§6614 — Title 15 Commerce and Trade | U.S. Code

Summary

Allows people to bring a Y2K suit about a defective product or service as a class action only if the case meets other legal requirements and a judge finds the alleged defect would be important to most class members. If a Y2K case is a class action, the court must send each class member a clear notice that explains what the case is about, where it is filed, and the lawyer fee deal (showing either the hourly rate or the contingency percentage and an estimate of how much that would total if the requested damages were awarded). U.S. district courts usually have first jurisdiction over these class actions, but not when most class members and the main defendants are from the same State and state law controls; when the defendants are States or certain government entities; when no punitive damages are sought and the total dispute is under $10,000,000; or when the class has fewer than 100 people. If a federal court only has the case because of this rule and the class requirements aren’t met, the court must dismiss or remove the class claim and send the case back, but plaintiffs may file a new or amended class action and the statute of limitations is tolled. Other civil procedure rules still apply.

Title 15, §6614

Commerce and Trade — Source: USLM XML via OLRC

(a)A Y2K action involving a claim that a product or service is defective may be maintained as a class action in Federal or State court as to that claim only if—

(1)it satisfies all other prerequisites established by applicable Federal or State law, including applicable rules of civil procedure; and

(2)the court finds that the defect in a product or service as alleged would be a material defect for the majority of the members of the class.

(b)In any Y2K action that is maintained as a class action, the court, in addition to any other notice required by applicable Federal or State law, shall direct notice of the action to each member of the class, which shall include—

(1)a concise and clear description of the nature of the action;

(2)the jurisdiction where the case is pending; and

(3)the fee arrangements with class counsel, including the hourly fee being charged, or, if it is a contingency fee, the percentage of the final award which will be paid, including an estimate of the total amount that would be paid if the requested damages were to be granted.

(c)(1)Except as provided in paragraph (2), the district courts of the United States shall have original jurisdiction of any Y2K action that is brought as a class action.

(2)The district courts of the United States shall not have original jurisdiction over a Y2K action brought as a class action if—

(A)(i)a substantial majority of the members of the proposed plaintiff class are citizens of a single State;

(ii)the primary defendants are citizens of that State; and

(iii)the claims asserted will be governed primarily by the laws of that State;

(B)the primary defendants are States, State officials, or other governmental entities against whom the district courts of the United States may be foreclosed from ordering relief;

(C)the plaintiff class does not seek an award of punitive damages, and the amount in controversy is less than the sum of $10,000,000 (exclusive of interest and costs), computed on the basis of all claims to be determined in the action; or

(D)there are less than 100 members of the proposed plaintiff class.

(3)(A)A United States district court shall dismiss, or, if after removal, strike the class allegations and remand, any Y2K action brought or removed under this subsection as a class action if—

(i)the action is subject to the jurisdiction of the court solely under this subsection; and

(ii)the court determines the action may not proceed as a class action based on a failure to satisfy the conditions of Rule 23 of the Federal Rules of Civil Procedure.

(B)Nothing in paragraph (A) shall prohibit plaintiffs from filing an amended class action in Federal or State court. A defendant shall have the right to remove such an amended class action to a United States district court under this subsection.

(C)Upon dismissal or remand, the period of limitations for any claim that was asserted in an action on behalf of any named or unnamed member of any proposed class shall be deemed tolled to the full extent provided under Federal law.

(D)The dismissal of a Y2K action under subparagraph (A) shall be without prejudice.

(d)Except as otherwise provided in this section, nothing in this section supersedes any rule of Federal or State civil procedure applicable to class actions.

Editorial Notes

References in Text

Rules of Federal civil procedure, referred to in subsecs. (a)(1), (c)(3)(A)(ii), and (d), are contained in the Federal Rules of Civil Procedure which are set out in the Appendix to Title 28, Judiciary and Judicial Procedure.

§6614 Y2k Actions as Class Actions

Summary

Title 15, §6614

Notes & Related Subsidiaries

Editorial Notes

References in Text

Citations & Metadata