Wright Transportation, Inc. v. Pilot Corporation
2016 U.S. App. LEXIS 20937
| 11th Cir. | 2016Background
- Wright Transportation (Alabama) sued Pilot and certain employees in federal court alleging RICO and multiple state-law claims as a nationwide class under CAFA and other jurisdictional theories.
- An earlier nationwide class settlement in a different lawsuit (E.D. Ark.) eliminated Wright’s ability to pursue the class claims; the Alabama district court dismissed the class claims after that settlement.
- The federal RICO claims were dismissed on pleading grounds; later discovery revealed Pilot had an Alabama citizen-member such that diversity never existed.
- Wright moved to dismiss the remaining state-law claims without prejudice to refile in state court; Pilot argued CAFA originally conferred federal jurisdiction that survives the later loss of class status.
- The district court declined to exercise jurisdiction, treating the dismissed CAFA/class claims as removing original jurisdiction and relying on supplemental-jurisdiction principles to dismiss the state claims.
- The Eleventh Circuit reversed, holding CAFA conferred original jurisdiction at filing and that jurisdiction continued despite post-filing events that eliminated the class.
Issues
| Issue | Plaintiff's Argument (Wright) | Defendant's Argument (Pilot) | Held |
|---|---|---|---|
| Whether CAFA-based original federal jurisdiction survives after class claims are dismissed post-filing | CAFA jurisdiction ended when the district court dismissed the class claims; therefore federal jurisdiction no longer exists for the remaining state-law claims | CAFA conferred original jurisdiction at the time of filing and that jurisdiction persists for the life of the case despite later loss of class status | Reversed: CAFA conferred original jurisdiction at filing and it survives post-filing events that eliminate the class claims |
| Whether the district court should have relied on supplemental jurisdiction instead of CAFA | The court correctly dismissed under 28 U.S.C. §1367 because it had dismissed the claims giving rise to original jurisdiction | CAFA, having conferred original jurisdiction over all pleaded claims, made supplemental jurisdiction analysis unnecessary | Held that supplemental jurisdiction analysis was unnecessary because CAFA provided continuing original jurisdiction over the state-law claims |
Key Cases Cited
- Vega v. T-Mobile USA, Inc., 564 F.3d 1256 (11th Cir. 2009) (post-removal events like non-certification do not divest CAFA jurisdiction)
- Cunningham Charter Corp. v. Learjet, Inc., 592 F.3d 805 (7th Cir. 2010) (CAFA jurisdiction does not depend on certification; distinguishes frivolous CAFA invocations)
- Louisiana v. American National Property & Casualty Co., 746 F.3d 633 (5th Cir. 2014) (collecting circuits holding post-removal events do not oust CAFA jurisdiction)
- In Touch Concepts, Inc. v. Cellco Partnership, 788 F.3d 98 (2d Cir. 2015) (CAFA jurisdiction can survive amendment that abandons class claims in some contexts)
- Brown v. Mortgage Electronic Registration Systems, Inc., 738 F.3d 926 (8th Cir. 2013) (example of exercising supplemental jurisdiction after CAFA claims dismissed where only some claims were CAFA-qualifying)
- Rockwell International Corp. v. United States, 549 U.S. 457 (2007) (when plaintiff files in federal court and voluntarily amends to eliminate jurisdictional allegations, courts look to the amended complaint)
- Arbaugh v. Y & H Corp., 546 U.S. 500 (2006) (courts have independent obligation to determine subject-matter jurisdiction)
