Justia Class Action Opinion Summaries

Articles Posted in Civil Procedure
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The case involves Sherry and David Lewis, who sued their auto insurer, GEICO, for allegedly breaching their insurance contract when their car was totaled. The Lewises claimed that GEICO undercompensated them by applying a "condition adjustment" that artificially reduced its valuation of their car and by failing to reimburse them for taxes and fees necessary to replace the car. They sought to certify a class of similarly underpaid insureds for each instance of underpayment.The District Court certified both classes under Federal Rule of Civil Procedure 23. GEICO appealed the decision, challenging the certification of the classes.The United States Court of Appeals for the Third Circuit affirmed the order certifying the class for the taxes-and-fees claim. However, the court found that the Lewises lacked standing to bring the condition-adjustment claim as they failed to show that GEICO caused them concrete harm when it applied the condition adjustment. Therefore, the court vacated the District Court’s order in part and remanded with instructions to dismiss the condition-adjustment claim.Regarding the taxes-and-fees claim, the court found that the Lewises met the requirements for standing as they alleged financial harm stemming from GEICO's pre-2020 practice of declining to pay taxes and fees to lessee insureds. The court also found that the class was ascertainable, meeting the requirements for class certification. View "Lewis v. GEICO" on Justia Law

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The case revolves around Lisa Stone, a tenant who signed a lease agreement that required her to provide maintenance services for which she alleges she was not compensated, in violation of Minnesota law. She initiated a class-action lawsuit against Invitation Homes, Inc., the parent company of her landlord, and THR Property Management, L.P., the manager of the leased property. Stone later amended her complaint to include various subsidiaries of Invitation Homes as defendants. Some of these subsidiaries argued that Stone lacked standing to sue them as she had not alleged that they had caused any injuries.The district court denied the subsidiaries' motion to dismiss. The subsidiaries appealed this decision to the court of appeals, which reversed the district court's decision and dismissed Stone's claims against the subsidiaries. The court of appeals reasoned that Stone lacked standing to bring her claims under the theory for standing found by the district court, and the juridical-link doctrine was improperly raised by Stone for the first time on appeal and did not apply in this case.Stone appealed to the Supreme Court of Minnesota, arguing that she has standing against the subsidiaries under the juridical-link doctrine. This doctrine posits that in a class action in which a named plaintiff has not alleged an injury caused by all defendants, a class may be certified when all defendants are linked by a conspiracy or concerted scheme that harmed the class. However, the Supreme Court affirmed the decision of the court of appeals, stating that Stone had forfeited the ability to have the merits of standing under the juridical-link doctrine determined on appeal as she failed to assert standing based on the juridical-link doctrine in the district court. View "Stone, vs. Invitation Homes, Inc." on Justia Law

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The Supreme Court of Maryland has ruled that the term "rent" under Real Property § 8-401, as applied to residential leases, refers to the fixed, periodic payments a tenant is required to make for use or occupancy of a rented premises. This definition excludes additional charges such as late fees, attorney’s fees, and court costs. The court also ruled that any provision in a residential lease that allows a landlord to allocate payments of "rent" to other obligations, thereby subjecting a tenant to eviction proceedings based on failure to pay "rent", violates Real Property § 8-208(d)(2). Further, penalties for late payment of rent, capped at 5% of the monthly amount of rent due, are inclusive of any costs of collection other than court-awarded costs. Finally, the court ruled that the Circuit Court erred in declining to review the merits of the tenants’ second renewed motion for class certification. The case has been remanded for further proceedings in line with these holdings. View "Westminster Management v. Smith" on Justia Law

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The case involved a lawsuit against Meta Platforms, Inc. (formerly known as Facebook) by a class of advertisers who claimed that Meta misrepresented the "Potential Reach" of advertisements on its platforms. The plaintiffs alleged that Meta falsely claimed that Potential Reach was an estimate of people, when in fact, it was an estimate of accounts.The United States Court of Appeals for the Ninth Circuit affirmed the district court's order certifying one class of advertisers (the damages class) who sought compensation for fraudulent misrepresentation and concealment. The court stated that the misrepresentation was a common issue for the class and that the district court properly determined that the element of justifiable reliance was capable of classwide resolution.However, the court vacated the district court's order certifying another class of advertisers (the injunction class) who sought injunctive relief. The court asked the lower court to reconsider whether the named plaintiff, Cain Maxwell, had Article III standing to seek an injunction. The case was remanded for further proceedings. View "DZ Reserve v. Meta Platforms, Inc." on Justia Law

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In this case, five former customers of Peregrine Financial Group, Inc., a defunct futures commission merchant, filed a class action lawsuit against various defendants, including JPMorgan Chase Bank and National Futures Association. They claimed that their investments were wiped out due to fraudulent activities by Peregrine's CEO. The United States District Court for the Southern District of New York dismissed the federal claims as time-barred and declined to exercise supplemental jurisdiction over the state-law claims.On appeal, the United States Court of Appeals for the Second Circuit affirmed the lower court's decision. The main issue addressed by the Second Circuit was whether a party could compel a district court to exercise subject-matter jurisdiction on a theory of jurisdiction that the party raised untimely.The Court held that a party may not do so. The Court distinguished between objecting to a federal court's exercise of jurisdiction, which a party could do at any stage in the litigation, and invoking the district court’s jurisdiction, which can be forfeited if not raised timely. Therefore, although federal courts must ensure they have jurisdiction, there is no corresponding obligation to find and exercise jurisdiction on a basis not raised by the parties. The Court concluded that the district court was within its discretion to decline to consider the untimely raised theory of jurisdiction. View "Behrens v. JPMorgan Chase Bank, N.A." on Justia Law

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In a complex and long-running series of legal disputes over attorney fees, two law firms, Shields Law Group and Paul Byrd Law Firm, and another firm, Hossley-Embry LLP, (collectively referred to as the "Objecting Firms") challenged the district court's approval of a settlement agreement among other firms involved in the litigation. The dispute arose from a class action lawsuit against Syngenta, an agricultural company, which was settled for $1.51 billion in 2018. One-third of the settlement was allocated for attorneys' fees, but the distribution of these fees among the numerous law firms involved in the case led to additional litigation.The district court approved a settlement agreement in which a group of firms (the Appellee Parties) agreed to pay $7 million to another firm, Watts Guerra. The Objecting Firms challenged this decision, arguing that it effectively reallocated money among the various pools of attorney fees. However, the Appellate Court concluded that the Objecting Firms lacked standing to challenge the district court's approval of the settlement agreement because they were not affected by it. The court also found that the Objecting Firms' challenges to the disbursement orders were moot. As a result, the court dismissed the appeals. View "SHIELDS LAW GROUP, LLC v. STUEVE SIEGEL HANSON LLP" on Justia Law

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In response to the COVID-19 pandemic, Ohio State University suspended in-person instruction, transitioned to virtual learning, restricted campus access, and provided limited refunds to students. Brooke Smith, a student at the university, filed a class-action lawsuit against the university, alleging breach of contract, unjust enrichment, and conversion. Smith argued that students had lost the benefits of their education without sufficient refunds.The Supreme Court of Ohio considered whether discretionary immunity, which shields the state from lawsuits for certain highly discretionary decisions, was a jurisdictional bar or an affirmative defense to suits brought against the state. The court held that discretionary immunity was indeed a jurisdictional bar, not an affirmative defense. This means that when the state makes highly discretionary decisions, such as its response to the COVID-19 pandemic, the Court of Claims does not have jurisdiction as the state has not waived its sovereign immunity for those decisions.However, the court noted that discretionary immunity is not absolute and does not extend to the negligent actions of the state's employees and agents in the performance of these activities. The court reversed the judgment of the Tenth District Court of Appeals, which had found that discretionary immunity was an affirmative defense, and remanded the case back to that court to determine whether Ohio State University was protected by discretionary immunity in its response to the COVID-19 pandemic. View "Smith v. Ohio State Univ." on Justia Law

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The case involves a group of 214 plaintiffs who filed a lawsuit against Devon Energy Production Company, L.P. in a Texas state court, alleging that Devon had underpaid them over $100 million in oil-and-gas royalties. Devon, a citizen of Oklahoma, removed the case to federal court under the Class Action Fairness Act (CAFA). The plaintiffs sought to have the case remanded to the state court based on CAFA’s “local controversy” exception. The district court agreed and ordered the case to be remanded.On appeal, the United States Court of Appeals for the Fifth Circuit disagreed with the district court's interpretation of the statute. The appellate court found that not all plaintiffs had incurred their "principal injuries" (financial harm from Devon's alleged underpayment of royalties) in Texas, as required under the "local controversy" exception of CAFA.Accordingly, the appellate court vacated the district court's judgment remanding the case to state court and directed that the case be reinstated on the district court's docket. This ruling signifies that the case will proceed in federal court, not state court. The court's ruling also clarified an important aspect of the CAFA's "local controversy" exception, specifically that all plaintiffs must have incurred their "principal injuries" in the state where the action was originally filed for the exception to apply. View "Cheapside Minerals v. Devon Energy" on Justia Law

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In this case before the United States Court of Appeals for the Third Circuit, the appellant, Paulette Barclift, sued Keystone Credit Services, LLC ("Keystone") for allegedly violating the Fair Debt Collection Practices Act ("FDCPA"). Barclift claimed that Keystone unlawfully communicated her personal information to a third-party mailing vendor, RevSpring, without her consent. She sought to represent a class of similarly situated plaintiffs. The District Court dismissed her suit on the grounds that she did not allege an injury sufficient to establish standing under Article III of the United States Constitution.Upon appeal, the Third Circuit agreed with the lower court that Barclift lacked standing, but modified the District Court's order so that the dismissal would be without prejudice. The court found that Barclift's alleged harm—embarrassment and distress caused by the disclosure of her personal information to a single intermediary (RevSpring)—did not bear a close relationship to a harm traditionally recognized by American courts, such as the public disclosure of private facts. Therefore, the court concluded that Barclift did not suffer a concrete injury and could not establish Article III standing. The court further held that the possibility of future harm was too speculative to establish a concrete injury. The case was dismissed without prejudice, allowing Barclift the opportunity to amend her complaint if she can allege a concrete injury. View "Barclift v. Keystone Credit Services LLC" on Justia Law

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In this toxic tort case, about 170 individuals allege that they were harmed by lead paint pigment. The plaintiffs, who were joined together in a single complaint, brought claims against several manufacturers of the pigment. After a series of trials, the district court granted summary judgment for the defendants on all claims. The court then extended these rulings to the remaining plaintiffs on law of the case and issue preclusion grounds. The United States Court of Appeals for the Seventh Circuit affirmed the district court's decision in large part but reversed in small part. The appellate court held that the law of the case doctrine properly applied to a group of plaintiffs who had opted to proceed under a single complaint and whose claims were sunk after summary judgment. However, the court reversed the district court's decision as to a small group of plaintiffs who filed their own cases, noting that due process protects their right to try their claims. The court also rejected the plaintiffs' request to revisit or certify certain questions addressed in a prior ruling, and affirmed that ruling based on the principle of stare decisis. View "Allen v. Armstrong Containers Inc." on Justia Law