Following an interlocutory appeal, in which the First Circuit ruled that a Rule 68 offer made prior to class certification did not moot the plaintiff’s claim (see here), defendant returned to the Massachusetts district court seeking dismissal on Rule 68 grounds. Defendant had done its homework: relying on the Supreme Court’s January Campbell Ewald decision (see here), defendant had sent plaintiff a certified check for $4,800 and moved to deposit the same amount with the ... Keep Reading »
Archives for May 2016
Southern District of California Rejects Coupon Class Settlement
Jaret J. Fuente and D. Matthew Allen The Southern District of California rejected a pre-certification class settlement because it provided for an inadequate coupon payment and a tenuous cy pres award, and included a clear sailing attorney fee provision. Plaintiff Hofman alleged that Dutch, LLC sells jeans labeled “Made in the USA” that contain foreign-made components (buttons, rivets, zippers, etc.) in violation of the California Business and Professional Code and the ... Keep Reading »
Supreme Court Steers Clear of Consumer Standing Issue in Spokeo
The Supreme Court has issued its long-awaited decision in Spokeo v. Robins. By a 6-2 vote, the Court reversed the Ninth Circuit decision that a class plaintiff who suffered no actual damages had standing to sue. But it did not address the merits of whether a plaintiff who has suffered no actual damages can nonetheless bring a class action on behalf of other putative class members who equally were not injured. Instead, the Court essentially punted and, in a narrow ... Keep Reading »
The Amount-in-Controversy Requirement Presents an “Obstacle” to CAFA Removal
In Pazol v. Tough Mudder Inc., No. 15-1640, --- F.3d ----, 2016 WL 1638045 (1st Cir. Apr. 26, 2016), the First Circuit analyzed the “reasonable probability” standard that a defendant must satisfy to support CAFA’s $5 million amount-in-controversy removal requirement. See 28 U.S.C. § 1332(d)(2). The putative class action began in Massachusetts state court and stemmed from a decision by the defendant, a promoter of a series of nationwide “obstacle course” races, to move ... Keep Reading »
CFPB Publishes Proposed Rule Banning Pre-Dispute Arbitration Agreements in Consumer Class Actions
This week, the Consumer Financial Protection Bureau (CFPB or Bureau) published a proposed rule which would prohibit application of pre-dispute arbitration agreements to class litigation involving a broad range of consumer financial products and services. Publication of the proposed rule was expected, as the Bureau announced in October its intention to do so based on its study findings that pre-dispute arbitration agreements "effectively prohibit" class litigation and ... Keep Reading »