Gibbons Law Alert

Gibbons Law Alert

Category: Class Action Defense

Third Circuit Emphatically Enforces Last Year’s Ruling in Marcus on Rule 23(a) Prerequisites

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Posted in Class Action Defense

On October 9, 2013

In Hayes v. Wal-Mart Stores, Inc., the Third Circuit determined that the plaintiff consumer failed to satisfy Rule 23’s ascertainability and numerosity requirements for class actions as articulated in Marcus v. BMW of North America, LLC and remanded the matter to the District Cout so that the plaintiff could address the clarified requirements expressed in Marcus, which was not yet decided at the time of the District Court proceedings in Hayes. By doing so, the Third Circuit demonstrated that it intends to continue vigilantly enforcing Rule 23’s threshold requirements for plaintiffs.

Citing Concepcion, Ninth Circuit Holds that FAA Preempts Montana State Law that Invalidates Mandatory Arbitration Clause

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Posted in Class Action Defense

On August 8, 2013

In Mortensen v. Bresnan Communications, LLC, the plaintiffs filed a putative class action against Bresnan Communications alleging violations of various federal and Montana state laws in connection with targeted advertising that they received as customers of high-speed, broadband Internet service. When signing up for the service, the plaintiffs had entered into a subscriber agreement that contained a mandatory arbitration provision and designated the application of New York law to all disputes. Applying the U.S. Supreme Court’s 2011 decision in AT&T Mobility LLC v. Concepcion, the Ninth Circuit found that the Federal Arbitration Act (“FAA”) preempted a Montana state law that the District Court had relied on to invalidate the mandatory arbitration clause.

Seventh Circuit Allows comScore Privacy Litigation to Proceed as a Class Action

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Posted in Class Action Defense

On August 6, 2013

In what has been dubbed, “the largest privacy class action suit ever,” the Seventh Circuit in Harris v. comScore, Inc., refused interlocutory review of the District Court’s order granting class certification. Although utterly silent as to the basis for denying review under Fed. R. Civ. P. 23(f), the Court of Appeal’s decision is likely to impact future privacy class actions as well as corporate culture as we know it.

Delaware Supreme Court Expands Class Action Tolling

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Posted in Class Action Defense

On August 2, 2013

In a decision that expands the ability of plaintiffs to bring class actions in Delaware, the Delaware Supreme Court in Dow Chemical Corp. & Dole Food Company, Inc. v. Blanco adopted so-called cross-jurisdictional tolling, holding that the statute of limitations as to the claims of individual members of a putative class is tolled while a putative class action on their behalf is pending, regardless of “whether the class action is brought in Delaware or in a foreign court.”

Ninth Circuit Rules that Redemption Value of Coupons Cannot be Ignored in Calculating Attorneys’ Fees in Coupon Settlements

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Posted in Class Action Defense

On July 30, 2013

In In re HP Inkjet Printer Litigation, the Ninth Circuit reversed a District Court’s approval of a class action settlement providing “e-credits,” or coupons, to class members, on the ground that the class counsel fee award violated § 1712 of the Class Action Fairness Act (“CAFA”). The parties’ settlement agreement had provided for $5 million in coupons, as well as injunctive relief in the form of additional product disclosures. The District Court, recognizing that the coupons were worth significantly less than their face value, estimated that the “ultimate value” of the combined coupon and injunctive relief to the class was approximately $1.5 million, and awarded fees of $1.5 million based solely on the lodestar method, without calculating the actual redemption value of the coupons.

“100% Pure and Natural” Claims Not Preempted in Putative Class Action Against Tropicana Orange Juice

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Posted in Class Action Defense

On July 11, 2013

In Lynch v. Tropicana Products, Inc., a Federal District Court in New Jersey refused to toss a putative class action against Tropicana alleging that its “100% pure and natural” claim, and its advertisement showing an orange being “pierced” by a straw ― inferring that the consumer is essentially drinking right from the orange ― is false and misleading.

Pleading Setback Stalls N.J. Moldy Washing Machine Class Action, Which Will Face Uncertainty in Light of Comcast

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Posted in Class Action Defense

On July 2, 2013

A New Jersey moldy washing machine class action suffered a big pleading setback after the District of New Jersey held that the lengthy complaint still contained insufficient detail to place the defendant on notice of the precise misconduct alleged. But even if plaintiffs replead their case, their ultimate goal of class certification may be stymied in light of the Supreme Court’s decision in Comcast Corp. v. Behrend, and its collateral effect upon other defective washing machine putative class actions.

Be Careful What You Wish For: Supreme Court Upholds Arbitrator’s “Erroneous” Class Arbitration Ruling

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Posted in Class Action Defense

On June 19, 2013

In Oxford Health Plans LLC v. Sutter, the U.S. Supreme Court affirmed an arbitrator’s decision that an agreement providing for arbitration of any disputes, constituted an agreement to participate in class arbitration. While at first blush this appears to be a departure from Stolt-Nielsen, S.A. v. AnimalFeeds Int’l Corp., it is not. Oxford Health says more about limited judicial review of an arbitrator’s decision than it does about the permissibility of class arbitration.

Supreme Court Rules that FLSA Collective Actions Are Distinct From Rule 23 Class Actions, But Fails to Resolve Circuit Split on Effect of Unaccepted Offers of Judgment

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Posted in Class Action Defense

On May 8, 2013

On April 16, 2013, the U.S. Supreme Court ruled in Genesis Healthcare Corp. v. Symczyk, that a plaintiff-employee’s Fair Labor Standards Act (“FLSA”) collective action could not proceed because her claims were moot after the defendant offered the plaintiff, per Federal Rule of Civil Procedure 68, full relief for her individual claims. Although the decision is limited to FLSA collective actions, the Court’s rationale has the potential to apply to Rule 23 class actions as well.

In Comcast, Supreme Court Reinforces Difficult Standard for Obtaining Class Certification

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Posted in Class Action Defense

On April 24, 2013

In its much-anticipated opinion in Comcast Corp. v. Behrend, the United States Supreme Court continued its recent trend of requiring a more demanding standard for plaintiffs seeking class certification. Citing its notable opinion in Wal-Mart Stores, Inc. v. Dukes, the Court made clear that district courts must conduct a rigorous analysis of plaintiffs’ evidence before certifying a proposed class, including addressing questions that ultimately bear on the merits.

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