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Preston v. Tenet Healthsystem Memorial Medical Center, Inc.

United States Court of Appeals for the Fifth Circuit
485 F.3d 804 (5th Cir. 2007)


Facts

Preston (plaintiff) represented a class of patients that was admitted at Tenet Healthsystem Memorial Medical Center (Memorial) (defendant) during Hurricane Katrina. LifeCare leased one floor of Memorial for an acute care center. Preston sued Memorial and Lifecare in Louisiana state court for negligence and intentional misconduct that allegedly caused injuries, and in some cases death, to patients of Memorial and LifeCare. LifeCare filed notice of removal based on the Class Action Fairness Act of 2005 (CAFA) which expanded federal jurisdiction over class action suits. Preston moved to remand the case to state court based on the local controversy exception of the CAFA. The district court held that the case fit within all three exceptions to the CAFA and granted Preston’s motion to remand. LifeCare appealed. The court of appeals affirmed the district court’s order remanding the class action suit to state court.

Rule of Law

Issue

Holding and Reasoning (Steward, J.)

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