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Archives for July 2014

Parens Patriae Action By State Attorney General Is Not Removable Under CAFA’s Class Action Provision

by Clifton R. Gruhn

A federal district court in Hawaii held that a parens patriae action brought on behalf of the State of Hawaii by its Attorney General was not removable under the Class Action Fairness Act (“CAFA”) because it was not a class action, and, even if it were, the presence of the State as a party precluded a finding that CAFA’s minimal diversity requirement had been met.  In Hawaii v. Bristol-Myers Squibb Co., Hawaii’s Attorney General claimed that pharmaceutical companies ... Keep Reading »

Ascertainability Issues Preclude Certification of a Class of Individuals Alleging Violations of the Fair Debt Collection Practices Act

by Carlton Fields

The U.S. District Court for the Western District of Michigan denied plaintiffs’ motion for class certification citing plaintiffs’ failure to satisfy Rule 23’s ascertainability, commonality, typicality, and predominance requirements.  The defendants, a debt collection agency and law firm, had filed state court complaints on behalf of medical providers in order to collect delinquent debts.  The state court complaints included an exhibit listing providers who had allegedly ... Keep Reading »

No Revival Of Class Claims For Plaintiff Who Delayed Amending His Complaint In Bad Faith

by Jacob R. Hathorn

An Illinois federal district court has ruled that a class plaintiff whose motion for class certification was denied may not avoid that outcome by amending his complaint to introduce a new legal theory and revised class definition if the complaint could have been amended prior to moving for class certification. Chapman’s initial attempt to certify claims under the Telephone Consumer Protection Act failed because the Court found that individual issues would predominate ... Keep Reading »

Sixth Circuit Affirms Class Certification in TCPA Case

by Jaret J. Fuente

The Sixth Circuit Court of Appeals affirmed class certification in a case brought under the Telephone Consumer Protection Act (TCPA), 47 U.S.C. § 227 et seq.  Pennsylvania-based distributor Lake City Industrial Products engaged Business to Business Solutions (B2B), a “fax-blasting” company, to transmit approximately 10,000 faxes advertising a pipe-thread sealing tape product. American Copper & Brass, a Michigan-based equipment wholesaler with no preexisting ... Keep Reading »

District Court Decertifies Class based on Dukes, Comcast and Tenth Circuit Precedent

by Dean A. Morande and Gary M. Pappas

Plaintiff sued for underpayment or nonpayment of royalties on natural gas produced from wells in Kansas due to defendant’s failure to place the gas in marketable condition.  The district court initially certified the class in 2011.  Defendant moved to decertify the class in 2013 based on the United States Supreme Court opinions in Dukes and Comcast together with two recent Tenth Circuit opinions vacating class certification orders in similar oil and gas royalty cases:  ... Keep Reading »

Certification Denied for Purchasers of Product Awash with Design Differences

by Amanda Romfh Jesteadt and Gary M. Pappas

The Central District of California denied Plaintiff’s motion to certify a class of purchasers of Defendant’s washing machines that contain an air hose connected to an air dome.  Plaintiff alleged the connection between the hose and dome was defective and could come loose under normal operation.  As a result, the washer would overflow and cause substantial property damage or personal injury. The court found Plaintiff failed to meet his burden of showing that the ... Keep Reading »

7th Circuit Vacates Decision Declining To Certify Consumer Class Against Roofing Shingle Manufacturer Based On Incorrect Reading Of Comcast And Dukes

by Amy Lane Hurwitz and Jaret J. Fuente

The Seventh Circuit Court of Appeals vacated a decision declining to certify a consumer class against IKO Manufacturing, in which the district court wrote that “commonality of damages” is essential, reasoning that the district court had incorrectly read Comcast Corp. v. Behrend, 133 S. Ct. 1426 (2013), and Wal-Mart Stores, Inc. v. Dukes, 131 S. Ct. 2541 (2011), to require proof “that the plaintiffs will experience common damage and that their claimed damages are not ... Keep Reading »

Second Circuit Doubles Down on Rule Preventing Non-Settling Parties from Objecting to Class Settlement

by Paul G. Williams

The robustness of the rule preventing non-settling defendants from objecting to a class settlement has received a boost from the Second Circuit.  The class settlement at issue involved the claims of investors against a hedge fund manager for damages and restitution of lost funds as a result of Madoff’s Ponzi scheme.  Only one provision of the settlement was at stake: whether the settlement could allow class members to submit to the jurisdiction of the district court for ... Keep Reading »

DC Circuit Holds Named Plaintiff Who Settles Individual Claims Retains Standing To Appeal Denial Of Class Certification

by Carlton Fields

In Stephens, two former pilots brought a putative class action lawsuit against their employer airline and their retirement plan, alleging that a delay in paying retirement benefits and failure to pay interest during the delay violated the Employee Retirement Income Security Act (“ERISA”).  Defendants maintained that the delay was necessary to calculate the amount of benefits where a beneficiary elected to receive a lump sum rather than a monthly annuity.  After the ... Keep Reading »

11th Affirms Dismissal of FDCPA Class Action Based on Law Firm Collection Letter

by Steven Blickensderfer

The Eleventh Circuit has affirmed the dismissal of a putative class action brought under the FDCPA, 15 USC § 1692, against a law firm for sending a letter to a homeowner in default.  Specifically, the letter did the following: stated that the law firm represented the interests of the lender, and that the homeowner could dispute the validity of the debt within 30 days of receipt of the letter; stated that failure to dispute within that period would result in the ... Keep Reading »

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