Standard Fire Ins. Co. v. Knowles

133 S.Ct. 1345 (2012)

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Nature of the Case

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Facts

P filed this proposed class action in an Arkansas state court against D. P claimed that, when D had made certain homeowner's insurance loss payments, it had unlawfully failed to include a general contractor fee. P sought to certify a class of “hundreds, and possibly thousands” of similarly harmed Arkansas policyholders. P pled that the “Plaintiff and Class stipulate they will seek to recover total aggregate damages of less than five million dollars.” D removed the case to Federal District Court. P argued for remand on the ground that the District Court lacked jurisdiction. He claimed that the “sum or value” of the “amount in controversy” fell beneath the $5 million threshold. The court concluded that the amount fell beneath the threshold because of the stipulation. The court ordered the case remanded to the state court. The Eighth Circuit declined to hear the appeal. The Supreme Court granted certiorari.