Justia Class Action Opinion Summaries

Columbia stores natural gas in Medina Field, a naturally-occurring system of porous underground rock, pumping gas into the Field during summer, during low demand, and withdrawing it during winter. Medina is among 14 Ohio gas storage fields used by Columbia. Columbia received a federal Certificate of Public Convenience and Necessity, 15 U.S.C. 717f, and was required to compensate those who own part of the Field by contractual agreement or eminent domain. The owners allege that Columbia stored gas for an indeterminate time without offering compensation and then offered $250 per lot. Each Medina owner rejected this offer. Columbia did not bring eminent domain proceedings. Other Ohio landowners accused Columbia of similar behavior and filed the Wilson class action in the Southern District of Ohio, including the Medina owners within the putative class. The Medina owners filed suit in the Northern District. Both actions claim trespass and unjust enrichment under Ohio law, and inverse condemnation under the Natural Gas Act. The Wilson suit also seeks damages for “native” natural gas Columbia takes when it withdraws its own gas. Columbia filed a counterclaim in Wilson, seeking to exercise eminent domain over every member of the putative class and join the Medina owners. The Northern District applied the first-to-file rule and dismissed. The Sixth Circuit reversed. The rule does apply, but dismissal was an abuse of discretion given jurisdictional and procedural hurdles to having the Medina claims heard in Wilson. View "Baatz v. Columbia Gas Transmission, LLC" on Justia Law

In 2007, Durand filed an Employee Retirement Income Security Act, 29 U.S.C. 1001–1461 (ERISA) class action against her former employer and the pension plan it sponsors, challenging the projection rate used by the Plan to calculate the lump-sum payment Durand elected to receive after ending her employment at the Company in 2003. The Plan then used a 401(k)-style investment menu to determine the interest earned by members’ hypothetical accounts. Durand alleged that it impermissibly used the 30-year Treasury bond rate instead of the projected rate of return on her investment selections in the “whipsaw” calculation required under pre-2006 law. The Sixth CIrcuit reversed dismissal for failure to exhaust administrative remedies. Defendants then answered the complaint and raised defenses, including that the claims of putative class members “who received lump-sum distributions after December 31, 2003” were barred due to an amendment to the Plan that took effect after that date. Plaintiffs argued that the 2004 Amendment was an illegal reduction or “cutback” in benefits. The Sixth Circuit affirmed that the “cutback” claims were time-barred and did not relate back to the “whipsaw” claim asserted in the original class complaint. View "Durand v. Hanover Ins. Group, Inc." on Justia Law

Diageo distills and ages whiskey in Louisville, resulting in tons of ethanol emissions. Ethanol vapor wafts onto nearby property where the ethanol combines with condensation to propagate whiskey fungus. Ethanol emissions are regulated under the Clean Air Act, 42 U.S.C. 7401. Plaintiffs complained to the air pollution control district, which issued a Notice of Violation, finding that Diageo caused and allowed the emission of an air pollutant which crossed its property line causing an injury and nuisance to nearby neighborhoods and the public. Diageo disputed that its operations violated any district regulation. Plaintiffs filed a class action complaint, seeking damages for negligence, nuisance, and trespass, and an injunction. The district court concluded that state common law tort claims were not preempted by the Clean Air Act;” dismissed plaintiffs’ negligence claim on the ground that plaintiffs had not pled facts sufficient to establish that Diageo owed them a duty of care, or that Diageo had breached that duty; and declined to dismiss the remaining causes of action, concluding that plaintiffs had alleged facts sufficient to establish nuisance and trespass. On interlocutory appeal, the Sixth Circuit affirmed, based on the Act’s text, the Act’s structure and history, and relevant Supreme Court precedents. View "Merrick v. Diageo Americas Supply, Inc." on Justia Law