Jaret J. Fuente and D. Matthew Allen The Southern District of California rejected a pre-certification class settlement because it provided for an inadequate coupon payment and a tenuous cy pres award, and included a clear sailing attorney fee provision. Plaintiff Hofman alleged that Dutch, LLC sells jeans labeled “Made in the USA” that contain foreign-made components (buttons, rivets, zippers, etc.) in violation of the California Business and Professional Code and the ... Keep Reading »
Supreme Court Steers Clear of Consumer Standing Issue in Spokeo
The Supreme Court has issued its long-awaited decision in Spokeo v. Robins. By a 6-2 vote, the Court reversed the Ninth Circuit decision that a class plaintiff who suffered no actual damages had standing to sue. But it did not address the merits of whether a plaintiff who has suffered no actual damages can nonetheless bring a class action on behalf of other putative class members who equally were not injured. Instead, the Court essentially punted and, in a narrow ... Keep Reading »
The Amount-in-Controversy Requirement Presents an “Obstacle” to CAFA Removal
In Pazol v. Tough Mudder Inc., No. 15-1640, --- F.3d ----, 2016 WL 1638045 (1st Cir. Apr. 26, 2016), the First Circuit analyzed the “reasonable probability” standard that a defendant must satisfy to support CAFA’s $5 million amount-in-controversy removal requirement. See 28 U.S.C. § 1332(d)(2). The putative class action began in Massachusetts state court and stemmed from a decision by the defendant, a promoter of a series of nationwide “obstacle course” races, to move ... Keep Reading »
CFPB Publishes Proposed Rule Banning Pre-Dispute Arbitration Agreements in Consumer Class Actions
This week, the Consumer Financial Protection Bureau (CFPB or Bureau) published a proposed rule which would prohibit application of pre-dispute arbitration agreements to class litigation involving a broad range of consumer financial products and services. Publication of the proposed rule was expected, as the Bureau announced in October its intention to do so based on its study findings that pre-dispute arbitration agreements "effectively prohibit" class litigation and ... Keep Reading »
The Future of Class Actions: The Impact of Justice Scalia’s Death on Upcoming Rulings
There is no doubt that the death of Supreme Court Justice Antonin Scalia will have major repercussions on Supreme Court jurisprudence. A 30-year veteran of the Court, Justice Scalia was known for his originalist positions and scathing dissents. He was also the fifth conservative vote on a court that now finds itself divided, which has not only set off a bitter political fight regarding his replacement, but could have significant implications for litigants. Class ... Keep Reading »
SCOTUS Denies Review Regarding Pennsylvania Wal-Mart “Rest Break” Class Judgment
On April 4, the United States Supreme Court denied certiorari review of a $188 million class-action judgment returned against Wal-Mart in Pennsylvania state court and later upheld by the Pennsylvania Supreme Court regarding claimed “rest break” and “meal break” violations. Only six plaintiffs testified on behalf of the class, and the plaintiffs’ experts used extrapolated evidence to calculate the total damages sustained (rather than actually determining the total damages ... Keep Reading »
Smooth Operators: Seventh Circuit Untangles Objections and Affirms Settlement of Hair Product Class
The Seventh Circuit Court of Appeals affirmed a class settlement over objection in a case involving a hair-smoothing product (“the Smoothing Kit”) that allegedly destroyed users’ hair and burned their scalps. Plaintiffs sued Unilever United States, Inc. (“Unilever”) in the Northern District of Illinois. Related actions in Kentucky and California were transferred to the Northern District of Illinois. The settlement class consisted of “all persons who purchased or used ... Keep Reading »
No Resurgence of “Picking Off” After Campbell-Ewald
We previously reported on two Rule 68 offer of judgment cases: Campbell-Ewald Co. v Gomez, 136 S.Ct. 663 (2016), see Supreme Court Rules Unaccepted Rule 68 Offer of Judgment Cannot Moot Class Action , in which the Supreme Court left open the possibility that an actual tender of the full amount of plaintiff’s claim would moot the claim, and Bais Yaakov v. Graduation Source, 2016 WL 1271693 (S.D.N.Y. March 29, 2016), see Will Tender of Full Amount of Named Plaintiff’s ... Keep Reading »
Southern District of California Diffuses Hairdryer Class
The Southern District of California decertified a nationwide consumer product class due to material differences between the state laws applicable to the claims. The plaintiff in Czuchaj v. Conair Corp. alleged a defect in certain Conair brand hairdryers. The district court certified a nationwide class under Rule 23(b)(2) and (b)(3) for implied warranty claims under the common law and the Magnuson Moss Warranty Act. The class was defined as: All persons who purchased ... Keep Reading »
A Tale of Two Orders: Different Results for Motions to Strike Class Allegations
The Southern District of California and the Northern District of Illinois recently entered orders addressing motions to strike class allegations—with very different results for the respective defendants. Although the claims and facts at issue in each case may warrant the different results, a contrast in approaches is evident. In Kim v. Shellpoint Partners, LLC, No. 15CV611-LAB (BLM), 2016 WL 1241541 (S.D. Cal. Mar. 30, 2016), the Southern District of California ... Keep Reading »
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