Federal Circuit Courts of Appeal Class Action Articles

The latest class action developments and trends in Federal Circuit Courts of Appeal, including news, key cases, and strategies.

No Certification Where Class Representatives Have Conflicting Interests

Seventy-eight of the over 4,000 Michigan childcare providers who received state subsidies for offering services  to low-income families voted to oppose having their union dues deducted from their subsidy payments. Six of the dissenting providers then filed a putative class action seeking equitable relief and monetary damages alleging that the dues deduction requirement in their collective bargaining agreement violated their First Amendment rights. The proposed class ... Keep Reading »

Ninth Circuit Strictly Construes “Single Local Event” Exception to CAFA Jurisdiction for Mass Actions

In a recent decision, the Ninth Circuit Court of Appeals strictly construed the "single local event" exception to federal jurisdiction under CAFA as not encompassing "events or occurrences" that are of a continuing nature. Plaintiffs are Washington residents who filed a complaint in state court alleging that Boeing contaminated their groundwater and, together with its environmental remediation contractor, Landau, did not properly investigate, remediate, and clean up ... Keep Reading »

Third Circuit to Plaintiffs’ Bar: Expert Testimony Necessary for Certification Must Satisfy Daubert

Plaintiff purchasers of traditional blood reagents, products that test the compatibility of donor blood with recipients, brought putative class actions claiming that two defendant companies conspired to fix prices in violation of antitrust law. Numerous lawsuits were consolidated in the Eastern District of Pennsylvania (and one of the defendants subsequently settled with the plaintiffs). The district court found that plaintiffs had satisfied the requirements of ... Keep Reading »

Ninth Circuit Holds Defendant Can Remove Within 30-Days After CAFA Grounds Are Ascertained, Even Where Complaint Provided Basis For Federal Question Removal

A Ninth Circuit panel has held that a defendant may remove a case to federal court within 30 days after the CAFA ground for removal can first be ascertained, even where plaintiff's complaint, filed years earlier, provided a basis for removal based on federal question jurisdiction. On April 3, 2012, plaintiff filed her initial complaint against Nationstar in state court, alleging various causes of action, including a federal cause of action under the Fair Debt ... Keep Reading »

Ninth Circuit Holds That State Court’s Class Certification Order Creates New Occasion for CAFA Removal

The Ninth Circuit held that a state court's certification order, under which CAFA's amount in controversy would be met, created a new basis for defendant to remove the case to federal court. The plaintiff had filed a putative class action against Dollar Tree in California Superior Court alleging violations of the California Labor Code and California Business and Professions Code, Section 17200, based on Dollar Tree's purported failure to provide required paid rest breaks ... Keep Reading »

Ninth Circuit Reverses Order Striking Class Allegations in Microsoft Xbox Case

The Ninth Circuit reversed an order striking class allegations against Microsoft reasoning that the Washington district court misapplied its precedent and thereby abused its discretion. Plaintiffs alleged that a design defect in Microsoft’s Xbox 360 video game console made it unable to withstand vibrations during normal game playing conditions and caused game discs to become scratched and unplayable. Microsoft countered that the majority of Xbox units do not manifest the ... Keep Reading »

Circuit Courts Address Impact of Arbitration Agreements on Labor Class and Collective Actions

In Conners v. Gusano's Chicago Style Pizzeria, plaintiffs, former employees of defendant, brought a collective action alleging violations of the Fair Labor Standards Act. Defendant responded by implementing a binding arbitration policy on current employees that specifically prevented current employees from joining plaintiffs in the collective action. The district court enjoined defendant from enforcing the arbitration agreement as to any current employees who chose to ... Keep Reading »

GCs facing more bet-the-company and higher exposure class actions

Across industries, companies spent $2 billion on class action lawsuits in 2014, slightly less than the $2.1 billion they spent in 2013. This year, spending is expected to return to 2013 levels. Companies’ class action dockets increased on average by one new case in 2014, bringing the average number of class actions managed to five. This total is expected to remain constant in 2015, as the number of new matters is likely to be offset by those resolved. As before, ... Keep Reading »

Second Circuit Vacates Class Certification Order, Applying Various State’s Laws Precludes Finding Of Predominance And Superiority

The Second Circuit vacated a class certification order issued by the Southern District of New York, finding that Rule 23(b)(3)'s predominance and superiority requirements could not be met given the necessity of applying 27 states' laws to putative class claims for breach of fiduciary duty, legal malpractice and breach of contract. The case involved a "novel approach to dispute resolution that continues to provoke a debate among experts in legal ethics." The plaintiffs ... Keep Reading »

Fifth Circuit Affirms Certification of Electronic Funds Transfer Act Class

In a case similar to its late-2014 decision in Mabary v. Home Town Bank, N.A., 771 F.3d 820 (5th Cir. 2014), the Fifth Circuit recently affirmed certification of a class of consumers who were charged a fee for using an automated teller machine (“ATM “) that allegedly lacked a fee notice on its exterior, in violation of the Electronic Funds Transfer Act (“EFTA”), 15 U.S.C. § 1693b(d)(3) (2011).  See Frey v. First Nat. Bank Southwest, No. 13–10375, --- F. App’x ---, 2015 ... Keep Reading »