The U.S. District Court for the District of Hawaii recently denied female student-athletes’ motion for class certification under Title IX even though it rejected the defendants’ attacks on mootness and standing as well as Rule 23(a)’s requirements for commonality, typicality, and adequacy. Instead, the court found that the proposed class failed to satisfy the numerosity requirement that joinder would be impracticable. The underlying case centered on Title IX ... Keep Reading »
Class Action Survey: Defense Cost is the Least Important Risk Variable Corporate Counsel Consider When Evaluating Risk. What is the Most Important Risk Variable?
Companies identified exposure as the most important variable they consider when evaluating class action risk. Exposure ranked as 8.9 on a 1–10 scale of importance. Win probability, relevant case law and facts, and reputational impact also were ranked as important risk variables, but less significant than exposure. Defense cost is the least important variable when assessing class action risk, at a rating of 6.1 out of 10. These rankings reflect little change from the 2017 ... Keep Reading »
Class Action Survey: What Percentage of Companies Have Their Class Action Defense Costs Covered by Insurance?
According to the 2019 Carlton Fields Class Action Survey, 39.5% of companies had a portion of their class action defense costs covered by insurance in 2018, which is unchanged from the prior year. Twenty-four percent of companies with insurance have full coverage outside the cost of self-retention. ... Keep Reading »
Not So Fast! A Class Action Is Not an Appropriate Vehicle to Avoid Your Speeding Ticket
A federal court in Massachusetts recently denied class status for a group of individuals caught driving in the fast lane. Finding that the named plaintiff failed to demonstrate typicality and predominance, the District of Massachusetts denied certification of a class of plaintiffs who received speeding tickets under a Massachusetts regulation. The plaintiff alleged that the Board of Selectmen of Hingham, Massachusetts, posted and enforced speed limit signs without ... Keep Reading »
Eleventh Circuit Takes Life Insurance Reinstatement Claims at Face Value for CAFA Amount-In-Controversy Purposes
The Eleventh Circuit recently examined the application of the $5 million amount-in-controversy requirement under the Class Action Fairness Act (CAFA) to disputes over life insurance premiums and policies. It concluded that the face value of a surrendered or lapsed life insurance policy constitutes the amount placed in controversy when the plaintiff requests reinstatement of the policy as equitable relief for asserted claims. In Anderson v. Wilco Life Insurance Co., ... Keep Reading »
Class Action Survey: Did Class Action Defense Spending in 2018 Continue its Upward Trend?
Class action spending increased for a fourth consecutive year, to $2.46 billion in 2018, accounting for 11.1% of all litigation spending in the United States, according to the 2019 Carlton Fields Class Action Survey. While the number of companies that reported facing class actions in 2018 dropped slightly to 54%, the average number of matters per company increased from 6.3 in 2017 to 7.8 in 2018. Corporate spending on class actions increased nearly 10% in 2018. Spending ... Keep Reading »
Class Action Survey: What do Corporate Counsel Predict as the “Next Wave” of Class Actions? Data Privacy and Security? TCPA? Antitrust? Wage and Hour?
More than half of legal decision-makers responsible for class actions believe data privacy and security will be the next wave of class actions, up from less than 30% in 2017. Most companies, however, have not faced a data privacy and security class action, and express moderate concern about facing one in the future. A large majority report that their company has an action plan in place to handle a data breach. According to the 2019 Carlton Fields Class Action Survey, the ... Keep Reading »
Class Action Survey: What Types of Class Action Matters Are Most Prevalent? Two Types Have Driven the Bulk of Class Action Spending Over the Last Five Years
Labor and employment and consumer fraud matters remain the two most common types of class actions. Together, they have driven the bulk of class action spending over the last five years. The 2019 Carlton Fields Class Action Survey reports that labor and employment class actions accounted for 28.7% of matters and 26.1% of spending (up 4% from 2017), and consumer fraud class actions accounted for 24% of matters and 23.6% of spending (an increase of nearly 6%). Product ... Keep Reading »
Class Action Survey: Is AFA Use in Class Actions Increasing, Decreasing, or the Same as Last Year?
The use of alternative fee arrangements (AFAs) in class action matters continues to fluctuate, according to the 2019 Carlton Fields Class Action Survey. Companies rely on AFAs as a tool to drive budget predictability and litigation management efficiency. In the class action context, however, the use of AFAs tends to fluctuate year over year. After companies reported increased use of AFAs for three years in a row between 2011 and 2015, in subsequent years, the percentage ... Keep Reading »
Class Action Survey: What Percentage of Class Action Lawsuits Are Settled? When do Most Settlements Occur?
Cases filed as class actions are most often resolved by settlement. The 2019 Carlton Fields Class Action Survey reports that settlement rates for class actions continue to rise, up to 73.1% in 2018 from 70.8% the previous year. More than half of settlements typically occur before a class certification. Thirty-nine percent of matters filed as class actions are settled on an individual basis. Only 2% of cases filed as class actions go to trial. ... Keep Reading »
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