Supreme Court rules third-party counterclaim defendants cannot remove cases to federal court News
skeeze / Pixabay
Supreme Court rules third-party counterclaim defendants cannot remove cases to federal court

The US Supreme Court ruled 5-4 Tuesday that third-party counterclaim defendants may not remove their case to federal court.

The case began with George Jackson, a citizen of North Carolina who was sued by Citibank in a debt collection claim. Jackson responded to Citibank with claims against the bank as well as additional claims against Home Depot. Home Depot sought to remove this case to federal court citing language in the Class Action Fairness Act. Home Depot argued that, by definition, if members of a class-action suit could remove a case to federal court, then third-party defendants to a class action suit should be able to remove to federal court regardless of the class action suit’s origin. Jackson, in turn, claimed that precedent barred removal by defendants to third-party counterclaims.

Justice Clarence Thomas wrote for the majority that Home Depot could not remove its case to federal court. Thomas declared that the section of the Class Action Fairness Act that Home Depot referenced was referring to how class action suits would differ from typical procedure in a class action suit brought as the original case and not as Home Depot alleged changing standard rules of procedure. Justice Samuel Alito wrote the dissent and questioned how the defendant in this case was different from any other defendant. Alito advocated that Home Depot should have been allowed to remove as third-party defendants are still defendants.