The Seventh Circuit consolidated class action appeals filed under the Fair and Accurate Credit Transactions Act (FACTA), 15 U.S.C. 1681c(g), which provides that “no person that accepts credit cards or debit cards ... shall print [electronically] more than the last 5 digits of the card number or the expiration date upon any receipt provided to the cardholder at the point of the sale.” Willful violation entitles a consumer who sustains no harm to statutory damages, but a consumer harmed by the violation can obtain actual damages by showing that the violation was the result of negligence. Consumers who bought products at RadioShack stores paid with credit or debit cards, and received electronically printed receipts that contained the card’s expiration date. The parties settled; each class member who responded positively was to receive a $10 coupon that could be used at any RadioShack store. The face value of all the coupons was $830,000. RadioShack was to pay class counsel $1 million. The Seventh Circuit reevaluated the value of the settlement to class members and the benefits of costs incurred and, noting Radio Shack’s fragile financial condition, stated ”A renegotiated settlement will simply shift some fraction of the exorbitant attorneys’ fee awarded class counsel in the existing settlement that we are disapproving to the class members. While Radio Shack’s violation was willful, given earlier litigation, Shoe Carnival had no previous violation to alert the company. Instead of omitting the entire expiration date from credit‐card receipts, Shoe Carnival omitted just the year The Seventh Circuit concluded that there was sufficient ambiguity in the statute to justify the district court’s determination that Shoe Carnival had not willfully violated FACTA. View "Aliano v. RadioShack Corp." on Justia Law

The State filed a class action suit against several insurers to recover on the homeowner insurance policies purchased by individual Louisiana citizens but assigned by the respective policy holders to the State in return for State financial assistance in repairing and rebuilding their homes in the wake of the hurricanes. Defendants removed to federal court. The State eventually dropped its class allegations and severed this individual action from the original class action case. At issue was whether there was federal jurisdiction over these individual cases, once part of the Class Action Fairness Act (CAFA), 28 U.S.C. 1332(d)(2), class action. The court held that the general rule regarding federal jurisdiction over a removed case controlled; jurisdictional facts were determined at the time of removal, not by subsequent events; because at the time of removal CAFA supplied federal subject matter jurisdiction over these cases, the court held that CAFA continued to provide jurisdiction over these individual cases notwithstanding their severance from the class. View "State of Louisiana v. American National Property and Casualty Co., et al." on Justia Law

In 1991, a group of flight attendants initiated a class action suit against several tobacco companies. The suit resulted in a settlement agreement. Subsequently, the Flight Attendant Medical Research Institute (FAMRI) was formed, and several of the flight attendants who were part of the class action became members of FAMRI’s board, including Patricia Young and Alani Blissard. Thereafter, several flight attendants filed individual suits against the tobacco companies. Steve Hunter and Philip Gerson were among the attorneys who represented the flight attendants. In 2010, a group of attorneys, including Gerson and Hunter, filed a petition against FAMRI on behalf of some of the flight attendants who were part of the original class, seeking an accounting of FAMRI’s funds and requesting that the settlement funds be dispersed directly to their clients. Young, Blissard and FAMRI moved to disqualify the attorneys on the ground of conflict of interest. The trial court entered an order disqualifying several attorneys, including Hunter and Gerson. The Third District Court of Appeals quashed the trial court’s order. The Supreme Court quashed the Third District’s decision and reinstated the trial court’s disqualification order, holding that disqualification was warranted in this case.View "Young v. Achenbauch" on Justia Law

In 2011, Hilltop hired Huffman and others to review the files of mortgage loans originated by PNC Bank to determine whether lawful procedures were followed during foreclosure and other proceedings. Until the end of their employment in January 2013, they regularly worked more than 40 hours per week, but were not compensated at the overtime rate because Hilltop classified them as independent contractors. Each employment relationship was governed by a now-expired contract, including an arbitration clause and a survival clause. The clauses listed in the survival clause correspond to ones detailing services essential to the job, the term of employment, compensation, termination, and confidentiality; it did not list the arbitration clause. The workers filed a purported class action. The district court denied Hilltop’s motion to dismiss and compel arbitration. The Sixth Circuit reversed, rejecting an argument that omission of the arbitration clause from the survival clause constituted a “clear implication” that the parties intended the arbitration clause to expire with the agreement. Sixth Circuit precedent indicates that the parties must proceed in arbitration on an individual basis.View "Huffman v. Hilltop Cos., LLC" on Justia Law

At issue in this case were amendments to the Sex Offender Registry Law that the Governor signed into law on July 12, 2013, including amendments that would require the Sex Offender Registry Board (SORB) to publish on the Internet information contained in the sex offender registry regarding individuals given a level two or three classification. On July 5, 2013, Plaintiffs, as putative representatives of a class of persons presently and prospectively classified as level two sex offenders, filed a complaint for declaratory and injunctive relief seeking an injunction barring SORB from publishing registry information on the Internet of the class of level two offenders. The Supreme Judicial Court declared unconstitutional the retroactive application of the amendments to the extent they would require the Internet publication of the registry information of individuals who were finally classified as level two sex offenders on or before July 12, 2013 but noted that SORB was allowed to publish on the Internet the registry information of any individual who was given a final classification as a level two sex offender after July 12, 2013.View "Moe v. Sex Offender Registry Bd." on Justia Law

Plaintiff was an hourly employee of Safeway, Inc. In 2010, in response to two writs of garnishment issued by the district court, Safeway deducted an excess of $29.64 from Plaintiff’s wages. Plaintiff subsequently filed a lawsuit against Safeway on behalf of herself and all other persons similarly situated, arguing that Safeway’s garnishment practice resulted in wrongfully excessive deductions. Ten days after the class action suit was filed, Safeway changed its payroll garnishment system to conform with the correct garnishment exemptions standards and tendered to Plaintiff the amounts that would have been paid to her had those standards been applied at the time. The circuit declined to certify the class and entered judgment in favor of Safeway. The court of special appeals affirmed. The Court of Appeals affirmed, holding (1) employees have a right of direct private action against their employer under Md. Code Ann. Lab. & Empl. 3-507.2 for deducting from the employee’s wage more than is lawfully allowed; and (2) the circuit court did not abuse its discretion under the circumstances of this case in denying class certification and in entering judgment for Safeway.View "Marshall v. Safeway, Inc." on Justia Law

Appellee, Peter Rosenow, brought a class-action complaint individually and on behalf of similarly situated persons against Appellants, Alltel Corporation and Alltel Communications, Inc. (collectively, Alltel), alleging violations of the Arkansas Deceptive Trade Practices Act and unjust enrichment arising from Alltel’s imposition of an early termination fee on its cellular-phone customers. Alltel filed a motion seeking to compel arbitration based on an arbitration clause contained in its “Terms and Conditions.” The circuit court denied the motion, concluding that Alltel’s arbitration provision lacked mutuality. The Supreme Court affirmed, holding that the circuit court did not err in finding that a lack of mutuality rendered the instant arbitration agreement invalid. View "Alltel Corp. v. Rosenow" on Justia Law

Plaintiffs, appellants, and cross-respondents were consumers who purchased vehicles from defendant, respondent, and cross-appellant Raceway Ford. Plaintiffs raised numerous causes of action based on laws proscribing certain acts against consumers, unfair competition, and deceptive business practices, bringing both individual claims and claims on behalf of two certified classes. After a bench trial, the trial court entered judgment in favor of Raceway and against plaintiffs on all causes, except that a single plaintiff was granted rescission on a single cause of action. Separately, the trial court awarded attorneys’ fees and costs to Raceway. In consolidated appeals, plaintiffs challenged the trial court’s judgment on the merits (case No. E054517) and fee order (case No. E056595); Raceway cross-appealed regarding one aspect of the trial court’s fee order. In their appeal, plaintiffs specifically argued that, as a matter of law, Raceway’s previous practice of “backdating” second or subsequent contracts for sale of a vehicle to the original date of sale violated the Automobile Sales Finance Act (also known as the Rees-Levering Motor Vehicle Sales and Finance Act (ASFA)), the Consumer Legal Remedies Act (CLRA), and the Unfair Competition Law (UCL). The Court of Appeal agreed that the practice of backdating could have resulted in inaccurate disclosures to class members, thereby violating the ASFA, at least in some cases. On the record, however, the Court declined to order entry of judgment in favor of the plaintiff class, rather reversed the trial court’s judgment in favor of Raceway with respect to plaintiffs’ backdating claims. Plaintiffs also appealed the judgment in favor of Raceway with respect to claims of a second certified class, consisting of Raceway customers who purchased used diesel vehicles from Raceway and who were charged fees for smog checks and smog certifications that were only properly applicable to purchases of gasoline vehicles. The Court of Criminal Appeals affirmed the trial court’s judgment with respect to plaintiffs’ smog fee claims. Additionally, plaintiffs appealed the judgment in favor of Raceway on certain individual plaintiffs’ claims that Raceway violated the ASFA by failing to provide them with copies of their credit applications. The Court found plaintiffs’ evidence in support of these claims was insufficient to overturn the trial court's decision, so that ruling was also affirmed. Lastly, plaintiffs appealed the judgment in favor of Raceway with respect to claims under the UCL and the CLRA brought by plaintiff Francisco Salcedo in his individual capacity. The trial court found in favor of Mr. Salcedo on his claim of fraud, and granted him the remedy of rescission, though it declined to award any punitive damages. Plaintiffs contended that the judgment in Mr. Salcedo’s favor on his fraud claim established as a matter of law that he should also have judgment entered in his favor on his UCL and CLRA claims. The Court of Appeal agreed, and reversed. The basis for the trial court’s award of fees to Raceway was, in part, undermined by the Court's partial reversal of the judgment. The case was therefore remanded with respect to Raceway's claims in light of remand on other issues. View "Raceway Ford Cases" on Justia Law

William Glick filed a class action suit against Raymond Wohl, in his official capacity of the clerk of the municipal court, among other defendants, seeking declaratory and equitable relief related to Glick's municipal court sentences he alleged to be void for imposing unlawfully excessive court costs. The common pleas court determined that Glick’s class action against Wohl was viable, declared that multiple costs assessed against Glick as part of his sentence were unlawful, and held that Glick and other class members who had been assessed unlawful costs were owed a refund. The court of appeals reversed, concluding that the class action was not viable, and remanded for entry of summary judgment in favor of Wohl. The Supreme Court affirmed, holding (1) the relief requested by Glick in his class action was in substance a request to vacate a portion of a judgment of the municipal court; and (2) because a court of common pleas has no power to vacate an order rendered by a municipal court, summary judgment should have been granted in favor of Wohl. Remanded. View "Lingo v. State" on Justia Law

In case no. 1120010, CVS Caremark Corporation; American International Group, Inc.; National Union Fire Insurance Company of Pittsburgh, PA; AIG Technical Services, Inc.; and American International Specialty Lines Insurance Company appealed a trial court order certifying as a class action the fraud claims asserted by plaintiffs John Lauriello; James O. Finney, Jr.; Sam Johnson; and the City of Birmingham Retirement and Relief System. In case no. 1120114, the plaintiffs cross-appealed the same class-certification order, alleging that, though class treatment was appropriate, the trial court erred in certifying the class as an "opt-out" class pursuant to Rule 23(b)(3), Ala. R. Civ. P., rather than a "mandatory" class pursuant to Rule 23(b)(1), Ala. R. Civ. P. Finding no reversible error in either case, the Supreme Court affirmed in both. View "John Lauriello et al. v. CVS Caremark Corporation et al. " on Justia Law