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No. 17-1471October Term 2017Decided May 28, 2019

Docket 17-1471October Term 2017 (2017–2018)

Home Depot U. S. A., Inc. v. Jackson

The key question is whether a company named only in a class-action counterclaim counts as a defendant that can move the case to federal court.

Case status

Current stage
Decided
Latest event
Decision released May 28, 2019
Case Accepted
Arguments
Decision ReleasedMay 28, 2019
What it's about

This case asked whether Home Depot, which was added to a state-court case only as a defendant to the buyer’s class-action counterclaim, could move that class-action part of the case into federal court. The Supreme Court held that neither the general removal statute nor the Class Action Fairness Act lets a third-party counterclaim defendant remove the case.

Question presented

1. SHOULD THIS COURT’S HOLDING IN SHAMROCK OIL & GAS CORP. V. SHEETS, 313 U. S. 100 (1941) – THAT AN ORIGINAL PLAINTIFF MAY NOT REMOVE A COUNTERCLAIM AGAINST IT- EXTEND TO THIRD-PARTY COUNTERCLAIM DEFENDANTS? 2. Whether an original defendant to a class-action claim can remove the class action if it otherwise satisfies the jurisdictional requirements of the Class Action Fairness Act when the class action was originally asserted as a counterclaim against a co-defendant.

Case path

United States Court of Appeals for the Fourth Circuit / Decision released May 28, 2019

Area

Decided Supreme Court case

Briefing

What it's about

Home Depot was added to a state-court case only as a defendant to a buyer's class-action counterclaim, and it tried to remove (move) that part of the case to federal court. The justices are being asked whether federal removal laws let a third-party counterclaim defendant do that, especially in a class action.

Vote

Oral argument has not been scheduled yet. Home Depot argues that a company brought in only through a class-action counterclaim should be able to remove a qualifying class action to federal court, while Jackson argues the statutes do not permit that move.

Impact

The answer could affect where major class actions are fought and who gets to choose the court. For example, a retailer pulled into a consumer counterclaim may prefer federal court, while consumers may want to stay in state court.

What's next

The next milestone is oral argument or another scheduling move from the Court. There is no decision window available yet.

What is the core dispute in Home Depot U. S. A., Inc. v. Jackson?

The fight is over whether Home Depot, added only through a class-action counterclaim, could remove that claim to federal court. The case turns on who counts as a defendant under the removal laws.

Why could this case matter outside this one lawsuit?

It could shape where consumer class actions are heard when new parties are added in state court. That choice can affect costs, strategy, and how quickly a case moves.

What should readers watch for next in this case?

Watch to see whether the Court schedules oral argument or takes another procedural step. That will show whether the justices are moving toward a full review of the removal question.

Decision

Decision record

What the Court decided

The key question is whether a company named only in a class-action counterclaim counts as a defendant that can move the case to federal court.

Impact

The answer could affect where major class actions are fought and who gets to choose the court. For example, a retailer pulled into a consumer counterclaim may prefer federal court, while consumers may want to stay in state court.

Not official Court text.

Timing

Decided May 28, 2019

The Court released its decision on May 28, 2019 without hearing oral argument.