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Civ. Pro. Decision in Labor Class Action Against Cal. Oil Refineries

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By FindLaw Staff on April 21, 2010 1:09 PM

Int'l Union, AFL-CIO v. Shell Oil Co., No. 10-55269, involved a class action alleging that defendants' oil refineries violated various California labor laws.  The Ninth Circuit reversed the district court's order remanding the case to state court, holding that the denial of class certification did not divest federal courts of jurisdiction over cases properly removed under 28 U.S.C. section 1332(d).

As the court wrote:  "Defendants removed this putative class action from state court pursuant to the Class Action Fairness Act of 2005 (CAFA), 28 U.S.C. §§ 1332(d), 1453. After denying class certification, the district court concluded that it no longer had jurisdiction and remanded the case to state court. We accepted defendants' appeal to consider whether the denial of class certification divests federal courts of jurisdiction over cases removed under § 1332(d). Today we join the Seventh and Eleventh Circuits in holding that it does not. If the putative class action was properly removed to begin with, the subsequent denial of Rule 23 class certification does not divest the district court of jurisdiction. The case remains removed and is not to be remanded to state court."

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