Justia Class Action Opinion Summaries

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Eight named plaintiffs, including two minors, brought a nationwide putative class action against e-commerce provider StockX for allegedly failing to protect millions of StockX users’ personal account information obtained through a cyber-attack in May 2019. Since 2015, StockX’s terms of service included an arbitration agreement, a delegation provision, a class action waiver, and instructions for how to opt-out of the arbitration agreement. Since 2017, StockX's website has stated: StockX may change these Terms without notice to you. “YOUR CONTINUED USE OF THE SITE AFTER WE CHANGE THESE TERMS CONSTITUTES YOUR ACCEPTANCE OF THE CHANGES. IF YOU DO NOT AGREE TO ANY CHANGES, YOU MUST CANCEL YOUR ACCOUNT.The Sixth Circuit affirmed the dismissal of the suit and an order compelling arbitration. The court rejected arguments that there is an issue of fact as to whether four of the plaintiffs agreed to the current terms of service and that the defenses of infancy and unconscionability render the terms of service and the arbitration agreement (including the delegation provision) invalid and unenforceable. The arbitrator must decide in the first instance whether the defenses of infancy and unconscionability allow plaintiffs to avoid arbitrating the merits of their claims. View "I. C. v. StockX, LLC" on Justia Law

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The Supreme Court reversed the judgment of the circuit court denying Plaintiff's motion for class-action certification in her suit against Defendant, a car dealership, holding that the circuit court abused its discretion in denying the motion.Plaintiff filed a class action complaint against Defendant alleging that the "mandatory notice of private or public sale" sent by Defendant repossessing Plaintiff's vehicle and informing her that the vehicle would be sold at a public sale failed to comply with the Uniform Commercial Code and Arkansas law and that the accrued interest rate was unlawful. The circuit court denied Plaintiff's motion for class certification without holding a hearing. The Supreme Court reversed, holding that the circuit court abused its discretion in refusing to certify the class based on the record before it. View "Rivera-Ceren v. Presidential Limousine & Auto Sales, Inc." on Justia Law

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A class of Louisiana medical providers sued Louisiana Preferred Provider Organizations (PPOs) in Louisiana state court, alleging that the PPOs violated the Louisiana PPO Act by discounting their bills without prior notice. After receiving class certification, the Class settled with all of the Louisiana defendants except Med-Comp; CorVel (Homeland’s insured) assigned to the Class its claims against Homeland. The assignment did not initially include the bad faith claim CorVel was pursuing against Homeland in Delaware. The Delaware Supreme Court ultimately held that the claim was time-barred. CorVel then assigned all of its claims against Homeland to the Class. The Class amended its complaint against MedComp in Louisiana state court to assert the bad faith claim against Homeland.The litigation then consisted of the Class's state law PPO Act claims against one non-diverse defendant (Med-Comp) and a state law bad faith claim as an assignee against one diverse defendant (Homeland). Homeland removed the case to federal court. The district court remanded the PPO Act claims against Med-Comp to state court and dismissed the bad faith claims as barred by the Delaware judgment.The Fifth Circuit reversed in part. The district court lacked jurisdiction because a non-diverse defendant remained from the original lawsuit. Med-Comp was not improperly joined because the Class has a possibility of recovery against Med-Comp (a non-diverse defendant) on the PPO Act claims. The court remanded with instructions to remand the entire case to state court. View "Williams v. Homeland Insurance Co. of New York" on Justia Law

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The Supreme Court granted a writ of prohibition prohibiting the circuit court from enforcing an order granting class certification in the underlying civil action filed by Respondents, holding that class certification was improperly granted.The underlying suit arose after an employee of Petitioners - three hospitals, misappropriated the private information of certain patients from Petitioners' medical records during the course of performing her authorized job duties. Respondents - Deborah Welch and Eugene Roman - successfully certified a class of approximately 7,445 individuals. The Supreme Court granted this petition prohibiting the circuit court from enforcing its order granting class certification, holding (1) Welch lacked standing because she suffered no injury-in-fact; and (2) as to Roman and the subclass of 109 individuals he represented, the prerequisites to class certification were not met. View "State ex rel. W. Va. University Hospitals--East, Inc. v. Honorable Hammer" on Justia Law

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The First Circuit affirmed the judgment of the district court granting two summary judgment motions in favor of Defendants in this class action lawsuit, holding that Defendants' actions in this case could not support a claim under the Racketeer Influenced and Corrupt Organizations Act (RICO).In granting the two summary judgment motions at issue, one filed on behalf of all Defendants and on filed behalf of certain Defendants, the district court adopted the findings of law of the Court of Appeals of Puerto Rico in Collazo Burgos v. La Asociación de Suscripción Conjunta del Seguro de Responsabilidad Obligatorio, No. K AC2010-0179, 2017 WL 6884428 (P.R. Cir. Nov. 30, 2017). The court further held that Defendants' actions were required under Puerto Rico law and thus could not support a RICO claim. The First Circuit affirmed, holding that the district court did err under the Erie doctrine in adopting the reasoning of the court of appeals in Collazo Burgos. View "Torres-Ronda v. Nationwide Mutual Insurance Co." on Justia Law

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The appellants were two of a group of plaintiffs who sued eBay and PayPal, challenging provisions in their respective user agreements. Plaintiffs’ second amended complaint alleged 23 causes of action, 13 against eBay, seven against PayPal, and three against both defendants. The trial court dismissed, without leave to amend, 20 of the causes of action, including 14 claims against eBay. Three causes of action proceeded: breach of contract against both defendants and violation of the covenant of good faith and fair dealing against eBay. More than three years later, the appellants opted out of the case against eBay, and voluntarily dismissed the two claims against it. Judgment of dismissal was entered against them.The appellants appealed, contending the trial court got it wrong as to 11 of the dismissed causes of action. The court of appeal affirmed, noting that this was the third appeal of the case. The trial court properly dismissed the claims and did not abuse its discretion in doing so without leave to amend. All of the alleged causes of action failed to state a claim. The court stated that “counsel for appellants has apparently been urging the same contentions for some nine years, all without success. This is enough.” View "George v. eBay, Inc." on Justia Law

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The Supreme Court affirmed in part the judgment of the district court dismissing Plaintiffs' request for class certification, holding that the district court did not abuse its discretion by holding that Plaintiffs' certification request did not meet the requirements of Mont. R. Civ. P. 23.Plaintiff lived in apartment complexes owned and operated by Defendants. Plaintiffs alleged that their leases contained multiple provisions violating Montana law. Plaintiffs sought certification as a class under Rule 23 to include other tenants who entered into similar lease agreements with Defendants. The district court dismissed most claims but denied the dismissal of two claims as to one plaintiff. The district court also denied Plaintiffs' request for class certification. The Supreme Court affirmed in part and remanded for further proceedings, holding that the district court did not err in dismissing Plaintiffs' request for class certification. View "Vulles v. Thies & Talle Management, Inc." on Justia Law

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The Supreme Court affirmed the judgment of the trial court granting a motion for class certification filed after a summary judgment motion had been granted in favor of the plaintiff in this case, Plantation Building of Wilmington, Inc., holding that no reversible error occurred.The defendant, the Town of Leland, consented to and joined a motion for continuance filed by Plaintiff. The trial court granted the motion. Thereafter, the trial court granted Plaintiff's motion for summary judgment and denied Defendant's competing motion. Thereafter, Plaintiff filed a motion for class certification. The trial court granted the motion. The Supreme Court affirmed, holding that because the motion for continuance identified that the issue of class certification would be resolved after addressing the cross-motions for summary judgment and the parties did not follow the sequence, Defendant waived any objection it may have had to the court granting Plaintiff's motion for class certification after granting Plaintiff's summary judgment motion. View "Plantation Building of Wilmington, Inc. v. Town of Leland" on Justia Law

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The Supreme Court dismissed this appeal for lack of a final or otherwise appealable order, holding that the orders Appellants were attempting to appeal were not appealable on an interlocutory basis.In this class-action dispute brought against certain online travel companies (the OTCs) Appellees alleged that the OTCs failed to remit the full amount of taxes imposed by the appellee government entities on hotel accommodations. The circuit court granted Appellees' motion for summary judgment. Appellees then filed an amended and supplemental complaint requesting, in light of the declaratory judgment determination, a judgment against the OTCs for all unpaid taxes from 1995 to the present, plus penalties and interest. The circuit court denied the OTCs' combined motion to dismiss and strike Plaintiffs' second amended complaint. The Supreme Court dismissed the appeal, holding that the order was not appealable. View "Hotels.com, L.P. v. Pine Bluff Advertising & Promotion Commission" on Justia Law

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After a class of homeowners settled their claims against a Chinese company for manufacturing and selling toxic drywall, the settlement agreement divided the settlement class into three groups based on when a plaintiff joined the litigation. Three plaintiffs appeal the settlement award, alleging that the lawyers for the settlement class placed them in the wrong plaintiff group and the district court failed to fix the error.The Fifth Circuit dismissed plaintiffs' appeal, concluding that the settlement agreement waived a plaintiff's right to appeal an award determination beyond the district court. In this case, because plaintiffs opted into the settlement agreement as absent class members, they waived their right to appeal. View "Frego v. Settlement Class Counsel" on Justia Law