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Former employees of Honeywell, who retired before age 65 during the terms of Honeywell's 2007 and 2010 collective bargaining agreements (CBAs), filed a class action alleging that Honeywell's announced plan to terminate early retiree healthcare benefits at the end of 2017 breached the CBAs and violated the Employee Retirement Income Security Act of 1974 (ERISA), because those healthcare benefits vested when each class member retired. The Eighth Circuit agreed with the Sixth Circuit and held that the Supreme Court's decision in CNH Indus. N.V. v. Reese, 138 S. Ct. 761 (2018), was controlling in this case. Under Reese, the court held that plaintiffs' retiree healthcare benefits were not vested as a matter of law. Therefore, the court reversed and remanded for further proceedings. View "Pacheco v. Honeywell International Inc." on Justia Law

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Plaintiffs brought class action claims against Google, claiming violations of the Stored Communications Act; they alleged that when an Internet user conducted a Google search and clicked on a hyperlink listed on the search results, Google transmitted information (referrer header) including the terms of the search to the server that hosted the selected webpage. The Act prohibits “a person or entity providing an electronic communication service to the public” from “knowingly divulg[ing] to any person or entity the contents of a communication while in electronic storage by that service” and creates a private right of action. The district court denied a motion to dismiss, citing a Ninth Circuit holding (Edwards) that an Article III injury exists whenever a statute gives an individual a statutory cause of action and the plaintiff claims that the defendant violated the statute. The parties negotiated a classwide settlement that allowed the continued transmission of referrer headers but required Google to include disclosures on three of its webpages and to pay $8.5 million. None of those funds would be distributed to absent class members; most of the money would be distributed to cy pres recipients. In a class action, cy pres refers to distributing settlement funds not amenable to individual claims or meaningful pro rata distribution to nonprofit organizations whose work indirectly benefits class members. The balance would be used for administrative costs, given to the named plaintiffs, and awarded as attorney’s fees. In the meantime, the Supreme Court (Spokeo) held that “Article III standing requires a concrete injury even in the context of a statutory violation,” rejecting the "Edwards" premise. The Ninth Circuit affirmed approval of the settlement without addressing Spokeo. The Supreme Court vacated. Although the Court granted certiorari to decide whether a class action settlement that provides a cy pres award but no direct relief to class members is “fair, reasonable, and adequate,” Fed. Rule Civ. Proc. 23(e)(2), the Court concluded that there is a substantial open question about whether any named plaintiff had standing. A court cannot approve a proposed class settlement if it lacks jurisdiction over the dispute, and federal courts lack jurisdiction if no named plaintiff has standing. When the district court ruled on the motion to dismiss, it relied on precedent that was subsequently abrogated in Spokeo. View "Frank v. Gaos" on Justia Law

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Plaintiffs Roger Myers, Dave Billings, Greg Neyhart, and Jim Mestas were nonexempt maintenance technicians for Raley’s grocery stores. Plaintiffs alleged they were required to drive company vehicles carrying their own tools as well as specialized tools, and they were not allowed to run personal errands without special permission or carry passengers who were not Raley’s employees except in an emergency. Despite Raley’s control over their driving time, they were not compensated for the time they spent driving to their first store or driving home from the last store they service each day. They claimed Raley’s uniform practice violated California law. These uniform policies and practices, according to the technicians, presented common issues of fact and law and their legality were particularly well suited to a class action. In denying class certification, the trial court made the conclusory finding plaintiffs failed to establish that a well-defined community of interest exists and that the common issues of fact and law predominate. The Court of Appeal determined that because the trial court’s cursory finding rendered its review "impossible," and because cases decided after the trial court’s ruling exposed the dangers of employing the wrong legal criteria, asking the wrong questions, or inflating the significance of the opposing parties’ evidence, the Court of Appeal remanded this case back to the trial court for reconsideration in light of Ayala v. Antelope Valley Newspapers, Inc., 59 Cal.4th 522 (2014) and Jones v. Farmers Ins. Exchange, 221 Cal.App.4th 986 (2013), and for a statement of reasons to ensure the court did not use improper criteria or rely on erroneous legal assumptions. View "Myers v. Raley's" on Justia Law

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Speaks Plaintiffs filed a class action against the Cooperative, seeking a declaratory judgment, distribution of the reserve funds to members, and judicial dissolution of the Cooperative as an alternative form of relief. Speaks Plaintiffs argued that after Congress enacted the Fair and Equitable Tobacco Reform Act (FETRA) and the price-support program ended, the Cooperative's primary purpose ceased to exist, and it should be forced to distribute the reserve funds and be judicially dissolved. The parties eventually mediated the case and the district court certified the class, approving a settlement. In this appeal, Fisher-Lewis class members, and would-be intervenor Dan Lewis, objected to the Speaks settlement. The Fourth Circuit dismissed Lewis' appeal for lack of jurisdiction, holding that Lewis filed his appeal far beyond the 30-day deadline prescribed by statute. The court affirmed the district court's denial of the attempted group opt-out. However, the court could not agree with the district court that the objectors' interests were adequately protected or that the settlement was fair, reasonable, and adequate for the class. Accordingly, the court reversed the district court's order certifying the class and granting final approval of the class-action settlement, remanding for further proceedings. View "Speaks v. U.S. Tobacco Cooperative Inc." on Justia Law

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Lambert filed a class action, alleging that Nutraceutical’s marketing of a dietary supplement violated California consumer-protection law. On February 20, 2015, the district court decertified the class. Under Federal Rule of Civil Procedure 23(f), Lambert had 14 days to ask for permission to appeal the order. Instead, he moved for reconsideration more than 14 days later, on March 12. The district court denied the motion on June 24. Fourteen days later, Lambert petitioned the Ninth Circuit for permission to appeal the decertification order. The Ninth Circuit held that Rule 23(f)’s deadline should be tolled because Lambert had “acted diligently” and reversed the decertification order. A unanimous Supreme Court reversed. Rule 23(f), “a nonjurisdictional claim-processing rule,” is not subject to equitable tolling. Whether a rule precludes equitable tolling turns not on its jurisdictional character but on whether its text leaves room for such flexibility. Rule 26(b), which generally authorizes extensions of time, states that a court of appeals “may not extend the time to file . . . a petition for permission to appeal.” The Rules express a clear intent to compel rigorous enforcement of Rule 23(f)’s deadline, even where good cause for equitable tolling might otherwise exist. A timely motion for reconsideration would affect the when the 14-day limit begins to run, not the availability of tolling. View "Nutraceutical Corp. v. Lambert" on Justia Law

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The Supreme Court affirmed the decision of the court of appeals in this class action, holding that the surcharge imposed by Maricopa County on car rental agencies to fund a stadium and other sports and tourism-related ventures violated neither the dormant Commerce Clause of the United States Constitution nor the anti-diversion provision of the Arizona Constitution. Plaintiff, which rented vehicles in Maricopa County and paid the car rental surcharges, sued the Arizona Department of Revenue seeking refunds and injunctive relief for all similarly situated car rental companies. The tax court certified the class and granted summary judgment for Plaintiff, concluding that the surcharge did not violate the dormant Commerce Clause but did violate the anti-diversion provision. The court of appeals reversed, concluding that the surcharge did not violate the anti-diversion provision. The Supreme Court affirmed, concluding that the Arizona Constitution’s anti-diversion clause, which requires that revenues derived from taxes relating to the operation of motor vehicles must be allocated for public highways, does not apply to a tax relating to the operation of motor vehicles. View "Saban Rent-a-Car LLC v. Arizona Department of Revenue" on Justia Law

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Plaintiff Jorge Fierro filed suit on behalf of himself and others like him against defendant Landry's Restaurants, Inc., seeking remedies for what Fierro alleged to be Landry's Restaurants's violations of specified California labor laws and wage orders. Landry's Restaurants demurred to the complaint on the basis that each of the causes of action was barred by the applicable statute of limitations. As to Fierro's individual claims, the trial court overruled the demurrer, concluding that the statute of limitations defense did not appear affirmatively on the face of the complaint. As to the class claims, the trial court sustained the demurrer without leave to amend on the basis that a prior class action with identical class claims against Landry's Restaurants had been dismissed for failure to bring the case to trial in five years as required by Code of Civil Procedure sections 583.310 and 583.360. Under the "death knell" doctrine, Fierro appealed that portion of the order sustaining without leave to amend the demurrer to the class claims. Previously, the Court of Appeal issued an opinion reversing the order on the basis that the applicable statutes of limitations on the class claims had been tolled. However, the California Supreme Court granted review and transferred the matter to the Court of Appeal with directions to vacate the opinion and to reconsider the cause in light of the United States Supreme Court's opinion in China Agritech, Inc. v. Resh, 138 S.Ct. 1800 (2018) an opinion issued following the filing of the appellate court's opinion but before issuance of the remittitur. After vacating its decision, the Court of Appeal requested and received supplemental briefing from the parties as to the potential application of China Agritech to the issues presented in this appeal. In determining whether the statutes of limitations barred Fierro's class claims, the Court of Appeal concluded there was no basis on which to apply equitable (or any other form of) tolling. Although that determination will result in at least some of the class's claims being time-barred, on the record, the Court could not say that all of the class's claims were untimely. Thus, the Court reversed the order sustaining Fierro's demurrer without leave to amend and remanded for further proceedings in which the trial court could decide, on a more developed record, issues related to class certification and/or timeliness of class claims. View "Fierro v. Landry's Restaurant, Inc." on Justia Law

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Former employees of Dark Horse filed suit alleging wage and hour claims on behalf of themselves and other similarly situated employees. The Court of Appeal reversed the trial court's denial of plaintiffs' motion for class certification. The court held that, in denying the motion for class certification, the trial court used improper criteria or erroneous legal assumptions, which affected its analysis of whether plaintiffs' claims and one of defendant’s defenses presented predominantly common issues, suitable for determination on a class basis. Accordingly, the court remanded to the trial court to reconsider and redetermine the motion for class certification. View "Jimenez-Sanchez v. Dark Horse Express, Inc." on Justia Law

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The plaintiffs, used car dealerships, were solicited by the defendant to enter into a “Demand Promissory Note and Security Agreement.” The defendant would issue a line of credit for the plaintiffs to access in purchasing used vehicles at automobile auctions. The plaintiffs claim defendant did not pay the auction house at the time that possession was delivered put paid only after it received the title to the vehicles purchased, which could take several weeks, but charged interest from the date of the initial purchase. The plaintiffs filed suit and sought class certification to sue on behalf of all other dealers who were subject to the same Agreement. The district court granted Rule 23(b)(3) class certification as to the breach of contract and substantive RICO claims. Weeks later, defendant filed a Motion to Reconsider, arguing that the plaintiffs had asserted in summary judgment briefing that the Agreements are ambiguous and that under such a theory courts must resort to extrinsic evidence on a plaintiff-by-plaintiff basis to determine intent. The court rescinded class certification. The Seventh Circuit vacated. Neither the categorization of the contract as ambiguous nor the prospect of extrinsic evidence necessarily imperils class status. The Agreement at issue is a standard form contract; there was no claim that its language has different meanings for different signatories. View "Red Barn Motors, Inc. v. NextGear Capital, Inc." on Justia Law

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After plaintiff obtained a home equity loan from Countrywide, he filed a pro se complaint alleging five causes of action against Bank of America, the company that acquired Countrywide. The Eighth Circuit affirmed the district court's dismissal of two claims based on Bank of America's failure to honor plaintiff's alleged early payoff right. In this case, plaintiff's claims were barred by the doctrine of res judicata because he had been a member of a global class action settlement that included a broad release of claims by all class members. The court also held that the district court did not abuse its discretion by promptly setting the remaining claims for trial. The court explained that, at minimum, Bank of America failed to establish that the statute of frauds barred these claims as a matter of law on the record. Accordingly, the court affirmed in part, reversed in part, and remanded. View "Calon v. Bank of America Corp." on Justia Law