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Spivey v. Vertrue, Inc.

Citations: 528 F.3d 982; 2008 U.S. App. LEXIS 12419; 2008 WL 2357099Docket: 08-8009

Court: Court of Appeals for the Seventh Circuit; June 11, 2008; Federal Appellate Court

Narrative Opinion Summary

In this class action lawsuit, the plaintiff alleged unauthorized credit card charges by Vertrue through its discount services, seeking remand to state court due to the amount in controversy not exceeding the $5 million threshold as per the Class Action Fairness Act. The district court agreed, but Vertrue filed a timely appeal under 28 U.S.C. § 1453(c)(1), which was contested by the plaintiff on jurisdictional grounds. The appellate court upheld the timeliness of the appeal, interpreting the statutory language 'not less than 7 days' to exclude weekends, thus validating Vertrue's filing on the seventh day. The court also addressed the jurisdictional amount in controversy, finding Vertrue's affidavit, which presented nearly $7 million in charges, sufficient to satisfy the statutory requirement without implying liability. The court's decision to reverse the remand was grounded in the interpretation of statutory deadlines and jurisdictional thresholds, highlighting discrepancies in textual interpretation and advocating for adherence to the explicit language of the statute. Consequently, the case was remanded for federal adjudication, underscoring the federal court's jurisdiction based on the potential stakes involved. The ruling emphasizes the procedural compliance and statutory interpretation essential in class action litigations under federal law.

Legal Issues Addressed

Appellate Deadlines under 28 U.S.C. § 1453(c)(1)

Application: The court concluded that Vertrue's appeal was timely filed within the statutory language 'not less than 7 days', excluding weekends, thereby allowing the petition on the seventh day.

Reasoning: The court determined the appeal was timely filed under 28 U.S.C. § 1453(c)(1), which allows for an appeal within 'not less than 7 days' after the remand order.

Class Action Fairness Act - Jurisdictional Amount in Controversy

Application: The court found that Vertrue's provided affidavit showing charges amounting to almost $7 million suffices to meet the jurisdictional requirement under the Class Action Fairness Act, despite no admission of liability.

Reasoning: The amount in controversy exceeding $5 million, supported by an affidavit detailing charges amounting to almost $7 million for just four programs in Illinois.

Federal Rules of Appellate Procedure - Timeliness of Appeals

Application: Vertrue's petition for appeal is deemed timely under Rule 4(a)(2), which permits filings that are technically premature to remain valid.

Reasoning: It advocates for an understanding where a petition filed within a week of the district court's order is timely, aligning with Federal Rule of Appellate Procedure 4(a)(2).

Interpretation of Statutory Language

Application: The court emphasized adherence to the statutory language despite perceived drafting errors, rejecting Spivey's argument for an alternative interpretation that Congress has not rectified.

Reasoning: The court noted similar interpretations by other cases but emphasized that Congress has not corrected this perceived drafting error.