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Wednesday, October 13, 2004

Law - U.S. Supreme Court to Decide on Litigants' Access to Federal Court

"Supremes to Decide on Litigants' Access to Federal Court" is the headline to an AP story republished today at Law.com. The lead:

The Supreme Court decided Tuesday to use cases involving a child's cut finger and a promotional program by Exxon Mobil Corp. to determine when lawsuits belong in federal or state court.

At issue is whether litigants should have access to federal court when their cases don't meet the legal requirements but allege the same basic facts as other cases that do. The circuit courts are closely divided on the issue, which could help avoid duplicative trials but overburden federal courts in the process.

Unfortunately, I can't tell you where the 7th Circuit stands.

Maria del Rosario Ortega, et al v. Star-Kist Foods, Inc. is a 1st Circuit decision. As reported in the AP story:

Beatriz Blanco-Ortega, then 9, was at school in Puerto Rico when she cut her finger on the tuna can and bled profusely for nearly 30 minutes. * * *

"The issue at hand is a fundamental and frequently recurring one, with profound consequences to broaden or constrict the diversity jurisdiction of the federal courts," states the family's legal filing urging the high court to grant them federal court access.

Attorneys for Star-Kist counter that the family's lawsuits don't make a good test case to determine whether federal courts should be opened up to hundreds, if not thousands, more cases each year.

Typically, parties suing for personal injury and emotional distress prefer juries in local courts. Blanco-Ortega's situation is unusual because Puerto Rico doesn't provide for jury trials there, Star-Kist lawyers said.

Exxon Corporation, Petitioner v. Allapattah Services, Inc., et al. is an 11th Circuit decision. As reported in the AP story:
In the Exxon case, the Supreme Court will use a $500 million judgment for Exxon gas station dealers to clarify when large class action lawsuits belong in federal courts. Because the judgment was divided among 10,000 current and former station owners, not all of them met the $50,000 minimum required at the time for federal court jurisdiction.

Dealers sued in 1991, claiming a program intended to encourage customers to pay at the pump cheated them. A federal jury in Miami agreed in 2001, and ordered the company to pay $500 million to the owners. Lawyers have said the verdict could reach $1 billion if the judge adds interest.

Exxon Mobil attorney Carter Phillips of Washington told justices that Congress could clear up confusion over access to federal courts, but has not. He said the issue is significant because more than 3,000 class actions are filed each year in federal courts.

[Update] I see that Howard Bashman has a post on this matter with some useful links. Access it here.

Posted by Marcia Oddi on October 13, 2004 06:44 AM
Posted to General Law Related