Justia Class Action Opinion Summaries
Articles Posted in Constitutional Law
Alabama Mutual Insurance Corporation v. City of Vernon et al.
Alabama Mutual Insurance Corporation ("AMIC"), the defendant in an action pending at the Lamar Circuit Court filed by the City of Vernon on behalf of itself and other similarly situated entities, appealed the court's order that certified a class in that action. Vernon stated that it had reached an agreement with AMIC regarding individual claims and therefore no longer wished to pursue them. AMIC filed a response to Vernon's motion in which it argued that the Supreme Court should remand the case to the trial court with instructions to dismiss it because now the case was missing its named representative, and therefore the requirements for a class action could not be met. Vernon argued it had the right to withdraw from the pending litigation, but because the trial court certified the class, the litigation remains viable. Vernon requested time in which to allow the class to name a new representative. The Supreme Court agreed with Vernon that the trial court should have the opportunity to determine whether a new named plaintiff should be certified. "The trial court is the proper entity to decide whether to allow the class members to amend their complaint to substitute a new named plaintiff and to determine whether that plaintiff meets the adequacy requirements in Rule 23(a), Ala. R. Civ. P., so as to represent the class." As such, AMIC's appeal was dismissed, and the case remanded to the trial court for further proceedings. View "Alabama Mutual Insurance Corporation v. City of Vernon et al. " on Justia Law
State v. Kareski
Defendant was charged with violating Ohio Rev. Code 4301.69(A), which prohibits the sale of beer to an underage person. At Defendant's trial, the State had difficulty proving what Defendant sold to an informant was beer as defined by statute. The court then took judicial notice that Bud Light was, in fact, beer. Defendant was convicted as charged. The court of appeals reversed and ordered a new trial, concluding that the trial court erred in taking judicial notice of a fact - the alcohol content by volume of Bud Light - that was not something that was "generally known." The Supreme Court reversed and vacated Defendant's conviction, holding that because there was no evidence admitted on the statutory element of the alcohol content of the substance sold by Defendant to the informant, there was insufficient evidence for a conviction, and double jeopardy barred a retrial.
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The Dow Chemical Corp. v. Blanco
Before the Supreme Court, a matter of first impression: "does Delaware recognize cross-jurisdictional tolling?" Plaintiff Jose Blanco was allegedly exposed to a toxic pesticide manufactured by Defendant Dow Chemical Corporation in 1979-1980. In 1993, he entered a class action lawsuit against Defendant in Texas. The case stalled in procedure, with class certification being ultimately denied. Defendants moved to dismiss, citing the run of the two-year statute of limitations. Plaintiff contended on appeal that the putative Texas action tolled the statute of limitations. The Delaware superior court concluded that Delaware recognized the doctrine of cross-jurisdictional class action tolling. Defendants filed for an interlocutory appeal with the Delaware Supreme Court. The Supreme Court held that until class action certification is denied, individual claims are tolled under Delaware law. Accordingly the Court answered the question in the affirmative, and remanded the case for further proceedings.
View "The Dow Chemical Corp. v. Blanco" on Justia Law
Posted in:
Class Action, Constitutional Law
Perdue v. Green
Immediately following the release of the Supreme Court's previous decision in this case, the Alabama Legislature passed Act No. 2012-198, Ala. Acts 2012, which repealed the statutory provision that underpinned the decision in "Perdue I." In the prior case, the Court vacated the circuit court's judgment that approved a settlement agreement that ended class-action litigation involving the Alabama Prepaid Affordable College Tuition (PACT) program. Class member Carol Perdue objected to the trial court's approval of the settlement; the Supreme Court originally rejected plaintiffs' argument that Ala. Code 16-33C-19 did not prohibit the PACT Board from entering into the settlement, and that the agreement was "clearly contrary to state law." The Legislature specifically repealed 16-33C-19 and caused the Court to revise its previous decision. The Court found that the trial court exceeded its discretion in finding the settlement was fair, adequate and reasonable, found the retroactive application of the 2012 Act constitutional, and remanded the case for further proceedings.View "Perdue v. Green" on Justia Law
Posted in:
Class Action, Constitutional Law
McKenzie Check Advance of Fla., LLC v. Betts
Plaintiffs filed a class action complaint against a check advance company, asserting claims based on numerous Florida statutes. Plaintiffs later amended the complaint to add Tiffany Kelly as an additional plaintiff and named class member. Because Kelly had signed the version of Defendant's arbitration agreement that contained a class action waiver, this case focused on her contracts with Defendant. The trial court eventually denied Defendant's motion to compel arbitration, ruling that the class action waiver was unenforceable because it was void as against public policy. The court of appeal affirmed, finding that no other reasonable avenue for relief would be available if it enforced the class action waiver. After the court of appeal decided this case, the U.S. Supreme Court issued its decision in AT&T Mobility, LLC v. Concepcion. Applying the rationale of Concepcion to the facts set forth in this case, the Supreme Court quashed the court of appeal's decision, holding that the Federal Arbitration Act preempted invalidating the class action waiver in this case on the basis of the waiver being void as against public policy.View "McKenzie Check Advance of Fla., LLC v. Betts" on Justia Law
Posted in:
Antitrust, Arbitration & Mediation, Class Action, Constitutional Law, Consumer Law, Contracts
Doe v. Southern Gyms, LLC
In 2010, plaintiff Jane Doe was contacted by detectives in the Baton Rouge Police Department and asked to identify whether she was the subject of a photograph, obtained from a video, captured by a pen camera which had been surreptitiously placed in the women’s shower/changing room of a fitness center in downtown Baton Rouge. Plaintiff was a member of a gym called “Anytime Fitness,” a fitness center owned by Southern Gyms, LLC. Further investigation by police revealed that an assistant manager and trainer at the fitness center secretly videotaped the plaintiff and other women in the women’s shower/changing room of the gym. The police told the plaintiff her image was one of four women discovered on the pen camera when the pen camera was turned over to police. Telschow was arrested and prosecuted for video voyeurism. He ultimately pleaded guilty to four counts of video voyeurism and sentenced to a nine month term of imprisonment. Ultimately the issue before the Supreme Court was whether the lower courts correctly applied the standards for analyzing class action certification set forth in La. C.C.P. art. 591, et seq. After reviewing the record and the applicable law, the Court found the lower courts erred in concluding the plaintiff satisfied the threshold requirement of numerosity, necessary for class certification. Accordingly, the Court reversed the district court's judgment which granted plaintiff’s motion for class certification.
View "Doe v. Southern Gyms, LLC" on Justia Law
State v. Estrada
After a jury trial, Defendant was convicted of rape and first-degree sexual abuse and sentenced to life imprisonment and ten years' imprisonment, respectively. Defendant subsequently filed a petition for postconviction relief, alleging several claims of ineffective assistance of counsel. The circuit court granted Defendant a new trial based on one ground of ineffective assistance as to the rape conviction and two grounds of ineffective assistance as to the sexual-abuse conviction. The State appealed. The Supreme Court affirmed the circuit court's grant of a new trial based on ineffective assistance of counsel, holding that, based on the standard of review under Strickland v. Washington, the circuit court was not clearly erroneous in its rulings on both of Defendant's convictions.View "State v. Estrada" on Justia Law
Strawn v. Farmers Ins. Co.
Plaintiff Mark Strawn, the plaintiff in a class action case, petitioned for an award of attorney fees and costs incurred for the appellate work done on review before the Supreme Court in the underlying matter. In addition, Strawn sought two supplemental fee awards: one for the cost of litigating the fee petition, and the other for the cost of defending against a petition for certiorari in the United States Supreme Court after the Oregon court issued its decision. Further, Strawn sought a $5,000 incentive fee for his service on review as class representative. The issues raised by this appeal included: (1) the appropriate method for determining the amount of a reasonable fee award in a case that involved both a statutory fee-shifting award and a common-fund award; (2) the propriety of applying a multiplier to the awards; (3) how fees should be apportioned between the fee-shifting and the common-fund awards; (4) whether this court has authority to award attorney fees for work done in opposing a petition for writ of certiorari to the United States Supreme Court; (5) whether a court has authority to award post-opinion, prejudgment interest on court-awarded attorney fees; and (6) whether an appellate court may award a class representative a class incentive fee on appeal and review. Strawn filed a class action against Farmers raising two contractual claims (breach of contract and breach of the covenant of good faith) and one common law claim (fraud) in connection with auto insurance policies written by Farmers. The jury found for the class on the contractual claims and the fraud claim, and it made a single award of compensatory damages on those claims. In addition, and for the fraud claim only, the jury awarded punitive damages. The Supreme Court took the opportunity of this case to discuss the methodology appropriate to award fees based on the issues raised in the appeal, and made adjustments as deemed necessary in compliance with the limits of Oregon law.View "Strawn v. Farmers Ins. Co. " on Justia Law
Posted in:
Class Action, Constitutional Law
People v. Pealer
After his vehicle was stopped by a police officer, Defendant was arrested for driving while intoxicated, and a breathalyzer test computed his blood alcohol content at close to twice the legal limit. Defendant was subsequently indicted for felony DWI. During the jury trial, the People offered into evidence documents pertaining to the routine calibration and maintenance of the breathalyzer machine used in Defendant's breath test to demonstrate it was in proper working order at the time Defendant was tested. Defendant raised a Confrontation Clause challenge to the documents, contending that he was entitled to cross-examine the authors of the records. The county court allowed the documents to be received in evidence, and Defendant was convicted of felony DWI. The appellate division affirmed. The Court of Appeals affirmed, holding that documents pertaining to the routine inspection, maintenance, and calibration of breathalyzer machines are nontestimonial, and consequently, the Confrontation Clause was not implicated in this case, and the trial judge did not err in declining Defendant's request to cross-examine the authors of the testing records before the court ruled on their admissibility.View "People v. Pealer" on Justia Law
In Re Celera Corporation Shareholder Litigation, et al. v. New Orleans Employees’ Retirement System, et al.
Appellant BVF Partners L.P. ("BVF") appealed a Chancery Court certification of Appellee New Orleans Employees' Retirement System ("NOERS") as class representative in this action challenging the acquisition of Celera Corporation ("Celera") by Quest Diagnostics, Inc. ("Quest"). BVF also appealed the Court of Chancery's approval of a class action settlement without an opt out right for BVF between NOERS and Defendants-Appellees Richard H. Ayers, Jean-Luc Belingard, William G. Green, Peter Barton Hutt, Gail M. Naughton, Kathy Ordonez, Wayne I. Roe, Bennett M. Shapiro, Celera Corporation, Quest Diagnostics Incorporated, and Spark Acquisition Corporation ("Spark"). BVF contended that the Court of Chancery erred in certifying NOERS as the class representative, because NOERS lacked standing to represent the class. BVF argued that when NOERS sold its stock in Celera on the public market (before the merger was actually consummated and nearly a year before the
Court of Chancery certified the class) NOERS no longer had a legally cognizable stake in the outcome of the litigation. BVF raised multiple other grounds for why the Court of Chancery erred in certifying NOERS as class representative, including that NOERS was uniquely susceptible to equitable defenses and was therefore an improper class representative. Even if that certification was proper, BVF argued that the Court of Chancery should have exercised its discretionary powers to allow BVF to opt out of the class in order to pursue its individual claims for monetary damages against the defendants. Upon review, the Supreme Court agreed with the Court of Chancery that NOERS had standing to represent the class. The Court declined to adopt a rule of law that a shareholder class representative in a breach of fiduciary duty action must own stock in the corporation continuously through the final class certification. With regard to BVF's other arguments regarding NOERS' certification as class representative, the Court found them "unconvincing." The Court concluded that the Court of Chancery did not abuse its discretion in certifying the class, however, there was merit to BVF's claim that the Court of Chancery should have exercised its discretion to allow BVF to opt out of the shareholder class under the circumstances of this case. Accordingly, the Court affirmed in part and reversed in part.
View "In Re Celera Corporation Shareholder Litigation, et al. v. New Orleans Employees' Retirement System, et al." on Justia Law