Case Details

Issues

CAFA, Parens Patriae

Filing State

IL

Court

U.S. Court of Appeals for the Seventh Circuit

Year

2011

Citation

LG Display Co. Ltd. v. Madigan, 2011 U.S. App. LEXIS 23036 (7th Cir. 2011)

Resolution

Remand of state attorney general’s antitrust case removed under CAFA was appropriate because cases brought by the attorney general do not have the numerosity, adequacy, typicality and commonality requirements of a class action and all claims were asserted on behalf of the public, rather than individuals. Claim-by-claim analysis was inappropriate because it was not supported in the language of CAFA.

Case Description

The Attorney General of Illinois filed suit in state court against eight manufacturers of LCD panels for violations of the Illinois Antitrust Act. The complaint sought injunctive relief, civil penalties, and treble statutory damages for the state as a purchaser and, as parens patriae, for harmed residents. The defendants removed the case to federal court under CAFA. The Attorney General moved to remand, which was granted by the district court. Defendants tried to appeal to the Seventh Circuit, which denied the motion on the grounds that the Attorney General’s action was not a “class action” covered by CAFA, so the court did not have jurisdiction. The court held that because a claim brought under the Illinois Antitrust Act does not need to be brought by a “representative person” and has no requirements of numerosity, adequacy, typicality or commonality for the plaintiffs. The court also found that the case was not a “mass action” because all of the claims are asserted on behalf of the public, and not on behalf of individual claimants. The Seventh Circuit also rejected a claim-by-claim analysis, instead looking at the complaint as a whole and concluding that the state was the real party in interest. The court noted that there was no support for the claim-by-claim approach in CAFA itself. The court concluded that federal courts should strictly construe removal statutes, especially in light of the sovereignty issues that arise when a state’s suit, brought in state court, is removed to federal court.