by
The Eighth Circuit vacated the district court's approval of a settlement agreement in a purported class action alleging that SC Data Center committed three violations of the Fair Credit Reporting Act. The court held that the district court erred by not assessing whether the class representative had standing before enforcing the settlement agreement. Therefore, the court remanded for the district court to address the standing issue. View "Schumacher v. SC Data Center, Inc." on Justia Law

by
The district court certified a class of Citizens Bank mortgage loan officers from 10 different states who alleged that they were unlawfully denied overtime pay. In an interlocutory appeal, the Third Circuit reversed the class certification decision. The district court failed to “define the class or class claims” as mandated by Rule 23(c)(1)(B). The district court’s analysis did not support a definitive determination as to whether the plaintiffs’ representative evidence satisfied Rule 23’s commonality and preponderance requirements; nor did it support a conclusion regarding either the existence of a company-wide policy or Citizens’ knowledge of it. While the appellate court acknowledged its jurisdiction over class certification under Rule 23, it concluded that Rule 23 certification and collective action certification under the Fair Labor Standards Act, 29 U.S.C. 216(b), are not sufficiently similar or otherwise “inextricably intertwined” to justify the exercise of pendent appellate jurisdiction. The court declined to consider the merits of the decision to certify a collective action under FLSA section 216(b). View "Reinig v. RBS Citizens NA" on Justia Law

by
The Supreme Judicial Court affirmed the superior court’s dismissal of employees’ (Employees) putative class action lawsuit brought against the corporate officers (Officers) of a ISIS Parenting, Inc. (Company), holding that the superior court judge properly granted the Officers’ motion to dismiss. After the Company abruptly ceased operations and terminated its entire workforce, the Employees brought a class action lawsuit against the Company in federal court alleging a violation of the Federal Worker Adjustment and Retraining Notification Act, 29 U.S.C. 2101-2109 (WARN Act). After receiving a nearly $2 million default judgment, the Employees brought a putative class action lawsuit against the Officers in state court under Mass. Gen. Laws ch. 149, 148 (Wage Act), alleging (1) the WARN Act damages constituted wrongfully withheld “earned wages” for which the Officers were liable; and (2) the Officers committed a breach of fiduciary duties owed to the Company by allowing the Company to violate the WARN Act. The superior court granted the Officers’ motion to dismiss. The Supreme Judicial Court affirmed, holding that the Employees’ complaint was properly dismissed because (1) WARN Act damages are not “earned wages” under the Wage Act; and (2) the Employees did not assert a viable claim for breach of fiduciary duties. View "Calixto v. Coughlin" on Justia Law

by
The class representative of federal securities class actions appealed the dismissal of the unsecured creditor claim and amended claim he filed in the pending Chapter 7 bankruptcy proceeding of lead class counsel, Green Jacobson, P.C. The Eighth Circuit held that the claim for the cy pres distribution was no longer an issue because the distribution had been returned by the charity and deposited with the district court clerk for ultimate distribution for the benefit of the NationsBank class; the negligent supervision claim was time-barred; the disgorgement claim was not time-barred by Missouri's five year statute of limitations; and the bankruptcy court did not err in disallowing the bankruptcy claim as premature and lacking in supporting foundation. Accordingly, the court affirmed in part, reversed in part, and remanded. View "Oetting v. Sosne" on Justia Law

by
Kileigh Carrington filed a complaint against her former employer, Starbucks Corporation, asserting a representative cause of action under the Private Attorney General Act (PAGA). In her suit, she claimed Starbucks failed to properly provide meal breaks or pay meal period premiums for certain employees in violation of Labor Code sections 226.7 and 512. In a bifurcated bench trial on plaintiff's action, the trial court determined Starbucks was liable for these violations and imposed penalties of $150,000, with 75 percent thereof payable to the Labor and Workforce Development Agency (LWDA) and 25 percent payable to Carrington and the employees she represented in the action. The trial court entered judgment in Carrington's favor. Starbucks appealed, arguing Carrington failed to prove she was an aggrieved employee and failed to prove a representative claim. After review, the Court of Appeal found no legal error and find that substantial evidence supported the judgment. View "Carrington v. Starbucks Corp." on Justia Law

by
Plaintiffs filed suit alleging that they were employees of insurers and service companies jointly, and were entitled to but deprived of minimum wages, overtime, meal and rest breaks, reimbursement of expenses, and accurate wage statements. On remand, the Court of Appeal affirmed the trial court's order denying certification and held that, under the analytic framework promulgated by Brinker Restaurant Corp. v. Superior Court (2012) 53 Cal.4th 1004, and Duran v. U.S. Bank National Assn. (2014) 59 Cal.4th 1, the trial court acted within its discretion in denying certification. View "McCleery v. Allstate Insurance Co." on Justia Law

by
The Ninth Circuit affirmed the district court's order granting plaintiffs' motion to remand to state court under the Class Action Fairness Act (CAFA). The panel held that this is essentially a dispute between those who use the Golden Gate Bridge to travel between Marin County, California and San Francisco, California, and defendants who are charged with operating the bridge on behalf of the State of California. The panel held that the district court properly ruled that the case against Conduent, the toll collector, belongs in state court with the California entities that manage the bridge's maintenance and operation. View "Kendrick v. Conduent State and Local Solutions, Inc." on Justia Law

by
BP sought discretionary review of an Appeal Panel's calculation of lost profits owed to appellee under the Deepwater Horizon Economic and Property Damages Class Action Settlement Agreement. The Fifth Circuit vacated the district court's denial of the request, holding that the Appeal Panels were split and this Appeal Panel misapplied the distinction between fixed and variable costs under the Business Economic Loss Formula. Therefore, the district court abused its discretion in failing to correct the significant error. The court remanded for further proceedings. View "BP Exploration & Production, Inc. v. Claimant ID 100094497" on Justia Law

by
The Illinois Department of Human Services pays personal home health care assistants to care for elderly and disabled persons. The assistants are public employees under the Illinois Public Labor Relations Act, which authorizes collective bargaining. The Union is their exclusive representative, required to represent all public employees, including non-members. Under the collective bargaining agreement, the Union collected limited "fair share" fees from workers who chose not to join, which were automatically deducted from the assistants' pay. Workers who objected to this arrangement sued under 42 U.S.C. 1983. The Seventh Circuit affirmed the dismissal of their claim; the Supreme Court reversed. On remand, the Objectors sought certification of a class, arguing that their proposed class of around 80,000 members was entitled to a refund of approximately $32 million. The Seventh Circuit affirmed a holding that class certification was inappropriate, stating that: the class definition was overly broad in light of evidence that a substantial number of class members did not object to the fee and could not have suffered an injury; named plaintiffs were not adequate representatives; individual questions regarding damages predominated over common ones; the class faced manageability issues; and a class action was not a superior method of resolving the issue. Following a second remand, the Seventh Circuit affirmed, holding that the Supreme Court’s 2018 “Janus” decision does not require a different result on whether the class-action device is proper for use in seeking refunds of fair-share fees. View "Riffey v. Rauner" on Justia Law

by
Plaintiffs sought class certification for their claims alleging that the MDOC and other related defendants violated the Eighth Amendment and Title II of the Americans with Disabilities Act (ADA) by providing inadequate medical screening and care for chronic Hepatitis C (HCV) viral infections. Plaintiffs alleged that the MDOC's policies exposed the class to a substantial risk of serious harm. The Eighth Circuit affirmed the district court's grant of class certification, holding that the evidence was sufficient to permit the district court to conduct a rigorous analysis into class certification; the numerosity, commonality, and typicality requirements were met in light of the prospective injunctive and declaratory relief sought; and sufficient evidence of a common policy existed to comply with Rule 23(b)(2). Finally, the court noted that federalism concerns could be considered after the district court imposed an equitable remedy if applicable, and ADA-reated arguments did not relate to the class certification. View "Postawko v. Missouri Department of Corrections" on Justia Law