Justia Class Action Opinion Summaries

Plaintiffs, consumers from California and Texas, filed class actions against Electrolux, the manufacturer of front-loading washing machines, alleging warranty and consumer claims. Specifically, plaintiffs allege that the rubber seal on the front door of the machines retains water, allowing mildew to grow, causing stains on clothing, and creating a foul odor. The court concluded that the district court abused its discretion in assessing predominance and therefore vacated the class certification. On remand, the district court should revisit Electrolux's argument that the consumer claims do not satisfy predominance because plaintiffs cannot prove causation on a classwide basis, and the district court abused its discretion by certifying the warranty claims without first resolving preliminary questions of state law that bear on predominance. The court further concluded that plaintiffs' damages do not necessarily defeat predominance, and Electrolux's defense of misuse does not necessarily defeat predominance. Accordingly, the court vacated and remanded. View "Brown v. Electrolux Home Products, Inc." on Justia Law

Plaintiffs, consumers from California and Texas, filed class actions against Electrolux, the manufacturer of front-loading washing machines, alleging warranty and consumer claims. Specifically, plaintiffs allege that the rubber seal on the front door of the machines retains water, allowing mildew to grow, causing stains on clothing, and creating a foul odor. The court concluded that the district court abused its discretion in assessing predominance and therefore vacated the class certification. On remand, the district court should revisit Electrolux's argument that the consumer claims do not satisfy predominance because plaintiffs cannot prove causation on a classwide basis, and the district court abused its discretion by certifying the warranty claims without first resolving preliminary questions of state law that bear on predominance. The court further concluded that plaintiffs' damages do not necessarily defeat predominance, and Electrolux's defense of misuse does not necessarily defeat predominance. Accordingly, the court vacated and remanded. View "Brown v. Electrolux Home Products, Inc." on Justia Law

The Joyce law firm purchased professional liability insurance from Professionals Direct. In 2007 the firm won a large damages award for a class of securities-fraud plaintiffs and hired another law firm to sue to collect the money from the defendant’s insurers. Some class members thought the Joyce firm should have handled enforcement of the judgment itself under the terms of its contingency-fee agreement. They took the firm to arbitration over the extra fees incurred. Professionals Direct paid for the firm’s defense in the arbitration. After the arbitrator found for the clients and ordered the firm to reimburse some of the fees they had paid, the insurer refused a demand for indemnification. The district judge sided with the insurer, concluding that the award was a “sanction” under the policy’s exclusion for “fines, sanctions, penalties, punitive damages or any damages resulting from the multiplication of compensatory damages.” The Seventh Circuit affirmed. While the arbitration award was not functionally a sanction, another provision in the policy excludes “claim[s] for legal fees, costs or disbursements paid or owed to you.” Because the arbitration award adjusted the attorney’s fees owed to the firm in the underlying securities-fraud class action, the “legal fees” exclusion applies. View "Edward T. Joyce & Assocs. v. Prof'ls Direct Ins. Co." on Justia Law

The Joyce law firm purchased professional liability insurance from Professionals Direct. In 2007 the firm won a large damages award for a class of securities-fraud plaintiffs and hired another law firm to sue to collect the money from the defendant’s insurers. Some class members thought the Joyce firm should have handled enforcement of the judgment itself under the terms of its contingency-fee agreement. They took the firm to arbitration over the extra fees incurred. Professionals Direct paid for the firm’s defense in the arbitration. After the arbitrator found for the clients and ordered the firm to reimburse some of the fees they had paid, the insurer refused a demand for indemnification. The district judge sided with the insurer, concluding that the award was a “sanction” under the policy’s exclusion for “fines, sanctions, penalties, punitive damages or any damages resulting from the multiplication of compensatory damages.” The Seventh Circuit affirmed. While the arbitration award was not functionally a sanction, another provision in the policy excludes “claim[s] for legal fees, costs or disbursements paid or owed to you.” Because the arbitration award adjusted the attorney’s fees owed to the firm in the underlying securities-fraud class action, the “legal fees” exclusion applies. View "Edward T. Joyce & Assocs. v. Prof'ls Direct Ins. Co." on Justia Law

Clark runs Affordable Hearing in Terre Haute, Indiana. In 2006, Clark received calls from a B2B employee, who offered to market Affordable Hearing’s services by faxed advertisements. Clark agreed to try fax-advertising, approved the language of the ad, and verbally instructed B2B to send about 100 faxes to businesses within a 20-mile radius of Terre Haute. He did not know what it cost to send a fax, but thought the quoted $279 was reasonable. Trusting that Melville would send the 100 faxes as authorized, Clark never asked to see the list of fax numbers that B2B was using. Clark did not realize that B2B actually faxed 4,849 ad flyers to businesses across Indiana, Illinois, and Ohio. After Bridgeview received a fax ad outside Chicago, it sued under the Telephone Consumer Protection Act, which, unbeknownst to Clark, outlaws unsolicited fax ads. In granting summary judgment for class members located within 20 miles of Terre Haute, the district court gave the statutory penalty of $500 per recipient to 32 recipients within that 20-mile radius--a $16,000 judgment against Clark. The court held that Clark was not liable for the junk faxes sent more than 20 miles from Terre Haute. The Seventh Circuit affirmed class certification and the determinations of liability. View "Bridgeview Health Care Ctr., v. Clark" 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

Plaintiffs and proposed class representatives Jeffrey Schermer, David Moravee, Tom Fisher, Janice Wenhold, Karen Vielma, Gloria Carruthers and George Rivera (collectively plaintiffs) appealed an order sustaining a demurrer without leave to amend to the class allegations in four of their causes of action in their second amended complaint (SAC). Plaintiffs' SAC involved 18 mobilehome parks allegedly owned and/or operated by defendants Thomas Tatum (Tatum) and Jeffrey Kaplan (Kaplan), which plaintiffs alleged were managed through defendant Mobile Community Management Company (MCM). Plaintiffs brought a class action on behalf of residents who live in the 18 mobilehome parks, alleging they were subjected to uniform unconscionable lease agreements and leasing practices by defendants. On appeal, plaintiffs argued that the trial court prematurely dismissed their class allegations because their operative complaint adequately pleaded "a community of interest with typical class representatives and predominately common questions of law and fact" with respect to their four causes of action; and that in so doing, the court improperly assessed its action "on the merits and failed to properly credit [p]laintiffs' unambiguous allegations, which were supported by the actual form lease agreements attached to the [SAC]." After review, the Court of Appeal affirmed the trial court, concluding the trial court properly sustained without leave to amend the demurrer to the class allegations in each of the four causes of action at issue, when it found there was no reasonable possibility plaintiffs could satisfy the community of interest requirement for class certification. View "Schermer v. Tatum" on Justia Law

Plaintiffs and proposed class representatives Jeffrey Schermer, David Moravee, Tom Fisher, Janice Wenhold, Karen Vielma, Gloria Carruthers and George Rivera (collectively plaintiffs) appealed an order sustaining a demurrer without leave to amend to the class allegations in four of their causes of action in their second amended complaint (SAC). Plaintiffs' SAC involved 18 mobilehome parks allegedly owned and/or operated by defendants Thomas Tatum (Tatum) and Jeffrey Kaplan (Kaplan), which plaintiffs alleged were managed through defendant Mobile Community Management Company (MCM). Plaintiffs brought a class action on behalf of residents who live in the 18 mobilehome parks, alleging they were subjected to uniform unconscionable lease agreements and leasing practices by defendants. On appeal, plaintiffs argued that the trial court prematurely dismissed their class allegations because their operative complaint adequately pleaded "a community of interest with typical class representatives and predominately common questions of law and fact" with respect to their four causes of action; and that in so doing, the court improperly assessed its action "on the merits and failed to properly credit [p]laintiffs' unambiguous allegations, which were supported by the actual form lease agreements attached to the [SAC]." After review, the Court of Appeal affirmed the trial court, concluding the trial court properly sustained without leave to amend the demurrer to the class allegations in each of the four causes of action at issue, when it found there was no reasonable possibility plaintiffs could satisfy the community of interest requirement for class certification. View "Schermer v. Tatum" on Justia Law

Maurice Soffer died from lung cancer caused by smoking. Soffer’s widow, Lucille Soffer, brought a wrongful death action against R.J. Reynolds Tobacco Company pursuant to Engle v. Liggett Group, Inc., alleging four causes of action, all of which had been pled in the Engle class litigation. Prior to trial, Soffer moved to amend her complaint to add a demand for punitive damages. The trial court granted the motion to amend. A judgment was entered for Soffer in the amount of $2 million. Soffer appealed, arguing that the trial court erred in instructing the jury that it was prohibited from awarding punitive damages on the counts for negligence and strict liability based on the procedural posture of the original Engle class action. The Court of Appeal affirmed, holding that individual members of the Engle class action are bound by the procedural prosture of the Engle class representatives when they pursue their individual lawsuits and, thus, cannot seek punitive damages on negligence or strict liability counts. The Supreme Court quashed the Court of Appeal’s decision, holding that the individual members of the Engle class action are not prevented from seeking punitive damages on all claims properly raised in their subsequent individual actions. View "Soffer v. R.J. Reynolds Tobacco Co." on Justia Law