U.S. Court of Appeals for the Ninth Circuit

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Petition for rehearing en banc denied

May 06, 2014

U.S. Chamber urges Ninth Circuit to grant rehearing petition regarding PAGA removal under the Class Action Fairness Act

April 21, 2014

In its coalition brief, the U.S. Chamber asked the Ninth Circuit to grant rehearing en banc and overturn the panel’s decision, banning the removal of the Private Attorneys General Act (“PAGA”) suits against out of state corporations. The brief argues that the panel decision is wrong and will have serious implications for employers and points out that the $9.75 million sum that would be awarded to the State under the PAGA claims far exceeds the $75,000 which is required for diversity removal. The brief explains that the decision will deny defendant and other non-California based employers the federal jurisdiction that was intended by Congress in creating diversity jurisdiction. It is important to provide diverse employers with recourse to the federal courts in high value cases, and maintaining the employers’ access to federal jurisdiction, in general.

The Chamber filed the brief jointly with the California Employment Law Council and the Employers Group.

George W. Abele and Melinda A. Gordon of Paul Hastings LLP represented the U.S. Chamber as co-counsel to the National Chamber Litigation Center.

Case Documents