Morrison v. YTB International, Inc.

Dist. Ct. erred in dismissing class action alleging that defendant violated Ill. Consumer Fraud Act by creating pyramid scheme involving sale of right to act as travel agent and sales of travel services to customers, after Dist. Ct. concluded that said Act did not apply to claims of non-Illinois resident plaintiffs, and that claims of Illinois plaintiffs constituted intra-state controversy that belonged in state court. Dist. Ct. had subject-matter jurisdiction to consider instant class action where plaintiffs met jurisdictional requirements at time action was filed. Moreover, Dist. Ct. erred in dismissing portion of case on merits and then determining that remaining claims fell short of jurisdictional requirements. Ct. also found that Dist. Ct. could not, pursuant to ruling on instant motion to dismiss, find that non-Illinois resident plaintiffs lacked valid claim under Ill. Consumer Fraud Act.