The Supreme Court's 2011 decision in AT&T Mobility LLC v. Concepcion upheld an arbitration clause requiring arbitration of claims individually, thereby effectively preventing class actions. While the consumer finance industry and other industries frequently invoked arbitration clauses in defending lawsuits before AT&T, since that decision was published, industry has increasingly relied on such clauses to successfully defend against expensive class ... Keep Reading »
Sweet Ending for Plaintiffs in Food Labeling Class Action Against Ghirardelli
A California district court certified a Rule 23(b)(3) food labeling class action against chocolatier Ghirardelli and approved a proposed settlement. The genesis of plaintiffs' claim is that defendant mislabeled its "White Chips" and other products in a way that would mislead consumers into believing that the products contained white chocolate. Plaintiffs also asserted a claim that the "all natural" label was improper because the products contained "genetically modified, ... Keep Reading »
Illinois District Court Denies Certification of Class in TCPA Claim for Lack of Typicality, Adequacy, Numerosity and Ascertainability
The Northern District of Illinois denied certification of a class in a claim brought pursuant to the Telephone Consumer Protection Act ("TCPA"), 47 U.S.C. Sec. 227. Plaintiff alleged that defendant violated the TCPA by sending it unsolicited faxes promoting defendant's catering services. In discovery, plaintiff obtained a fax log demonstrating that Defendant sent 3,000 faxes to 106 unique fax numbers. Plaintiff also obtained a template fax that defendant allegedly used ... Keep Reading »
District Court for the District of Columbia Finds CAFA Jurisdiction Exists; Denies Remand For Lack of Local Controversy
The U.S. District Court for the District of Columbia denied a motion to remand an action removed pursuant to the Class Action Fairness Act (CAFA), where the plaintiff failed to show CAFA’s local controversy exception applied. Plaintiff sued a Washington, D.C. health club and several others for allegedly fraudulently taking out lines of credit against customers and billing against them without the customers’ knowledge or consent. The Plaintiff conceded minimal ... Keep Reading »
Eleventh Circuit Holds That Defendant Cannot Be Precluded From Asserting Its Arbitration Rights Against Future Class Members
The Eleventh Circuit recently held that a district court lacked jurisdiction to determine, pre-certification, that a defendant’s waiver of its right to compel named plaintiffs to arbitrate their claims precluded it from asserting its arbitration rights against putative unnamed class members. The case involved five putative class actions against the defendant bank and its predecessor related to allegedly improper checking account overdraft fees. Plaintiffs’ customer ... 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 »
Sixth Circuit Rejects Rule 23(F) Petition: Comcast Not Necessarily Triggered By Antitrust Class’s Use Of A Single Damages Model For Multiple Theories Of Liability
In an antitrust class action lawsuit, multiple theories of liability often create separable anticompetitive effects that, when combined, can result in aggregated damages, but a plaintiff's model must measure damages attributable only to the liability theory (and resulting anticompetitive effects) accepted for class action treatment. Thus, an antitrust lawsuit involving money damages cannot be certified to proceed as a class action unless the damages sought result from ... Keep Reading »
No Harm, No Standing: Texas Federal Court Dismisses Data Breach Class Action
Dismissing a class action based on a data breach, the Southern District of Texas added to the growing number of decisions that find an alleged risk of future identity theft due to a data breach is not an injury that creates standing to bring federal claims. The plaintiff, Beverly Peters, a former St. Joseph patient, brought a class action lawsuit against the medical provider after receiving notification that her personal information and protected health information had ... Keep Reading »
District Court Strikes Homeowners Policyholders’ Class Action Allegations
The United States District Court for the Southern District of Ohio granted defendant State Auto's motion to strike plaintiffs' class allegations, holding that the complaint itself demonstrated that the proposed class was not ascertainable and could not satisfy Rule 23(a)'s commonality and typicality requirements, nor the predominance and superiority requirements of Rule 23(b). The complaint alleged that State Auto committed fraud, breached the duty of good faith and ... Keep Reading »
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