Citibank credit card holders participated in a program that allowed users to accumulate up to $4,500 in credits over five years toward the purchase of a Ford vehicle. Defendants cancelled the program early. Card holders brought several state court class actions seeking injunctions to reinstate the program. Defendants sought to remove the cases to federal court on diversity grounds, asserting that, although the individuals had less than the $75,000 jurisdictional threshold at stake, the cost to defendants of complying with the requested injunction far exceeded that amount. The district court dismissed the action, ruling that diversity jurisdiction was not satisfied, and the Ninth Circuit affirmed.

AAJ filed an amicus brief in the Supreme Court, arguing that defendants’ position would undermine the longstanding rule that the claims of individual class members may not be aggregated to reach the threshold amount required for diversity jurisdiction.

Following oral arguments, the Court dismissed the writ of certiorari as improvidently granted. Argument and supplemental briefing indicate that the Court viewed defendants as the prevailing party below, where federal courts dismissed the action. Although, Defendants were compelled to litigate in state court, a result they sought to avoid, the federal dismissal did not constitute a final appealable order.

Read AAJ's amicus curiae brief in Motor Co. v. McCauley