Justia Class Action Opinion Summaries

African-American and Hispanic borrowers under National City Bank mortgages, 2006-2007, sued, alleging violation of the Fair Housing Act, 42 U.S.C. 3605, and the Equal Credit Opportunity Act, 15 U.S.C. 1691, by an established pattern or practice of racial discrimination in the financing of home purchases. They cited National’s “Discretionary Pricing Policy,” under which brokers and loan officers could add a subjective surcharge of points, fees, and credit costs to an otherwise objective, risk-based rate, so that minority applicants were “charged a disproportionately greater amount in non-risk-related charges than similarly-situated Caucasian persons.” During discovery, National provided data on more than two million loans issued from 2001 to 2008. After mediation, the parties reached a proposed settlement: National did not concede wrongdoing, but would pay $7,500 to each named plaintiff, $200 to each class payee, $75,000 to two organizations for counseling and other services for the class, and $2,100,000 in attorneys’ fees. After granting preliminary approval and certification of the proposed class, the district court considered the Supreme Court’s 2011 decision, Wal-Mart Stores, Inc. v. Dukes, and held that the class failed to meet Rule 23(a)’s commonality and typicality requirements and denied certification. The Third Circuit affirmed, noting that the proposed class is national, with 153,000 plaintiffs who obtained loans at more than 1,400 branches; significant disparity in one branch or region could skew the average, producing results indicating national disparity, when the problem may be more localized. View "Rodriguez v. Nat'l City Bank" on Justia Law

Former starting quarterback for Arizona State University, Samuel Keller, filed a putative class action suit against EA, alleging that EA violated his right of publicity under California Civil Code 3344 and California common law by using Keller's likeness as part of the "NCAA Football" video game series. EA moved to strike the complaint as a strategic lawsuit against public participation (SLAPP) under California's anti-SLAPP statute, Cal. Civ. Proc. Code 425.16. The court concluded that EA could not prevail as a matter of law based on the transformative use defense where EA's use did not qualify for First Amendment protection because it literally recreated Keller in the very setting in which he had achieved renown. The court also concluded that, although there was some overlap between the transformative use test and the Rogers v. Grimaldi test, the Rogers test should not be imported wholesale to the right-of-publicity claims. Finally, the court concluded that state law defenses for reporting of information did not protect EA's use. Accordingly, the court affirmed the district court's denial of the motion to strike the complaint. View "In re: NCAA Licensing Litig." on Justia Law

Plaintiffs filed a class action challenging the constitutionality of Arizona's Proposition 100. Proposition 100 commands that Arizona state courts could not set bail for serious felony offenses as prescribed by the legislature if the person charged has entered or remained in the United States illegally and if the proof was evident or the presumption great as to the charge. After reviewing the record, the court affirmed the district court's grant of summary judgment and partial dismissal, concluding that plaintiffs have not raised triable issues of fact as to whether Proposition 100 and its implementing procedures violated the substantive and procedural due process guarantees of the United State's Constitution's Fourteenth Amendment, the Excessive Bail Clause of the Eighth Amendment, and the Sixth Amendment right to counsel, nor whether the Proposition 100 laws were preempted by federal immigration law. The court concluded that the Arizona Legislature and Arizona voters passed the Proposition 100 laws to further the state's legitimate and compelling interest in seeing that those accused of serious state-law crimes were brought to trial. View "Lopez-Valenzuela v. County of Maricopa" on Justia Law

The parents and the grandmother of two black children sued the Nashville Board of Public Education on behalf of their children and all black students in the District whose school assignments were adversely affected by the elimination of the mandatory noncontiguous transfer zones. They allege that the Rezoning Plan eliminated the desirable practice of being bused to a good, racially diverse school and replaced it with two inferior choices: staying in a bad, racially isolated neighborhood school or being bused to a bad, racially diverse school. They claim that has led to resegregation in violation of the students’ rights under the Equal Protection Clause. The district court ruled in favor of the Board. The Sixth Circuit affirmed, finding that the change serves legitimate state interests in school under-utilization. The Plan actually solved the problem that many schools were operating at levels below what their resources and infrastructure would permit, while other schools were overflowing. The court stopped short of endorsing the Plan, noting that certain students in poor neighborhoods had to share textbooks; that the racial achievement gap apparently exists much as before; and that Nashville public-school students as a whole continue to do poorly after the Plan. View "Spurlock v. Fox" on Justia Law

Goldman Sachs appealed from an order of the district court denying their motion to compel arbitration of plaintiff's claims of gender discrimination. Plaintiff and others alleged that Goldman Sachs engaged in a continuing pattern and practice of discrimination based on sex against female employees in violation of Title VII of the Civil Rights Act of 1964, 42 U.S.C. 2000 et seq., and the New York City Human Rights Law, Administrative Code of the City of New York 8-107 et seq. On appeal, plaintiff contended that the arbitration clause in her agreement must be invalidated because arbitration would preclude her from vindicating a statutory right. The court disagreed and held that the district court erred in denying the motion to compel arbitration where plaintiff had no substantive statutory right to pursue a pattern-or-practice claim. Accordingly, the court reversed the judgment of the district court. View "Parisi v. Goldman, Sachs & Co." on Justia Law

Plaintiffs, thirteenth North Carolina residents who lost access to in-home personal care services (PCS) due to a statutory change, brought suit challenging the new PCS program. The district court granted plaintiffs' motions for a preliminary injunction and class certification. Defendants appealed, raising several points of error. The court agreed with the district court's conclusion that a preliminary injunction was appropriate in this case. The court held, however, that the district court's order failed to comply with Federal Rule of Civil Procedure 65 because it lacked specificity and because the district court neglected to address the issue of security. Accordingly, the court remanded the case. View "Pashby v. Delia" on Justia Law

Named plaintiffs are five individuals with mental retardation who are institutionalized in intermediate care facilities (ICFs/MR) operated by the Pennsylvania Department of Public Welfare; they allege violation of the Americans with Disabilities Act and Rehabilitation Act by failing “to offer and provide the opportunity to receive services in integrated, community settings that are most appropriate settings to meet their needs. Plaintiffs claimed that there are approximately 1,272 individuals who reside in five ICFs/MR. The district court certified the class, denied a motion to dismiss, denied a motion to intervene brought by nine institutionalized individuals who oppose community placement, and granted final approval to a settlement agreement. The Third Circuit vacated in part, holding that the court abused its discretion by denying intervention as of right pursuant to Federal Rule of Civil Procedure 24(a)(2) in the remedy stage of this litigation as well as with respect to final approval of the settlement agreement. The intervenors may also challenge certification of the class. View "Benjamin v. PA Dep't of Pub. Welfare" on Justia Law

In 2008, plaintiffs were inmates at the Indianapolis jail, which was operated by CCA under contract with the Marion County Sheriff’s Department. They claimed that the jail provided inadequate medical care and exposed inmates to inhumane living conditions so egregious that they amounted to cruel and unusual punishment in violation of the Eighth Amendment. The district court certified a class, but dismissed claims that the jail failed to provide adequate medical care, that the conditions of confinement inside the jail were inhumane, and that the procedures in the jail violated inmates’ rights under the Health Insurance Portability and Accountability Act and later entered summary judgment for CCA on the remaining issues. The Seventh Circuit affirmed, noting that CCA had produced an affidavit indicating that complained-of problems had been resolved. View "Kress v. CCA of TN, LLC" on Justia Law

In 2005 brokers sued Merrill Lynch under 42 U.S.C. 1981 and Title VII raising claims of racial discrimination and seeking to litigate as a class. They alleged that the firm’s “teaming” and account-distribution policies had the effect of steering black brokers away from the most lucrative assignments and prevented them from earning compensation comparable to white brokers. That litigation is ongoing. Three years later, Bank of America acquired Merrill Lynch, and the companies introduced a retention-incentive program that would pay bonuses to Merrill Lynch brokers corresponding to their previous levels of production. Brokers filed a second class-action suit. The district court dismissed. The court held that the retention program qualified as a production-based compensation system within the meaning of the section 703(h) exemption and was protected from challenge unless it was adopted with “intention to discriminate because of race.” 42 U.S.C. 2000e-2(h). The court then held that the complaint’s allegations of discriminatory intent were conclusory. The Seventh Circuit affirmed. It is not enough to allege that the bonuses incorporated the past discriminatory effects of Merrill Lynch’s underlying employment practices. The disparate impact of those employment practices is the subject of the first lawsuit, and if proven, will be remedied there. View "McReynolds v. Merrill Lynch & Co. Inc." on Justia Law

Objectors appealed the district court's approval of a class action settlement. The underlying case involved allegations that Disney violated Title III of the Americans with Disabilities Act, 42 U.S.C. 12182 et seq., by implementing a policy that banned the use of two-wheeled vehicles, including Segways, by customers within its park and hotels, without exception. The court held that the district court did not abuse its discretion in certifying the class and in approving the settlement. Accordingly, the court affirmed the settlement orders. View "Ault, et al. v. Walt Disney World Co., et al." on Justia Law