• Fourth Circuit: LLCs Are "Unincorporated Associations" For Purposes of CAFA Removal
  • January 28, 2010
  • Law Firm: Alston & Bird LLP - Atlanta Office
  • On January 8, 2010, the Fourth Circuit handed down the Ferrell decision, a reminder that even the Class Action Fairness Act of 2005 (CAFA) minimal diversity test for removal of class action lawsuits to federal court can encounter complicated and significant hurdles when a limited liability company (LLC) is involved as a defendant. The LLC may not be diverse from the plaintiff’s state after a court applies the two tests for determining the LLC’s principal place of business--the nerve center test and the place of operations test.