In a split panel, the Ninth Circuit Court of Appeals reversed a district court’s certification of a nationwide class action settlement because the lower court failed to conduct a sufficient predominance inquiry under Rule 23(b)(3). In 2012 Hyundai and Kia were accused of overstating their fuel efficiency estimates in advertisements and car window stickers for certain of their vehicles. A flurry of putative class action litigation ensued across the country, and the MDL ... Keep Reading »
Class Action Fairness Act (CAFA) Articles
The latest CAFA developments and trends, including news, key cases, and strategies.
State of Louisiana, as Absent Class Member, Escapes CAFA Settlement Trap
The Third Circuit Court of Appeals affirmed a Pennsylvania district court decision holding the Eleventh Amendment to the United States Constitution prevented a private party from enjoining the state of Louisiana from bringing claims identical to those previously thought released in a class action settlement. As our prior post detailed, in 2013 pharmaceutical giant GlaxoSmithKline (GSK) settled a class action brought against it by indirect purchasers of the allergy ... Keep Reading »
Consolidated Cholesterol Drug Cases Lack Critical Mass for CAFA Jurisdiction
The Central District of California district court recently weighed in on the limits of mass action jurisdiction under the Class Action Fairness Act (CAFA). The matter began as various individual state court actions alleging that a cholesterol medication caused women taking the drug to suffer from Type II diabetes; after the state court granted a request for “coordination” of the cases, defendant pharmaceutical company removed the cases to federal court based on CAFA’s ... Keep Reading »
Attempting to Counter a CAFA Loophole
Home Depot filed a certiorari petition in the United States Supreme Court aimed at closing an emerging loophole in CAFA jurisprudence in various circuits. According to the petition, some circuits have “narrowly construed CAFA’s removal statute to forbid removal by a newly-added counterclaim defendant in an otherwise removable class action.” This litigation began as a collection dispute brought by the original plaintiff against certain customers, the original ... Keep Reading »
Saved By The Bellwether Trial in the Ninth Circuit
Removal under the “mass action” provision of the Class Action Fairness Act (CAFA) is appropriate when 100 or more plaintiffs take the affirmative step of proposing to try their claims jointly and the claims involve common issues of law or fact. The Ninth Circuit recently examined whether plaintiffs’ request for a bellwether trial in eight separate cases involving the same allegedly defective medical devices amounted to a proposal to have claims tried jointly thereby ... Keep Reading »
Eleventh Circuit Finds Dual Citizenship Defeats CAFA Diversity
The Eleventh Circuit recently denied a petition to appeal an order remanding a putative class action to state court, finding the defendant corporations’ dual citizenship defeated minimal diversity under the Class Action Fairness Act (CAFA). Plaintiffs filed the lawsuit in Georgia state court against two insurance companies, alleging a variety of state law claims and limiting the class to include only Georgia citizens. The defendant companies removed under CAFA. Both were ... Keep Reading »
Judge Gorsuch on Class Actions
On January 31, President Trump announced that Judge Neil Gorsuch of the Tenth Circuit Court of Appeals would be nominated for the United States Supreme Court. We took a look at those opinions authored by Judge Gorsuch on the Tenth Circuit that primarily addressed class action issues. These decisions confront a range of problems that arise in class action litigation. They also reveal his accessible, sometimes breezy, sometimes pointed, writing style. Four such decisions ... Keep Reading »
No, Yes, or Back to State Court? Three Circuits Address Standing in Statutory “No Injury” Class Actions
In Spokeo, the Supreme Court declined to answer the certified question of whether a plaintiff suing for violation of a federal statute satisfied Article III’s standing requirement by alleging no concrete injury as a result of that violation. Instead, the Court vacated and remanded the case to the Ninth Circuit to address whether the plaintiff satisfied the “concreteness” requirement for Article III standing. On January 20, the Seventh and Third Circuits weighed in ... Keep Reading »
Eleventh Circuit Clarifies CAFA Jurisdiction Continues After Dismissal of Class Claims
On November 22, the Eleventh Circuit clarified that Class Action Fairness Act (CAFA) jurisdiction is not eliminated when the class claims are dismissed before the class is certified. The plaintiff, an Alabama trucking company that had a fuel-discount with Pilot, filed a class action alleging that Pilot systematically shortchanged trucking companies with which it had discount arrangements by failing to give them the agreed-upon benefits. The class claims were ... Keep Reading »
Lawyers Sanctioned for Seeking to Settle Federal Court Class Action in State Court
Lawyers seeking to settle class actions pending in federal court by dismissing and refiling in state court beware! In two recent orders, a federal judge in the Western District of Arkansas ruled that the attorneys representing a class and defendants alike violated Rule 11 and abused the judicial process by this practice. The court sanctioned the lawyers for the class in the form of a reprimand. It retreated from a formal sanction of the defendants’ lawyers because it was ... Keep Reading »
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