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State of Mississippi v. AU Optronics Corporation
701 F.3d 796
5th Cir.
2012
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*3 JOLLY, Before CLEMENT and Meredith Aldridge, Geoffrey McCollum ELROD, Judges. Circuit Morgan, Sp. Atty. Gens., C. Asst. George Neville, Gen., Atty. W. Office Jack- JOLLY, E. GRADY Judge: Circuit son, MS, Anderson, Carolyn Glass Patricia Appellants, manufacturers and distribu- Bloodgood, A. David Michael Cialkowski (“LCD”) crystal liquid display tors of pan- (argued), Hedberg, Kirsten D. Zimmerman els, jointly removed this case to federal Reed, P.L.L.P., Minneapolis, MN, (1) district court on grounds Plaintiff-Appellee. action was a “class action” under the Class Munford, Luther T. James William Shel- (“CAFA”), Action Fairness Act 28 U.S.C. son, Dunbar, Phelps L.L.P., Stephen Lee (2) 1332(d)(1)(B), § the action was a Thomas, Bradley Arant Cummings, Boult CAFA, “mass action” under L.L.P., Gerity, Wyatt, Thomas C. Tarrant 1332(d)(ll)(B). § The State of Mississip- Combs, L.L.P., Boone, Walter Helms pi, Appellee, then moved to remand the Forman, Watkins, Perry, Tardy, Krutz & court, case to state and the district court L.L.P., Philip Thomas, William Law Of- granted the motion. Because we find that Thomas, P.A., fices of Phillip W. Charles the suit qualifies as a mass action under Hawkins, Edwin Ross (argued), Rebecca CAFA, we find removal to proper. Wallace, Michael Brunson Wise Carter Accordingly, we REVERSE the district P.A., Jackson, Child & Caraway, MS, court’s remand order and REMAND for Nedeau, Christopher Nossaman, L.L.P., A. further proceedings. Kim-Szrom, Michelle Kent M. Roger, Morgan, Bockius, L.L.P., Lewis & John M. I. Grenfell, Sorenson, Jacob R. Pillsbury Pittman, L.L.P., Winthrop Shaw Ordinarily, San a district court’s remand or- Francisco, CA, Frahn, IV, Harrison J. is not appealable, see 28 U.S.C. der Thacher, Alto, Simpson CA, Hugh 1447(d); however, § Palo F. there is a Bangasser, Emerson, Ramona M. exception Christo- grants this rule that federal pher Wyant, Gates, L.L.P., M. K&L appellate Se- discretionary jurisdiction courts attle, WA, Miller, Robert Arrington Pat- to review remand orders actions that clear that neither It is thus 75-21-7. the CAFA. See are removed MAA, 1453(c). nor the the statutes un- review de novo the MCPA We U.S.C. remanding an action Mississippi brings present order court’s der which district to the CAFA. pursuant suit, According- removed Rule 23. that was are “similar” to Abshire, Co. v. Ins. did not ly, Admiral hold that the district court we Cir.2009). finding qualify that the suit does not err under the as a “class action” CAFA.

II. CAFA, of a suit removal Under III. *4 quali if proper is the suit court to federal or a “mass action.” a “class action” fies as brings us to the more This conclusion 1453(b); § 28 U.S.C. 28 U.S.C. See quali- question: whether this suit difficult 1332(d)(ll)(A). by analysis begins § Our under the CAFA. fies-as a “mass action” suit Mississippi’s considering whether statute, a mass the terms of the Under qualifies manufacturers the LCD against in which is defined as a civil action action action,” be that can question as a “class (2) (1) 100 monetary relief claims of negative. Under quickly answered (3) proposed are to be tried persons more is a class action provision, the relevant ground plaintiffs’ the jointly on the action filed under “any civil defined questions of law or claims involve common Pro- Federal Rules of Civil Rule 23 of the (4) an amount in contro- fact and include or rule of State statute cedure or similar $75,000. versy exceeding 28 U.S.C. authorizing an action procedure judicial 1332(d)(ll)(B)(i). It undisputed § is representative by 1 or more brought be “monetary involves relief’ present the suit action.” 28 U.S.C. as a class persons ¶¶ 54, 2, 3, claims, and that the Compl. see 1332(d)(1)(B). Mississippi did § Because in con- sought satisfies the amount relief Rule 23 or a rule this suit under bring not Therefore, troversy requirement. the de- Missis- and because judicial procedure is whether the suit involves question cisive class explicitly prohibits law sippi state so, If persons.” of “100 or more the claims actions, Am. Bankers Ins. Co. Fla. see action, and removal is the suit is a mass (Miss.2002) Booth, 1205, 1214 So.2d 830 proper. (“[T]he not Mississippi does rule is Allstate ex rel. Caldwell v. Louisiana actions, class equitable class even permit considered Company, we first Insurance court.”), chancery only ques- actions in application of the mass brought under a whether the suit is tion is by attorney general to a filed a state suit This “similar” to Rule 23. state statute injured citizens. of a subset of on behalf Mississippi brought was suit (5th Cir.2008). 418, Cald- 536 F.3d 429-30 (“MCPA”), Miss. Act Protection Consumer pleadings pierce well instructs us to § and the Mis- seq., Ann. 75-24-1 et Code of a state’s look at the real nature (“MAA”), Antitrust Act Miss.Code sissippi jurisdictional prevent claims so as to seq. explic- et The MCPA Ann. 75-21-1 (“It 424-25, gamesmanship. See id. actions, Miss.Code itly forbids class see determining is well-established 75-24-15(4), MAA and the does Ann. federal jurisdiction, there is whether by the State require brought that suits of the action look to the substance courts satisfy any requirements resemble at the labels that the and not commonality, and numerosity, adequacy, recog- .... This court has may attach class action law- typicality requirements of may pierce 23, Ann. nized that defendants Rule Miss.Code suits under the claim pleadings arguing injury “general- to show that has been seems to be prevent removal.” fraudulently pleaded ized harm” to the as a whole. State See ¶ (citations (“[T]he 2, marks quotation and inset omit- Compl. State of ted)). claim-by-claim ap- The Caldwell has a quasi-sovereign interest the direct with other circuits that proach contrasts and indirect effect of defendants’ illegal complaint look to a state’s “as a whole” conspiracy economy on the state’s and the subjectively determine if the and then condition.”); citizens’ economic Compl. ¶ (“The the real in interest. state alone is economy 194(g) of the state of See, e.g., Corp., Nevada v. Bank Am. damaged.”). has been At other Cir.2012); 672 F.3d LG Dis- times, Complaint injury indicates the Co., play Madigan, Ltd. v. remedy seeks to money damages (7th Cir.2011). Caldwell, binding injury purchaser suffered con- court, effectively precedent on this defined ¶ (“Defen- sumer. Compl. “persons” in mass action context to conspiracy dants’ to raise ... price in interest the real as to the re- panels at artificial levels resulted in *5 Caldwell, spective claims. See 536 F.3d at harm to Plaintiff indirect-pur- and other 424-25, approach. follow its We ”) chaser Mississippi consumers in ... ¶ (“[De- added); (emphasis 44, Compl. parties

The real in interest in Mississip- passed fendants have ... through to their pi’s persons suit are those more than 100 customers 100% of the supra-competitive who, law, “by possess[] substantive price increases that resulted from the de- enforced, right sought to be and not neces- ”) fendants’ ... conspiracy (emphasis add- sarily person ultimately who will bene- ¶ (“Plaintiff ed); 194(f) 51, Compl. and oth- Reed, recovery.” fit from the Richards v. er Mississippi purchasers indirect (5th Cir.1980) (inset 545, 611 F.2d 546 n. 2 paid supra-competitive, artificially inflated omitted); quotations Charles Alan Wright prices for products.”) (emphasis LCD add- Lane, Mary Kay Law Of Federal ¶ (Plaintiff ed); 54, Compl. bringing (6th ed.2002). We find that Courts this action “on resi- parties the real in interest are numerous— behalf of ”) added). dents ... (emphasis think We Contrary far in excess of 100. to the variety allegations demonstrate that assertions, Mississippi State’s is thus not the real only interest include not party Instead, the sole in interest. State, but also individual consumers (as State purchaser products) a of LCD residing Mississippi. purchased individual citizens who products within possess “rights Second, the state statutes: Neither the sought to be enforced.” We have several MAA, MCPA nor the bases bases for this conclusion. suit, of the give State’s the State sole

First, complaint: authority When the particularized inju- to recover for manufacturers, State sued the by LCD its ries suffered consumers. The MCPA claim was that the manufacturers had gives authority injunctive en the State to seek gaged in a conspiracy prices to fix for penalties, relief and civil see Miss.Code panels 75-24-9; 75-24-19(l)(b), §§ and that their conduct artifi Ann. may cially prices, inflated which harmed the interpreted giving indeed be the State consumers who were forced pay higher authority to seek restitution for its own prices. complaint, its injury, the State includes see Miss.Code Ann. 75-24-11. a However, series of diverse statements about the no gives MCPA times, nature of injury At authority involved. the State to enforce claims for seen, injuries suffered, by others. In other we have alleged involves injury state words, pub the statute does authorize by based on harm suffered individual private damages. lic collection of Similar argument claimants. This fails to account ly, the MAA the State to sue for allows precise for the nature of injury in this - injunctive penalties, relief and civil see case and thus also fails to establish the 75-21-1; 75-21-7, §§ Ann. Miss.Code State as the sole in interest. As a injuries not for restitution for suffered general background principle, Caldwell re- State, §§ other than the 75- minds there are us limitations on 21-9; sure, To 75-21-37. there is one parens patriae authority. states’ (from unpublished Mississippi state case (“[I]t at 425-28 is clear that ... there are court) chancery trial support, lends some limitations [on ac- 75-24-11, for proposition tions], particularly when a state seeking may a court damages “restore” to an indi damages alleged injuries recover for particularized injury, vidual for a and also its .economy.”). Court, The Supreme to the state on the basis of general some example, has stated pur- that when a state harm. ized See Miss. ex rel. Hood v. sues the private interests of a party, the 56863, Corp., BASF No. 2006 WL 308378 state is not asserting sovereign interest, (Miss.Ch. 2006). Jan. But even if state remains par- nominal Corporation BASF were a more authorita ty. Rico, Snapp v. Puerto 458 U.S. precedent, tive it cannot be denied that the (1982). 102 S.Ct. 73 L.Ed.2d 995 distinguishable; before us is the cru here, That may directive apply where Mis- *6 question cial before us was not dealt with sissippi is pursuing the interests of LCD Corporation namely, the BASF court— purchasers. ignoring And even the Su- in parties who are the real interest? Our preme Court and caveats re- generalized case involves and individual garding the parens over-extension of pat- harms, which demonstrate the real riae to suits to which that concept should in interest are both the and State consum attach, not two additional considerations short, In Corporation ers. BASF does not demonstrate that the State is not the sole provide power the with State the it seeks party in interest. “ownership” to assert all over individual ized in claims the name of the State. Mississippi clearly prohibits law double recovery for the harm respective same finally,

Third parens common law class City members. See Jackson v. patriae authority: assuming arguen- Even of Womack, Estate Stewart ex rel. do that the parens patriae State has (Miss.2005). Thus, So.2d (an standing bring the claims here issue injury state cannot recover for the to the decide), standing that we do not that does consumers still.preserve right change Mississippi not the fact that is recover, right consumers to a that the acting, parens patriae capacity, not in its clearly consumers have under the statutes essentially representative. as class pursuant brought. to which the suit is Although See statutory provision the relevant 75-24-15; §§ Miss.Code Ann. does not on 75-21-9. appear the face of the com- short, we plaint, that have been directed to no gives we note law attorney general permits the state or common law that “powers at com- § extinguish right remedy mon law.” Miss.Code Ann. 7-5-1. State to The is, argues parens patriae authority injury. State that the consumer has for his There finally, under common law attorney troubling suggestion by allows the the all too suit, which, general to bring plaintiff the current could obtain 1332(d)(ll)(B)(ii)(III). citizens, public for harm to individual But this restoration money think yet keep exception exempt for itself. We does this case from consideration, jurisdiction. rea- coupled the CAFA and federal above, “all enough requirement to find of the claims” be provided sons having public carte blanche to asserted on behalf of the is not met against the State above, injuries under common As recover for others’ here. discussed individual con- sumers, State, authority. law addition to the are real interest, parties in way so there is no analyzing complaint, After the rele- “all claims” are “asserted on behalf statutes, parens patriae au- vant and the general public.” Mississip- Accord State, we hold that the real thority of the pi Entergy ex rel. Mississippi, Hood in this suit include both interest Inc., 3:08cv780, No. 2012 WL individual consumers of the State and (S.D.Miss. 2012) (A Aug. “finding *15 products. undisputed Because brought that the has State [an] consumers, that there are more than 100 representative capacity to recoup resti- we find that there are more than 100 precludes appli- tution for ... individuals] claims at issue this case. The suit general cation of the public exception.”). therefore meets the CAFA definition of a “mass action.” 28 U.S.C. do, however, We acknowledge the con- 1332(d)(ll)(B)(i). finding cern that the general public excep- inapplicable may tion here render such

IV. (because statutory exception a dead letter alone, however, This conclusion finding negates a suit to be a mass action yield does not a final result. The possibility exception applying), CAFA the disqualifying excep congressional contains number of and we welcome clarification these, Nevertheless, tions to the term “mass action.” Of of this issue.1 argument “general public” exception finding is relevant that our application vitiates the *7 It provides exception yield here. that a suit is not a mass responsi- must to our action if “all of claims in bility apply the action are the unambiguous, express asserted on behalf of general public language of a statute as written. Davis v. (and Johnson, (5th Cir.1998). not on behalf of individual claimants class) Here, purported (i.e., members of a pursuant doing precisely that finding a to a specifically authorizing State statute “monetary suit to be a mass action because such action.” persons” U.S.C. relief claims of 100 or more are here, general public exception 1. The "claim-by-claim” in the must considered on a law, development is, therefore, action, has become some- basis and a mass it has problematical what in the sense it reflects necessarily decided that not all of the claims statutory surplusage brings when the State public are excep- claims of the State and the consumer-related actions such as the one be- hand, if, tion has no relevance. On the other today. Bryan fore us Scalia & A. See Antonin held, as other circuits have these cases' com- Garner, Reading Interpretation Law: The whole,” plaints should be evaluated "as a (1st ed.2012) (discussing Legal Texts basis, "claim-by-claim” aon such a deci- construction, “surplusage canon” of which sion means that the case is not a mass action provides possible, every that “[i]f word and because the State is the sole in interest. every provision given is to be effect .... Consequently, public exception has no ignored. None should be None should be Thus, scenario, application. under either given interpretation an that causes it ... public exception statutory surplus- becomes added)). consequence” (emphasis have no If age. a court such as ours decides that the case issue) claim-by-claim ap- Caldwell’s finding us from that the Caldwell. precludes problematic applied is when proach exception applies. public general parens “mass action” CAFA’s V. such the instant case.1 patriae suits as Moreover, just troubling, applying core, can be practically this case At its reasoning general to CAFA’s of class action as a kind characterized exception may exception render the public is the the State of which class letter in this circuit. We should dead way By proceeding representative. and correct our reconsider Caldwell course has, attorneys and its plaintiff class the law. this area of associated with rigors to avoid the seek (and to federal only actions avoid removal jurisdiction class over this case We court). Waltzing through a generally, if it a “class action” or a “mass action” Parens Patriae Suits Al- Loophole: How reasons under CAFA. For the stated Class Action Circumvention not a majority opinion, low this is “class Act, issue, then, L.Rev. 549 83 U. Colo. Fairness action.” The central is wheth- (2012). action this suit is a mass Because lawsuit is a Mississippi’s er “mass action.” CAFA, removal is under the terms of CAFA defines that term as: proper.2 [A]ny monetary action ... in which civil persons relief claims of 100 or more are judgment of the district court proposed jointly to be tried on the REVERSED, and the case is therefore ground plaintiffs’ that the claims involve proceedings. REMANDED for further fact, questions except law or common and REMANDED. REVERSED jurisdiction shall exist over in a plaintiffs those whose claims mass ELROD, JENNIFER WALKER satisfy jurisdiction amount re- concurring judgment: in the Judge, Circuit 1332(a) quirement under U.S.C. [28 ]. judgment I concur in the because the 1332(d)(ll)(B)(i). Caldwell, 28 U.S.C. fair of our majority opinion application is a application provi- we considered the of this namely Louisiana ex binding precedent, sion to a suit. Co., v. Allstate Insurance rel. Caldwell (5th Cir.2008). majority explains, separate- opinion I write As the Cald- F.3d 418 however, essentially “persons” defined ly, express my concerns with well *8 approach that Nothing 2. we have said denies the State of interest under Caldwell's right proceed Mississippi the to with this case. Mississippi's qua- does not eviscerate asserted federal, state, simply proceed in It will si-sovereign interest in the restitution claim. court. Moreover, parens patriae au- the caveats to opinion thority majority references disagree majority opinion's with the veiled I apply only party when the state is a nominal may not be a assertion that this majority opinion in interest. The never states "Mississippi pursuing in- suit because Mississippi merely a nominal in purchasers.” complaint, terests of LCD In its interest; contrary, recognizes to the it quasi-sovereign identified a valid parties in in this suit include "the real interest illegal preventing interest in antitrust conduct and individual consumers of both the State prohibited MAA and MCPA. The facts under Furthermore, products.” in unlike complaint Mississippi’s in also show that it Caldwell, damages go were to where the based, sought part, at least in on restitution policyholders, Mississippi specific asserted generalized Mississippi economy harm to the complaint argument and at oral both in its price-fixing by Appellants' scheme. caused damages. any retain restitution may parties in that it would The LCD consumers be real respect in to the tre- parties parties real interest with context as the mass claim; therefore, to each claim the suit in- respect damages with ble interest 424, 429. In that See at monetary suit. claims of 100 or more volved case, several insurance sued (because Louisiana met the other persons and also com- conspiring suppress for companies statutory requirements) was a mass action. ' sought, among things, other petition Id. behalf of its citizens. damages on treble Here, shows, majority opinion as the

Id. at 422-23. The defendants removed claim-by-claim leads applying approach court, “argu[ing] that to federal the case to the conclusion that consum- parens patriae, case although th[e] labeled parties the real ers are interest fact a ... ‘mass substance [was] ” claim, to the state’s restitution so respect CAFA. Id. at 423. We action’ This this is “mass action” under CAFA.2 claim-by- Louisiana’s suit on evaluated opposite result is the exact of the outcome Id. at basis, than as a whole. elaim rather many other similar lawsuits around the Using approach, 429-30. this we conclud- country.3 many were the real That so other courts are ed that Louisiana consumers majority opinion powers law.” Id. 7-5-1. 2. reaches this result us- common Those institute, claim-by-claim approach right include "the conduct and ing the from Cald- well, necessary all maintain suits the enforce- but there are notable differences be- State, preservation ment of the laws of the claims in Caldwell and tween Louisiana’s Caldwell, protection public rights.” and the order Mississippi's claims here. Loui- Co., Gandy v. Reserve Monopolies Ins. 279 So.2d the Louisiana siana sued under Life (Miss.1973) (citations omitted). Act, Simply provided "any person who is which put, this turns on different and law facts injured property” in his business or under the did than Caldwell. Monopolies ] [treble] Act “shall dam- recover! added) ages.” (emphasis 536 F.3d at 429 51:137). (quoting attorneys general La.Rev.Stat. Because the 3. Several other states' contemplated private plaintiffs against Louisiana statute individual en- filed actions forcement, poli- panels the court reasoned that “the makers of LCD flat based on the same State, cyholders, alleged and not the the real conduct that [were] forms basis for this See, Co., (citation omitted); e.g., Display in interest.” Id. suit. LG Ltd. v. Madi (7th Cir.2011); (concluding gan, at see also id. that there was 665 F.3d 768 Illinois v. policyholders Optronics Corp., F.Supp.2d “no reason to believe” AU (N.D. Ill.2011); “given Optron in interest were not the real South Carolina v. AU 3:11-CV-731, purpose damages Corp., that the of antitrust treble ics No. 2011 WL (D.S.C. 14, 2011). provisions encourage private Sept. [is] lawsuits These cases injuries by aggrieved essentially groups. individuals for to their fall into two Some were (citing property”) MDL businesses Hawaii transferred to an court in the Northern Co., 251, 262, Standard Oil 405 U.S. 92 S.Ct. District of California. In re TFT-LCD (1972)). Here, 07-1827, (Flat Panel) Litig., 31 L.Ed.2d 184 Missis- Antitrust No. MCPA, (N.D.Cal. sippi spe- MAAand which 2011 WL sued under *1 Feb. Others, however, 2011). cifically Attorney General to authorize sue remained in the dis general public they on for violations trict behalf courts to which were removed— *9 respective statutes. See Miss.Code these cases were first filed in state court and (providing attorneys general asserting §Ann. 75-21-37 direct involved states’ authority Mississippi against for "to enforce civil fea- state law claims the LCD defen Carolina, See, e.g., tures of the antitrust laws ... at law or in dants. South 2011 WL 4344079, 75-24-19(l)(b) equity”); (giving handling §id. the at- at *2. The MDL court torney general statutory authority group direct first of cases has examined states' inter "[to] penalty recover on behalf of a a civil in a when decid state ests actions “as whole” [$10,000] violation”). per ing real-party-in-interest questions. sum not to exceed In re addition, TFT-LCD, 560593, Attorney In General WL at *3-4. 2011 powers Attorney dealing has "the of the General at district courts with the second set of

805 Indeed, in disagreed result with it.4 reaching every a different cases court of involve, appeals litigants to address the issue since similarly-situated Caldwell rejected approach. has Op- See AU nearly suggests that we identical claims Carolina, Corp. tronics v. South 699 F.3d have consider whether we staked should (4th 385, Cir.2012) (adopting 393-94 “the position. I out the correct believe we approach rejecting whole-case not. claim-by-claim approach”); Nevada v. I. 661, Bank Am. 672 F.3d Corp., 670 matter, Cir.2012) agree Judge As an initial I with (acknowledging adop- the court’s dissenting in opinion approach Caldwell. tion of “the of looking Southwick’s at case Judge Southwick would have ordered re- as a whole to party determine the real in interest, mand of Louisiana’s suit to state court rather than the claim-by-claim ap- Caldwell”); complaint adopted because its did not “on its face” in proach Madigan, Caldwell, present a or mass action. 665 at (referencing F.3d 773-74 class the courts (Southwick, J., dissenting). questioned 536 F.3d at 436 that have analysis conclusion, reaching Judge holding South- that an action was not a re- acknowledged important princi- CAFA, wick two movable “mass action” under even (1) plaintiff “the master his if the ples: state was not real in interest “[djoubts (2) claims). complaint,” and about propri- damages Each of these deci- in ety removal are resolved favor of' sions includes convincing reasons to dis- (citations omitted). remand.” Id. at card claim-by-claim approach, 433 a few of principles, Consistent with these “when we which I discuss here. decide whether a suit is removable under First, claim-by-claim approach does CAFA, we determine what case should not in find a foothold CAFA’s text. The is, it all not what must be if the relief court legisla- Caldwell resorted to CAFA’s is to be requested part litigation.” history tive approach. rationalize its course, at Id. 432-33. Of this view did not 424; at Madigan, see 665 F.3d at Caldwell, carry day develop- but the (reasoning 773 that Caldwell “did not law

ment this circuit since outside adopt claim-by-claim approach based suggests that take then we should another itself, any language on CAFA nor is look. found”). any language there such to be Judge Perhaps dis-

Consistent Southwick’s that is because CAFA’s text does sent, every indepen- that, almost that has suggest court a case which a dently claim-by- suit, single plaintiff brings considered Caldwell’s a court should approach questioned claim either complaint has dissect the wheth- determine same, consistently cases have done re- e.g., rel. McGraw v. Virginia JPMorgan ex West 984, Co., manding F.Supp.2d back state suits 842 997-98 Chase Illinois, (S.D.W.Va.2012); See, F.Supp.2d at e.g., court. Moody's Connecticut v. 859; 4344079, 3:10-CV-546, Carolina, 63905, 2011 WL at No. WL at Corp., South (D.Conn. 2011); *2. But Entergy ex *2-3 rel. Hood v. Jan. ex Missouri rel. 3:08-CV-780, Miss., Inc., No. 2012 WL Assocs., Inc., Recovery Koster v. Portfolio 25, 2012) (S.D.Miss. Aug. (E.D.Mo.2010); *15 at F.Supp.2d 945-46 Illi (following *7 n. 6 Caldwell because believed F.Supp.2d Corp., nois v. W. SDS so). "duty (C.D.Ill.2009). it was bound” to do Virginia But see West ex F.Supp.2d Corp., rel. McGraw Comcast *10 441, See, (E.D.Penn.2010) (concluding 4. cases cited 2. that e.g., supra n. Courts 449-50 (z.e., cases) other contexts non-LCD have also Caldwell's framework is consistent with See, disagreed approach. goals). with Caldwell's CAFA’s 806 ism, beneficiary comity and “considerations of [should] sole of the plaintiff

er that court re a relief. This has make us reluctant to snatch cases which for each basis leg against considering the that brought from courts of peatedly cautioned State has text of unless the statute history State, rule it.” islative unless some clear demands See, e.g., Carrieri v. Jobs. ambiguous.5 Tax v. Constr. Laborers Franchise Bd. (5th 508, Inc., 518-19 Cir. F.3d Trust, com 393 1, 22, 463 U.S. 21 n. 103 Vacation 2004); Commerce also Chamber see 2841, (1983); 77 420 also of of S.Ct. L.Ed.2d see — U.S. —, 131 Whiting, S.Ct. v. U.S. Virginia rel. v. CVS West ex McGraw (2011) (“Con 1968, 1980, L.Ed.2d 1031 179 Inc., (4th 169, F.3d Pharmacy, 646 178 is the stat statement gress’s ‘authoritative — denied, U.S. —, Cir.2011), 132 cert. history.’”) text, legislative utory not (2011) (“While 761, 484 S.Ct. 181 L.Ed.2d v. Corp. Allapattah Mobil (quoting Exxon Virginia voluntarily that is true West 568, Servs., Inc., 125 S.Ct. 545 U.S. into its courts its entered own to enforce (citations (2005) L.Ed.2d 502 162 laws, voluntarily to re it did not consent omitted)). ambiguity is no here. There court, and a moval of its to a federal arguendo that Moreover, assuming even most to federal court should be reluctant development of CAFA legislative were removal, its consti compel reserving such relevant, acknowledged court the Caldwell supremacy only tutional for when removal history conflicting ex that CAFA’s reveals interest.”). overriding an federal serves 536 F.3d at 424 n. pressions of intent. See Blockbuster, Inc., Finally, pro- for 4; Harvey impetus v. also (D.N.J.2005) look to pierce pleadings 752-54 cedure to F.Supp.2d 384 legislative history and the nature of each claim for relief—instead (discussing CAFA’s Congress not considering did intend concluding the essential nature and attorneys ability of states’ proceedings pro- encroach on not effect of —does actions). bring parens patriae general to compelling persist vide a basis with At approach. opinion, the outset Compounding the absence textual recognized Caldwell court that “Louisiana approach is support claim-by-claim for the any objections did raise district not [the Supreme Court’s directive remov- pierce pleadings decision to court’s] “strictly al should be construed.” statutes such, procedure doing so .... As [its] Prot., Henson, v. Syngenta Crop Inc. Caldwell, 536 issue waived.” [was] 28, 32, 366, 154 U.S. 123 S.Ct. L.Ed.2d added). Therefore, (emphasis at 425 F.3d (2002). argu- rule This undermines while the Caldwell court referenced ment that a case is removable under that “federal courts look to the proposition though not on its face CAFA even it does determining when action” substance satisfy requirements. the statute’s (citations omitted), jurisdiction, id. at 424 (Southwick, J., Caldwell, 536 F.3d at 433 meth- the court did not consider different Furthermore, the rule should dissenting). “as a evaluating (e.g., ods for the substance apply particular plain- force when the done). whole,” have as other circuits tiff is that sued in its own courts. state procedure from ar- stemming the waived Removing such a case to federal court gument in Caldwell does withstand implicates important principles federal- Tex., (5th Cir.2012) generally I F.3d 829 n. previously expressed I legislative history granted, deter reh'g eschew the use of F.3d Cir. en banc See, e.g., mine a statute's intent. Villas 2012). Branch, City Farmers Parkside Partners *11 persuasive analysis practical matter, force of the in the sub- we will have eliminated rejecting it. sequent exception decisions the in this circuit. Caldwell specifies that a is a case mass action if

II. more than 100 persons are the real any relief; in interest as to claim for and Beyond problems using the the elaim- pursuant text, to plain general CAFA’s by-claim approach for the mass action the public exception cannot unless the analysis, ap- apply I am also that concerned a plication case is mass action. general public excep- to CAFA’s Under frame- this work, negate is altogether imagine tion will the in difficult exception a case that this circuit. a could be mass action that also falls with- See, in e.g., general public the exception. only tells us not what a CAFA “mass Miss., Entergy 2012 WL at *7 n. is, not. See action” but also what it is Caldwell (following *15 concluding 1332(d)(11)(B)(ii)(I) (IV). U.S.C. Specif- — general that the public exception could not general ically, public exception pro- the “[ejven apply because if the State has a

vides: quasi-sovereign in protecting interest Mis- in- term “mass action” shall [T]he sissippi presence consumers ... the of the civil any clude action in which ... all group of discrete [citizens] who have a in the claims the are on action asserted legal substantive right restitu- receive (and the general public behalf of not on tion ... means that ‘all of the claims behalf of individual or mem- claimants action’ are not asserted on behalf of the class) purported bers of a to a pursuant general public”). essence, In prece- our specifically authorizing State statute dent has created a situation in which a such action. satisfy case cannot the criteria of both 1332(d)(ll)(B)(ii)(III). The U.S.C. provision mass action general pub- and the majority opinion implicitly concludes that lic exception.6 approach governs also our anal- ysis correct, exception. If that this majority opinion The states that this question then is no excep- there yield concern “must our responsibility because, apply tion does not as this apply unambiguous, express language states, majority opinion no “there is written,” of a statute as but that misses way that of the on ‘all claims’ are ‘asserted It point. plain is not CAFA’s text ” general behalf public.’ This result the problem, causes ap- rather our is troublesome. proach applying the text. But for the deny applicability

If we gener- claim-by-claim approach, we could ef- give public exception al when individual con- fect provision to both the action mass interest, then, sumers are general public exception.7 CAFA, as In commentary 6. I note some majority opinion consistent suggests also that the Carswell, Dwight general public this concern. See R. exception surplus- Com- ment, Actions, age any CAFA Parens Patriae U. analysis. making that as sertion, (2011) (recognizing Chi. majority opinion L.Rev. conflates the injunctive only "persons” "[l]awsuits seek relief or definition action mass money go treasury will to the state rather with "claimants” and "members of than purported general to state citizens are not mass public actions class” in the ex Thus, ception. defined CAFA. it does not make See Russell v. Law As Enforcement Admin., argue sense to that these are the lawsuits sistance Cir. 1981) excep- that will fall within mass (recognizing “well settled rule of tion.”). statutory construction that where different *12 cases that category of Congress defined America, UNITED STATES specified explicitly and mass actions

are Plaintiff-Appellee, included “shall not” be cases certain apply- approach Our category. in that v. essentially eliminated has ing the statute contrary to well-estab- provision, the latter BERRY, Jonathan Defendant- that counsel of construction lished canons Appellant. parts that render against interpretations See, e.g., White meaningless. aof statute No. 11-51050. Cir.1999) Black, F.3d v. of Appeals, Court United States

(citation omitted) that we must (explaining Fifth Circuit. meaning ordinary and “give words their the lan- meaningless ... not render Nov. statute”); also Antonin of a guage Garner, Reading A. Law: Bryan Scalia (1st Legal Texts Interpretation

ed.2012) can- (discussing “surplusage construction, provides which

on” every every provi- word and possible,

“[i]f .... effect None given

sion is to be given None be ignored.

should be should ...

an that causes interpretation added)). (emphasis no consequence.”

Therefore, should reconsider Cald- we every ’s to ensure that facet approach

well cir- given in our may

of CAFA effect

cuit.

III. judgment

I concur in the because the fair

majority application is a our opinion challenging context. For

precedent this above, however, re-

the reasons we should a differ- precedent adopt

consider that approach the removal of analyzing

ent patriae under

parens suits CAFA. 1702, 1707-08, (2012) (hold language L.Ed.2d 720 in the same connection in is used presumed parts different of a statute it is ing that the term "individual” in the Torture Legislature meaning intended a different per Act meant “natural Victim Protection effect,” holding “claimant” that a son,” reiterating that "re courts should "applicant was an one spect Congress’ decision use different grantee” pro meaning within the of another categories peo different terms describe omitted)); (citation vision Mohamad cf. omitted)). (citation things” ple or —Auth., —, Palestinian U.S. 132 S.Ct.

Case Details

Case Name: State of Mississippi v. AU Optronics Corporation
Court Name: Court of Appeals for the Fifth Circuit
Date Published: Nov 21, 2012
Citation: 701 F.3d 796
Docket Number: 12-60704
Court Abbreviation: 5th Cir.
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