Justia Class Action Opinion Summaries

In this case, three chiropractors and their respective business entities sued Wellmark, Iowa’s largest health insurer and claims administrator, alleging that the company violated Iowa antitrust laws through its Administrative Service Agreements with over 400 Iowa employers who self-fund healthcare benefits for their employees. The chiropractors argued that without these agreements, the self-funded employers would compete independently for chiropractic services, resulting in higher profits for chiropractors. The chiropractors filed a motion to certify a class of approximately 1,300 Iowa chiropractors. However, the Supreme Court of Iowa affirmed the district court's decision to deny class certification, concluding that the chiropractors failed to meet the predominance requirement for class certification as they could not prove the threshold issue of antitrust injury on a classwide basis. The court found that proving whether individual chiropractors would be better or worse off without Wellmark’s agreements would require numerous mini-trials, and thus, individual questions predominated over common questions. Additionally, the court applied the doctrine of judicial estoppel to prevent the chiropractors from belatedly reviving a different liability theory that they had previously abandoned to avoid a motion to dismiss. View "Chicoine v. Wellmark, Inc." on Justia Law

In the case before the United States Court of Appeals for the Fourth Circuit, the plaintiff, Career Counseling, Inc., alleged that the defendant, AmeriFactors Financial Group, LLC, sent an unsolicited advertisement by fax to the plaintiff and thousands of other recipients in violation of the Telephone Consumer Protection Act of 1991 (TCPA), as amended by the Junk Fax Prevention Act of 2005.The plaintiff sought to represent a class of nearly 59,000 other persons and entities who were sent the same fax. The district court denied class certification on the grounds that the class was not readily identifiable or ascertainable. It found that the TCPA prohibits unsolicited advertisements sent to stand-alone fax machines, but not those sent to online fax services. Therefore, it was necessary to distinguish between recipients who were using stand-alone fax machines and those using online fax services. The court held that the plaintiff failed to demonstrate this distinction, rendering the proposed class unascertainable.On appeal, the Fourth Circuit affirmed the district court's decision, agreeing that the proposed class was not readily identifiable or ascertainable. It agreed with the lower court's interpretation of the TCPA, which it determined based on the statute's plain language, that an online fax service does not qualify as a "telephone facsimile machine" under the TCPA. Therefore, users of online fax services could not be included in the proposed class.Additionally, the court affirmed the district court's award of summary judgment to Career Counseling on its individual TCPA claim against AmeriFactors. It concluded that there was insufficient evidence to dispute AmeriFactors' liability as the "sender" of the fax, rendering AmeriFactors liable for sending the unsolicited fax to Career Counseling. View "Career Counseling, Inc. v. Amerifactors Financial Group, LLC" on Justia Law

In this case, the Supreme Court of the State of Washington was asked to consider a class action suit brought by patients against MultiCare Health System, Inc., a Washington corporation that operates Good Samaritan Hospital. The suit arose after a nurse employed by MultiCare, Cora Weberg, improperly diverted injectable narcotics for her own use and infected some emergency department patients with hepatitis C. The patients claimed that MultiCare failed to meet the accepted standard of care in supervising and hiring Nurse Weberg. The trial court divided the class into two groups: those who were assigned to Nurse Weberg and those who were not. It then dismissed the claims of the second group. The trial court ruled that legal causation was not satisfied because Nurse Weberg did not directly treat these patients. The Court of Appeals affirmed this decision.However, the Supreme Court of the State of Washington reversed both courts and held that legal causation is satisfied. The court held that both classes can proceed with their chapter 7.70 RCW claims, which govern civil actions for damages for injury occurring as a result of health care. The court reasoned that the General Treatment Class's injuries arose as a result of health care, allowing their claim under chapter 7.70 RCW to proceed. The court also found that legal causation is satisfied when a hospital’s negligent supervision and hiring potentially exposes patients to a bloodborne pathogen, inducing fear and requiring blood testing. Thus, the court concluded that the General Treatment Class's claims should not have been dismissed. View "M.N. v. MultiCare Health Sys., Inc." on Justia Law

In the case before the United States Court of Appeals for the Fourth Circuit, plaintiff Carla J. Kappel, acting on behalf of her deceased ex-husband's estate and as mother to their minor children, sued LL Flooring, Inc., alleging that the company's Chinese-manufactured laminate flooring caused her ex-husband's death due to exposure to formaldehyde.The district court dismissed Kappel's wrongful death lawsuit, arguing that her claim was barred by a settlement agreement that had been reached in connection with two multidistrict litigation (MDL) actions related to LL Flooring's products. The court maintained that the deceased, Mr. Tarabus, was a class member subject to that settlement agreement and thus his claims, including any claims involving bodily injuries or death caused by the subject flooring, had been settled.On appeal, Kappel argued that the district court lacked subject matter jurisdiction to make the dismissal order and that the MDL settlement agreement did not bar her wrongful death lawsuit on behalf of the children. The Court of Appeals agreed with Kappel's latter argument and held that the settlement agreement failed to resolve Kappel’s wrongful death lawsuit.The Court found that the claims in Kappel's lawsuit, which concerned the bodily injuries Mr. Tarabus experienced and the alleged causal connection between the laminate flooring and his cancer diagnosis, were materially distinct from the claims in the MDL proceedings. Notably, the settlement class representatives had twice made clear that they were not pursuing personal injury claims on a class-wide basis, and at no point did any class representative ever allege or pursue a wrongful death lawsuit.Therefore, the Court vacated the lower court's dismissal of Kappel's lawsuit and remanded the case for further proceedings. View "Kappel v. LL Flooring, Inc." on Justia Law

The United States Court of Appeals for the Eleventh Circuit considered whether consumers can recover statutory damages under the Fair Credit Reporting Act (FCRA) without proving actual damages caused by a consumer reporting agency's willful violation of the Act. The case was brought by plaintiffs Omar Santos and Amanda Clements on behalf of a class of individuals, against Experian Information Solutions, Inc. The plaintiffs alleged that Experian willfully violated its obligation under the FCRA to ensure consumer credit reports were prepared with maximum possible accuracy, allowing credit reports to reflect inaccurately updated status dates. The district court denied class certification, holding that the FCRA required proof of actual damages.The Eleventh Circuit vacated and remanded the district court's decision, holding that consumers do not need to prove actual damages to recover statutory damages under the FCRA. The court found that the FCRA allows consumers to recover damages of not less than $100 and not more than $1,000 for a willful violation of the Act, regardless of whether they can prove actual damages. The court cited the plain language of the Act, the structure of the statute, and the Act's legislative history in reaching its decision. The court also noted that its interpretation was consistent with the holdings of other circuit courts that have addressed this issue. The case was remanded for further proceedings consistent with this interpretation. View "Santos v. Experian Information Solutions, Inc." on Justia Law

Elaine Neidig, individually and on behalf of a class, sued Valley Health System, a health care provider, for unfair and deceptive practices, unjust enrichment, and breach of contract. Neidig had received three mammograms at Valley Health's Winchester Medical Center between March 2016 and June 2019. In July 2019, federal inspectors found that the center's staff were not correctly positioning or compressing women's breasts during mammograms, leading to serious image quality deficiencies. Valley Health then had to alert all at-risk patients, including Neidig, of the mammography quality problems. Neidig, who did not allege any physical or emotional harm resulting from the low-quality mammograms, sued Valley Health in August 2022. Valley Health moved to dismiss the case on the basis that it was filed beyond the two-year statute of limitations provided by the West Virginia Medical Professional Liability Act. The United States District Court for the Northern District of West Virginia agreed with Valley Health and dismissed Neidig's claims as untimely. Neidig appealed the decision to the United States Court of Appeals for the Fourth Circuit.Upon review, the Fourth Circuit concluded that the case presented a novel issue of state law that needed to be addressed by the Supreme Court of Appeals of West Virginia. The issue was whether a plaintiff's claims can fall under the West Virginia Medical Professional Liability Act if the plaintiff does not claim any form of physical or emotional injury. The Fourth Circuit certified this question to the Supreme Court of Appeals of West Virginia for resolution. View "Neidig v. Valley Health System" on Justia Law

In this class action case, Nicole DeMarinis and Kelly Patire, current and former employees of Heritage Bank of Commerce, brought a case under the California Private Attorneys General Act of 2004 (PAGA) against Heritage Bank for wage and hour and other Labor Code violations. The Court of Appeal of the State of California First Appellate District Division Three affirmed the trial court’s decision, rejecting Heritage Bank’s argument to compel arbitration of plaintiffs’ individual PAGA claims based on a waiver in their arbitration agreement.In the agreement, the plaintiffs had waived their right to bring any claims against each other in any class or representative proceeding. The bank argued that the denial of arbitration was erroneous because the waiver provision was enforceable, pertaining only to plaintiffs’ nonindividual PAGA claims. The court, however, found that the provision violated public policy as it required plaintiffs to completely abandon their right to bring both individual and nonindividual PAGA claims in any forum.The court also found that the waiver provision's nonseverability clause and a "poison pill" provision, which stated that if the waiver provision is found unenforceable, then the entire arbitration agreement is null and void, precluded severance of the unenforceable nonindividual PAGA claims waiver. Consequently, the court concluded that the unenforceability of the waiver provision rendered the entire arbitration agreement null and void, thereby affirming the trial court's decision denying the motion to compel arbitration. View "DeMarinis v. Heritage Bank of Commerce" on Justia Law

The case concerned a lawsuit brought by Ariana Miles against her former employer, Kirkland's Stores Inc., alleging that two of the company's employee policies violated California law. The first policy required employees to take rest breaks on store property, while the second necessitated employees to undergo bag checks when they finished their shifts. Miles sought class certification for subclasses of employees affected by these two policies from May 2014 to the present. The United States Court of Appeals for the Ninth Circuit reversed the district court's denial of class certification for subclasses related to the Rest Break Claim due to the inaccuracy of the district court's finding that the rest break policy was inconsistently applied. The court held that overwhelming record evidence indicated that the company consistently enforced its rest break policy across all employees. However, the court upheld the district court's denial of class certification for the Bag Check Claim, as the evidence suggested that the bag check policy was sporadically enforced, which would require individualized inquiries. The case was thus remanded for further proceedings concerning the Rest Break Claim. View "MILES V. KIRKLAND'S STORES, INC." on Justia Law

The United States Court of Appeals for the Sixth Circuit affirmed the district court's denial of Brian Behovitz's motion to intervene in a class action lawsuit initiated by Frederick Grainger, Jr. against Ottawa County, Michigan, and other Michigan counties. Grainger alleged that the counties unlawfully retained the full proceeds from foreclosure auctions of homes, even when the proceeds exceeded the homeowners' unpaid property taxes. The district court denied class certification because Grainger's individual claims were barred by the statute of limitations, making him unfit to serve as a class representative. Behovitz, who had a similar experience with another county, sought to intervene as a new putative class representative. His motion was denied by the district court, and he appealed.The Sixth Circuit affirmed the denial, finding that Behovitz failed to establish the necessary factors for intervention as of right under Federal Rule of Civil Procedure 24(a). Specifically, he failed to show a substantial legal interest in the subject matter of the case or that his ability to protect his interest may be impaired without intervention. The court also concluded that the district court did not abuse its discretion in denying Behovitz’s permissive intervention. It noted that Behovitz likely does not have an interest in class certification, and his interest in opposing a settlement in a similar litigation was not a proper reason for intervention in this case. View "Grainger v. Ottawa County, Mich." on Justia Law

The plaintiff, a survivor of childhood sex trafficking, filed a class action suit against a group of foreign and domestic corporations, alleging that they violated federal and California laws by distributing videos of her sexual abuse on the internet. The defendants included the owners and operators of two pornography websites based in the Czech Republic. The plaintiff argued that the court had personal jurisdiction over the foreign defendants under Federal Rule of Civil Procedure 4(k)(2), which allows for jurisdiction over a foreign defendant if the claim arises under federal law, the defendant is not subject to jurisdiction in any state's courts, and exercising jurisdiction is consistent with the U.S. Constitution and laws. The district court dismissed the case, ruling that it lacked personal jurisdiction over the foreign defendants.The U.S. Court of Appeals for the Ninth Circuit reversed in part and vacated in part the district court's dismissal. The court found that the plaintiff had established a prima facie case that the Czech website operators had purposefully directed their websites at the United States. The court also held that the plaintiff's claims arose from the defendants' forum-related activities, and that the defendants failed to show that the exercise of personal jurisdiction would be unreasonable. Therefore, the court reversed the district court's dismissal of the action against the Czech defendants for lack of personal jurisdiction.The court also vacated the district court's dismissal of nine additional foreign defendants. The district court had dismissed these defendants solely on the grounds that there was no personal jurisdiction over the Czech defendants. The appellate court instructed the district court to address on remand whether personal jurisdiction could be asserted against these additional defendants. View "DOE V. WEBGROUP CZECH REPUBLIC, A.S." on Justia Law