15 U.S.C. § 6614 : US Code - Section 6614: Y2K actions as class actions

Search 15 U.S.C. § 6614 : US Code - Section 6614: Y2K actions as class actions

(a) Material defect requirement
A Y2K action involving a claim that a product or service is
defective may be maintained as a class action in Federal or State
court as to that claim only if -
(1) it satisfies all other prerequisites established by
applicable Federal or State law, including applicable rules of
civil procedure; and
(2) the court finds that the defect in a product or service as
alleged would be a material defect for the majority of the
members of the class.
(b) Notification
In any Y2K action that is maintained as a class action, the
court, in addition to any other notice required by applicable
Federal or State law, shall direct notice of the action to each
member of the class, which shall include -
(1) a concise and clear description of the nature of the
action;
(2) the jurisdiction where the case is pending; and
(3) the fee arrangements with class counsel, including the
hourly fee being charged, or, if it is a contingency fee, the
percentage of the final award which will be paid, including an
estimate of the total amount that would be paid if the requested
damages were to be granted.
(c) Forum for Y2K class actions
(1) Jurisdiction
Except as provided in paragraph (2), the district courts of the
United States shall have original jurisdiction of any Y2K action
that is brought as a class action.
(2) Exceptions
The district courts of the United States shall not have
original jurisdiction over a Y2K action brought as a class action
if -
(A)(i) a substantial majority of the members of the proposed
plaintiff class are citizens of a single State;
(ii) the primary defendants are citizens of that State; and
(iii) the claims asserted will be governed primarily by the
laws of that State;
(B) the primary defendants are States, State officials, or
other governmental entities against whom the district courts of
the United States may be foreclosed from ordering relief;
(C) the plaintiff class does not seek an award of punitive
damages, and the amount in controversy is less than the sum of
$10,000,000 (exclusive of interest and costs), computed on the
basis of all claims to be determined in the action; or
(D) there are less than 100 members of the proposed plaintiff
class.
A party urging that any exception described in subparagraph (A),
(B), (C), or (D) applies to an action shall bear the full burden
of demonstrating the applicability of the exception.
(3) Procedure if requirements not met
(A) Dismissal or remand
A United States district court shall dismiss, or, if after
removal, strike the class allegations and remand, any Y2K
action brought or removed under this subsection as a class
action if -
(i) the action is subject to the jurisdiction of the court
solely under this subsection; and
(ii) the court determines the action may not proceed as a
class action based on a failure to satisfy the conditions of
Rule 23 of the Federal Rules of Civil Procedure.
(B) Amendment; removal
Nothing in paragraph (A) shall prohibit plaintiffs from
filing an amended class action in Federal or State court. A
defendant shall have the right to remove such an amended class
action to a United States district court under this subsection.
(C) Period of limitations tolled
Upon dismissal or remand, the period of limitations for any
claim that was asserted in an action on behalf of any named or
unnamed member of any proposed class shall be deemed tolled to
the full extent provided under Federal law.
(D) Dismissal without prejudice
The dismissal of a Y2K action under subparagraph (A) shall be
without prejudice.
(d) Effect on rules of civil procedure
Except as otherwise provided in this section, nothing in this
section supersedes any rule of Federal or State civil procedure
applicable to class actions.