Are cases being filed in both state and federal courts?
Buckley: So far we have been seeing more of them in the state courts. Securities claims are being filed in the federal courts. As time goes on, we are going to be seeing more RICO claims brought in federal court. Complex multi-party litigation often is brought in state court because it is sometimes difficult to achieve diversity of citizenship, particularly where there are multiple plaintiffs. In the case of class actions, plaintiffs’ counsel strive to keep the litigation in the state courts. We usually try to remove them to the federal courts in order to get the benefit of the Class Action Fairness Act (CAFA). Editor: Is it likely that many of the cases spawned by the subprime mortgage crisis will be settled before trial? Buckley: It is our view that it is better to make an effort to settle as opposed to pursuing a scorched earth approach. Banks and other institutions are going to find themselves both plaintiffs and defendants. If you pursue a matter to judgment, even if you succeed,
