Mississippi, Inc. ex rel. Hood v. AU Optronics Corp. (12-1036)
argument 12-1036Mississippi, Inc. ex rel. Hood v. AU Optronics Corp.
Supreme Court of the United States
1h 0m
5 speakers
8 chapters
transcribed 6 days ago
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What is the Court’s interpretation of CAFA’s mass‑action definition in Mississippi v. AU Optronics?
We'll hear argument next today in case twelve ten thirty six, Mississippi versus AU Optronics Corporation. Mr. Massey?
Thank you, Mr. Chief Justice, and may it please the court. The text and structure of the Class Action Fairness Act of two thousand and five, which is known as CAFA, show that it does not extend to state parents patre actions. If there were any doubt on the matter, CAFA would have to be narrowly construed as a matter of the principles of federalism that are at issued here, as evidenced by the forty six states supporting Mississippi before the court. The disposition of the case today we believe is straightforward. There is only one plaintiff in this case, the State of Mississippi. It is not a citizen for purposes of diversity jurisdiction and therefore the requirements of even minimal diversity, let alone the hundred person numerosity requirement of CAFA cannot be met.
Our friends on the other side want to use the statute of CAFA to change that result. The mass action definition is the key part of the statute issued today. It is in the joint appendix at pages seventy nine to eighty. Essentially, the attempt to force state actions into the mass action definition is a square peg round hole kind of problem. The mass action definition addresses the situation of mass consolidation or mass joinder when there are a hundred individual plaintiffs or more in a case. And CAFA provides that there is federal jurisdiction over such a case. But that does not apply to this situation. CAFA refers to real plaintiffs asserting concrete claims and further provides that those claims must be proposed to be tried jointly.
N none of that happens in a parents patriarchy case where the state is the only plaintiff. Mr Bas with
respect to that There is a claim for restitution. I take it if the suit is successful. The money that's collected will be distributed. to all the people. who were affected by this conduct.
Well, Justice Ginsburg, uh that's very unlikely in this case. Uh the plaintiffs the plaintiff in this case is the State of Mississippi. The consumers of Mississippi have already sued in a indirect purchaser action that has been settled, so they have received compensation. The State does have a restitution claim, Your Honor is correct, and it page 65A of the of the response and opposition of the Orange Brief, 65A describes the restitution claim. The restitution claim seeks recovery to the State of the money, not to consumers in Mississippi. And what's likely to happen here, and frankly, what happens very frequently when the Federal Trade Commission or the Securities and Exchange Commission or any other state or agency seeks restitution, the money is recovered by the State.
And in a case like this, where it is very difficult to uh trace the individuals, the consumers who have been hurt. After all, we we're talking an L C D price fixing conspiracy. So every television, computer monitor, phone, toy, digital camera, car navigation system, there are no records, obviously, of who purchased them, and it would cost so much money to do that.
Pardon me, Your Honor? You are asking for ten thousand dollars for each one.
Well, the the the complaint does pray that. As the case goes forward, the Attorney General, uh and subject to all the procedures that occur in Mississippi, will have to make a judgment about how that money is to be distributed. In the past, what I can tell you
let's assume a case where Forget about that the uh consumer action was settled. And let's forget about a case in which the damages are Difficult to prove. case in which the damages can be determined. And the state comes in on behalf of a class of consumers. and says we're seeking their restitution. Does your argument change if the facts are different?
Our argument it b does not change. Uh I would say in our case, the state just to be clear about restitution, the state is proceeding under statutes that give state the state the only cause of action. Only the state can sue under these provisions. If the state The the consumers have separate damages
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Chapters
8 chapters
1
What is the Court’s interpretation of CAFA’s mass‑action definition in Mississippi v. AU Optronics?
0:01–7:10
2
How does the State of Mississippi argue that the restitution claim makes this a “mass action” under CAFA?
7:10–14:22
3
Why do the parties dispute whether the Attorney General can sue on behalf of unnamed consumers?
14:22–21:30
4
What precedents (e.g., Navarro, Washington Supreme Court) are cited to support the restitution claim?
21:30–28:35
5
How does the Court address the “persons vs. plaintiffs” language in the statute?
28:35–35:53
6
What are the arguments about where the recovered money should be distributed – to the state treasury or to individual citizens?
35:53–43:26
7
How do the parties view the role of supplemental jurisdiction and the $75,000 amount‑in‑controversy threshold?
43:26–50:59
8
What is the final conclusion on whether this case is removable under CAFA or should remain in state court?
50:59–1:00:30