Plaintiff, a shareholder, filed a putative class action complaint against magicJack and eight individuals who were magicJack current or former directors. Plaintiff alleged that magicJack issued two proxy statements that contained material misrepresentations. The district court dismissed plaintiff's lawsuit because his claims were derivative in nature and he failed to plead that he made a demand on magicJack or that doing so would have been futile.The Eleventh Circuit held that federal courts should look to state law to decide the issue of whether a claim brought under a federal statute is direct or derivative. In this case, because magicJack is incorporated under the laws of Israel, Israeli law controls the court's analysis. However, even if the court applied Florida law, the result would be the same because the two bodies of law are consistent. The court held that plaintiff's claims are derivative in nature because he failed to allege that he suffered damages independent of the damages that magicJack (and all of its shareholders) suffered. Furthermore, plaintiff failed to plead that he personally suffered a special injury, distinct from that experienced by magicJack or its other shareholders. Finally, any recovery sought in the Second Amended Complaint would necessarily be for the benefit of magicJack and its shareholders. View "Freedman v. MajicJack Vocaltec Ltd." on Justia Law

At issue before the Pennsylvania Supreme Court was a challenge to a local judicial district’s policy prohibiting the use of medical marijuana by individuals under court supervision, such as probationers. Relevant here, the applicable statutory authority, the Pennsylvania Medical Marijuana Act, contained an immunity provision protecting patients from government sanctions. In September 2019, the 52nd Judicial District -- comprised of the Lebanon County Court of Common Pleas (the “District”) -- announced a “Medical Marijuana Policy” under the issuing authority of the president judge. The Policy prohibited “the active use of medical marijuana, regardless of whether the defendant has a medical marijuana card, while the defendant is under supervision by the Lebanon County Probation Services Department.” Petitioners were individuals under the supervision of the Lebanon County probation agency who filed suit in the Commonwealth Court's original jurisdiction to challenge the validity of the Policy in light of the MMA's immunity provision. Separately, Petitioners filed an application for special relief in the nature of a preliminary injunction. Soon thereafter, the Commonwealth Court proceeded, sua sponte, to transfer the case to this Court, concluding that it lacked jurisdiction to grant the requested relief. The District then filed its response in this Court opposing preliminary injunctive relief. It claimed, among other things, that Petitioners were unlikely to prevail on the merits, arguing, inter alia, that the General Assembly didn’t intend the MMA to override the courts’ ability to supervise probationers and parolees. After review, the Pennsylvania Supreme Court granted Petitioners' request for declaratory and injunctive relief. The Policy was deemed to be contrary to the immunity accorded by the MMA, and as such, should not be enforced. "[N]othing impedes a revocation hearing or other lawful form of redress, where there is reasonable cause to believe that a probationer or other person under court supervision has possessed or used marijuana in a manner that has not been made lawful by the enactment." View "Gass et al. v. 52nd Judicial District" on Justia Law

The Settlement Agreement between the NFL and eligible retired NFL players arose out of a class action based on findings that professional football players are at a significantly increased risk for serious brain injury. The Agreement is intended to provide monetary awards to former players who receive a qualifying diagnosis after following a specified protocol. The Agreement’s claims administrator and the district court created and adopted a set of clarifying, revised rules relating to how players can obtain a qualifying diagnosis.Several retired NFL players or their estates challenged those revised rules, arguing that they amended the Agreement, and alternatively, that the court abused its discretion by adopting the four revised rules. The Third Circuit upheld the rules, noting that the Agreement provided for the court’s continuing jurisdiction and specifies the duties of the claims administrator. The revised rules are permissible clarifications created for the Agreement’s successful administration—for example, to prevent fraud—and were not amendments. They were created, in part, because the claims administrator reviewed many claim submissions and noted that there were certain “clients of a law firm traveling thousands of miles to see the same physician rather than those available to them in their hometowns and excessively high numbers and rates of payable diagnoses from those doctors.” View "In Re: NFL Players' Concussion Injury Litigation" on Justia Law

The Supreme Court affirmed the order of the circuit court certifying two classes pursuant to Ark. R. Civ. P. 23, holding that the circuit court did not abuse its discretion in finding that the classes met the requirements for class-action certification and that the case was not subject to dismissal for lack of jurisdiction.Plaintiff obtained Municipal Health Benefit Fund (MHBF) health-benefit coverage for himself and his family through his employment. When Plaintiff's daughter was injured in a car accident, MHBF denied payment for portions of the bills incurred by the daughter based on its interpretation of two exclusionary terms in its policy booklet. Plaintiff filed a class-action complaint arguing, inter alia, that the two exclusionary terms were unenforceable against the classes. The circuit court granted Plaintiff's motion to certify two classes pursuant to the three causes of action asserted in the complaint. The Supreme Court affirmed, holding (1) the circuit court properly granted class certification; and (2) the circuit court had jurisdiction over the class action. View "Municipal Health Benefit Fund v. Hendrix" on Justia Law

In the 2005 Burakoff class action, the court (in 2008) certified two subclasses of California Bancorp financial consultants for a period running through the date of the order. Subclass A “worked more than 40 hours in a week or 8 hours in a day, but did not receive overtime pay.” Subclass B were illegally required to pay their business expenses. Williams joined Bancorp in 2007, becoming a member of the Burakoff putative class. In 2010, he filed another class action, alleging similar causes of action for a class period beginning the day after the Burakoff class period ended, with consistent subclasses.The trial court stayed the Williams case pending Burakoff's resolution. In 2011, the court decertified the Burakoff overtime subclass, for lack of sufficient commonality. In 2012, the parties settled Burakoff. Williams participated in that settlement as a member of Subclass B. He did not, nor did any absent members of Subclass A, release his wage and hour claims. Bancorp then demanded arbitration under an agreement Williams had signed. Bancorp argued the Burakoff decertification order collaterally estopped Williams from relitigating the appropriateness of class certification. Williams agreed to the dismissal of his claim for unpaid business expenses. Following a remand, the trial court granted a motion to compel arbitration of Williams’s individual claims, concluding that a class decertification order may have collateral estoppel effect. The court of appeal reversed. An order denying certification to a proposed class does not preclude an absent member of the putative class from later seeking to certify an identical class in a second action; collateral estoppel does not bar an absent member in a putative class that was initially certified, but later decertified, from subsequently pursuing an identical class action. View "Williams v. U.S. Bancorp Investments, Inc." on Justia Law

In this class action, the Supreme Court recognized a narrow exception to the doctrine of mootness when a named plaintiff's individual claim becomes moot before the plaintiff has had a fair opportunity to pursue class certification and has otherwise acted without undue delay regarding class certification.The Moses H. Cone Memorial Hospital Operating Corporation sued Christopher Chambers and his wife seeking collection of $14,358 plus interest allegedly owed for emergency room services. At the same time, Chambers filed a class action complaint against Moses Cone seeking a declaratory judgment that the contract he signed as an uninsured patient needing emergency medical treatment entitled Moses Cone to recover no more than the reasonable value of the services it provided. Prior to certification of the class in Chambers's declaratory judgment action, Moses Cone dismissed its claims against Chambers and his wife and ceased all other attempts to collect the debt. At issue on appeal was whether the class action was moot. The Supreme Court held that, under these circumstances, the named plaintiff's claim relates back to the filing of the complaint for mootness purposes, and even though his individual claim may have been satisfied, the named plaintiff retains the legal capacity to pursue class certification and class-wide relief. View "Chambers v. Moses H. Cone Memorial Hospital" on Justia Law

The Sabine River meanders between Texas and Louisiana. Two state agencies jointly regulate its waterways and operate a hydroelectric plant--the Toledo Bend Reservoir and Toledo Bend Dam. In March 2016, heavy rains led to heavy water inflow into the reservoir and flooding of the River. The plaintiffs, about 300 Texas and Louisiana property owners, alleged that the flooding of their property was caused or exacerbated by the reservoir’s water level becoming too high and the spillway gates at the reservoir being intentionally opened. The defendants removed the case to federal court, which remanded back to Texas state court. The cases were removed again. The Texas federal district court denied a motion to remand but later dismissed all claims against private power companies and remanded the claims against the state authorities to state court.The Fifth Circuit affirmed. Federal jurisdiction obtained at the time of removal because the suit then qualified as a “mass action” under the Class Action Fairness Act (CAFA), 28 U.S.C. 1332(d)(11)(A); an exception for a local single event does not apply. CAFA mass actions “may be removed by any defendant without the consent of all defendants.” The court upheld the dismissals of the power companies based on findings that the plaintiffs did not adequately allege any violations of the FERC license; that under Texas law, only state authorities may be found liable for floodwater damage; and that the plaintiffs failed to show that the operation of the generators was a proximate cause of plaintiffs’ losses. View "Bonin v. Sabine River Authority of Louisiana" on Justia Law

When a class representative voluntarily settles only his individual claims without indicating any financial stake in the unresolved class claims, the class claims are rendered moot.The Ninth Circuit dismissed as moot plaintiff's appeal from the district court's judgment in a putative class action after voluntary settlement of individual claims. The panel could not assume that plaintiff maintains a financial stake in the outcome of this case merely because of a potential enhancement award. In this case, while plaintiff expressly did not resolve the class claims, he did not retain a financial stake in them. The panel concluded that, absent proof that plaintiff is legally obligated to pay the advanced legal costs unless the class is certified, those costs do not provide him a financial stake in the outcome of the class claims. View "Brady v. AutoZone Stores, Inc." on Justia Law

The Supreme Court held that judgment creditors cannot levy on their judgment debtor, obtain the judgment debtor's chose in action for legal malpractice against the attorney representing the judgment debtor in the litigation giving rise to the judgment, and prosecute the claim for legal malpractice against the attorney as successors in interest to their judgment debtor.Janice and Jeff Gray were awarded $127 million in a civil suit against James Lee Hohenshell. The court of appeals affirmed. While the appeal was pending, the Grays caused to be issued a writ of execution on the judgment against Hohenshell. Amongst the property levied on was any claims against Michael Oliver, Hohenshell's lawyer in the underlying suit. The Grays purchased this right for $5000 at the sheriff's sale. The Grays then filed this malpractice claim against Oliver as successors in interest to Hohenshell. The district court granted Oliver's motion for summary judgment, holding that public policy prohibits the assignment of a legal malpractice claim to an adversarial party in the underlying lawsuit. The Supreme Court affirmed, holding that judgment creditors cannot prosecute a claim for legal malpractice as successors in interest to their former litigation adversary where the claim for legal malpractice arose out of the suit in which the parties were adverse. View "Gray v. Oliver" on Justia Law

Plaintiff joined the Chinese-Manufactured Drywall Products Liability Multi-District Litigation, alleging that his home contained defective Chinese-manufactured drywall. Plaintiff challenged the district court's award of $300,000 in damages and Knauf Defendants move to dismiss.The Fifth Circuit granted the Knauf Defendants' motion to dismiss for lack of jurisdiction and dismissed the appeal. In this case, the New Claims Settlement Agreement incorporates another agreement that has a waiver of appellate rights, and these explicit waivers clearly and unequivocally waive plaintiff's right to appeal. View "Dieuvil v. Gebrueder Knauf Verwaltungsgesellschaft, KG" on Justia Law