Justia Class Action Opinion Summaries
Articles Posted in Class Action
Mills v. Facility Solutions Group
Plaintiff filed a complaint against his former employer, Facility Solutions Group, Inc. (FSG), for disability discrimination and related causes of action under the Fair Employment & Housing Act. The same month Plaintiff filed this class action against FSG for Labor Code violations, which also included a claim under the Private Attorneys General Act of 2004.
The trial court in this action denied FSG’s motion, finding unconscionability permeated the arbitration agreement because it had a low to moderate level of procedural unconscionability and at least six substantively unconscionable terms, making severance infeasible. On appeal, FSG contends claim and issue preclusion required the trial court in this action to enforce the arbitration agreement.
The Second Appellate District affirmed. The court agreed with the trial court that the arbitration agreement is permeated with unconscionability, and the court cannot simply sever the offending provisions. Rather, the court would need to rewrite the agreement, creating a new agreement to which the parties never agreed. Moreover, upholding this type of agreement with multiple unconscionable terms would create an incentive for an employer to draft a onesided arbitration agreement in the hope employees would not challenge the unlawful provisions, but if they do, the court would simply modify the agreement to include the bilateral terms the employer should have included in the first place. View "Mills v. Facility Solutions Group" on Justia Law
IN RE: NAMED PLAINTIFFS, ET AL V. APPLE INC.
Apple entered into a $310 million settlement with a class of individuals based on claims that Apple secretly throttled the system performance of certain model iPhones to mask battery defects. Five class objectors sought to vacate the settlement on various grounds, including 1.) that the district court provided inadequate notice of the settlement to nonnatural persons; 2.) the settlement extinguished the claims of “all former or current U.S. owners” of certain devices who downloaded iOS software before Apple disclosed potential defect, but the settlement limited recovery to the subset of owners who can attest that “they experienced” the alleged defects; and 3.) that the district court cited the wrong legal standard in examining the settlement’s fairness by improperly applying a presumption of reasonableness to the settlement rather than applying a heightened scrutiny.The Ninth Circuit held that the district court applied the wrong legal standard when reviewing the settlement’s fairness. View "IN RE: NAMED PLAINTIFFS, ET AL V. APPLE INC." on Justia Law
GLORIA JOHNSON, ET AL V. CITY OF GRANTS PASS
This case involves challenges to five provisions of the Grants Pass Municipal Code (“GPMC”). The provisions can be described as an “anti-sleeping” ordinance, two “anticamping” ordinances, a “park exclusion” ordinance, and a “park exclusion appeals” ordinance.
The Ninth Circuit affirmed in part and vacated in part the district court’s summary judgment and its permanent injunction in favor of Plaintiffs; affirmed certification pursuant to Fed. R. Civ. P. 23(b)(2), of a class of “involuntary homeless” persons; and remanded in an action challenging municipal ordinances which, among other things, preclude homeless persons from using a blanket, a pillow, or cardboard box for protection from the elements while sleeping within the City’s limits.
The panel stated that this court’s decision in Martin v. City of Boise, 902 F.3d 1031 (9th Cir. 2018), which held that “the Eighth Amendment prohibits the imposition of criminal penalties for sitting, sleeping, or lying outside on public property for homeless individuals who cannot obtain shelter” served as the backdrop for this entire litigation. The panel held that there was abundant evidence in the record establishing that homeless persons were injured by the City’s enforcement actions in the past and it was undisputed that enforcements have continued. The panel further held that the relief sought by plaintiffs, enjoining enforcement of a few municipal ordinances aimed at involuntary homeless persons, was redressable within the limits of Article III. The panel held that based on the record in this case, the district court did not err by finding plaintiffs satisfied the requirements of Fed. R. Civ. P. 23(a) such that a class could be certified under Rule 23(b)(2). View "GLORIA JOHNSON, ET AL V. CITY OF GRANTS PASS" on Justia Law
ANDRE VERDUN, ET AL V. CITY OF SAN DIEGO, ET AL
Plaintiffs brought a putative class action under 42 U.S.C. Section 1983 alleging that tire chalking violated the Fourth Amendment. The Ninth Circuit affirmed the district court’s summary judgment for Defendants and held that municipalities are not required to obtain warrants before chalking tires as part of enforcing time limits on city parking spots. The panel held that even assuming the temporary dusting of chalk on a tire constitutes a Fourth Amendment “search,” it falls within the administrative search exception to the warrant requirement. Complementing a broader program of traffic control, tire chalking is reasonable in its scope and manner of execution. It is not used for general crime control purposes. And its intrusion on personal liberty is de minimis at most. View "ANDRE VERDUN, ET AL V. CITY OF SAN DIEGO, ET AL" on Justia Law
Phillip Alig v. Rocket Mortgage, LLC
Plaintiffs in this class action are a class of all West Virginia citizens who refinanced a total of 2,769 mortgages with Defendant Quicken Loans Inc. (now Rocket Mortgage, LLC) from 2004 to 2009, for whom Quicken Loans obtained appraisals from Defendant appraisal management company Title Source, Inc. (now Amrock Inc.) using a request form that included an estimate of value of the subject property. The district court certified the proposed class and granted summary judgment to Plaintiffs on three claims: unconscionable inducement under West Virginia Code Section 46A-2-121(a)(1); breach of contract; and conspiracy.
Previously the Fourth Circuit concluded that Plaintiffs had standing because all of the class members had paid “for independent appraisals that . . . they never received”. Three months later, the Supreme Court issued its opinion in TransUnion LLC v. Ramirez, which addressed Article III standing in the context of a class-action case. Having considered the parties' submissions, the Fourth Circuit concluded that the district court should apply TransUnion to the facts of this case in the first instance. Accordingly, the court vacated and remanded for further proceedings. View "Phillip Alig v. Rocket Mortgage, LLC" on Justia Law
Tammie Thompson v. Ciox Health, LLC
Plaintiffs were injured in unspecified accidents and treated by South Carolina health care providers. Seeking to pursue personal injury lawsuits, Plaintiffs requested their medical records from the relevant providers. Those records—and accompanying invoices—were supplied by defendants Ciox Health, LLC and ScanSTAT Technologies LLC, “information management companies” that retrieve medical records from health care providers and transmit them to requesting patients or patient representatives. Claiming the invoiced fees were too high or otherwise illegal, Plaintiffs filed a putative class action against Ciox and ScanSTAT in federal district court.
The district court dismissed the complaint and the Fourth Circuit affirmed. The court explained that South Carolina law gives patients a right to obtain copies of their medical records, while capping the fees “a physician, or other owner” may bill for providing them. However, the statutory obligations at issue apply only to physicians and other owners of medical records, not medical records companies. View "Tammie Thompson v. Ciox Health, LLC" on Justia Law
Limon v. Circle K Stores
Plaintiff’s complaint alleged Circle K violated the Fair Credit Reporting Act (FCRA) by failing to provide him with proper FCRA disclosures when it sought and received his authorization to obtain a consumer report about him in connection with his application for employment, and by actually obtaining the consumer report in reliance on that authorization. Plaintiff appealed from a judgment of dismissal entered in favor of respondent Circle K Stores Inc. (Circle K) and against Plaintiff after the trial court sustained Circle K’s demurrer to Plaintiff’s CLASS ACTION COMPLAINT (complaint) without leave to amend.
The Fifth Appellate affirmed the judgment of dismissal. The court explained that Plaintiff did not allege he did not receive a copy of the consumer report that Circle K obtained. Plaintiff does not allege the consumer report obtained by Circle K contains any defamatory content or other per se injurious content. He does not allege the consumer report contained false or inaccurate information. Similarly, there are no allegations of any exposure to a material risk of future harm, imminent or substantial. Thus, there was no injury to Plaintiff’s protected interest in ensuring fair and accurate credit (or background) reporting. The court also rejected Plaintiff’s claims he suffered “informational injury” sufficient to confer upon him standing to maintain his action. “Informational injury that causes no adverse effects”—e.g., where required information is provided but is provided in the wrong format as in the present case—has been held insufficient to satisfy Article III standing. View "Limon v. Circle K Stores" on Justia Law
Vigil v. Muir Medical Group IPA, Inc.
Vigil filed a class action against Muir Medical Group, claiming that it failed to secure patients’ personal information, thereby allowing a former employee to download private medical information belonging to more than 5,000 patients and take it with her when she left her employment with Muir. The class complaint alleges that Muir violated Civil Code sections 56.101 and 56.36(b), of the Confidentiality of Medical Information Act (CMIA) by negligently releasing class members’ confidential medical information. The trial court denied a motion for class certification, finding as to the CMIA claim that each class member would have to show that the confidential nature of his medical information had been breached by an unauthorized party, as required by the 2014 “Sutter Health” decision and therefore that common issues would not predominate.The court of appeal affirmed. The trial court properly applied the CMIA and exercised its discretion in denying class certification. Under “Sutter Health,” a breach of confidentiality requires an unauthorized person to have “actually viewed” the confidential medical information. The mere ability of an unauthorized party to access information cannot support a claim under sections 56.101(a), and 56.36(b). Each class member’s right to recover depends on facts peculiar to his case. View "Vigil v. Muir Medical Group IPA, Inc." on Justia Law
Laydon v. Coöperatieve Rabobank U.A., et al.
Plaintiff brought this putative class action against more than twenty banks and brokers, alleging a conspiracy to manipulate two benchmark rates known as Yen-LIBOR and Euroyen TIBOR. Plaintiff brought claims under the Commodity Exchange Act (“CEA”), and the Sherman Antitrust Act, and sought leave to assert claims under the Racketeer Influenced and Corrupt Organizations Act (“RICO”). The district court dismissed the CEA and antitrust claims and denied leave to add the RICO claims. Plaintiff appealed, arguing that the district court erred by holding that the CEA claims were impermissibly extraterritorial, that he lacked antitrust standing to assert a Sherman Act claim, and that he failed to allege proximate causation for his proposed RICO claims.
The Second Circuit affirmed. The court explained that the conduct—i.e., that the bank defendants presented fraudulent submissions to an organization based in London that set a benchmark rate related to a foreign currency—occurred almost entirely overseas. Indeed, Plaintiff fails to allege any significant acts that took place in the United States. Plaintiff’s CEA claims are based predominantly on foreign conduct and are thus impermissibly extraterritorial. Further, the court wrote that the district court also correctly concluded that Plaintiff lacked antitrust standing because he would not be an efficient enforcer of the antitrust laws. Lastly, the court agreed that Plaintiff failed to allege proximate causation for his RICO claims. View "Laydon v. Coöperatieve Rabobank U.A., et al." on Justia Law
Jones v. Admin of the Tulane Educ
Two former students of Tulane University, on behalf of a putative class of current and former students, sued the University for failing to provide a partial refund of tuition and fees after Tulane switched from in-person instruction with access to on-campus services to online, off-campus instruction during the COVID-19 pandemic. The district court agreed with Tulane that the student's complaint should be dismissed for failure to state a claim.
The Fifth Circuit reversed and remanded. The court concluded that the claim is not barred as a claim of educational malpractice because the Students do not challenge the quality of the education received but the product received. Second, the court rejected Tulane’s argument that the breach-of-contract claim is foreclosed by an express agreement between the parties because the agreement at issue plausibly does not govern refunds in this circumstance. And third, the court concluded that Plaintiffs have not plausibly alleged that Tulane breached an express contract promising in-person instruction and on-campus facilities because Plaintiffs fail to point to any explicit language evidencing that promise. But the court held that Plaintiffs have plausibly alleged implied-in-fact promises for in-person instruction and on-campus facilities. Moreover, the court found that the Students’ alternative claim for unjust enrichment may proceed at this early stage. Finally, genuine disputes of material fact regarding whether Plaintiffs saw and agreed to the A&DS preclude reliance on the agreement at this stage. Thus, Plaintiffs have plausibly alleged a claim of conversion. View "Jones v. Admin of the Tulane Educ" on Justia Law