Bell v. Brockett is an unusual case in several respects. Most notably, the Fourth Circuit affirmed certification of a defendant class, despite acknowledging that defendant class actions are "so rare they have been compared to unicorns." The court not only acknowledged the rarity of defendant class actions but also commented on their "inherent risks." Indeed, in a delightful footnote the court explained that although both unicorns and defendant class actions are rare, the ... Keep Reading »
Opt-Out Arbitration Program Binds Employees in Wage and Hour Class Action
A recent decision by a Wisconsin district court illustrates the impact of an arbitration agreement on class actions. The plaintiffs alleged violations of the Fair Labor Standards Act (FLSA) and state wage and overtime laws, claiming that employees were not compensated for 15 minutes of activity at the start of every workday and that actual pay was understated for purposes of calculating overtime. The defendants moved to compel arbitration on an individual basis. The ... Keep Reading »
Lights Out on Classwide Arbitration: The Supreme Court Rules in Lamps Plus That Ambiguity in Agreements Is Not Enough to Permit Classwide Arbitration
Recently, the Supreme Court extended its prior rulings looking skeptically at the idea of classwide arbitration, holding that even when an agreement is “ambiguous” about the availability of classwide arbitration, such arbitration is still barred. Nine years ago, in Stolt-Nielsen S.A. v. AnimalFeeds International Corp., 559 U.S. 662 (2010), the Court had ruled that classwide arbitration may not be compelled when an agreement is “silent” on the availability of such ... Keep Reading »
Question of Consent Turns Putative TCPA Fax Class Action Into Junk
A recent decision by a Connecticut district court reiterates that the issue of consent may foreclose class certification in Telephone Consumer Protection Act (TCPA) junk fax cases. The action was one of several putative class actions brought by Gorss Motels Inc. against suppliers to Wyndham hotels and its various franchisees. Gorss was a former corporate owner of a Wyndham franchise hotel. Defendant Otis Elevator Co. had a contract with a subsidiary of Wyndham as an ... Keep Reading »
Split Over Impact of Bristol-Myers Squibb on Class Actions Deepens
Bakov v. Consolidated World Travel, Inc. is the latest salvo in the conflict over whether the Supreme Court’s personal jurisdiction decision in Bristol-Myers Squibb applies in the class action context. As we have blogged in the past, Bristol-Myers concerned claims in California state court made by non-California residents, claims that were not sufficiently connected to California to qualify for specific personal jurisdiction on their own. The Court held that California ... Keep Reading »
Chaos in Gaos: Supreme Court Avoids Cy Pres Ruling and Remands Google Settlement for Standing Analysis
On March 20, 2019, the U.S. Supreme Court issued a per curiam opinion vacating the decision of the Ninth Circuit in Frank v. Gaos. The Court granted certiorari to evaluate a cy pres settlement in a class action. The district court approved a settlement fund granting $8.5 million in monetary relief in a suit brought by plaintiffs alleging that Google’s privacy practices violated the Stored Communications Act. The class included tens of millions of Google users. Because ... Keep Reading »
Illinois Supreme Court Finds No Actual Harm Needed to Sue Under State’s Biometric Privacy Statute
The Illinois’ Biometric Information Privacy Act (740 ILCS 14/1 et seq.) (BIPA) requires that companies obtain written consent and disclose how they collect, retain, disclose and destroy biometric identifiers such as retina or iris scans, fingerprints, voiceprints, scans of hand or face geometry, or other biometric information from the public. BIPA provides “aggrieved” individuals a private right of action to sue, which if successful, could result in liability up to ... Keep Reading »
No Standing, No Settlement?
In a recent decision, the Eighth Circuit weighed in on the requirement that federal courts assess Article III standing before approving a settlement agreement. In the case at issue, plaintiff filed a putative class action for purported violations of the Fair Credit Reporting Act (“FCRA”) against a data company in state court. Defendant removed to the District Court for the Western District of Missouri. Shortly after the parties reached a tentative settlement ... Keep Reading »
Ninth Circuit Says Local Rule 90-Day Deadline to File Class Certification Motion Incompatible With Federal Rule 23
In a case with potentially nationwide ramifications, the Ninth Circuit reversed a California district court’s decision striking a motion for class certification as untimely, finding the district court’s local rule requiring class certification motions be filed within 90 days of the complaint was inconsistent with Federal Rule of Civil Procedure Rule 23. Several other districts, including the Northern District of Georgia, the Northern District of Texas, and the Middle ... Keep Reading »
If at First You Don’t Succeed, Try Another CAFA Exception
A Ninth Circuit Court of Appeals Panel recently affirmed a district court order remanding a putative class action to state court after the defendants' initial removal under CAFA. The case involved claims on behalf of users of the Golden Gate Bridge against three defendants for violations of California's privacy statutes concerning the collection and sharing of personally identifiable information. Specifically, the plaintiffs alleged that after collecting information of ... Keep Reading »
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