Opinion ID: 774566
Heading Depth: 3
Heading Rank: 2

Heading: Jurisdiction Based on Claims of Unnamed Class Members

Text: 55 The preceding section explains our agreement with Chrysler's argument that there is supplemental jurisdiction over the claims of unnamed class members when the claim of an individual named plaintiff satisfies the amount-in-controversy requirement. We now address Chrysler's additional argument that there is such supplemental jurisdiction when the claim of an unnamed class member satisfies the amount-in-controversy requirement. For the reasons that follow, we reject this argument. 56 In its opposition to the second remand in this case, Chrysler argued that an individual plaintiff's request for rescission should be valued (for purposes of amount in controversy) at the full original price of the vehicles in question, and that as a result, the claim of any class member owning more than three vehicles was likely to exceed $75,000. Chrysler then attached a declaration indicating that, according to its sales records, more than sixty potential class members in California owned more than nine Chrysler vehicles manufactured by the electrocoat process. But even if Chrysler is correct that several unnamed class members have claims for amounts in excess of $75,000, these claims do not provide a basis for diversity jurisdiction. 57 As discussed above, subsection (a) of §§ 1367 provides that a federal district court has supplemental jurisdiction over claims that are related to claims in any civil action of which the district courts have original jurisdiction.Original jurisdiction in subsection (a) refers to jurisdiction established by looking for any claim in the complaint over which there is subject matter jurisdiction. But original jurisdiction does not refer to jurisdiction over claims not made--or not yet made--in the complaint. As also discussed above, a class action, when filed, includes only the claims of the named plaintiff or plaintiffs. The claims of unnamed class members are added to the action later, when the action is certified as a class under Rule 23. There thus cannot be original jurisdiction within the meaning of subsection (a) over the claims of unnamed class members and there is therefore no supplemental jurisdiction either. 58 Examining only the claims of named class plaintiffs for purposes of the amount-in-controversy requirement in diversity class actions mirrors the treatment of the complete diversity requirement. In both instances, subject matter jurisdiction depends only on the named plaintiffs. See Supreme Tribe of Ben-Hur v. Cauble, 255 U.S. 356, 366-67 (1921); In re Agent Orange Prod. Liab. Litig., 818 F.2d 145, 162 (2d Cir. 1987). We also note that practical considerations support this result. If the claim of an unnamed class member could support removal of the entire action, a removing defendant might be entitled to discovery not merely from named, but also from unnamed, class members. Further, including the claims of unnamed class members is an impractical and uncertain method of determining federal jurisdiction, Tortola Restaurants, L.P. v. Kimberly-Clark Corp., 987 F. Supp. 1186, 1190 n.4 (N.D. Cal. 1997), because those members are free to opt out of the class, and because a denial of class certification would prevent the court from taking jurisdiction over the claims of the unnamed class members. Either of these two events would deprive the district court of jurisdiction over the entire class action, and could occur well into the litigation, after the expenditure of substantial time and effort by the parties and the district court. See id. 59 Finally, there is no reported decision that supports Chrysler's argument that the claims of unnamed class members can serve as a basis for diversity jurisdiction. Even those courts that have held that §§ 1367 overrules Zahn state that diversity jurisdiction in class actions must be based on a claim of a named plaintiff. See In Re Brand Name Prescription Drugs Antitrust Litig., 123 F.3d at 607 (At least one named plaintiff must satisfy the jurisdictional minimum.) (emphasis added); see also Tortola Restaurants, 987 F. Supp. at 1190; Amundson & Assocs. Art Studio, Ltd. v. National Council on Compensation Ins. Inc., 977 F. Supp. 1116, 1123 (D. Kan. 1997); Sanderson, Thompson, Ratledge & Zimny v. AWACS, Inc. , 958 F. Supp. 947, 961 (D. Del. 1997). Secondary authorities agree. See, e.g., 5 James Wm. Moore et al., Moore's Federal Practice §§ 23.07[3][c] at 23-47 (3d ed. 1998) (hereinafter Moore's) ([E]ven if 28 U.S.C. §§ 1367 reverses Zahn . . . the statute does not permit supplemental jurisdiction over a class action in which unnamed class members meet the amount-in-controversy requirement, but the named plaintiff does not.) (emphasis in original). 60