In a class action brought under a California penal statute that prohibits the intentional recording of telephone calls without the consent of all parties on the call, a California district court denied class certification on the grounds that common questions of fact do not predominate among the putative class members. Defendant, a construction materials supplier, received orders from its customers through a dedicated phone line. Prior to 2009, defendant utilized a ... Keep Reading »
Certification Class Action Articles
The latest class action developments and trends in certification, including news, key cases, and strategies.
Town Gets Schooled on Class Definition in PCB Contamination Case
The Town of Lexington, Massachusetts filed a putative class action in 2012 on behalf of itself and alleged similarly situated Massachusetts school districts that have one or more buildings with airborne polychlorinated-biphenyl (PCB) levels above the public health levels established by the EPA. From the outset of the litigation, defendants argued this proposed class was not ascertainable, as implicitly required by Rule 23, because it was impossible to identify the class ... Keep Reading »
Ninth Circuit Reverses Order Striking Class Allegations in Microsoft Xbox Case
The Ninth Circuit reversed an order striking class allegations against Microsoft reasoning that the Washington district court misapplied its precedent and thereby abused its discretion. Plaintiffs alleged that a design defect in Microsoft’s Xbox 360 video game console made it unable to withstand vibrations during normal game playing conditions and caused game discs to become scratched and unplayable. Microsoft countered that the majority of Xbox units do not manifest the ... Keep Reading »
Running on Empty: Defective Gas Class Sputters in Louisiana District Court
The Middle District of Louisiana denied certification of a putative class bringing claims for redhibition and unjust enrichment against Exxon Mobil Corporation ("Exxon"). Plaintiffs allegedly purchased gasoline refined at Exxon’s Baton Rouge terminal that Exxon conceded contained a resin accidentally introduced during the refining process. The parties disputed whether the resin fully combusted during normal engine operations or remained in the engine causing damage and ... Keep Reading »
Certification of Minor Class Could Have Major Impact on Facebook
Plaintiffs, two minors who used their parents' money to make purchases on Facebook without parental consent, brought a putative class action against the company, alleging its policy of representing purchases as non-refundable violates California law holding that contracts entered into by minors are void or voidable. Through their guardians, plaintiffs sought to certify a class of Facebook users who were minors during a four year period, along with a subclass of those who ... Keep Reading »
Circuit Courts Address Impact of Arbitration Agreements on Labor Class and Collective Actions
In Conners v. Gusano's Chicago Style Pizzeria, plaintiffs, former employees of defendant, brought a collective action alleging violations of the Fair Labor Standards Act. Defendant responded by implementing a binding arbitration policy on current employees that specifically prevented current employees from joining plaintiffs in the collective action. The district court enjoined defendant from enforcing the arbitration agreement as to any current employees who chose to ... Keep Reading »
GCs facing more bet-the-company and higher exposure class actions
Across industries, companies spent $2 billion on class action lawsuits in 2014, slightly less than the $2.1 billion they spent in 2013. This year, spending is expected to return to 2013 levels. Companies’ class action dockets increased on average by one new case in 2014, bringing the average number of class actions managed to five. This total is expected to remain constant in 2015, as the number of new matters is likely to be offset by those resolved. As before, ... Keep Reading »
Question Certified To Second Circuit: Does The Court Or The Arbitrator Decide Whether An Arbitration Agreement Permits Class Arbitration?
In the Second Circuit, as in other jurisdictions, only exceptional circumstances will justify a departure from the basic policy of postponing appellate review until after the entry of a final judgment. A New York federal district court recently encountered such circumstances in connection with a motion to certify an interlocutory appeal of an order compelling arbitration. Plaintiffs filed a demand for class arbitration and defendants filed a competing motion to compel ... Keep Reading »
Second Circuit Vacates Class Certification Order, Applying Various State’s Laws Precludes Finding Of Predominance And Superiority
The Second Circuit vacated a class certification order issued by the Southern District of New York, finding that Rule 23(b)(3)'s predominance and superiority requirements could not be met given the necessity of applying 27 states' laws to putative class claims for breach of fiduciary duty, legal malpractice and breach of contract. The case involved a "novel approach to dispute resolution that continues to provoke a debate among experts in legal ethics." The plaintiffs ... Keep Reading »
Fifth Circuit Affirms Certification of Electronic Funds Transfer Act Class
In a case similar to its late-2014 decision in Mabary v. Home Town Bank, N.A., 771 F.3d 820 (5th Cir. 2014), the Fifth Circuit recently affirmed certification of a class of consumers who were charged a fee for using an automated teller machine (“ATM “) that allegedly lacked a fee notice on its exterior, in violation of the Electronic Funds Transfer Act (“EFTA”), 15 U.S.C. § 1693b(d)(3) (2011). See Frey v. First Nat. Bank Southwest, No. 13–10375, --- F. App’x ---, 2015 ... Keep Reading »
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