On September 19th, the Eleventh Circuit Court of Appeals resolved a question of first impression in the circuit: whether the availability of the class action mechanism is a question of arbitrability that presumptively should be decided by the court. The Court ruled that the availability of class arbitration presumptively should be decided by the court. But, in a second ruling that could overshadow the first for many existing arbitration agreements, the Court proceeded to ... Keep Reading »
DC Court Weighs Whether Bristol-Myers Squibb Applies to Class Actions in Whole Foods Case
The District of Columbia district court added to the growing collection of orders opining on whether and to what extent the Supreme Court’s decision in Bristol-Myers Squibb applies to class actions. This case involved a putative class of employees suing Whole Foods in an attempt to recover wages pursuant to the upscale grocer’s “Gainsharing” bonus program. The program seeks to incentivize departments in individual stores to perform under budget by distributing budget ... Keep Reading »
District Courts Split on Whether Bristol-Myers Squibb‘s Specific Personal Jurisdiction Analysis Bars Nationwide Class Actions In Districts Beyond Defendant’s Home Venue
The ramifications of the Supreme Court’s decision in Bristol-Myers Squibb Co. v. Superior Court of California, San Francisco Cty., 137 S. Ct. 1773 (2017), remain unsettled. In Bristol-Myers Squibb, the United States Supreme Court rejected California’s "sliding scale approach" to assertions of specific personal jurisdiction. California’s Supreme Court had addressed a nationwide mass action and held that California could assert specific jurisdiction over the claims of ... Keep Reading »
Careful What You Wish For – Additional Discovery Requested by TCPA Class Plaintiff Leads to Decertification Order in Northern District of Illinois
Federal courts have a continuing obligation to ensure that class action certification remains appropriate throughout the duration of a case. Accordingly, it is well established that if class certification is later deemed improvident, the district court may decertify a previously certified class. That is precisely what the Northern District of Illinois did in Johnson v. YAHOO! Inc., No. 14 CV 2028, 2018 WL 835339 (N.D. Ill. Feb. 13, 2018), in addressing a previously ... Keep Reading »
Keep the Change – The Southern District of New York Authorizes Claims Administrator to Retain Portion of Accrued Interest on Settlement Funds
When class action settlement funds are not amenable to individual claims or to a meaningful pro rata distribution, courts have used the cy pres doctrine to distribute the funds to nonprofit charitable organizations whose work indirectly benefits the class members and advances the public interest. However, cy pres proved unnecessary in Dial Corp. v. News Corp., No. 13CV6802, 2017 WL 5613949 (S.D.N.Y. Nov. 20, 2017). That antitrust action involved the distribution of a ... Keep Reading »
Individualized Inquiries and Difficulties Identifying Class Members Doom Title Insurance Reissue Rate Class Action
The District Court of Idaho recently decertified a title insurance reissue rate class action, finding the initial justifications for class certification have “not withstood the test of time.” Under the Idaho Rate Manual, customers are entitled to a 50 percent discount when a title policy is issued within two years of a previous policy on the same property by the same owner. Seven years ago, the court granted class certification for a class of Idaho residential customers ... Keep Reading »
Objectively Non-Flushable? The Northern District of California Certifies Consumer Class Regarding Charmin Freshmates
Using the familiar “reasonable consumer standard” that applies in many jurisdictions regarding allegedly deceptive sales practices, a judge of the Northern District of California recently certified a class action of California consumers who purchased Charmin/Proctor & Gamble’s “Freshmates” brand of “flushable” bathroom wet-wipes between April 6, 2011, and August 3, 2017. The class claims centered on the allegation that Freshmates were not “flushable” as advertised ... Keep Reading »
Game Over – SCOTUS Holds a Voluntary Dismissal With Prejudice Is Not a Viable Means to Appeal a Denial of Class Certification
A group of plaintiffs hoped to hit the reset button on the Ninth Circuit’s denial of their Rule 23(f) petition to appeal from an order striking class allegations in their case against Microsoft, the maker of the popular Xbox line of videogame consoles. Plaintiffs, who alleged their Xbox 360 consoles had a tendency to scratch game discs, attempted this reset by appealing the certification order after taking a voluntary dismissal of their putative class action with ... Keep Reading »
A Damages Class Is Certified, but No Standing for Declaratory and Injunctive Class
A representative plaintiff who purchased Aveeno sunscreen products and baby bath products brought putative class actions against the products’ manufacturer, Johnson & Johnson, in the United State District Court for the District of Connecticut. Both of plaintiff’s asserted classes challenged Aveeno’s product labeling under the Connecticut Unfair Trade Practices Act (CUTPA) and the similar consumer protection laws of several other states and the District of ... Keep Reading »
Alleged Violations of Florida Building Code Not Subject to Class Treatment
Two couples who own homes in central Florida attempted to bring a class action against a homebuilder, stemming from alleged violations of Florida’s building code. Section 553.84, Florida Statutes, provides for such a private cause of action, but also provides a statutory defense for homebuilders where: (1) the homebuilder obtained any required building permits, and the appropriate agency approved the plans; (2) the project passed all inspections required under the Code; ... Keep Reading »
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