Justia Class Action Opinion Summaries

J.M., an 11-year-old student, filed a class action lawsuit through his guardian ad litem against Illuminate Education, Inc., an education consulting business. J.M. alleged that Illuminate obtained his personal and medical information from his school to assist in evaluating his educational progress. Illuminate promised to keep this information confidential but negligently maintained its database, leading to a data breach where a hacker accessed the information. Illuminate delayed notifying J.M. and other victims about the breach for five months, during which J.M. began receiving unsolicited mail and phone calls.The trial court sustained Illuminate's demurrer, concluding that Illuminate did not fall within the scope of the Confidentiality of Medical Information Act (CMIA) or the Customer Records Act (CRA) and that J.M. failed to state a cause of action. J.M. filed a proposed second amended complaint with additional facts and a motion for reconsideration. The trial court reviewed the amended pleadings but maintained that J.M. had not stated a cause of action and could not amend to do so, thus sustaining the demurrer without leave to amend and entering judgment for Illuminate.The California Court of Appeal, Second Appellate District, reviewed the case and concluded that Illuminate falls within the scope of the CMIA and CRA. The court found that J.M. stated sufficient facts to support causes of action under both statutes. The court held that the trial court abused its discretion by sustaining the demurrer without leave to amend. The judgment of dismissal was reversed, and the case was remanded to the trial court, allowing J.M. to file an amended complaint with additional facts. View "J.M. v. Illuminate Education, Inc." on Justia Law

Christa Taylor purchased an automobile insurance policy from Root Insurance Company. After her vehicle was damaged in a hailstorm, Root determined it to be a total loss and paid Taylor the vehicle's actual cash value of $22,750. However, Root did not include an amount representing the sales tax in this payment. Taylor argued that the policy required Root to pay the applicable sales tax in addition to the actual cash value and filed a putative class action for breach of contract and violation of the Texas Prompt Payment of Claims Act (TPPCA).The United States District Court for the Western District of Texas reviewed the case. Root moved to dismiss Taylor's claims under Federal Rule of Civil Procedure 12(b)(6). The magistrate judge recommended granting Root's motion and denying Taylor's request for leave to amend her complaint. The district court conducted a de novo review, agreed with the magistrate judge, and dismissed the suit. Taylor then appealed the decision.The United States Court of Appeals for the Fifth Circuit reviewed the case de novo. The court held that the insurance policy's language required Root to pay only the "applicable sales tax," and since a total-loss settlement is not considered a sale under Texas law, no sales tax was applicable. The court also noted that actual cash value does not include taxes and fees payable to purchase a replacement vehicle under Texas law. Consequently, Root did not breach the policy, nor did it violate the TPPCA. The court affirmed the district court's dismissal of Taylor's claims. View "Taylor v. Root Insurance" on Justia Law

The case involves nine lawsuits filed in Connecticut state court, each asserting state-law personal injury claims related to the use of Zantac. The plaintiffs, represented by the same firm, structured their complaints to avoid federal jurisdiction by including fewer than 100 plaintiffs per suit and ensuring that each suit included a Connecticut plaintiff. The plaintiffs filed a motion to consolidate these actions, citing Connecticut Practice Book § 9-5, which the defendants argued proposed a joint trial, thus triggering federal jurisdiction under the Class Action Fairness Act (CAFA).The United States District Court for the District of Connecticut remanded the cases to state court, finding that the plaintiffs' motion to consolidate was intended only for pretrial purposes, not for a joint trial. The district court noted that the plaintiffs' motion cited authority that could be used for either pretrial management or a joint trial but concluded that the context indicated a pretrial purpose, especially given the plaintiffs' efforts to avoid federal jurisdiction.The United States Court of Appeals for the Second Circuit reviewed the case and affirmed the district court's decision. The appellate court held that CAFA requires a determination of whether the plaintiffs intended to seek a joint trial. The court found that the plaintiffs' motion, when read in context, proposed only pretrial consolidation. The court emphasized that the plaintiffs' consistent efforts to avoid federal jurisdiction supported this interpretation. Thus, the appellate court concluded that the defendants did not meet their burden to demonstrate that federal jurisdiction existed under CAFA. View "Bacher v. Boehringer Ingelheim Pharmaceuticals, Inc." on Justia Law

The case involves a putative class action brought by the plaintiff against Kimberly Clark Corp., alleging that the labeling of the defendant's baby wipes was misleading under California's false advertising laws. The plaintiff claimed that the terms "plant-based wipes" and "natural care®" on the front label, along with nature-themed imagery, suggested that the wipes contained only natural ingredients without chemical modifications. However, the wipes contained synthetic ingredients.The United States District Court for the Central District of California separated the product labels into two categories: those with an asterisk and a qualifying statement ("Asterisked Products") and those without ("Unasterisked Products"). The district court dismissed the plaintiff's claims, concluding that both categories were not misleading as a matter of law. The court reasoned that the asterisk and qualifying statement on the Asterisked Products clarified that the wipes were not entirely plant-based, and the back label's disclaimer about synthetic ingredients dispelled any potential misrepresentation for both categories.The United States Court of Appeals for the Ninth Circuit reviewed the case. The court reversed the district court's dismissal of the plaintiff's claims regarding the Unasterisked Products, holding that the front label could plausibly mislead a reasonable consumer to believe the wipes contained only natural ingredients, precluding reliance on the back label at the pleadings stage. However, the court affirmed the dismissal of claims regarding the Asterisked Products, finding that the asterisk and qualifying statement, along with the back label, made it impossible for the plaintiff to prove that a reasonable consumer would be deceived. The court also rejected the defendant's argument that the complaint failed to meet the particularity requirements of Rule 9(b). The case was remanded for further proceedings consistent with the court's opinion. View "WHITESIDE V. KIMBERLY CLARK CORP." on Justia Law

Plaintiff Mark Coziahr filed a class action against Otay Water District, alleging that Otay's tiered water rates for single-family residential customers violated Section 6(b)(3) of Proposition 218, which mandates that property-related fees not exceed the proportional cost of the service attributable to the parcel. The trial court certified the class and found that Otay failed to meet its burden of demonstrating compliance with Section 6(b)(3). In the remedy phase, the court awarded an estimated refund of approximately $18 million, with monthly increases until Otay imposed compliant rates. Otay appealed the liability decision and damages, while Coziahr appealed only as to damages.The Superior Court of San Diego County found that Otay's tiered rates were based on non-cost objectives like conservation and did not correlate with the actual cost of providing water service. The court determined that Otay's reliance on peaking factors and adherence to industry standards were insufficient to justify the tiered rates. The court also found that Otay discriminated against single-family residential customers by charging them more for water than other customer classes without a cogent reason. The court rejected Otay's peaking factor analysis and Mumm's independent analysis as flawed and unsupported by the record.The California Court of Appeal, Fourth Appellate District, Division One, affirmed the trial court's liability determination, holding that Otay did not establish its tiered rates complied with Section 6(b)(3). The court found that Otay's evidence did not withstand independent review and that the trial court properly applied the principles from Capistrano and Palmdale. However, the appellate court reversed the refund amount, finding the trial court's calculations unreasonable due to reliance on projected data and a proxy from another case. The matter was remanded for a new trial on the refund amount, including monthly increases and prejudgment interest. The judgment was otherwise affirmed. View "Coziahr v. Otay Wat. Dist." on Justia Law

In September 2021, cybercriminals targeted a chain of pawnshops, a payday lender, and a prepaid-card company, exposing customers' personal information. The companies informed customers of the breach weeks later, leading to three nationwide class-action lawsuits in the District of Minnesota. The companies moved to dismiss the cases, arguing lack of standing and failure to state a claim, but did not mention arbitration. They continued to engage in litigation activities, including briefing issues, preparing a discovery plan, and requesting a pretrial conference. There is a dispute about whether the companies mentioned arbitration during the pretrial conference, but no formal motion to compel arbitration was filed until months later.The United States District Court for the District of Minnesota found that the companies had waived their right to arbitration by substantially engaging in litigation. The court noted that the companies had no credible explanation for their delay in filing the motion to compel arbitration, despite allegedly deciding to do so during the pretrial conference.The United States Court of Appeals for the Eighth Circuit reviewed the case and affirmed the district court's decision. The appellate court applied a two-part test to determine waiver of the right to arbitration, focusing on whether the party knew of the right and acted inconsistently with it. The court concluded that the companies had knowledge of their right to arbitration and acted inconsistently by engaging in extensive litigation activities. The companies' actions, including participating in a motion-to-dismiss hearing and scheduling mediation, were deemed to have substantially invoked the litigation machinery, thus waiving their right to arbitration. The court emphasized that the companies' delay and litigation conduct were inconsistent with promptly seeking arbitration. View "Thomas v. Pawn America Minnesota, LLC" on Justia Law

A trial court found that Yakima HMA LLC wrongfully withheld nearly $1.5 million in wages from its nurses over five years. In 2015, the Washington State Nurses Association (WSNA) filed a claim on behalf of 28 nurses, including Daniel Campeau. The trial court ruled in favor of WSNA, but years later, the Supreme Court of Washington reversed this decision, stating that WSNA lacked associational standing. Before the mandate was issued, Campeau filed a class action suit to recover the unpaid wages.The trial court agreed with Campeau, allowing the case to proceed under the doctrine of equitable tolling, reasoning that Campeau had diligently pursued his claims through the WSNA action and reasonably relied on the union to protect his rights. Yakima HMA appealed, and the Court of Appeals reversed the trial court's decision, concluding that American Pipe tolling was not applicable in Washington and that equitable tolling was not warranted without evidence of bad faith or misconduct by Yakima HMA.The Supreme Court of Washington reviewed the case de novo. The court held that equitable tolling could be appropriate even without bad faith by the defendant when associational standing fails, and a member promptly files a follow-on class action. The court found that equitable tolling was consistent with the purposes of the underlying labor laws and statutes of limitations, and it would prevent an unjust windfall to Yakima HMA. Therefore, the court reversed the Court of Appeals and remanded the case to the trial court for further proceedings. View "Campeau v. Yakima HMA, LLC" on Justia Law

Plaintiffs William Pace and Robert Walters leased apartments at Hamilton Cove, a complex in Weehawken, New Jersey, based on advertisements claiming 24/7 security. After moving in, they discovered that the security was not as advertised. They filed a complaint in March 2022, alleging common law fraud and violations of the Consumer Fraud Act (CFA), seeking to certify a class of similarly affected tenants. The leases included a class action waiver, which defendants argued should prevent the class action. Plaintiffs contended the leases were unconscionable contracts of adhesion.The trial court denied defendants' motion to dismiss, finding the complaint sufficiently pled fraud. The Appellate Division affirmed, holding that class action waivers in contracts without mandatory arbitration provisions are unenforceable as a matter of public policy. The court distinguished this case from AT&T Mobility LLC v. Concepcion, which upheld class action waivers in arbitration agreements under the Federal Arbitration Act (FAA). The Appellate Division emphasized New Jersey's public policy favoring class actions for consumer protection.The Supreme Court of New Jersey reviewed the case and reversed the Appellate Division's decision. The Court held that class action waivers in consumer contracts are not inherently contrary to public policy and can be enforceable unless found to be unconscionable or invalid under general contract principles. The Court found that the class action waiver in the lease agreements was clear and unambiguous, and the leases were not unconscionable. Therefore, the class action waiver was enforceable, and plaintiffs must pursue their claims individually. The case was remanded for further proceedings consistent with this opinion. View "Pace v. Hamilton Cove" on Justia Law

This case involves a class action lawsuit against Logan Health Medical Center ("Logan Health") following a significant data breach of its information technology systems. The breach, which occurred on November 22, 2021, exposed highly sensitive personal identifying information and protected health information of over 200,000 current and former patients and others affiliated with Logan Health. Patricia Tafelski, on behalf of herself and all others similarly situated, filed a complaint against Logan Health. After a series of negotiations, the parties agreed to a settlement of $4.3 million for a common fund. The District Court granted preliminary approval of the proposed settlement on December 6, 2022.The District Court of the Eighth Judicial District, in and for the County of Cascade, granted final approval of the Settlement Agreement, awarded Class Counsel attorney fees, and denied the Objectors’ motion for discovery. The Objectors, Mark Johnson and Tammi Fisher, appealed the order, arguing that the attorney fees of 33.33% of the settlement fund were unreasonable and that their motion for discovery was wrongly denied.The Supreme Court of the State of Montana affirmed the lower court's decision. The court found that the District Court did not abuse its discretion in awarding Class Counsel attorney fees. The court also found that the District Court did not abuse its discretion in denying the Objectors’ motion for discovery. The court noted that the District Court had made adequate findings on each of the factors for determining the reasonableness of attorney fees and that those findings were supported by the record. The court also noted that the District Court had conscientiously considered the nature of the litigation and the interests of the class in denying the Objectors’ motion for discovery. View "Tafelski v. Johnson" on Justia Law

The case revolves around Robert Nightingale, who owed money to National Grid. The company hired two debt collectors who called Nightingale more than twice over several seven-day periods throughout 2017 and 2018. Nightingale sued National Grid and the debt collectors under the Massachusetts Consumer Protection Act, alleging that the calls invaded his privacy and caused him emotional distress. He also sought to certify a class of Massachusetts residents who had experienced similar invasions of privacy due to excessive calls from the defendants.The case was moved to federal district court, which declined to certify the class, stating that it did not meet the predominance requirement of Federal Rule of Civil Procedure 23(b)(3). The district court also granted summary judgment to the defendants, finding that Nightingale had not demonstrated a cognizable injury under the Massachusetts Consumer Protection Act.The United States Court of Appeals for the First Circuit disagreed with the district court's rulings. The appellate court held that Nightingale had alleged cognizable injuries, vacated the district court's grant of summary judgment, and also vacated the denial of class certification. The case was remanded for further proceedings consistent with the appellate court's opinion. The court found that Nightingale's receipt of unwanted calls constituted a cognizable invasion of privacy, and that his emotional distress was a cognizable injury under the Massachusetts Consumer Protection Act. The court also found that the district court had applied an incorrect legal rule in its class certification analysis. View "Nightingale v. National Grid USA Service Company Inc." on Justia Law