Justia Class Action Opinion Summaries

Plaintiff, a chiropractic office, filed suit under the Telephone Consumer Protection Act after it received an unsolicited fax offering a free eBook with information about prescription drugs. The district court dismissed its complaint, holding that the plaintiff had not alleged that the fax, which tendered a product for free rather than for sale, was sufficiently commercial to bring it within the statutory prohibition on “unsolicited advertisements.” On appeal, Defendant-PDR Network defends both steps in the district court’s reasoning, arguing that a fax must be “commercial” to qualify as an “advertisement” under the TCPA and that Carlton & Harris has not alleged the requisite commercial character. Carlton & Harris disputes both portions of the court’s reasoning, contending that a prohibited “advertisement” may be entirely non-commercial and that, in any event, it has adequately alleged that the fax it received was commercial in nature. Further, Plaintiff asserts that PDR Network profits when its fax persuades a medical practitioner to accept the proffered eBook.   The Fourth Circuit vacated the district court’s order and remanded. The court concluded that Plaintiff had adequately alleged that the fax offer had the necessary commercial character to make it an “unsolicited advertisement” under the Act. The court explained that for present purposes, we accept as true Plaintiff’s commission allegation and find it adequate, at this preliminary stage, to state a claim that the fax offer of a free eBook is a commercial “advertisement” subject to the TCPA. View "Carlton & Harris Chiropractic, Inc. v. PDR Network, LLC" on Justia Law

Appellants Cole Matney and Paul Watts (together, "Matney") participated in an employer-sponsored retirement plan (the Plan). They brought a putative class action suit against Appellees, Barrick Gold of North America, Inc. (Barrick Gold), Barrick Gold’s Board of Directors (Board), and the Barrick U.S. Subsidiaries Benefits Committee (Committee)—for breach of fiduciary duty and failure to monitor fiduciaries under sections 409 and 502 of the Employee Retirement Income Security Act (ERISA). Matney alleged the Committee breached the fiduciary duty of prudence by offering high-cost funds and charging high fees. He claimed Barrick Gold and the Board were responsible for failing to monitor the Committee’s actions. The district court dismissed the case with prejudice, concluding the first amended complaint did not plausibly allege any breach of fiduciary duty under ERISA. Finding no reversible error in this dismissal, the Tenth Circuit affirmed. View "Matney, et al. v. Barrick Gold of North America, et al." on Justia Law

This is a class action brought by Louisiana sheriffs and Louisiana law enforcement districts against purveyors of software. The sheriffs and law enforcement districts allege that the software purveyors sold them defective software and then failed to administer the software properly.Defendants include both in-state and out-of-state software purveyors. The Class Action Fairness Act excludes federal jurisdiction over class actions with “less than 100” plaintiff class members. However, from 2015 to late 2018, only in-state Defendants were responsible for the alleged wrongdoing. An out-of-state defendant bears responsibility for the alledged conduct after 2018.Plaintiffs sued in Louisiana state court. Defendants removed to federal district court. Plaintiffs then sought remand to Louisiana state court, arguing that the local controversy exception to the Class Action Fairness Act applied. The magistrate recommended remand under the local controversy exception. The district court adopted the magistrate’s report. Defendants appeal.To be heard in federal court, a class action must have at least a hundred plaintiff class members. Plaintiffs argued that this class action is not removable to federal court because it has fewer than a hundred class members. The Fifth Circuit held that the law enforcement districts are separate entities from the sheriffs under 28 U.S.C. 1332(d)(5)(B).However, the Fifth Circuit remanded to state court on alternate grounds. The Class Action Fairness Act establishes a local controversy exception to federal jurisdiction. 28 U.S.C. 1332(d)(4). This exception requires at least one in-state defendant “whose alleged conduct forms a significant basis for the claims asserted” and “from whom significant relief is sought.” View "State of Louisiana v. i3 Verticals" on Justia Law

Barrera and Varguez sued Apple, a nationwide restaurant chain, to recover civil penalties under the Private Attorneys General Act of 2004 (PAGA) (Labor Code 2698) for Labor Code violations suffered by them and by other employees. Apple unsuccessfully moved to compel arbitration.The court of appeal reversed in part, first rejecting a claim that Apple waived the right to arbitrate by “litigating this case for over a year” before moving to compel arbitration. Citing the Supreme Court’s 2022 decision, "Viking River Cruises," and the Federal Arbitration Act (9 U.S.C. 1), the court concluded that the parties’ agreements require arbitration of the PAGA claims that seek to recover civil penalties for Labor Code violations committed against the plaintiffs. The PAGA claims seeking civil penalties for Labor Code violations committed against other employees may be pursued by the plaintiffs in the trial court. In defining the scope of arbitrable claims, the Agreements permissibly provide that only individual PAGA claims can be arbitrated. The plaintiffs’ individual claims can be arbitrated—unless the Agreements are unenforceable on some other ground; the plaintiffs did not meet their burden in establishing the Agreements are unconscionable. The court remanded for determination of whether a stay of the non-individual PAGA claims would be appropriate. View "Barrera v. Apple American Group LLC" on Justia Law

Plaintiff Phil Hagey appealed a judgment of dismissal entered following the sustaining of a demurrer to his second amended complaint without leave to amend. Plaintiff owned a home with a solar energy system (the system). At the time he purchased the home, the prior homeowner was party to a contract with a company, Kilowatt Systems, LLC (Kilowatt), which owned the system (the solar agreement). Among other terms, the solar agreement required the prior homeowner to purchase the energy produced by the system through monthly payments to Kilowatt. In the event of a sale of the house, the solar agreement afforded the prior homeowner three options. The prior homeowner and plaintiff agreed to an option which allowed prepayment of all remaining monthly payments and a transfer of all solar agreement rights and obligations to plaintiff, except for the monthly payment responsibility. In conjunction with the sale of the house, prepayment occurred and the parties entered into the requisite transfer agreement. At some later point in time, defendant Solar Service Experts, LLC began sending plaintiff monthly bills on Kilowatt’s behalf, demanding payments pursuant to the solar agreement. After receiving a bill, plaintiff spoke to a representative of defendant who told him he should not have received the bill and the issue would be resolved. Plaintiff received additional bills and at least one late payment notice which identified defendant as a debt collector. Plaintiff communicated with defendant’s representatives about the errors by phone and email, all to no avail. Plaintiff thereafter filed a class action lawsuit against defendant. The trial court concluded plaintiff did not, and could not, allege facts sufficient to constitute a consumer credit transaction, as statutorily defined. Plaintiff argued the court erroneously focused on the undisputed fact he did not owe the debt which defendant sought to collect and, in doing so, failed to recognize the Rosenthal Act applied to debt alleged to be due or owing by reason of a consumer credit transaction. To this the Court of Appeal agreed and reversed the judgment. View "Hagey v. Solar Service Experts" on Justia Law

Three sets of plaintiffs alleged price fixing in the broiler chicken market, including a class of end users–persons and entities who indirectly purchased certain types of broilers from the defendants or alleged co-conspirators for personal consumption in certain jurisdictions during the class period. This class settled their claims with a subset of the defendants for $181 million. The district court entered judgment (FRCP 54(b)) as to the settling parties. Class counsel was awarded one-third of the settlement—excluding expenses and incentive awards— $57.4 million. Class member Andren argued the court erred in discounting bids made by class counsel in auctions in other cases; in suggesting the Seventh Circuit has rejected the use of declining fee scale award structures; and in crediting expert reports. In setting the fee award, the district court considered actual agreements between the parties and fee agreements reached in the market for legal services, the risk of nonpayment at the outset of the case and class counsel’s performance, and fee awards in comparable cases.The Seventh Circuit vacated the award. Under Seventh Circuit law, the district court’s task was to award fees in accord with a hypothetical “ex-ante bargain.” In doing so, the court did not consider bids made by class counsel in auctions in other cases as well as out-of-circuit fee awards. View "Andren v. Broiler Chicken Antitrust Litigation End User Consumer Plaintiff Class" on Justia Law

Appellants-Cross-Appellees Konstantine W. Kyros and his law firm, Kyros Law P.C. (together, “Kyros”), appealed from a judgment imposing sanctions for litigation misconduct under Rules 11 and 37 of the Federal Rules of Civil Procedure. In 2014 and 2015, Kyros brought several lawsuits against Appellees-Cross-Appellants World Wrestling Entertainment, Inc. and Vincent K. McMahon (together, “WWE”). Subsequently, the district court imposed sanctions against Kyros in the amount of $312,143.55—less than the full amount requested by WWE. Kyros now appeals these final sanctions determinations. On cross-appeal, WWE challenged the district court’s reduction of the requested fee award by application of the “forum rule,” under which a court calculates attorney’s fees with reference to the prevailing hourly rates in the forum in which the court sits.   The Second Circuit affirmed. The court held that the district court did not abuse its discretion by imposing Rule 11 sanctions on Kyros. WWE’s sanctions motions and the district court’s order that reserved ruling on those motions gave abundant notice to Kyros of the repeated pleading deficiencies that risked imposition of sanctions, and he was afforded sufficient opportunity to be heard. The district court did not abuse its discretion by imposing Rule 37 sanctions on Kyros because Kyros failed to make a good-faith effort to comply with the district court’s order compelling responses to WWE’s interrogatories. The district court did not abuse its discretion by applying the forum rule to award WWE less than the requested amount of sanctions. View "Kyros Law P.C. v. World Wrestling Entertainment, Inc." on Justia Law

Several collections of residents near Jefferson Parish Landfill sued the landfill’s owner (Jefferson Parish) and its operators (four companies). This mandamus action arises out of the Eastern District of Louisiana’s case management of two of those lawsuits: the Ictech-Bendeck class action and the Addison mass action. The Ictech-Bendeck class action plaintiffs seek damages on a state-law nuisance theory under Louisiana Civil Code articles 667, 668, and 669. The Addison mass action plaintiffs seek damages from the same defendants, although they plead claims for both nuisance and negligence. The district court granted in part and denied in part Petitioners’ motion for summary judgment against some of the Addison plaintiffs. Then on April 17 the district court adopted a new case management order drafted by the parties that scheduled a September 2023 trial for several of the Addison plaintiffs.   The Fifth Circuit denied Petitioners' petition for mandamus relief. The court explained that mandamus is an extraordinary form of relief saved for the rare case in which there has been a “usurpation of judicial power” or a “clear abuse of discretion.” The court explained that mandamus relief is not for testing novel legal theories. The court wrote that Petitioners’ theory is not merely new; it is also wrong. Rule 23 establishes a mechanism for plaintiffs to pursue their claims as a class. It does not cause the filing of a putative class action to universally estop all separate but related actions from proceeding to the merits until the class-certification process concludes in the putative class action, after years of motions practice. View "In Re Jefferson Parish" on Justia Law

A settlement agreement generally ends a legal dispute. Here, it was just the beginning. In August 2015, the State of California settled a dispute with a plaintiff class of inmates over alleged constitutional violations. Eight years later, the dispute continues. In settlement, the State agreed to stop housing inmates in solitary confinement for long-term or indefinite periods based on gang affiliation. The inmates’ counsel would monitor the state’s compliance for two years. The settlement agreement and monitoring period could be extended for twelve months if the inmates demonstrated continuing constitutional violations that were either alleged in their complaint or resulted from the agreement’s reforms. The twice successfully extended the settlement agreement before the district court.   The Ninth Circuit reversed in part, vacated in part, and dismissed in part the district court’s extensions of the settlement agreement. The panel reversed the district court’s order granting the first twelve-month extension of the settlement agreement. First, the panel held that there was no basis for extending the agreement based on the inmates’ claim that the CDCR regularly mischaracterizes the confidential information used in disciplinary hearings and fails to verify the reliability of that information. Next, the panel held that there was no basis for extending the agreement based on the inmates’ claim that CDCR unconstitutionally validates inmates as gang affiliates and fails to tell the parole board that old gang validations are flawed or unreliable. The claim was not included in, or sufficiently related to, the complaint. View "TODD ASHKER, ET AL V. GAVIN NEWSOM, ET AL" on Justia Law

Plaintiff filed this nationwide class action on behalf of herself and others similarly situated after her personally identifying information (“PII”), including her name and Social Security number, which had been entrusted to Defendants, were exposed to an unauthorized third party as a result of a targeted data hack. At issue is the proper framework for evaluating whether an individual whose PII is exposed to unauthorized actors, but has not (yet) been used for injurious purposes such as identity theft, has suffered an injury in fact for purposes of Article III standing to sue for damages.   The Second Circuit reversed and remanded. The court concluded that with respect to the question of whether an injury arising from risk of future harm is sufficiently “concrete” to constitute an injury, in fact, TransUnion controls; with respect to the question whether the asserted injury is “actual or imminent,” the McMorris framework continues to apply in data breach cases like this. Thus, the court concluded that Plaintiff’s allegation that an unauthorized third party accessed her name and Social Security number through a targeted data breach gives her Article III standing to bring this action against Defendants to whom she had entrusted her PII. View "Bohnak v. Marsh & McLennan Companies, Inc." on Justia Law