§ 6614. — Y2K actions as class actions.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 15USC6614]
TITLE 15--COMMERCE AND TRADE
CHAPTER 92--YEAR 2000 COMPUTER DATE CHANGE
Sec. 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.
(Pub. L. 106-37, Sec. 15, July 20, 1999, 113 Stat. 201.)
References in Text
Rules of Federal civil procedure, referred to in subsecs. (a)(1),
(c)(3)(A)(ii), and (d), are contained in the Federal Rules of Civil
Procedure which are set out in the Appendix to Title 28, Judiciary and
Judicial Procedure.
