 = $5,000,100. 1 3

12t h i s e s s e n t i a l r e q u i r e m e n t o f C A F A a c t i o n s f i l e d o r i g i n a l l y i n f

e d e r a l c o u r t

.

C a p p u c c i t t i ’ s c o m p l a i n t i s n o t s a v e d b y t h e S u p r e m e C o u r t ’ s d e c i s i o n i n

E x x o n M o b i l C o r p

. v

. A l l a p a t t a h S e r v i c e s

, I n c

. , 5 4 5 U

. S

. 5 4 6

, 1 2 5 S

. C t

. 2 6 1 1

( 2 0 0 5 )

. I n A l l a p a t t a h

, t h e S u p r e m e C o u r t c o n s i d e r e d w h e t h e r t h e s u p p l e m e n t a l

j u r i s d i c t i o n s t a t u t e

, 2 8 U

. S

. C

. § 1 3 6 7

, e n a b l e d f e d e r a l c o u r t s t o e x e r t j u r i s d i c t i o n

o v e r p l a i n t i f

f c l a s s m e m b e r s w h o d i d n o t i n d i v i d u a l l y m e e t § 1 3 3 2 ( a ) ’ s a m o u n t i n

c o n t r o v e r s y r e q u i r e m e n t

. T h e S u p r e m e C o u r t a n s w e r e d i n t h e a f f i r m a t i v e

, h o l d i n g

t h a t

w h e r e t h e o t h e r e l e m e n t s o f j u r i s d i c t i o n a r e p r e s e n t a n d a t l e a s t o n e

n a m e d p l a i n t i f

f i n t h e a c t i o n s a t i s f

i e s t h e a m o u n t

- i n

- c o n t r o v e r s y

r e q u i r e m e n t

, § 1 3 6 7 d o e s a u t h o r i z e s u p p l e m e n t a l j u r i s d i c t i o n o v e r t h e

c l a i m s o f o t h e r p l a i n t i f

f s i n t h e s a m e A r t i c l e I I I c a s e o r c o n t r o v e r s y

,

e v e n i f t h o s e c l a i m s a r e f o r l e s s t h a n t h e j u r i s d i c t i o n a l a m o u n t

s p e c i f i e d i n [ § 1 3 3 2 ( a ) ]

.

I d

. a t 5 4 9

, 1 2 5 S

. C t

. a t 2 6 1 5

. T h i s m e a n s t h a t “ [ w ] h e n t h e w e l l

- p l e a d e d c o m p l a i n t

c o n t a i n s a t l e a s t o n e c l a i m t h a t s a t i s f i e s t h e a m o u n t

- i n

- c o n t r o v e r s y r e q u i r e m e n t

,

a n d t h e r e a r e n o o t h e r r e l e v a n t j u r i s d i c t i o n a l d e f e c t s

, t h e d i s t r i c t c o u r t

, b e y o n d a l l

q u e s t i o n

, h a s o r i g i n a l j u r i s d i c t i o n o v e r t h a t c l a i m

. ” I d

. a t 5 5 9

, 1 2 5 S

. C t

. a t 2 6 2 0

.

H e r e

, h o w e v e r

, C a p p u c c i t t i h a s n o t a l l e g e d e v e n o n e c l a i m t h a t

, o n a n i n d i v i d u a l

b a s i s

, a p p r o a c h e s t h e c u r r e n t $ 7 5

, 0 0 0 a m o u n t i n c o n t r o v e r s y r e q u i r e m e n t

. I n s t e a d

,

h e h a s a l l e g e d t h a t a n y g i v e n m e m b e r o f t h e p r o p o s e d c l a s s s u f f e r e d a n e a r l y

c a n c e l l a t i o n p e n a l t y o f

, a t m o s t

, $ 4 8 0

. T h e r e e x i s t s n o b a s i s

, t h e r e f o r e

, f o r e x e r t i n g

13s u p p l e m e n t a l j u r i s d i c t i o n o v e r C a p p u c c i t t i ’ s c l a i m s u n d e r A l l a p a t t a h

.

H a v i n g d e t e r m i n e d t h a t C a p p u c c i t t i l a c k e d a b a s i s f o r i n v o k i n g t h e f

e d e r a l

c o u r t s ’ s u b

j e c t m a t t e r j u r i s d i c t i o n u n d e r C A F A

, o u r d i s p o s i t i o n o f t h e d i s t r i c t

c o u r t ’ s o r d e r b e c o m e s c l e a r

. S i n c e t h e d i s t r i c t c o u r t l a c k e d s u b j e c t m a t t e r

j u r i s d i c t i o n o v e r t h i s c a s e

, i t l a c k e d t h e p o w e r t o c o n s i d e r D i r e c T V ’ s m o t i o n t o

c o m p e l a r b i t r a t i o n

, a n d t h e c a s e s h o u l d b e d i s m i s s e d

. C o u n t I I I

, h o w e v e r

, i s s t i l l

p e n d i n g b e f

o r e t h e d i s t r i c t c o u r t b e c a u s e i t d e n i e d t h e m o t i o n t o c o m p e l a r b i t r a t i o n

a n d d i d n o t d i s p o s e o f t h a t c o u n t

. A c c o r d i n g l y

, w e v a c a t e t h e d i s t r i c t c o u r t ’ s o r d e r

a n d r e m a n d t h e c a s e w i t h t h e i n s t r u c t i o n t h a t t h e d i s t r i c t c o u r t d i s m i s s i t f o r l a c k o f

s u b j e c t m a t t e r j u r i s d i c t i o n

.

S O O R D E R E D

.

14