UNITED STATES COURT OF APPEALS FOR THE THIRD CIRCUIT

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No. 23-1053 _______________________

ERIE INSURANCE EXCHANGE, an unincorporated association, by TROY STEPHENSON, CHRISTINA STEPHENSON, and STEVEN BARNETT, trustees ad litem, and alternatively, ERIE INSURANCE EXCHANGE, by TROY STEPHENSON, CHRISTINA STEPHENSON, and STEVEN BARNETT

v.

ERIE INDEMNITY COMPANY, Appellant _______________________

On Appeal from the United States District Court for the Western District of Pennsylvania District Court No. 2-22-cv-00166 Magistrate Judge: The Honorable Cynthia R. Eddy __________________________

Argued April 20, 2023

Before: HARDIMAN, BIBAS, and SMITH, Circuit Judges (Filed: May 22, 2023) Edwin J. Kilpela, Jr. [ARGUED] James LaMarca Elizabeth Pollock-Avery Lynch Carpenter 1133 Penn Avenue 5th Floor Pittsburgh, PA 15222 Counsel for Appellee Neal R. Devlin Aurora L. Hardin Knox McLaughlin Gornall & Sennett 120 W. Tenth Street Erie, PA 16501 Steven B. Feirson Michael H. McGinley [ARGUED] Dechert 2929 Arch Street 18th Floor, Cira Centre Philadelphia, PA 19104 Counsel for Appellant David R. Fine K&L Gates 17 N. Second Street 18th Floor Harrisburg, PA 17101 2 Counsel for Amici Appellant Chamber of Commerce of the United States and Pennsylvania Chamber of Business & Industry Casey A. Coyle Babst Calland 603 Stanwix Street Two Gateway Center, 6th Floor Pittsburgh, PA 15222 Counsel for Amici Appellant American Property Casualty Insurance Association and Pennsylvania Coalition for Civil Justice Reform

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OPINION OF THE COURT __________________________ SMITH, Circuit Judge.

Erie Indemnity Co. (“Indemnity”) appeals the District Court’s order remanding this matter to Pennsylvania state court. Indemnity argues that the District Court had jurisdiction because the case is a “class action” for purposes of the Class Action Fairness Act of 2005, Pub. L. No. 109-2, 119 Stat. 4 (“CAFA”). In the alternative, Indemnity argues that federal jurisdiction exists because this case is a continuation of a previous federal class action against Indemnity involving similar parties and claims. We are not persuaded on either ground and will affirm the District Court’s order.

3 I.

A.

Erie Insurance Exchange (“Exchange”) is an unincorporated association that operates as a reciprocal insurance exchange under Pennsylvania law. See 40 Pa. Stat. § 961 (authorizing creation of insurance exchanges through which individuals “exchange reciprocal or inter-insurance contracts with each other . . . providing indemnity among themselves”). Exchange is owned by its members, who are subscribers to insurance plans offered by Erie Insurance Group. Exchange is, essentially, a pool of funds comprised of insurance premiums and other fees paid by subscribers. Exchange’s funds are mainly used to cover claims by subscribers. Exchange has no independent officers nor a governing body.

Indemnity is a Pennsylvania corporation that serves as the managing agent and attorney-in-fact for Exchange. In return, and under an agreement between Indemnity and each Erie Insurance Group subscriber, Indemnity receives a management fee paid out from Exchange’s funds.

In August 2021, Erie Insurance Group subscribers Troy Stephenson, Christina Stephenson, Susan Rubel, and Steven Barnett (collectively, the “Stephenson Plaintiffs”) sued Indemnity in the Court of Common Pleas of Allegheny County. See Stephenson v. Erie Indem. Co., 2:21-cv-1444 (W.D. Pa. Nov. 3, 2021). The suit alleged that Indemnity brea