The Class Action Fairness Act permits removal of lawsuits brought under state-law rules similar to Federal Rule of Civil Procedure 23.  A court in the Northern District of California recently denied a motion to remand even though the complaint did not reference California Code of Civil Procedure section 382, California’s Rule 23 analogue.  See Pac. Coast Fed’n of Fishermen’s Associations, Inc. v. Chevron Corp., No. 18-CV-07477-VC, 2023 WL 7299195 (N.D. Cal. Nov. 1, 2023).  The ruling underscores that in the Ninth Circuit, “the CAFA removal inquiry focuses on the complaint’s substance, not formal labels and allegations.”  Id. at *2.

The Pacific Coast Federation of Fishermen’s Associations filed a lawsuit on its own behalf and “in a representative capacity on behalf of its members and the west coast fishing community.”  Id. at *1.  Defendants removed the case to federal court pursuant to CAFA and plaintiff moved to remand, arguing that it had not invoked section 382.

The court denied the motion.  It viewed the case as a logical extension of Canela v. Costco Wholesale Corporation, 971 F.3d 845, 854-55 (9th Cir. 2020), in which the Ninth Circuit held that a Private Attorneys General Act claim is not removable under CAFA, even if the complaint is styled as a class action.  Here, the district court reasoned that “the Federation filed a lawsuit that could be brought only as a section 382 representative action, seeking relief that could only be obtained in a section 382 action.  The lawsuit did not avoid becoming a section 382 action just because the Federation never cited section 382 or alleged it had satisfied section 382’s requirements.”  Pac. Coast, 2023 WL 7299195, at *2.

The case serves as a reminder that defendants in the Ninth Circuit should evaluate CAFA removability based on the substance of the complaint, not its form.

Tags: CAFA, Class Action Procedure, Ninth Circuit, Removal
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Amy Heath is a class action and commercial litigator who helps the world’s leading companies in the technology, consumer products, and other sectors navigate their most significant disputes. She has delivered extraordinary results, winning multiple cases involving billions of dollars in claims. Amy…

Amy Heath is a class action and commercial litigator who helps the world’s leading companies in the technology, consumer products, and other sectors navigate their most significant disputes. She has delivered extraordinary results, winning multiple cases involving billions of dollars in claims. Amy has had exceptional success with early dispositive motions, distilling complex arguments to show why claims should not proceed. A former intelligence analyst, Amy brings the same sound strategic judgment, analytical rigor, attention to detail, efficiency, and commitment to client service to her practice of law.

Amy frequently litigates matters involving privacy, wiretap, contract, consumer protection, fraud, unfair competition, antitrust, and intellectual property claims. She has significant experience throughout the litigation lifecycle, including:

  • developing strategies to coordinate litigation across jurisdictions, including multidistrict litigation;
  • briefing dismissal, class certification, and summary judgment motions;
  • taking depositions and managing discovery;
  • effectively navigating joint defense groups; and
  • drafting and arguing appeals.

Amy also regularly counsels clients on the strategic considerations related to arbitration agreements. She drafts and revises arbitration clauses and class action waivers in terms of service, including to mitigate mass arbitration risk.

Before joining the firm, Amy clerked for the Honorable Michelle T. Friedland of the United States Court of Appeals for the Ninth Circuit and the Honorable Lucy H. Koh, then of the United States District Court for the Northern District of California. Amy maintains an active pro bono practice that focuses on direct services for individual clients.

Before practicing law, Amy served as an intelligence analyst at CIA, where she was a regular contributor to the President’s Daily Brief.

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