Seventh Circuit Holds That Adding New Defendants "Commences" Action against Them for Purposes of CAFA

BNA's U.S. Law Week is reporting on Knudsen v. Liberty Mutual Insurance Co. (7th Cir. Jan. 27, 2006), a Class Action Fairness Act commencement case. Here is BNA's summary of the holding:

"Amended complaint alleging that parent insurer and all of its affiliates and subsidiaries mishandled their medical cost and utilization databases in adjusting certain claims commences new suit for purposes of Class Action Fairness Act because original complaint filed against parent alone provided no notice that affiliates and subsidiaries, which employ different medical cost and utilization databases, were charged with mishandling those databases."

U.S. Law Week, Volume 74 Number 29 Tuesday, February 7, 2006, Page 1455 ISSN 1522-4317.

BNA subscribers can read the full U.S. Law Week article by clicking here. The opinion is available at the Seventh Circuit's website.