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33. Should the court grant the defendants' motion to dismiss?
The runner is a citizen of State A, and the other members of the class are citizens of States A, B, C, D, and E. The runner is the only named member of the class bringing the suit. The manufacturer is a citizen of State B and State C. The retailers are citizens of State D and State E. The runner and the alleged class members are seeking more than $75,000 from the manufacturer and the retailers. The manufacturer and the retailers moved to dismiss all claims for lack of subject-matter jurisdiction based on diversity.
A runner who took a prescribed medication for shin splints was diagnosed with pancreatic cancer. After his diagnosis, the runner sued the manufacturer and several drug store retailers who sold the medication in federal court in State A. The runner sued on behalf of a class who had also been diagnosed with pancreatic cancer after taking the medication.
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A is incorrect. This choice implies that all members of the class must be diverse from the defendants, which is an incorrect statement of the law. In class action suits, diversity jurisdiction is based on the citizenship of the named plaintiff (s) and named defendant (s), not the unnamed class members. Here, the runner, from State A, is the only named plaintiff for the class action. Because neither the manufacturer nor the retailers are also from State A, complete diversity exists between the parties.
B is incorrect. This choice implies that all members of the class must be diverse from the named plaintiff, which is also an incorrect statement of the law. Complete diversity in class actions is based on the citizenship between named parties only, as stated above. The lack of diversity between the unnamed class members and the runner does not destroy diversity jurisdiction.
C is incorrect. The court should not grant the motion to dismiss, but not because only federal courts may hear class action suits. On the contrary, class actions are not limited only to federal courts. Nevertheless, the court should deny the motion because diversity jurisdiction exists, as explained above.