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The Supreme Court held that the circuit court’s order certifying a class action filed by Employees failed to comply with Ark. R. Civ. P. 23(b). In their complaint, Employees alleged claims of breach of contract and unjust enrichment based on Employer’s failure to compensate Employees for earned but unused vacation time. The circuit court granted Employees’ motion for class certification. Appellants filed this interlocutory appeal arguing that Employees failed to demonstrate commonality, predominance, and superiority as to their breach of contract claim. The Supreme Court remanded the case, holding that the circuit court’s bare conclusion that “Plaintiffs have satisfied all elements of Rule 23 of the Arkansas Rules of Civil Procedure and class certification is appropriate in this case” was clearly insufficient for the Supreme Court to conduct a meaningful review. View "Industrial Welding Supplies of Hattiesburg, LLC v. Pinson" on Justia Law

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In 2007, a Palatine police officer issued Collins a parking ticket, placing the bright yellow ticket under his car’s wiper blades. The ticket listed his name, address, driver’s license number, date of birth, sex, height, and weight. Collins claims that the display of his personal information violated the Driver’s Privacy Protection Act (DPPA), 18 U.S.C. 2721. In 2016, he sued the village on behalf of himself and a proposed class. The DPPA’s statute of limitations is four years but a purported class action filed in 2010 (Senne’s case) tolled the statute for everyone in the proposed class. In 2010, before Senne filed a class certification motion, the district court dismissed for failure to state a claim. The Seventh Circuit reversed. The district judge again entered summary judgment and “terminated” a motion for class certification as moot. The Seventh Circuit affirmed. In November 2015, the Supreme Court denied certiorari; on the same day, Senne’s attorney, Murphy, filed a successor class action on behalf of himself and a proposed class as a placeholder. Murphy later filed this suit naming Collins as the class representative. The district court held that Collins’s claim was time-barred and denied the motion for class certification. The Seventh Circuit affirmed. Dismissal with prejudice strips a case of its class-action character. Tolling stops immediately when a class-action suit is dismissed—with or without prejudice—before the class is certified. View "Collins v. Village of Palatine" on Justia Law

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Plaintiffs, members of Global Fitness gyms, believed that Global misrepresented the terms of its gym memberships and sued as a class. The parties settled: Global agreed to pay $1.3 million to the class members, class counsel’s fees as ordered by the court, and the claims administrator’s fees and costs. The court approved the agreement over the objections of some class members and ordered its implementation. The Sixth Circuit affirmed. The Supreme Court denied certiorari. In the meantime, Global had sold all of its gyms and funneled $10.4 million of the proceeds to its managers through “tax distributions.” The payments Global owed to the class were in escrow under the terms of the settlement agreement, which made no similar provision for class counsel and the claims administrator. Days before its payment obligation under the agreement came due, Global notified the court it could not meet its remaining obligations. The court held Global Fitness and its managers in civil contempt. The Sixth Circuit reversed. Global had no legal obligation to conserve funds to pay class counsel and the claims administrator while the appeals were pending. Its obligation to pay became definite and specific only once the appeals were exhausted. The court erred in considering any of Global’s conduct from before that date and by holding the managers jointly and severally liable. View "Gascho v. Global Fitness Holdings, LLC" on Justia Law

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In the 1980s, merchant marine plaintiffs filed asbestos-liability suits against ship-owner and manufacturer defendants in the Northern District of Ohio. That court ruled, in 1989, that it lacked personal jurisdiction over many of the defendants. Instead of dismissing those defendants, the court stated that if a defendant did not wish to be transferred, it could “waive the in personam jurisdiction problem” by filing an answer. Some did so. In 1990, the court ordered the transfer of some cases to scattered venues. Those transfers did not occur. Certain defendants sought to appeal the order, specifically stating that they did not waive jurisdiction. The court did not certify the interlocutory appeal. Eventually, the cases were consolidated into multidistrict litigation in the Eastern District of Pennsylvania. Certain defendants objected, arguing that they had been “strong-armed” into submitting to Ohio jurisdiction. The Pennsylvania court held that the N.D. of Ohio lacked personal jurisdiction over the relevant defendants and that those defendants had not waived or forfeited their personal jurisdiction defense. Thousands of parties were dismissed. Ten plaintiffs appealed the Pennsylvania’s decision as to 19 defendants. The Sixth Circuit affirmed. The Pennsylvania district court did not abuse its discretion in holding that the ship-owner defendants had not waived their personal jurisdiction defense by filing answers in the N.D. of Ohio and had no authority to transfer the cases to jurisdictions that did have jurisdiction. View "Kalama v. Matson Navigation Co." on Justia Law

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The Class Action Fairness Act extends federal court jurisdiction to class actions on behalf of 100 or more people and in request of $5 million or more in damages if “any member of a class of plaintiffs is a citizen of a State different from any defendant,” 28 U.S.C. 1332(d)(2)(A), (d)(5), (d)(6). Roberts filed a class action on behalf of Tennessee citizens against Mars, a citizen of Tennessee and Delaware, alleging a conspiracy to employ a “prescription-authorization requirement” to sell pet food at above market prices in violation of the Tennessee Trade Practices Act. Mars removed the case to federal court, invoking its Delaware citizenship and claiming its Tennessee citizenship did not matter. The Sixth Circuit reversed the district court’s denial of plaintiffs’ motion for remand to state court. Because section 1332(d)(2)(A) refers to all of a defendant’s citizenships, not the alternative that suits it, Mars cannot rely on its state of incorporation (Delaware) and ignore its principal place of business (Tennessee) to create diversity under the Act. View "Roberts v. Mars Petcare US, Inc." on Justia Law

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In this ancillary statutory proceeding in aid of collection on a judgment, the Supreme Court affirmed the ruling of the circuit court awarding summary judgment in favor of Respondents. Respondents were previously awarded a judgment against Employer in a class action alleging violations of the West Virginia Wage Payment and Collection Act. Respondents later caused a suggestion a personal property to be served upon Petitioner in which they sought amounts, obligations, and things of value owed to Employer. Respondents then sought to make Petitioner liable for Respondents’ judgment. The circuit court granted, in part, the motion to make Petitioner liable for Respondents’ judgment and then directed Petitioner to pay Respondents the amount of their judgment against Employer. The Supreme Court affirmed, holding that summary judgment was proper where Petitioner’s contractual obligations to Employer were subject to Respondents’ suggestion and where West Virginia law provides for suggestion upon unmatured debts. View "IPacesetters, LLC v. Douglas" on Justia Law

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Plaintiff-appellant Paul Kendall's second amended complaint made several types of class-wide claims that challenged the billing and collection practices of the health facility operating an emergency room where he received care, defendant and respondent Scripps Health (Scripps). Kendall contended that "selfpay" patients, who signed a form during the reception process at the emergency room (an "Agreement for Services at a Scripps Facility"), were being unfairly billed under that contractual agreement at prescribed rates that are listed on a publicly available "charge description master" (Charge Master). This appeal arose out of the trial court's order denying Kendall's motion to certify a proposed class of self-pay patients for the pursuit of two overriding legal theories that applied to both the declaratory relief and statutory claims. Scripps opposed the motion, arguing a class action was not shown to be an appropriate method to pursue the case because of a lack of predominant common issues and of any convincing showing of an ability to ascertain the identity of all the proposed class members. The trial court denied the motion for class certification, concluding that Kendall had not presented any substantial evidence showing there were predominant common issues of law and fact among the putative class members. On appeal, Kendall contends the trial court's order denying class certification of his statutory claims reflects the use of improper criteria and an incorrect legal analysis. Finding no abuse of discretion or lack of substantial evidence, the Court of Appeal affirmed the order denying class certification. View "Kendall v. Scripps Health" on Justia Law

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The Ninth Circuit vacated the district court's order granting plaintiff's motion to remand a putative class action alleging that Monterey recorded or monitored its telephone conversations with plaintiff without giving her notice. The panel held that plaintiff did not meet the requirements of the Class Action Fairness Act's (CAFA), 28 U.S.C. 1332, home-state controversy exception because she did not prove that two-thirds of all class members were California citizens. In this case, plaintiff seeks to remand an otherwise valid CAFA case to state court when only a portion of the class meets the two-thirds citizenship requirement. The size of the entire class is unknown and plaintiff failed to prove that two-thirds of class members are California citizens because there was no evidence regarding the citizenship of class members who made or received a phone call from Monterey while located in, but not residing in, California or Washington. Accordingly, the panel remanded for further proceedings. View "Brinkley v. Monterey Financial Services, Inc." on Justia Law

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Georgia Urology, P.A., and several of its member physicians filed objections to challenge a $124 million attorney fee awarded by the Jefferson Alabama Circuit Court to class counsel as part of the settlement of Johnson v. Caremark Rx, LLC ("the Caremark class action). After the trial court overruled their objections and its judgment approving the settlement became final, the objectors appealed the attorney fee to this Court. Caremark Rx bought MedPartners; MedPartners was the subject of dozens of securities-fraud lawsuits alleging that it had made false statements regarding its financial condition and anticipated future performance. Many of those lawsuits were eventually consolidated into a class action. In 1999, the MedPartners class action was settled for $56 million based on MedPartners' assertions that the negotiated settlement exhausted its available insurance coverage and that it possessed limited other assets it could use to pay a larger award or settlement. Post-settlement, however, it was revealed in unrelated litigation that MedPartners actually held an excess-insurance policy providing unlimited coverage during the period in which the alleged fraud had been committed. In 2003, the Caremark class action was initiated against MedPartners' corporate successor Caremark Rx, and its previous insurer asserting fraud and suppression claims based on the $56 million settlement agreed to in the MedPartners class action. The objectors appealed the fee award to the Alabama Supreme Court, arguing that they had been given insufficient opportunity to object to class counsel's requested attorney fee inasmuch as their objections were due before class counsel's attorney-fee application was filed, and that the attorney fee ultimately awarded was excessive. The Supreme Court vacated the order entered by the trial court awarding class counsel an attorney fee of $124 million. On remand, class counsel may file a new attorney-fee application, including more detailed information regarding the time expended in this case and how that time was spent. The objectors would then be given a reasonable opportunity to review that application and may, if they still have objections to class counsel's new application, file those objections with the trial court. After the trial court considers those objections and enters a new order making an award of attorney fees, any party with a grievance may file a new appeal to the Alabama Supreme Court. View "Walker v. Johnson" on Justia Law

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Defendants manufacture and distribute FDA-approved prescription eye drop medications for treating conditions such as glaucoma. Bottles are pre-packaged with a fixed volume of medication; labeling does not indicate how many doses or days of treatment a patient can extract from the bottle. The dimensions of the bottle’s dropper tip dictate the size of the drop dispensed. Scientific research indicates that a normal adult’s inferior fornix – the area between the eye and the lower eyelid – has a capacity of approximately 7-10 microliters (µLs) of fluid. If a drop exceeding that capacity is placed into an eye, excess medication is expelled, providing no pharmaceutical benefit to the patient. Expelled medication also may flow into a patient’s tear ducts and move into his bloodstream, increasing the risk of certain harmful side effects. These studies conclude that eye drops should be 5-15 µLs. Defendants’ products emit drops that are considerably larger so that at least half of every drop goes to waste. The Third Circuit reversed dismissal of a putative class action (Class Action Fairness Act, 28 U.S.C. 1332) under state consumer protection statutes. The consumers’ allegations of injury were sufficient to confer standing. Plaintiffs claim economic interests in the money they spent on medication that was impossible for them to use; their concrete and particularized injury claims fit comfortably in categories of “legally protected interests” readily recognized by federal courts. View "Cottrell v. Alcon Laboratories" on Justia Law