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 »
Predominance Class Action Articles
The latest class action developments and trends in predominance, including news, key cases, and strategies.
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 »
Circuit Court Holds Comcast Does Not Foreclose Certification of Labor Law Class With Individualized Damages
In a class action brought under the Fair Labor Standard Act and New York Labor Law, the Second Circuit court of appeals reversed the district court’s denial of class certification and held that the Supreme Court’s 2013 decision in Comcast Corp. v. Behrend does not overrule the established principle that “the fact that damages may have to be ascertained on an individual basis is not sufficient to defeat class certification under Rule 23(b)(3).” Plaintiff alleged that ... Keep Reading »
Second Circuit Affirms Certification of Consumer Debt Collection Class, Distinguishing Comcast v. Behrend
These cases, on a consolidated appeal, involved three defendants: a company that purchased consumer debts, a debt collection law firm, and a process server. Plaintiffs had each been sued in various debt collection actions by defendants. Plaintiffs alleged that defendants obtained default judgments against them fraudulently by using a “default judgment mill,” whereby defendants would purchase the debt, issue summonses and complaints en masse, and automatically generate ... Keep Reading »
District of Colorado Declines To Certify Deceptive Practices Class
The District of Colorado declined to certify a class in a case against Dollar Rent A Car where the Plaintiff alleged Dollar tricked renters into buying Loss Damage Waiver ("LDW"), supplemental liability insurance ("SLI"), and roadside assistance ("Roadsafe") (collectively "Add-On Products") that they had declined, or charged them without proper consent or contrary to disclosure requirements. Plaintiff alleged Dollar violated the Colorado Consumer Protection Act and ... Keep Reading »
Eighth Circuit Decertifies Four FDCPA Classes Where District Court Failed to Conduct Rigorous Analysis Required by Wal-Mart Stores, Inc. v. Dukes
The Eighth Circuit recently held that a district court abused its discretion by certifying four classes of Nebraska consumers in an action against a debt collector and its attorneys for alleged violations of the Fair Debt Collection Practices Act (“FDCPA”) and the Nebraska Consumer Protection Act (“NCPA”) based on the defendants’ use of standard-form pleadings and discovery requests in state court collection actions. In so holding, the Eighth Circuit emphasized that the ... Keep Reading »
California District Court Denies Certification Where Putative Class Members Lack Standing and Plaintiff Fails to Conduct Extensive Choice of Law Analysis Necessary to Support Nationwide Class
The United States District Court for the Eastern District of California recently denied class certification in a case alleging wrongdoing by a loan servicer in connection with the Home Affordable Modification Program (“HAMP”). Plaintiff brought the putative class action after defendant foreclosed on his home, seeking to represent a nationwide class of homeowners who had received permanent modification agreements (“PMAs”) for loan modifications that defendant failed to ... Keep Reading »
Correlation Is Not Causation: Class Certification Denied Because Experts’ Methodologies Fail To Show Predominate Antitrust Injury For Either Direct Or Indirect Purchasers Of Optical Disk Drives
A California federal district court denied certification of two nationwide classes, each asserting a price-fixing conspiracy for optical disk drives (“ODD”), because the plaintiffs’ experts failed to provide a viable methodology for establishing class-wide antitrust injury. The plaintiffs alleged that the defendants colluded to fix prices for ODDs, thereby preventing ODD prices from declining as quickly or as far as they would have absent the defendants’ anticompetitive ... Keep Reading »
Ninth Circuit Approves Statistical Sampling And Affirms Certification Of Overtime Class
The Ninth Circuit recently affirmed certification of a class of an estimated 800 current and former California-based Allstate Insurance Company adjusters who allege that Allstate has a practice or unofficial policy of requiring its hourly claims adjusters to work unpaid off-the-clock overtime in violation of California law. In certifying the class, the district court found that the question of whether Allstate had an unofficial policy of denying overtime payments while ... Keep Reading »
Texas District Court Denies Class Certification for Hedge Fund Investors on Numerosity and Predominance Grounds
In 2008, investors in the Parkcentral hedge fund lost as much as $3 billion dollars when Parkcentral’s investment in commercial mortgage-backed securities (“CMBS”) was devalued. The investors, limited partners of Parkcentral, sued employees of Parkcentral’s general partner alleging that they breached fiduciary duties by making material misrepresentations and omissions regarding the nature of Parkcentral’s investments and hedging strategy. In particular, the investors ... Keep Reading »
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