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

The Supreme Court affirmed the judgment of the district court refusing to certify Appellant's case as a class action, holding that, based on the facts and circumstances of this case, the district court did not abuse its broad discretion.Appellant, a horse breeder and owner, brought this putative class action claiming that Prairie Meadows Racetrack and Casino, Inc. breached contracts governing the distribution of winnings among owners and breeders of successful horses. The district court ultimately denied certification. The Supreme Court affirmed, holding that there was no abuse of discretion in the district court's determination that Appellant was not an appropriate class representative and that certification was inappropriate. View "Benda v. Prairie Meadows Racetrack & Casino Inc." on Justia Law

The Supreme Court held that judgment creditors cannot levy on their judgment debtor, obtain the judgment debtor's chose in action for legal malpractice against the attorney representing the judgment debtor in the litigation giving rise to the judgment, and prosecute the claim for legal malpractice against the attorney as successors in interest to their judgment debtor.Janice and Jeff Gray were awarded $127 million in a civil suit against James Lee Hohenshell. The court of appeals affirmed. While the appeal was pending, the Grays caused to be issued a writ of execution on the judgment against Hohenshell. Amongst the property levied on was any claims against Michael Oliver, Hohenshell's lawyer in the underlying suit. The Grays purchased this right for $5000 at the sheriff's sale. The Grays then filed this malpractice claim against Oliver as successors in interest to Hohenshell. The district court granted Oliver's motion for summary judgment, holding that public policy prohibits the assignment of a legal malpractice claim to an adversarial party in the underlying lawsuit. The Supreme Court affirmed, holding that judgment creditors cannot prosecute a claim for legal malpractice as successors in interest to their former litigation adversary where the claim for legal malpractice arose out of the suit in which the parties were adverse. View "Gray v. Oliver" on Justia Law

Upon rehearing in this case involving issues related to an automated traffic enforcement (ATE) system, the Supreme Court concluded that the district court properly granted summary judgment in favor of Defendants, the City of Cedar Rapids and Gatso USA, Inc., holding that Plaintiffs’ challenges to the ATE system were unavailing.The City enacted an ordinance designed to authorize and implement the establishment of an ATE system and contracted that Gatso to install the system. Plaintiffs filed a class-action petition against Defendants claiming, among other things, that the ATE system as implemented violated the equal protection, due process, and privileges and immunities clauses of the Iowa Constitution and that the ordinance as implemented unconstitutionally delegated governmental power to a private entity. The district court granted summary judgment in favor of Defendants. The Supreme Court originally affirmed in part and reversed in part and then vacated its earlier opinion and granted the City’s petition for rehearing. On review, the Court held that it relied on an incorrect version of the City’s ATE ordinance in discussing the issue of preemption and then concluded that the district court did not err in granting summary judgment in favor of Defendants. View "Behm v. City of Cedar Rapids" on Justia Law

Landlord brought this interlocutory appeal challenging a summary judgment in favor of Tenant and the district court’s order certifying a class of tenants. Tenant filed an action seeking a declaration that certain lease provisions violated the Iowa Uniform Residential Landlord and Tenant Act. The Supreme Court affirmed in part and reversed in part, holding (1) some, but not all, of the challenged lease provisions were prohibited under the Act; and (2) the certification of a class in this case was procedurally flawed. The court remanded the cause for the district court to make the findings required under Iowa R. Civ. P. 1.263(1). View "Walton v. Gaffey" on Justia Law

After their leases expired, three tenants, on behalf of themselves and other similarly situated residential tenants, brought suit against their landlord. The district court granted summary judgment for the tenants, declaring that certain of the landlord's lease provisions violated the Iowa Uniform Residential Landlord and Tenant Act. The court also certified a class of tenants. The landlord brought this interlocutory appeal. The Supreme Court affirmed in part and reversed in part, holding (1) some, but not all, of the challenged lease provisions were prohibited under the Act; and (2) the class certification was procedurally flawed in the absence of findings required under Iowa R. Civ. P. 1.263(1). The court remanded the cause for further proceedings. View "Kline v. Southgate Property Management, LLC" on Justia Law

The district court did not abuse its discretion by certifying this case as a class action.Plaintiffs alleged that air pollution from a corn wet milling plant interfered with the use of their property. Plaintiffs filed a complaint alleging nuisance, trespass, and negligence under common law and statute. The district court granted Plaintiffs’ motion for class certification and divided the class into two subclasses, one for members in close proximity to the plant and the other for those in peripheral proximity. The Supreme Court affirmed, holding that the district court did not abuse its discretion in certifying the class and that Defendant failed to show that the class certification order violated its due process rights. View "Freeman v. Grain Processing Corp." on Justia Law

Plaintiff filed a class action petition against J.C. Penney asserting that the internet retailer unlawfully charged Iowa sales tax on shipping and handling charges. J.C. Penney forwarded the tax to the Iowa Department of Revenue (IDOR) pursuant to the Iowa version of the Streamlined Sales and Use Tax Act (SSUTA). The district court granted summary judgment in favor of J.C. Penney. The Supreme Court affirmed, holding (1) the district court correctly granted J.C. Penney’s motion for summary judgment on Plaintiff’s statutory claims grounded in SSUTA, as the SSUTA does not create a private cause of action; (2) the district court did not err in granting summary judgment on Plaintiff’s claims related to the alleged unlawful payment of taxes on the ground that the remedies under Iowa Code 423.45(3) and 423.47 are exclusive remedies barring other claims for relief for wrongful payment of taxes under SSUTA; and (3) Plaintiff was not entitled to recover on her claims alleging shipping and handling misrepresentations. View "Bass v. J.C. Penney Co., Inc." on Justia Law

Plaintiffs filed a class action alleging that the fees Defendant charged for providing copies of their medical records and billing statements were excessive in violation of Iowa Code 622.10(6). Defendant filed a motion to dismiss for failure to state a claim, alleging that section 622.10(6) did not apply to it because it was not a provider under the statute. The district court denied the motion to dismiss. The Supreme Court affirmed, holding (1) an entity that acts as a provider’s agent in fulfilling records requests covered by section 622.10(6) cannot charge more for producing the requested records than the provider itself could legally charge; and (2) the well-pleaded facts in the petition indicated that Defendant acted as an agent of the providers by fulfilling the records requests on their behalf, and therefore, the district court was correct in denying Defendant’s motion to dismiss Plaintiffs’ petition. View "Young v. Healthport Technologies, Inc." on Justia Law

Plaintiffs filed a class action alleging that the fees Defendant charged for providing copies of their medical records and billing statements were excessive in violation of Iowa Code 622.10(6). Defendant filed a motion to dismiss for failure to state a claim, alleging that section 622.10(6) did not apply to it because it was not a provider under the statute. The district court denied the motion to dismiss. The Supreme Court affirmed, holding (1) an entity that acts as a provider’s agent in fulfilling records requests covered by section 622.10(6) cannot charge more for producing the requested records than the provider itself could legally charge; and (2) the well-pleaded facts in the petition indicated that Defendant acted as an agent of the providers by fulfilling the records requests on their behalf, and therefore, the district court was correct in denying Defendant’s motion to dismiss Plaintiffs’ petition. View "Young v. Healthport Technologies, Inc." on Justia Law