Justia Class Action Opinion Summaries

The underlying suits arise from alleged defects in Kenmore-brand Sears washing machines sold in periods beginning in 2001 and 2004. One asserted a defect that causes mold; the other asserted a defect that stops the machine inopportunely. The district court denied certification of the class complaining of mold and granted certification of the class complaining of sudden stoppage. The Seventh Circuit affirmed certification of the stoppage claims and reversed denial of certification for the mold claims. Rule 23(b)(3) conditions maintenance of a class action on a finding “that the questions of fact or law common to class members predominate over any questions affecting only individual members.” The basic question in the litigation is: were the machines defective in permitting mold to accumulate and generate noxious odors? The question is common to the entire mold class, although the answer may vary with the differences in design. The individual questions are the amount of damages owed particular class members. It is more efficient for the question whether the washing machines were defective to be resolved in a single proceeding than for it to be litigated separately in hundreds of different trials View "Butler v. Sears, Roebuck & Co." on Justia Law

Plaintiff-Appellant Arrienne Mae Winzler brought state law claims against Defendant-Appellee Toyota Motor Sales USA, Inc. (Toyota) on behalf of a proposed nationwide class of 2006 Toyota Corolla and Toyota Corolla Matrix owners and lessees. She alleged that the cars harbored defective "Engine Control Modules" ("ECMs"), making them prone to stall without warning. As relief, she asked for an order requiring Toyota to notify all relevant owners of the defect and then to create and coordinate an equitable fund to pay for repairs. Before addressing whether Plaintiff's class should be certified, the district court held her complaint failed to state a claim and dismissed it under Fed. R. Civ. P. 12(b)(6). As Plaintiff began her appeal, Toyota announced a nationwide recall of 2005-2008 Toyota Corolla and Corolla Matrix cars to fix their ECMs. Arguing that these statutory and regulatory processes were exactly the relief sought in Plaintiff's complaint, Toyota asked the Tenth Circuit to find that its recall rendered Plaintiff's case moot. "Because prudential mootness is arguably the narrowest of the many bases Toyota has suggested for dismissal, and because it is sufficient to that task, [the Court has] no need to discuss any of Toyota's other arguments for the same result." The Court vacated the district court's judgment and remanded the case with instructions to dismiss the case as moot. View "Winzler v. Toyota Motor Sales U.S.A., Inc" on Justia Law

In 2007, two groups filed separate class action suits against Volkswagen. The cases were consolidated for pre-trial purposes because they raised substantially similar allegations: that several models of Volkswagen and Audi automobiles had defectively designed sunroofs that, when clogged by plant debris and pollen, allowed water to leak into the vehicle. While leakage could be prevented through regular cleaning and maintenance, Volkswagen allegedly failed to inform car owners of these preventive measures because such a disclosure would acknowledge a design defect, and would likely obligate Volkswagen to cover any resulting damage under their warranty program. The parties reached a settlement, under which a "reimbursement group" received the right to reimbursement for certain qualifying damages, paid from an $8 million fund. "Residual group" member were required to wait until the reimbursement group made its claims. The court certified a single class. The Third Circuit reversed, agreeing with objectors that the representative plaintiffs, all members of the reimbursement group, cannot adequately represent the interests of the class members in the residual group; the certification violated FRCP 23(a)(4). View "Dewey v. Volkswagen " on Justia Law

Plaintiffs installed shingles manufactured by Owens Corning (debtor). They discovered leaks in 2009; shingles had cracked. Each sent warranty claims, which were rejected. They filed a class action alleging fraud, negligence, strict liability, and breach of warranty. In 2000, the debtors had filed Chapter 11 bankruptcy petitions; the Bankruptcy Court set a claims bar date in 2002 and approved a notice that appeared in multiple publications. Notices of the confirmation hearing for the Plan, in 2006, included generic notice to unknown claimants. At the time they filed the class action plaintiffs did not hold “claims” under 11 U.S.C. 1101. The Third Circuit subsequently established a rule that a claim arises when an individual is exposed pre-petition to a product or other conduct giving rise to an injury, which underlies a right to payment under the Bankruptcy Code. Based on that holding, the district court held that plaintiffs’ claims were discharged. The Third Circuit affirmed in part and remanded, agreeing that plaintiffs had “claims.” Both were “exposed” to the product before confirmation of the plan. Plaintiffs were not afforded due process by published notice, however, because they could not have known they had claims at the time of confirmation. View "Wright v. Owens Corning" on Justia Law

Henry Morgan, Sr. filed a personal-injury suit against eighty-eight defendants, claiming injuries related to silicosis. Morgan, Sr., died while the personal-injury case was pending, and the case eventually was dismissed. More than three years after Morgan, Sr.'s death, his son, Henry Morgan, Jr., filed a wrongful-death suit individually and on behalf of all wrongful-death beneficiaries of Morgan, Sr. The defendants filed a motion for summary judgment based on the running of the statute of limitations. The trial court denied the motion. Because the wrongful-death suit was filed more than three years after the death of Morgan, Sr., the statute of limitations barred any wrongful-death and survival claims. Accordingly, the Supreme Court reversed the trial court’s judgment and render judgment in favor of the defendants. View "Empire Abrasive Equipment Corp. v. Morgan" on Justia Law

The named plaintiffs are Ohio residents who purchased front-loading washing machines manufactured by defendant. Within months after their purchases, the plaintiffs noticed the smell of mold or mildew emanating from the machines and from laundry washed in the machines. One plaintiff found mold growing on the sides of the detergent dispenser, another saw mold growing on the rubber door seal, despite allowing the machine doors to stand open. They filed suit, alleging tortious breach of warranty, negligent design, and negligent failure to warn. The district court certified a class comprised of Ohio residents who purchased one of the specified machines in Ohio primarily for personal, family, or household purposes and not for resale (Federal Rule of Civil Procedure 23(a) and (b)(3)). The Sixth Circuit affirmed class certification, with proof of damages reserved for individual determination. Plaintiffs’ proof established numerosity, commonality, typicality, and adequate representation. Common questions predominate over individual ones and class action is a superior method to adjudicate the claims.View "Glazer v. Whirlpool Corp." on Justia Law

Appellant Kia Motors America, Inc. unsuccessfully defended a class action lawsuit for breach of express warranty. It appealed a superior court's decision to affirm certification of the class by the trial court, and the amount of damages and litigation costs awarded to the class. Costs included a significant legal fee, entered pursuant to the Magnuson-Moss Warranty Improvement Act (MMWA). Appellee Shamell Samuel-Bassett, on behalf of herself and others similarly situated filed this class action lawsuit in January 2001, alleging that her Kia had an unsafe manufacturing defect in the braking system. In 2005, a jury rendered a verdict in favor of the class for breach of express warranty, and awarded damages in the amount of $600 per class member. The court molded the verdict to account for the 9,402 class members to which the parties had stipulated and recorded a $5.6 million verdict. Represented by new counsel, Kia filed an unsuccessful post-trial motion for judgment notwithstanding the verdict, or for a new trial. The issues on appeal to the Supreme Court were: (1) whether the class was properly certified; (2) whether evidence was sufficient to support the jury’s verdict and whether the verdict was against the weight of the evidence; (3) whether the jury’s verdict was properly molded to account for the 9,402 members of the class; (4) whether the trial court had authority to award attorneys’ fees after Bassett entered judgment on the class verdict; and (5) whether the risk multiplier was properly applied to an award of counsel fees under the MMWA. The Supreme Court affirmed in part, and reversed in part, the trial court's decision. The Court reversed the trial court to the extent that its order provided for enhancement of the attorneys' fees award beyond the amount permitted in the MMWA. View "Samuel-Bassett v. Kia Motors America, Inc." on Justia Law

The Seventh Circuit consolidated two cases involving transfer to courts in another country. One is an appeal from an order to transfer cases involving vehicular accidents allegedly caused by tires installed on vehicles in Latin America, from the Southern District of Indiana to the courts of Mexico. Its i a suit by Mexican citizens arising from the death of another Mexican citizen in an accident in Mexico. The second involves transfer, to Israel, of suits against manufacturers of blood products used by hemophiliacs, which turned out to be contaminated by HIV; it was brought by Israeli citizens infected by the products in Israel. The Seventh Circuit affirmed the transfers. Noting the existence of apparently dispositive precedent, the court referred to "ostrich-like tactic of pretending that potentially dispositive authority against a litigant's contention does not exist." View "Gonzalez-Servin v. Ford Motor Co." on Justia Law

A class action suit against tobacco-related entities, first filed in 1998, alleged that for years the tobacco companies conspired to conceal the facts about the addictive and dangerous nature of cigarettes by intentionally using incomplete, misleading, or untruthful marketing and advertising. The putative class consists of Illinois residents who bought or smoked cigarettes, seeking disgorgement of profits on an unjust enrichment theory. After extensive proceedings, the district court dismissed for failure to state a claim. The Seventh Circuit affirmed. Mere violation of a consumer's legal right to know about a product's risks, without anything more, cannot support a claim that the manufacturer unjustly retained the revenue from the product's sale to the consumer’s detriment. Plaintiffs did not allege that they suffered any harm, that they relied on the marketing, or that they would have acted differently had the defendants been truthful.