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

Plaintiff filed suit against Homolka, Homolka P.A., Watts Guerra, and Watts, alleging he is owed (1) $10,000 per month as leasing payments from October 2015, the first month he stopped receiving payments, until the September 2017 settlement; (2) a promised $50,000 truck reimbursement; and (3) a $3.4 million bonus. The jury returned a unanimous verdict for Plaintiff, finding that Homolka breached the oral contract, acting as an agent of Homolka P.A. and Watts Guerra. The jury awarded $175,000 in compensatory damages with no prejudgment interest. The district court denied Watts Guerra’s renewed motion for judgment as a matter of law and Plaintiff’s motion for a new trial. Watts Guerra and Plaintiff cross-appealed these rulings.   The Eighth Circuit affirmed. The court held that it agreed with the district court that the jury reasonably found Watts Guerra liable on an ostensible agency theory for Homolka’s breaches of the contract underlying the jury’s award of $175,000 in compensatory damages. The court reasoned that in considering these issues, “we start with the assumption jurors fulfilled their obligation to decide the case correctly,” and “we defer second to the trial court, which has a far better sense of what the jury likely was thinking and also whether there is any injustice in allowing the verdict to stand.” Applying these deferential standards, the court wrote that it has no difficulty concluding the district court did not abuse its discretion in denying Plaintiff’s motion for a new trial. The jury verdict awarding $175,000 compensatory damages was neither inadequate nor the product of an inappropriate compromise. View "Lowell Lundstrom, Jr. v. Watts Guerra LLP" on Justia Law

Plaintiff appealed the district court’s decision dismissing her claims against New York University (NYU) and declining to allow her to amend her complaint to add another plaintiff. Plaintiff s a parent of an adult student who attended New York University (NYU) (Defendant-Appellee) during the Spring 2020 semester—a semester during which NYU suspended its in-person operations and transitioned to remote instruction. Alleging breach of contract, unjust enrichment, and other claims, Plaintiff brought a putative class action suit against NYU to partially recover the tuition and fees she paid for her daughter’s Spring 2020 semester. The district court granted NYU’s motion to dismiss on the basis that Plaintiff lacked standing and denied Plaintiff’s motion to amend her complaint to add a current NYU student as an additional plaintiff because it concluded that amendment would be futile.   The Second Circuit affirmed the judgment of the district court in part, vacated in part, and remanded for further proceedings. The court concluded that the district court correctly determined that Plaintiff lacks standing to bring her breach of contract and unjust enrichment claims because she has not alleged an injury-in-fact to herself, rather than to her daughter. The court held that Plaintiff fails to plausibly allege a claim for conversion. The court wrote that for these reasons, the district court properly dismissed her claims. However, the court concluded that amending the complaint to add a current student as plaintiff would not be futile. The student plaintiff plausibly alleged claims for breach of contract, unjust enrichment, and money had and received that would survive a motion to dismiss. View "Christina Rynasko v. New York University" on Justia Law

The Supreme Court reversed the judgment of the trial court granting a motion to compel arbitration brought by Defendant Star Financial Group, Inc. in this class-action complaint alleging that Defendant collected improper overdraft fees, holding that Plaintiffs' account agreement did not allow Defendant to add an addendum to the terms and conditions of the account agreement.When Plaintiffs opened their checking account they assented to an account agreement detailing the terms and conditions of their relationship with Defendant. Before Plaintiffs brought this suit Defendant added an arbitration and no-class-action addendum to the terms and conditions of Plaintiffs' account agreement. When Plaintiffs filed this lawsuit Defendants cited the addendum and filed a motion to compel arbitration. The trial court granted the motion. The Supreme Court reversed, holding that Plaintiffs were not bound by the arbitration addendum to their account agreement because the account agreement's change-of-terms provision did not allow Plaintiff to add the addendum. View "Decker v. Star Financial Group Inc." on Justia Law

Following the Flint Water Crisis, thousands of cases were brought for the various harms minors, adults, property owners, and business owners endured as a result of lead-contaminated water. Putative class action lawsuits and individual lawsuits were consolidated in the Eastern District of Michigan, where Co-Lead Class Counsel and Co-Liaison Counsel were appointed to represent the putative class and individual plaintiffs. After years of negotiation, Co-Lead Class Counsel and Co-Liaison Counsel, together with the Settling Defendants, reached a record-breaking settlement. The court approved the settlement and awarded attorneys’ fees and reimbursement for expenses. Three Objector groups appealed that award.The Sixth Circuit affirmed. The Objectors are not entitled to detailed discovery of billing and cost records; assertions that those records would have shown excessive billing or revealed the inclusion of time not performed for the common benefit are entirely speculative. The Objectors lack standing to appeal the structure of the fee award; they would fare no better with or without the Common Benefit Assessments applicable to their claims. Were they to have standing, they did not demonstrate that the court abused its discretion in awarding Common Benefit Assessments, particularly when those assessments achieve parity among settlement beneficiaries and are reasonable under the circumstance. The court upheld an award of $500 for bone scans. View "Waid v. Snyder" on Justia Law

Plaintiffs alleged that during the class period, Defendants made false or misleading statements about Forescout’s past financial performance, presently confirmed sales, and prospects for future sales. They alleged that Defendants misled investors with respect to (1) the strength of Forescout’s sales pipeline, meaning its presently booked sales and prospects for future sales; (2) the experience of Forescout’s sales force; (3) the business Forescout lost with certain business partners, or “channel partners,” when it announced a merger with Advent International, Inc.; and (4) the likelihood that the merger would close.   The Ninth Circuit affirmed in part and reversed in part the district court’s dismissal of a securities fraud class action under Sections 10(b) and 20(a) of the Securities and Exchange Act and Rule 10b-5. The panel held that Plaintiffs adequately pleaded both falsity and scienter as to some of the challenged statements and that the Private Securities Litigation Reform Act’s safe harbor for forward-looking statements did not preclude liability as to some of these statements. The panel affirmed the district court’s dismissal as to certain statements, and it reversed and remanded for further proceedings as to other challenged statements regarding the sales pipeline and the Advent acquisition. View "GLAZER CAPITAL MANAGEMENT, L.P, ET AL V. FORESCOUT TECHNOLOGIES, INC., ET AL" on Justia Law