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 »
United States Supreme Court Class Action Articles
The latest class action developments and trends in the United States Supreme Court, including news, key cases, and strategies.
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 »
Employers and Employees Look Ahead to Potential Impact of SCOTUS Rulings on Arbitrations vs Class Action Cases
Carlton Fields Shareholder Julianna Thomas McCabe was quoted by CNBC in an article about whether the U.S. Supreme Court will make it harder for workers to take their employers to court. A fair arbitration is better and faster than a trial for both parties, said McCabe, who leads the firm’s National Class Actions practice group. McCabe told CNBC the Supreme Court appears “extremely interested in this issue” ahead of oral argument in Henry Schein Inc. v. Archer and White ... Keep Reading »
Tenth Circuit Finds Plaintiffs’ Settle and Dismiss Strategy Unappealing
Following Supreme Court precedent, the Tenth Circuit recently held that plaintiffs’ settlement and voluntary dismissal of their claims did not transform the court’s interlocutory order denying class certification into a final, appealable order under 28 U.S.C. § 1291. Plaintiff trusts brought a putative class action against an energy company, alleging various claims related to royalty interests under gas leases, and sought to certify a class. The district court denied ... Keep Reading »
Put This in Your Pipe: Supreme Court Rules 9-0 That American Pipe Tolling Does Not Permit Filing of Serial Class Actions Beyond the Statute of Limitations
As we previously reported, last year the Ninth Circuit in Resh v. China Agritech, Inc., No. 15-55432, 2017 WL 2261024 (9th Cir. May 24, 2017), joined a circuit split when it held that the statute of limitations did not bar a third successive putative class action alleging securities fraud claims against a fertilizer manufacturer. The Ninth Circuit’s decision would have expanded the American Pipe equitable tolling rule to allow absent members of an uncertified class to ... Keep Reading »
Supreme Court Upholds Use of Class Action Waivers in Employment Arbitration Agreements
In a significant decision awaited by U.S. employers since January 2017, the Supreme Court upheld the use of class action waivers in arbitration agreements. Justice Gorsuch wrote the majority opinion, which was joined by Justices Roberts, Kennedy, Thomas, and Alito. Justice Ginsburg filed an extensive dissenting opinion joined by Justices Breyer, Sotomayor, and Kagan. The decision answers a question that has loomed large for employers: Can they include class action ... Keep Reading »
Supreme Court to Determine Whether An Arbitration Clause Must Explicitly Authorize Class-wide Arbitration
The Supreme Court recently granted certiorari in Lamps Plus Inc. v. Varela, to determine “[w]hether the Federal Arbitration Act forecloses a state-law interpretation of an arbitration agreement that would authorize class arbitration based solely on general language commonly used in arbitration agreements.” In other words, at issue is whether an arbitration clause must explicitly allow for class-wide arbitration, rather than solely on an individual basis, in order to find ... Keep Reading »
Will the Supreme Court Take a Charitable View of Cy Pres Settlements?
On April 30, the Supreme Court granted certiorari in Frank v. Gaos, No. 17-961 to review the fairness of the ever-increasing use of cy pres remedies in class action settlements. Cy pres remedies are often used to fund charitable or educational organizations when it would be infeasible to provide monetary relief directly to class members. In Frank v. Gaos, No. 15-15858 (9th Cir. 2017), the Ninth Circuit affirmed the district court’s approval of a cy pres-only ... Keep Reading »
Cyan Makes SLUSA Removal Proponents Feel Blue: Supreme Court Holds That Securities Act of 1933 Class Actions Can Stay in State Court
On March 20, the Supreme Court reached two holdings important to securities litigators. First, the Court held that the Securities Litigation Uniform Standards Act of 1998 (“SLUSA”) did not strip state courts of their ability to adjudicate class actions under the Securities Act of 1933 (“Securities Act”). Second, the Court held that SLUSA does not allow removal to federal court of class actions alleging claims only under the Securities Act. Petitioners were an issuer ... Keep Reading »
Supreme Court Declines Review of Standing in Data Breach Class Actions
Counsel hoping for Supreme Court guidance on standing issues dividing the circuit courts will have to wait a bit longer. On February 20, the Court denied a petition for writ of certiorari in Attias v. CareFirst to resolve a circuit split over whether allegations of fear of future identity theft in the wake of a data breach satisfy the standing requirements of Article III of the United States Constitution. In the absence of Supreme Court guidance on this issue, we ... Keep Reading »
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