The Supreme Court affirmed the judgment of the district court refusing to certify Appellant's case as a class action, holding that, based on the facts and circumstances of this case, the district court did not abuse its broad discretion.Appellant, a horse breeder and owner, brought this putative class action claiming that Prairie Meadows Racetrack and Casino, Inc. breached contracts governing the distribution of winnings among owners and breeders of successful horses. The district court ultimately denied certification. The Supreme Court affirmed, holding that there was no abuse of discretion in the district court's determination that Appellant was not an appropriate class representative and that certification was inappropriate. View "Benda v. Prairie Meadows Racetrack & Casino Inc." on Justia Law

This is an appeal from a district court order approving a class-action settlement that purports to provide injunctive relief and up to $8 million in monetary relief to a class of individuals (the “Class”) who purchased one or more “brain performance supplements” manufactured and sold by Defendants Reckitt Benckiser LLC and RB Health (US) LLC (together, “RB”) under the brand name “Neuriva.” Five Plaintiffs (together, the “Named Plaintiffs”) who had previously purchased Neuriva brought a putative class action, alleging that RB used false and misleading statements to give consumers the impression that Neuriva and its “active ingredients” had been clinically tested and proven to improve brain function. The parties promptly agreed to a global settlement (the “Settlement” or “Settlement Agreement”) that sought to resolve the claims of all Plaintiffs and absent Class members. The current appeal involves one unnamed Class member, an attorney and frequent class-action objector, who objected in district court and subsequently appealed the district court’s approval order.   The Eleventh Circuit vacated the district court’s order and remanded. The court concluded that the Named Plaintiffs lack standing to pursue their claims for injunctive relief. The court explained that Plaintiffs seeking injunctive relief must establish that they are likely to suffer an injury that is “actual or imminent,” not “conjectural or hypothetical.” But none of the Named Plaintiffs allege that they plan to purchase any of the Neuriva Products again. The district court, therefore, lacked jurisdiction to award injunctive relief to the Named Plaintiffs or absent Class members, and its approval of the Settlement Agreement was an abuse of discretion. View "David Williams, et al v. Reckitt Benckiser LLC, et al" on Justia Law

In March 2020, Bradley University closed its campus and canceled in-person activities because of the COVID-19 pandemic. It canceled one week of classes as it migrated to remote learning. Bradley resumed classes virtually and offered remote activities and resources. The campus remained closed for the rest of the semester. Bradley never rescheduled the week of canceled classes; the Spring 2020 Semester was 14 weeks instead of the planned 15 weeks of classes listed in Bradley’s Catalog, which stated: “This catalog serves as a contract between a student and Bradley.” Full-time, on-campus students had paid $17,100 in tuition and an $85 activity fee. The University provided pro-rata refunds for room and board to students who were forced to leave on-campus housing but did not refund tuition or activity fees.Eddlemon filed a purported class action, alleging that Bradley breached an implied contract to provide 15 weeks of classes and on-campus activities, and, alternatively that the University’s retention of tuition and activity fees constituted unjust enrichment. The district court certified a “Tuition Class” and an “Activity Fee Class.” The Seventh Circuit vacated. The district court did not conduct the rigorous analysis required by Rule 23 for class certification but repeatedly referred to Eddlemon’s allegations without addressing his proffered evidence or examining how he would prove his allegations with common evidence. View "Eddlemon v. Bradley Universityx" on Justia Law

Following a 29% drop in Federal Home Loan Mortgage Corporation (Freddie Mac) stock prices in 2007, OPERS, a state pension fund, filed a securities fraud case against Freddie Mac. The district court dismissed, concluding that OPERS failed to adequately plead loss causation because the theory OPERS pursued (materialization of the risk) had not been adopted in the circuit. The Sixth Circuit reversed, “join[ing] our fellow circuits in recognizing the viability of alternative theories of loss causation and apply[ing] materialization of the risk.” On remand, the district court denied OPERS’ motion for class certification, granted Freddie Mac’s motion to exclude OPERS’ expert, and denied OPERS’ motion to exclude Freddie Mac’s experts.The Sixth Circuit denied OPERS’s petition for leave to appeal. OPERS asked the district court to enter “sua sponte” summary judgment for Freddie Mac, arguing that the class certification decision prevented OPERS’ case from proceeding, as it doomed OPERS’ ability to prove loss causation. The district court summarily agreed and entered summary judgment for Freddie Mac. The Sixth Circuit reversed and remanded, citing its lack of jurisdiction. The summary judgment decision was manufactured by OPERS in an apparent attempt to circumvent the requirements of Federal Rule 23(f). The decision was not final. View "Ohio Public Employees Retirement System v. Federal Home Loan Mortgage Corp." on Justia Law

Along with her husband, Plaintiff initiated a civil action against Ethicon, Inc. — the manufacturer and seller of the TVT mesh — and its parent company, Johnson & Johnson. Plaintiffs pursued numerous claims for relief, including a strict product liability claim alleging a design defect in the TVT, as well as a claim for negligent design thereof. Plaintiff’s husband joined in the lawsuit by suing for loss of consortium. Plaintiffs filed their lawsuit in the Southern District of West Virginia as part of a multidistrict litigation captioned (the “MDL”).   The Fourth Circuit availing itself of the privilege afforded by the State of West Virginia through the Uniform Certification of Questions of Law Act requested that the Supreme Court of Appeals of West Virginia exercise its discretion to resolve the following certified question of law:Whether Section 411 of the West Virginia Pattern Jury Instructions for Civil Cases, entitled “Design Defect — Necessity of an Alternative, Feasible Design,” correctly specifies Plaintiff’s burden of proof for a strict liability design defect claim pursued under West Virginia law. More specifically, whether a plaintiff alleging a West Virginia strict liability design defect claim is required to prove the existence of an alternative, feasible product design — existing at the time of the subject product’s manufacture — in order to establish that the product was not reasonably safe for its intended use. And if so, whether the alternative, feasible product design must eliminate the risk of the harm suffered by the plaintiff or whether a reduction of that risk is sufficient. View "Judith Shears v. Ethicon, Inc." on Justia Law

Plaintiffs sought class certification to pursue various claims against the Hilton Hotels Retirement Plan (“Hilton Plan”) for what they say are unlawfully denied vested retirement benefits. The district court ultimately denied certification on the ground that Plaintiffs had proposed an “impermissibly ‘fail-safe’” class—that is, a class definition for which membership can only be ascertained through “a determination of the merits of the case.”   The DC Circuit reversed and remanded the district court’s decision, finding that the district court, in this case, bypassed Rule 23’s requirements and based its denial of class certification entirely on the class’s “fail-safe” character. The court explained that the textual requirements of Rule 23 are fully capable of guarding against unwise uses of the class action mechanism. So the court rejected a rule against “fail-safe” classes as a freestanding bar to class certification ungrounded in Rule 23’s prescribed criteria. Instead, district courts should rely on the carefully calibrated requirements in Rule 23 to guide their class certification decisions and the authority the Rule gives them to deal with curable misarticulations of a proposed class definition. View "In re: Valerie White" on Justia Law

Plaintiff, a former New York State prisoner, sued defendants-appellants pursuant to 42 U.S.C. Section 1983 for purportedly violating his rights under the Eighth and Fourteenth Amendments when they denied his judicially ordered enrollment in New York's Shock Incarceration Program, thereby potentially extending his period of confinement. The district court denied the motion for judgment on the pleadings, holding that Plaintiff plausibly alleged that Defendants were not entitled to qualified immunity because they violated clearly established law.   The Second Circuit affirmed the district court's denial of Defendants' motion for judgment on the pleadings as to the Fourteenth Amendment claim, reversed the district court's denial of Defendants' motion for judgment on the pleadings as to the Eighth Amendment claim, and remanded for further proceedings. The court explained that Plaintiff’s Eighth Amendment claim fails at the second prong of the qualified immunity analysis: it was not clearly established at the time of Defendants' conduct that denying a prisoner the opportunity to obtain early release from his sentence of confinement by denying judicially ordered entry into the Shock program would violate the Eighth Amendment. Moreover, the court held that given the liberty interest at stake and the clarity of the statutory law, Plaintiff plausibly alleged that Defendants' actions were egregious, shocking to the conscience, and unreasonable. View "Michael Matzell v. Anthony J. Annucci et al." on Justia Law

Plaintiff, a former driver for Defendant Lyft, Inc., filed suit against Lyft under the Private Attorneys General Act of 2004 (PAGA). He alleged that Lyft misclassified him and other drivers as independent contractors rather than employees, thereby violating multiple provisions of the Labor Code. Lyft moved to compel arbitration based on the arbitration provision in the “Terms of Service” (TOS) that it required its drivers to accept. The trial court denied the motion, finding the PAGA waiver in the arbitration provision unenforceable under then-controlling California law. Lyft appealed, and the Second Appellate District affirmed the denial of Lyft’s motion to compel arbitration. Lyft petitioned the United States Supreme Court for a writ of certiorari. The Court granted Lyft’s petition and remanded the case for further consideration in light of Viking River Cruises, Inc. v. Moriana (2022).   The Second Appellate District reversed in part and affirmed in part the trial court’s order. The court remanded the matter to the trial court with directions to (1) enter an order compelling Plaintiff to arbitrate his individual PAGA claim and (2) conduct further proceedings regarding Plaintiff’s non-individual claims. The court explained that it is not bound by the analysis of PAGA standing set forth in Viking River. PAGA standing is a matter of state law that must be decided by California courts. The court explained that until it has guidance from the California Supreme Court, its review of PAGA and relevant state decisional authority leads the court to conclude that a plaintiff is not stripped of standing to pursue non-individual PAGA claims simply because their individual PAGA claim is compelled to arbitration. View "Seifu v. Lyft, Inc." on Justia Law

Minnesota sued a litany of fossil fuel producers1 (together, the Energy Companies) in state court for common law fraud and violations of Minnesota’s consumer protection statutes. In doing so, it joined the growing list of states and municipalities trying to hold fossil fuel producers responsible for alleged misrepresentations about the effects fossil fuels have had on the environment. The Energy Companies removed to federal court. The district court granted Minnesota’s motion to remand, and the Energy Companies appealed.   The Eighth Circuit affirmed. The court held that Congress has not acted to displace the state-law claims, and federal common law does not supply a substitute cause of action, the state-law claims are not completely preempted. The court reasoned that because the “necessarily raised” element is not satisfied, the Grable exception to the well-pleaded complaint rule does not apply to Minnesota’s claims. Further, the court wrote that the connection between the Energy Companies’ marketing activities and their OCS operations is even more attenuated. Thus, neither requirement is met, there is no federal jurisdiction under Section 1349. View "State of Minnesota v. American Petroleum Institute" on Justia Law

Plaintiff opposed a new collective-bargaining agreement that passed by a 119-vote margin. Plaintiff sued the union for breach of its duty of fair representation and a violation of the Labor-Management Reporting and Disclosure Act. At their core, these claims are about whether the union hoodwinked members into ratifying the new collective-bargaining agreement by concealing what would happen to the 30-and-out benefit. The district court dismissed the Labor-Management Reporting and Disclosure Act claim, denied Plaintiff’s motion for class certification, and granted summary judgment to the union on the fair-representation claim. On appeal, Plaintiff alleged that the union concealed key information, but only nine members said it would have made a difference.   The Eighth Circuit affirmed, holding that Plaintiff failed to provide other evidence that the outcome of the vote would have changed. The court reasoned that the ratification vote was overwhelmingly in favor: 228 to 109, a 119-vote margin. Plaintiff offers only nine members who would have voted “no” if they had known about the elimination of the 30-and-out benefit. Even assuming each would have voted the way he thinks, the agreement still would have passed by a wide margin. The court wrote that no reasonable jury could conclude that the union’s alleged bad-faith conduct was the but-for cause of the union’s ratification of the collective-bargaining agreement. View "Matthew Nagel v. United Food and Com. Workers" on Justia Law