Justia Class Action Opinion Summaries
Articles Posted in Civil Procedure
Renfro, et al. v. Champion Petfoods USA, et al.
A group of pet owners brought a class action against Champion Petfoods USA, Inc., alleging representations on Champion’s packaging on its Acana and Orijen brands of dog food were false and misleading. Champion’s dog food packaging contained a number of claims about the product, advertising the food as “Biologically Appropriate,” “Trusted Everywhere,” using “Fresh and Regional Ingredients,” and containing “Ingredients We Love [From] People We Trust.” The district court dismissed the claims as either unactionable puffery or overly subjective and therefore not materially misleading to a reasonable consumer. To this, the Tenth Circuit Court of Appeals agreed, finding Plaintiffs’ claims failed to allege materially false or misleading statements on Champion’s packaging because the phrases failed to deceive or mislead reasonable consumers on any material fact. View "Renfro, et al. v. Champion Petfoods USA, et al." on Justia Law
Peck v. Swift Transportation Co.
Plaintiffs and Swift reached a settlement pertaining to class claims alleging violations of California labor law, and claims brought under the California Private Attorney General Act (PAGA), which allows private citizens to recover civil penalties on behalf of themselves “and other current or former employees.” Peck and Mares objected to the settlement agreement. The district court gave final approval of the settlement.The Ninth Circuit dismissed the appeal of the PAGA settlement. Peck may not appeal the PAGA settlement because he was not a party to the underlying PAGA action. Although Peck is a class member of the class action, a PAGA action is distinct from a class action. Objectors to a PAGA settlement are not “parties” to a PAGA suit in the same sense that absent class members are “parties” to a class action. The fact that Peck may ultimately receive a portion of the PAGA settlement did not make him a party. Although Peck has a separately-filed PAGA action, that does not make him a party to this PAGA case.The court vacated the approval of the class action settlement. The district court erred in applying a presumption that the settlement was fair and reasonable, and the product of a non-collusive, arms-length negotiation; the error was not harmless. That erroneous presumption cast a shadow on the entire order. On remand, the district court must make findings in accordance with the applicable heightened standard. View "Peck v. Swift Transportation Co." on Justia Law
Laudato v. EQT Corp.
About 100 Pennsylvania landowners filed a class-action complaint, alleging that EQT has been storing natural gas in six separate storage fields, thereby utilizing the landowners’ underground pore space without providing them compensation. Months later, all landowners except for Laudato voluntarily dismissed their claims without prejudice. Laudato later moved for class certification, seeking approval of a class of: All persons and/or entities that own and/or owned real property—and/or natural gas storage rights to real property—located within the certificated boundaries of one or more of the Gas Storage Fields for any period of time, not before Defendants’ inception of the respective gas. The district court, exercising federal-question jurisdiction over claims under the Natural Gas Act, 15 U.S.C. 717–17z, agreed to class certification but rejected Laudato’s proposed class definition, refusing to grant other downstream requests such as the appointment of a class representative, the appointment of class counsel, and certain issues’ certification. The court directed the parties to meet and confer “regarding the establishment of an appropriate class definition.”The Third Circuit granted a petition for review, holding that because the order clearly implicates Rule 23(f), it had jurisdiction and that interlocutory review was appropriate. View "Laudato v. EQT Corp." on Justia Law
Cirrincione v. American Scissor Lift
Plaintiff Jason Cirrincione appealed an order denying class certification in a wage-and-hour action he filed against his former employer, defendant American Scissor Lift, Inc. (ASL). On appeal to the Court of Appeal, plaintiff argued reversal was required for a number reasons, including that the trial court’s ruling rested upon improper merits determinations and incorrect assumptions. Finding no reversible error, the Court of Appeal affirmed the denial of class certification. View "Cirrincione v. American Scissor Lift" on Justia Law
Hood v. American Auto Care, et al.
Alexander Hood, a Colorado resident, appealed the dismissal for lack of personal jurisdiction of his putative class-action claim against American Auto Care (AAC) in the United States District Court for the District of Colorado. AAC, a Florida limited liability company whose sole office was in Florida, sold vehicle service contracts that provided vehicle owners with extended warranties after the manufacturer’s warranty expires. Hood’s complaint alleged AAC violated the Telephone Consumer Protection Act (TCPA) and invaded Hood’s and the putative class members’ privacy by directing unwanted automated calls to their cell phones without consent. Although he was then residing in Colorado, the calls came from numbers with a Vermont area code. He had previously lived in Vermont, and his cell phone number had a Vermont area code. Hood was able to trace one such call to AAC. Although it determined that Hood had alleged sufficient facts to establish that AAC purposefully directs telemarketing at Colorado, the trial court held that the call to Hood’s Vermont phone number did not arise out of, or relate to, AAC’s calls to Colorado phone numbers. In light of Ford Motor Co. v. Montana Eighth Judicial District Court, 141 S. Ct. 1017 (2021), the Tenth Circuit determined the trial court's dismissal could not stand. "The argument regarding 'purposeful direction' ... is implicitly rejected by Ford, and the argument regarding 'arise out of or relate to' ... is explicitly rejected. ... We also determine that AAC has not shown a violation of traditional notions of fair play and substantial justice." View "Hood v. American Auto Care, et al." on Justia Law
Earl v. Boeing Company
The Fifth Circuit granted defendants' motion for a stay of discovery in this class action lawsuit while the court reviews their appeal under Federal Rule of Civil Procedure 23(f). Boeing and Southwest were sued for allegedly conspiring to conceal design defects in Boeing's 737 MAX 8 aircraft and thus defrauding airline ticket purchasers. After considering the Nken factors, the court concluded that Boeing and Southwest have made a strong showing that the court is likely to reverse the class-certification decision because they raised substantial predominance questions regarding damages. Furthermore, defendants have also made a strong showing regarding irreparable harm; plaintiffs have not plausibly alleged that they or any other parties will be irreparably injured by delaying further discovery until the conclusion of the Rule 23(f) appeal; and the public interest supports staying district court proceedings to avoid potentially wasteful and unnecessary litigation costs where, as here, defendants have shown a substantial likelihood of success on appeal. View "Earl v. Boeing Company" on Justia Law
Looper v. Cook Inc.
The Judicial Panel on Multidistrict Litigation (MDL) asked the Southern District of Indiana to oversee a multidistrict litigation docket to coordinate discovery and other pretrial proceedings in thousands of medical product-liability suits, alleging that Cook’s inferior vena cava (IVC) filters were defective. The court and the parties agreed to a procedure by which new plaintiffs could join the MDL by filing directly in the Southern District of Indiana rather than filing in their home districts and waiting for the judiciary’s administrative machinery to transfer their cases to the MDL in Indiana. The plaintiffs filed their lawsuits directly in the Indiana MDL rather than filing in the states where they lived and had their IVC filters implanted.Cook moved to dismiss both cases based on Indiana’s two-year statute of limitations for personal injury actions. The plaintiffs’ home states (South Carolina and Mississippi) have three-year statutes. The Seventh Circuit reversed the dismissal of the suits. The unique facts of this case indicate that Cook implicitly consented to using choice-of-law rules for these plaintiffs as if they had filed in their home states. It was not fair to allow Cook to change positions retroactively to dismiss these plaintiffs’ cases that had been timely filed under the “law of the case.” View "Looper v. Cook Inc." on Justia Law
RCC Wesley Chapel Crossing, LLC et al. v. Allen, et al.
In February 2018, Plaintiff filed a lawsuit on behalf of himself and a putative class of similarly situated persons against Defendants RCC Wesley Chapel Crossing, LLC, Little Giant Farmers Market Corporation, Dollar Tree Stores, Inc., River City Capital, LLC, and River City Capital Property Management, LLC for negligence, premises liability, false imprisonment, conversion, and violation of the Georgia Racketeer Influenced and Corrupt Organizations Act (“RICO”). Plaintiff claimed that Defendants “hired, authorized, or otherwise provided material support to” third parties that immobilized vehicles located on Defendants’ property with boots or similar devices, and required the owners or operators of the vehicles to pay a fee in order to have the immobilizing devices removed. Plaintiff moved to certify the action on behalf of a proposed class of similarly situated persons, claiming that between February 2013 and 2018, at least 250 persons “have been booted and have paid a fine for removal of said device” at the Wesley Chapel Lot. Following briefing and oral argument, the trial court granted Plaintiff’s motion, certifying the class. The Georgia Supreme Court granted certiorari in this case to decide whether there was a common-law right that permits private property owners to immobilize vehicles that were not authorized to be on their property. The Court concluded that the common-law rights the defendants alluded to in the courts below – namely, the right to remove trespassing vehicles and an alleged right to impound trespassing vehicles – did not apply to the defendants’ vehicle immobilization practice. However, because the Supreme Court disagreed with the Court of Appeals’ conclusion that “the trial court did not err in finding no common law right to immobilize a vehicle absent an enabling statute or ordinance,” and any reliance on that conclusion in affirming the trial court’s order granting Plaintiff Forrest Allen’s motion for class certification, the Supreme Court vacated the judgment of the Court of Appeals and remanded the case with direction to remand to the trial court for reconsideration of the proposed class. View "RCC Wesley Chapel Crossing, LLC et al. v. Allen, et al." on Justia Law
Santiago v. City of Chicago
Santiago, a severely disabled Chicago resident, would leave her van parked on the street near her home for extended periods of time. In 2018, pursuant to the Chicago Municipal Code, her van was towed, impounded, and destroyed. She sued the city on her own behalf and on behalf of others similarly situated, challenging the constitutionality of various aspects of the ordinance. The district court granted, in part, her motion to certify her suit as a class action. With respect to the “Tow Class,” the court concluded that Santiago “is asserting only a facial challenge: the ordinance is unconstitutional because it fails to require adequate notice before a vehicle has been towed.” Concerning the Vehicle Disposal Class, the court rejected Chicago’s assertion that state law requires the class to show prejudice from the city’s failure to strictly follow its ordinance.The Seventh Circuit vacated. The class certification order does not fully demonstrate the “rigorous analysis” required by FRCP 23 and constituted an abuse of discretion. Considering whether questions of law or fact common to class members predominate begins with the elements of the underlying cause of action. The district court did not discuss any of the elements of the underlying causes of action or what the causes of action are. View "Santiago v. City of Chicago" on Justia Law
I. C. v. StockX, LLC
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