Westwood Apex, et al v. Jesus A. Contrera, No. 11-55362 (9th Cir. 2011)

Westwood Apex, a subsidiary entity of Westwood College, filed a breach of contract action against defendant to recover an unpaid student loan in San Bernardino County Superior Court. Defendant, a former Westwood College student, filed a class action counterclaim alleging that Westwood Apex and Westwood College committed fraud and engaged in unfair and deceptive business practices in connection with their operation of the college. Westwood College subsequently filed a notice of removal in the Central District of California. At issue was whether section 5 of the Class Action Fairness Act of 2005 ("CAFA"), 28 U.S.C. 1453(b), allowed a party joined to an action as a defendant to a counterclaim, an additional counterclaim defendant, to remove the case to federal court. The court held that section 1453(b) did not permit additional counterclaim defendants to remove an action to federal court and therefore, affirmed the district court's decision to remand the case to state courts.