Monday, September 29, 2008

CAFA Trumps 33 Act's Non-Removal Position

By N. Peter Rasmussen, J.D.

Judge Harold Baer of the Southern District of New York held that the removal provisions of the Class Action Fairness Act of 2005 trumped the non-removal provisions of Section 22(a) of the Securities Act.

In an action arising from the sub-prime mortgage crisis, Judge Baer found that Congress intended "to include within the reach of CAFA all securities class actions except for those set forth" in the specified exceptions. The exceptions, noted the court, are to be construed narrowly and were not applicable in this instance.

New Jersey Carpenters Vacation Fund v. Harborview Mortgage Loan Trust 2006-4.

Link to CourtWeb site.