Justia Class Action Opinion Summaries

Wayne County foreclosed on Tonya Bowles's property to satisfy her tax debt and sold it, keeping the surplus proceeds. Bowles filed a § 1983 lawsuit against the county and its treasurer, seeking to recover the surplus and to certify a class of similarly affected former property owners. The district court certified the class without discovery, relying on a similar case's decision.The United States District Court for the Eastern District of Michigan certified the class in 2022. However, subsequent legal developments, including decisions in Fox v. Saginaw County and other cases, highlighted the need for a rigorous analysis under Federal Rule of Civil Procedure 23. These decisions emphasized the necessity of proving, rather than merely alleging, compliance with Rule 23's requirements and questioned the manageability of class actions in takings cases.The United States Court of Appeals for the Sixth Circuit reviewed the case and found that the district court did not conduct the required rigorous analysis of Rule 23's requirements. The court noted that the district court relied on an incomplete record and did not address several critical issues, such as the calculation of damages, potential unique defenses, and the role of third-party lienholders. Additionally, the court highlighted that Bowles's proposed class definition included claims for surplus equity, which are unmanageable in class actions and not permissible under recent case law.The Sixth Circuit vacated the district court's class certification order and remanded the case for further proceedings. The court instructed the district court to conduct a thorough analysis of Rule 23's requirements, considering recent legal developments and ensuring that Bowles can prove numerosity, commonality, typicality, adequacy, and superiority. The court emphasized the need for a complete evidentiary record and a detailed forecast of how the litigation would proceed as a class action. View "Bowles v. Sabree" on Justia Law

Plaintiffs from twenty-six states sought class certification in their lawsuit against General Motors, LLC (GM) for alleged defects in the 8L45 and 8L90 transmissions of vehicles purchased between 2015 and 2019. Plaintiffs experienced "shudder" and shift quality issues that persisted despite repairs. GM argued that the class lacked standing and that individualized issues would predominate over common issues in the class-action suit.The United States District Court for the Eastern District of Michigan determined that the Plaintiffs had standing and could satisfy Federal Rule of Civil Procedure 23, thus certifying the class. GM appealed, claiming the district court abused its discretion in certifying the class.The United States Court of Appeals for the Sixth Circuit reviewed the case and held that the Plaintiffs had standing, as they alleged overpayment for defective products, which suffices for Article III standing. The court also found that the district court did not abuse its discretion in certifying the class, as the common questions of law and fact predominated over individualized issues. The court addressed GM's arguments regarding state laws requiring manifest defects, reliance, causation, and merchantability, concluding that these issues did not preclude class certification. The court also held that GM had waived its right to arbitration by engaging in litigation and seeking dispositive rulings on the merits.The Sixth Circuit affirmed the district court's class certification, allowing the class-action lawsuit against GM to proceed. View "Speerly v. General Motors, LLC" on Justia Law

The case involves a dispute over a protective order issued by the district court, barring Visser and Associates, PLLC (“Visser”) from communicating with potential class members in a putative class action. The case originated from a claim by Wayside Church that Van Buren County had violated the federal Constitution’s Takings Clause by foreclosing on its property to satisfy a tax debt and then selling the property for a higher amount without refunding the difference. The case was revived in federal court following the Supreme Court's overruling of a previous decision that required such claims to be pursued in state court.The district court preliminarily approved a proposed class action settlement between the plaintiffs and defendant counties. Around the same time, Visser began sending solicitation letters to property owners who it thought might have takings claims against counties in the Western District of Michigan. The district court issued a show-cause order, finding that Visser’s solicitation letters did not cross the line from permissible solicitation to misleading, improper communication with potential class members. However, the court was not satisfied with Visser’s explanation for why it had sent solicitation letters to named plaintiffs who were already represented by class counsel.The United States Court of Appeals for the Sixth Circuit affirmed the district court's protective order. The court found that Visser had violated ethical rules by soliciting named plaintiffs and misleading the court. The court also found that Visser had continued to solicit potential class members after the district court had preliminarily approved the class settlement. The court concluded that Visser's conduct posed a serious threat to the fairness of the litigation process and the administration of justice generally. Therefore, the district court did not abuse its discretion in issuing the protective order. View "Wayside Church v. Van Buren County" on Justia Law

The case involves Karen Frohn, who applied for and received a life insurance policy from Globe Life and Accident Insurance Company on behalf of her husband, Greg Frohn. After Greg's death, Karen submitted a claim for death benefits, which Globe denied. Karen then sued Globe, both individually and on behalf of a putative class of beneficiaries, challenging the denial of her claim.Globe moved for summary judgment, arguing that it was entitled to rescind the life insurance policy because Karen was not truthful in her application for insurance. The district court granted Globe’s motion, barring Karen from recovery on her claims against Globe. Karen also asked the court to redact certain portions of that order, but the district court published it without any redactions. Karen appealed these decisions.The United States Court of Appeals for the Sixth Circuit affirmed the district court's decision. The court found that Karen had voluntarily waived her husband's physician-patient privilege by signing an Authorization for Release, allowing Globe to access Greg's medical records. The court also found that Globe was entitled to rescind the policy under Ohio law because Karen had made material misrepresentations in the insurance application. The court concluded that Globe's defense barred Karen's breach-of-contract and bad-faith claims. View "Frohn v. Globe Life and Accident Ins Co" on Justia Law

The United States Court of Appeals for the Sixth Circuit affirmed the district court's denial of Brian Behovitz's motion to intervene in a class action lawsuit initiated by Frederick Grainger, Jr. against Ottawa County, Michigan, and other Michigan counties. Grainger alleged that the counties unlawfully retained the full proceeds from foreclosure auctions of homes, even when the proceeds exceeded the homeowners' unpaid property taxes. The district court denied class certification because Grainger's individual claims were barred by the statute of limitations, making him unfit to serve as a class representative. Behovitz, who had a similar experience with another county, sought to intervene as a new putative class representative. His motion was denied by the district court, and he appealed.The Sixth Circuit affirmed the denial, finding that Behovitz failed to establish the necessary factors for intervention as of right under Federal Rule of Civil Procedure 24(a). Specifically, he failed to show a substantial legal interest in the subject matter of the case or that his ability to protect his interest may be impaired without intervention. The court also concluded that the district court did not abuse its discretion in denying Behovitz’s permissive intervention. It noted that Behovitz likely does not have an interest in class certification, and his interest in opposing a settlement in a similar litigation was not a proper reason for intervention in this case. View "Grainger v. Ottawa County, Mich." on Justia Law

Hardwick alleged that his bloodstream contains trace quantities of five chemicals (PFAS)—which are part of a family of thousands of chemicals used in medical devices, automotive interiors, waterproof clothing, food packaging, firefighting foam, non-stick cookware, ski and car waxes, batteries, semiconductors, aviation and aerospace construction, paints and varnishes, and building materials. Hardwick, who was exposed to firefighting foam, does not know what companies manufactured the particular chemicals in his bloodstream; nor does he know whether those chemicals might someday make him sick. Of the thousands of companies that have manufactured PFAS since the 1950s, Hardwick sued 10 defendants and sought to represent a class comprising nearly every person “residing in the United States.” The district court certified a class comprising every person residing in Ohio with trace amounts of certain PFAS in their blood.The Sixth Circuit remanded with instructions to dismiss the case. Even at the pleadings stage, the factual allegations, taken as true, “must be enough to raise a right to relief above the speculative level.” The element of traceability requires a showing that the plaintiff’s “injury was likely caused by the defendant.” The district court treated the defendants as a collective, but “standing is not dispensed in gross.” Even if Hardwick met the actual-injury requirement he must tie his injury to each defendant.” Hardwick’s conclusory allegations do not support a plausible inference that any of the defendants bear responsibility for the PFAS in Hardwick’s blood. View "Hardwick v. 3M Co." on Justia Law

A putative class sued Ford over an alleged design defect in their F-150 pickup trucks, model years 2013-2018, involving brake master cylinders manufactured by Hitachi, citing two alternative theories of how the failure of internal seals would occur. The court declined to certify injunction and damages classes under Federal Rule of Civil Procedure 23(b)(2) and (b)(3) but certified five statewide issue classes under 23(c)(4) for three issues: whether the brake systems were defective; whether Ford possessed pre-sale knowledge of the defect; and whether concealed information about the defect would be material to a reasonable buyer.On interlocutory review, the Sixth Circuit reversed. Rule 23 certification requires that a class action be able to “generate common answers apt to drive the resolution of the litigation.” Here, it is not clear that the certified issues can each be answered “in one stroke.” The court noted design and manufacturing changes to the units over the years and that the class alleged two distinct theories of design defect. Ford may have believed any problem was fixed when Hitachi altered its cylinder design. It is possible that those changes affected brake performance to a degree that would have made a difference to a consumer. On remand, the district court must evaluate whether each of the four Rule 23(a) factors is actually satisfied, not merely properly alleged. The inquiry might overlap with the merits of the underlying claims but is a crucial part of avoiding the procedural unfairness to which class actions are uniquely susceptible. View "In re Ford Motor Co." on Justia Law

In the multidistrict National Prescription Opiate Litigation, municipalities from across the nation, Indian Tribes, and other entities allege that opioid manufacturers, distributors, pharmacies, and retailers acted in concert to mislead medical professionals into prescribing, and millions of Americans into taking and often becoming addicted to, opiates. Two northeast Ohio counties, Trumbull and Lake, alleged that national pharmaceutical chains “created, perpetuated, and maintained” the opioid epidemic by filling prescriptions for opioids without controls in place to stop the distribution of those that were illicitly prescribed and that conduct caused an absolute public nuisance remediable by abatement under Ohio common law.The district court ordered a bellwether trial, after which a jury concluded that the “oversupply of legal prescription opioids, and diversion of those opioids into the illicit market” was a public nuisance in those counties and that defendants “engaged in intentional and/or illegal conduct which was a substantial factor in producing" that nuisance. The district court entered a $650 million abatement order and an injunction requiring defendants to “ensure they are complying fully with the Controlled Substances Act and avoiding further improper dispensing conduct.” On appeal, the Sixth Circuit certified a question of law to the Ohio Supreme Court: Whether the Ohio Product Liability Act, Ohio Revised Code 2307.71, abrogates a common law claim of absolute public nuisance resulting from the sale of a product in commerce in which the plaintiffs seek equitable abatement, including both monetary and injunctive remedies? View "Trumbull County v. Purdue Pharma, L.P." on Justia Law

Out-of-work residents of Michigan may claim unemployment benefits if they meet certain eligibility criteria. The State’s Unemployment Insurance Agency oversees the benefits system. In 2011, with the help of private contractors, the Agency began to develop software to administer the unemployment system. The Agency sought to equip the software to auto-adjudicate as many parts of the claims process as possible. The Agency programmed software that used logic trees to help process cases and identify fraud. A claimant’s failure to return the fact-finding questionnaire, for example, led to a fraud finding, as did the claimant’s selection of certain multiple-choice responses. In August 2015, problems arose with some features of the system, prompting the Agency to turn off the auto-adjudication feature for fraud claims.Plaintiffs are four individuals who obtained unemployment benefits, which were terminated after the Agency flagged their claims for fraud. Plaintiffs filed a putative class action against three government contractors and nineteen Agency staffers, raising claims under the Fourth, Fifth, and Fourteenth Amendments, 26 U.S.C. Sec. 6402(f), and Michigan tort law. In a previous proceeding, the court held that plaintiffs’ due process rights clearly existed because they had alleged a deprivation of their property interests without adequate notice and without an opportunity for a pre-deprivation hearing.At this stage, because the remaining plaintiffs have failed to show that these procedures violate any clearly established law, the supervisors of the unemployment insurance agency are entitled to judgment as a matter of law. The court also found that an intervening plaintiff was properly prevented from joining the case, based on her untimely filing. View "Patti Cahoo v. SAS Institute, Inc." on Justia Law

The named plaintiffs, former home-health aides, sued A&L under the Fair Labor Standards Act (FLSA), claiming that A&L had paid them less than the correct overtime rate and under-reimbursed their expenses. Plaintiffs may bring such claims on behalf of other “similarly situated” employees. 29 U.S.C. 216(b). The plaintiffs sought to facilitate notice of their action to three groups of other employees who had worked for A&L. The court adopted a two-step procedure under which it would facilitate such notice following “conditional certification,” which required a “modest factual showing” that the other employees are “similarly situated” to the original plaintiffs. When merits discovery is complete, the court must grant “final certification” for the case to proceed as a collective action. The court applied that “fairly lenient” standard, and “conditionally certified” two groups for receiving notice. The court declined to facilitate notice to employees who had left A&L more than two years before or who had signed a “valid arbitration agreement” with A&L.On interlocutory appeal, the Sixth Circuit rejected the lenient standard, vacated the notice determination, and remanded for redetermination of that issue under the strong-likelihood standard. The court noted that the decision to send notice of an FLSA suit to other employees is often dispositive, in the sense of forcing a settlement. As a practical matter, it is not possible to conclusively make “similarly situated” determinations as to employees who are not present in the case. View "Clark v. A&L Homecare & Training Center, LLC" on Justia Law