Justia Class Action Opinion Summaries

A group of public servants who had contacted Navient for help repaying their loans (collectively, “Plaintiffs”) filed a putative class action lawsuit, alleging that Navient had not “lived up to its obligation to help vulnerable borrowers get on the best possible repayment plan and qualify for PSLF.”   Navient moved to dismiss the amended complaint under Federal Rule of Civil Procedure 12(b)(6) for failure to state a claim, which the district court granted in part, dismissing all claims except “the claim brought under New York’s General Business Law Section 349”. The district court certified a class for settlement purposes under Federal Rule of Civil Procedure 23(b)(2) and approved the settlement as “fair, reasonable, adequate,” and “in the best interest of the Settlement Class as a whole.”   Two objectors now appeal that judgment, arguing that the district court erred in certifying the class, approving the settlement, and approving service awards of $15,000 to the named Plaintiffs. The Second Circuit affirmed concluding that the district court did not abuse its discretion in making any of these determinations. The court explained that here, the amended complaint plausibly alleged that the named Plaintiffs were likely to suffer future harm because they continued to rely on Navient for information about repaying their student loans. At least six of the named Plaintiffs continue to have a relationship with Navient. That is enough to confer standing on the entire class. Further, the court explained individual class members [in fact] retain their right to bring individual lawsuits,” and the settlement does not prevent absent class members from pursuing monetary claims. View "Hyland v. Navient Corporation" on Justia Law

Plaintiff signed a Financial Responsibility Agreement (“FRA”) with Baylor University to secure her enrollment for the Spring 2020 semester. The FRA required Plaintiff to pay Baylor for “educational services,” and she paid her tuition bill in full. During the second half of the semester, Baylor responded to the COVID-19 pandemic by severely limiting on-campus activities and opportunities while conducting classes remotely. It did not, however, refund any tuition or fees. Plaintiff filed a class action against Baylor asserting a breach of contract claim, alternatively sought unjust enrichment.   The Fifth Circuit affirmed in part and reversed in part, and remanded. The court explained that the FRA is a valid contract because it describes the essential terms with a reasonable degree of certainty and definiteness. Plaintiff failed to state a claim for contract invalidity. But the crux of the parties’ dispute remains the interpretation of “educational services”. The court explained that on remand, the district court must consider whether Baylor’s or Plaintiff’s interpretation of “educational services” prevails. If the term is latently ambiguous, then further proceedings may be necessary to explore its meaning. Also on remand, the court must examine the surrounding circumstances pertinent to the making of the FRA. View "King v. Baylor University" on Justia Law

Google sent an email to users, such as Plaintiff, who had contributed photos to Google maps but had not yet joined the company’s Local Guides Program, inviting them to join the program. Plaintiff joined the Local Guides program and claimed his terabyte of free Google Drive storage. Google advised him the benefit was for two years, and Plaintiff contended that when he read the initial email, he assumed Google was offering a lifetime benefit. In ruling on Google’s summary judgment motion, the district court considered three documents – the photo impact email, the enrollment page, and the Program Rules - and concluded that they did not constitute a unilateral contract offer for one terabyte of free Google Drive storage for life.   The Ninth Circuit affirmed the district court’s summary judgment. The court explained that advertisements are not typically understood as offers, but that rule includes an exception for offers of a reward. The operative question under California law is “whether the advertiser, in clear and positive terms, promised to render performance in exchange for something requested by the advertiser, and whether the recipient of the advertisement reasonably might have concluded that by acting in accordance with the request a contract would be formed.”   The court reasoned that the Google documents at issue neither informed users how they might conclude the bargain, nor invited the performance of a specific act, leaving nothing for negotiation. The court held that the district court properly granted summary judgment to Google on Plaintiff’s conversion and breach of contract claims. View "ANDREW ROLEY V. GOOGLE LLC" on Justia Law

The Supreme Court affirmed the judgment of the circuit court certifying this class action against an auto insurance company brought by Plaintiffs, insureds who incurred medical expenses because of car accidents, holding that the circuit court did not abuse its discretion in concluding that the prerequisites of a class action had been satisfied.Instead of paying Plaintiffs for the full amount of billed medical expenses Defendant instead simply reimbursed them for the actual amount they owed their medical providers after all discounts had been applied. Plaintiffs brought this action that this practice constituted breach of contract and unjust enrichment. The court certified a class action, from which Defendant appealed. The Supreme Court affirmed, holding that the circuit court did not abuse its discretion when it certified this case as a class action. View "Shelter Mutual Insurance Co. v. Baggett" on Justia Law

Eight named plaintiffs, including two minors, brought a nationwide putative class action against e-commerce provider StockX for allegedly failing to protect millions of StockX users’ personal account information obtained through a cyber-attack in May 2019. Since 2015, StockX’s terms of service included an arbitration agreement, a delegation provision, a class action waiver, and instructions for how to opt-out of the arbitration agreement. Since 2017, StockX's website has stated: StockX may change these Terms without notice to you. “YOUR CONTINUED USE OF THE SITE AFTER WE CHANGE THESE TERMS CONSTITUTES YOUR ACCEPTANCE OF THE CHANGES. IF YOU DO NOT AGREE TO ANY CHANGES, YOU MUST CANCEL YOUR ACCOUNT.The Sixth Circuit affirmed the dismissal of the suit and an order compelling arbitration. The court rejected arguments that there is an issue of fact as to whether four of the plaintiffs agreed to the current terms of service and that the defenses of infancy and unconscionability render the terms of service and the arbitration agreement (including the delegation provision) invalid and unenforceable. The arbitrator must decide in the first instance whether the defenses of infancy and unconscionability allow plaintiffs to avoid arbitrating the merits of their claims. View "I. C. v. StockX, LLC" on Justia Law

The Supreme Court accepted a question certified to it by the United States District Court for the District of Nevada asking to decide whether Nev. Rev. Stat. 41.031(1) constitutes a waiver of Nevada's sovereign immunity from damages liability under the Fair Labor Standards Act (FLSA), holding that Nevada has waived the defense of sovereign immunity to liability under the FLSA.Appellant and several other employees of the Nevada Department of Corrections (NDOC) filed a putative class and collective action complaint alleging that the State and NDOC violated the FLSA and the state Minimum Wage Amendment (MWA) and breached their contract under state law. The State removed the action to federal district court, where at issue was whether the State possessed sovereign immunity. The district court concluded that the State waived its Eleventh Amendment immunity by removing the case to federal court. The Ninth Circuit affirmed and left open the question of whether the State retained its sovereign immunity from liability. The court then certified the question to the Supreme Court. The Supreme Court answered that, by enacting Nev. Rev. Stat. 41.031(1), Nevada consented to damages liability for a State agency's violation of the minimum wage or overtime provisions of the federal Fair Labor Standards Act. View "Echeverria v. State" on Justia Law

The Supreme Court affirmed the order the circuit court certifying a class action against Defendants, holding that the circuit court did not err or abuse its discretion.Plaintiffs filed a class action complaint against Defendants, alleging, on their own behalf and on behalf of others similarly situated, that their water systems were contaminated with sewage due to Defendants' negligence. Plaintiffs moved for class certification. The circuit court certified the class as to their negligence and breach of contract claims. On appeal, Defendants argued that the circuit court erred in finding that class was ascertainable and that common issues predominated and erred in certifying the breach of contract claim. The Supreme Court affirmed, holding that the circuit court did not err in certifying the class. View "C.J. Mahan Construction Co. v. Betzner" on Justia Law

The Supreme Court affirmed in part and reversed in part the judgment of the district court granting class certification in this action alleging breach of contract and violation of Montana's Unfair Trade Practices Act (UTPA), Mont. Code Ann. 33-18-101 et seq., holding that a sufficient factual basis was established to justify certification of the classes.Plaintiffs filed this action against Fergus Farm Mutual Insurance Company (FFM), alleging that FFM breached its insurance contract with Plaintiffs and all other insureds by failing to include general contractor overhead and profit in the cost to repair or replace Plaintiffs' property. The district court granted Plaintiffs' motion for class certification. The Supreme Court reversed in part, holding (1) the district court did not abuse its discretion by determining that common questions of law predominate the litigation and support certification of the class; but (2) certain conclusions reached by the district court were a "bridge too far" at this stage of litigation. View "Kramer v. Fergus Farm Mutual Insurance Co." on Justia Law

Stampley, the owner-operator of a tractor-trailer, provided hauling services for Altom. Altom agreed to pay Stampley 70% of the gross revenues that it collected for each load he hauled and to give Stampley a copy of the “rated freight bill” or a “computer-generated document with the same information” to prove that it had properly paid Stampley. The contract granted Stampley the right to examine any underlying documents used to create a computer-generated document and required him to bring any dispute regarding his pay within 30 days. Years after he hauled his last Altom load, Stampley filed a putative class action, alleging that Altom had shortchanged him and similarly situated drivers. The district court certified a class and held that Altom’s withholdings had violated the contract. Stampley had moved for summary judgment on the 30-day provision before the class received notice. The court subsequently denied Stampley’s motion for summary judgment, decertified the class, granted Altom summary judgment, and held that Stampley’s individual claims were barred.The Seventh Circuit affirmed. The district court did not abuse its discretion in finding Stampley an inadequate class representative and decertifying the class. The court found that the 30-day period began to run as soon as Stampley received any computer-generated document purporting to have the same information as the rated freight bill, necessarily including those that lacked the same information as the rated freight bill. View "Stampley v. Altom Transport, Inc." on Justia Law

Appellee-defendant TEP Rocky Mountain, LLC (“TEP”) operated wells that produced natural gas in Colorado. These wells were subject to various leases or royalty Appellant-intervenors Ivo Lindauer, Sidney Lindauer, Ruther Lindauer, and Diamond Minerals LLC (the “Lindauers” or the “Intervenors”), were the representatives for a class of royalty owners who filed suit in 2006 in Colorado state court, alleging that TEP had underpaid royalties on various leases and royalty agreements. In 2008, TEP and the Lindauer class entered into a settlement agreement (the “Lindauer SA”) purporting to “resolve all class claims relating to past calculation of royalt[ies]” and to “establish certain rules to govern future royalty” payments. The Lindauer SA declared that the state court would retain “continuing jurisdiction” to enforce provisions of the settlement related to “the description of past and future royalty methodologies.” Approximately eight years passed, free of incident. But on July 18, 2017, a subset of the Lindauer class (the “Sefcovic class”) initiated this action against TEP in Colorado state court, alleging that TEP had calculated and paid royalties in a manner inconsistent with the Lindauer SA and contrary to the underlying royalty agreements. TEP removed the case to federal court. Appellants intervened in the district court, seeking to dismiss the action for lack of federal subject matter jurisdiction. Through two separate motions to dismiss, the briefing from both parties "confused the bounds of federal subject matter jurisdiction and conflated that concept with the doctrines of abstention and comity, and with matters of venue and forum." Despite this misdirection, the district court properly exercised jurisdiction and rebuffed appellants’ attempts to unwind nearly eighteen months of class action litigation. After review, the Tenth Circuit concurred with the district court's judgment and affirmed it. View "Elna Sefcovic v. TEP Rocky Mountain" on Justia Law