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Lee-Bolton v. Koppers Inc.

Citations: 848 F. Supp. 2d 1342; 2011 U.S. Dist. LEXIS 103108; 2011 WL 4056077Docket: Case No. 1:10-CV-253-SPM/GRJ

Court: District Court, N.D. Florida; September 13, 2011; Federal District Court

Narrative Opinion Summary

This case involves a class action lawsuit concerning property contamination near a wood treatment facility, with claims including negligence and violations of the Florida Water Quality Assurance Act. The Plaintiffs initially filed the case in state court, but it was removed to federal court by the Defendants under the Class Action Fairness Act (CAFA). Key legal issues included whether the class met CAFA's requirements of at least 100 members and an amount in controversy exceeding $5,000,000. The Court adopted the Magistrate Judge’s Report and Recommendation, denying Plaintiffs’ Motion to Remand to State Court, finding that the putative class size exceeded the threshold and the amount in controversy requirement was satisfied. The Defendants argued that a non-diverse defendant was fraudulently joined to defeat jurisdiction, but this was deemed unnecessary to address due to the CAFA criteria being met. Plaintiffs' objections regarding class member exclusions based on premature opt-out declarations were rejected. The Court confirmed federal jurisdiction, emphasizing that the amount in controversy, including potential damages and attorney's fees, exceeded $5,000,000, and denied the motion to remand.

Legal Issues Addressed

Amount in Controversy Determination

Application: The Court determined that the amount in controversy should be evaluated based on the aggregate value of properties and potential damages, supporting federal jurisdiction.

Reasoning: The document establishes that the maximum potential damages for the putative class members due to property harm caused by the Defendants is pegged at $7,722,100, with an average property value of $88,759.77 calculated from 87 separate parcels in the Affected Area.

Class Action Fairness Act Requirements

Application: The Court confirmed that the number of potential class members exceeds 100, satisfying the Class Action Fairness Act (CAFA) requirements.

Reasoning: The Court confirmed that the number of potential class members exceeds 100, satisfying the Class Action Fairness Act (CAFA) requirements.

Class Certification and Opt-Out Rights

Application: Plaintiffs' attempts to exclude certain class members based on premature opt-out declarations were ineffective under FRCP 23(b)(3).

Reasoning: Plaintiffs argue that two individuals, David and Susan Turlington, should be excluded from the putative class size calculation due to their claims of timely opting out of the action, supported by affidavits asserting they do not wish to join.

Federal Jurisdiction under CAFA

Application: The Court upheld the Magistrate Judge's assessment that the amount in controversy exceeds the $5,000,000 threshold necessary for federal jurisdiction under CAFA.

Reasoning: Additionally, the Court upheld the Magistrate Judge's assessment that the amount in controversy exceeds the $5,000,000 threshold necessary for federal jurisdiction under CAFA.

Fraudulent Joinder in Diversity Jurisdiction

Application: Defendants argued that McClellan was fraudulently joined to defeat diversity jurisdiction, but the Court's decision rendered this issue moot.

Reasoning: The Koppers Defendants argue that removal of the case was valid under diversity jurisdiction, despite Defendant McClellan being a Florida corporation and not diverse from the Florida Plaintiffs, claiming that McClellan was fraudulently joined.

Inclusion of Attorney's Fees in Amount in Controversy

Application: Attorney's fees under the Water Quality Assurance Act may be considered in the amount in controversy, contributing to the jurisdictional threshold.

Reasoning: Plaintiffs are not entitled to attorney’s fees for common law claims but seek recovery under the WQAA, which permits fees for a prevailing party.