NJ Decision Makes State Court Cozier for Class Actions

Jeffrey J. Greenbaum commented on a recent New Jersey appellate decision snubbing controversial class identification requirements when certifying low-value consumer class actions. He stated: “…home state and local controversy exceptions in CAFA can allow class actions with specific characteristics to remain in state court no matter the damages, and the decision otherwise means worsened stakes for businesses that might not be able to survive a multimillion-dollar judgment, even if it happens to be less than $5 million…I don’t think it’s the last word…I think something this important will have to come from the highest court, and I suspect it will be appealled.”  He went on to say “A decision to grant or deny class certification is outcome-determinative from a practical perspective and should get interlocutory review before the costs go out of control and people are forced to make settlement decisions without a full explanation of their legal rights.”