Federal 7th Circuit Court
Civil Court
Class Action
Dist. Ct. erred in finding that defendant had failed to establish that class action alleging violation of Illinois Consumer Fraud Act met requisite $5 million statutory threshold under Class Action Fairness Act (CAFA) so as to support lawsuit’s removal to federal court. While instant lawsuit alleged that defendant had filed 1,100 fraudulent small-claims actions, which concerned compensatory damages and legal fees that totaled no more than $3.5 million, said allegations were insufficient to cap any eventual damages award at less than $5 million amount in controversy threshold, where: (1) plaintiff did not irrevocably commit to obtaining less than $5 million for class members; and (2) defendant alleged that lawsuit actually concerned greater number of small claims actions that had potential for damages greater than $5 million. Thus, remand was required for new determination as to whether amount in controversy reached statutory threshold under CAFA.