Justia Class Action Opinion Summaries
Oliver v. Orleans Parish School Board
This class action arose out of the termination of approximately 7,600 former teachers and other permanent employees of the Orleans Parish School Board (OPSB) as a result of Hurricane Katrina and the State of Louisiana’s subsequent takeover of Orleans Parish schools. Although the district court denied defendants’ exceptions of res judicata, a five judge panel of the court of appeal unanimously found that res judicata ordinarily would apply to the facts of this case, but that exceptional circumstances barred its application. The Louisiana Supreme Court granted two writ applications to determine whether the doctrine of res judicata barred plaintiffs’ claims against the OPSB and/or the State defendants, and, if not, whether the OPSB and/or the State defendants violated the plaintiffs’ due process rights in relation to the plaintiffs’ terminations. The Supreme Court agreed with the court of appeal that res judicata applied but found no exceptional circumstances that would preclude its application. Furthermore, the Court found that, even if res judicata did not apply to certain parties’ claims, neither the OPSB nor the State defendants violated plaintiffs’ due process rights. View "Oliver v. Orleans Parish School Board" on Justia Law
Godfrey v. Oakland Port Servs. Corp.
Named plaintiffs initiated a class action lawsuit against AB Trucking, claiming that AB did not pay its drivers for all hours worked, misclassified some drivers as non-employee trainees and did not pay them at all, and failed to provide required meal and rest breaks. The trial court certified a class of drivers who performed work for AB out of its Oakland, facility. Plaintiffs prevailed on most of their claims and the court awarded the class a total of $964,557.08. In a post-judgment order, the court awarded attorney fees, litigation expenses, and class representative enhancements to plaintiffs. The court of appeal affirmed, rejecting arguments that federal law preempts application of California’s meal and rest break requirements to motor carriers; that the order granting class certification was not supported by substantial evidence; that the court should have reserved individual determinations of damages for the claims administration process; that AB’s drivers are expressly excluded from coverage under Industrial Welfare Commission (IWC) Order No. 9-2001; and that the award of attorney fees and representative enhancements must be reversed. View "Godfrey v. Oakland Port Servs. Corp." on Justia Law
Posted in:
Class Action, Labor & Employment Law
Romulus v. CVS Pharmacy, Inc.
In this case involving a class action complaint filed against CVS Pharmacy Inc. in Massachusetts Superior Court for wage and hour violations, the First Circuit clarified the removal time periods and mechanisms under the Class Action Fairness Act of 2005. CVS filed a second notice of removal, claiming that there was a reasonable probability that the amount in controversy exceeded $5 million. The district court granted Plaintiffs’ motion to remand, holding (1) CVS’s notice of removal came too late to meet the thirty-day deadline in 28 U.S.C. 1446(b)(1), and the second thirty-day deadline in section 1446(b)(3) did not apply; and (2) CVS had not met its burden to establish the substantive amount in controversy requirement. The First Circuit reversed, holding (1) the time limits in section 1446(b) apply when the plaintiffs’ pleadings or the plaintiffs’ “other papers” provide the defendant with a clear statement of the damages sought or with sufficient facts from which damages can be readily calculated; (2) CVS’s second notice of removal was timely under section 1446(b)(3); and (3) CVS sufficiently demonstrated that the amount in controversy exceeded $5 million. View "Romulus v. CVS Pharmacy, Inc." on Justia Law
Lofton v. Wells Fargo Home Mortg.
In 2005 class counsel initiated a class action against Wells Fargo on behalf of thousands of mortgage consultants who had allegedly been misclassified as exempt employees. In 2006 ILG filed a putative class action alleging similar claims on behalf of a similar class. An ILG class was initially certified, but was decertified in 2010. Eventually, ILG filed multiple lawsuits, each with 30 to 90 plaintiffs, on behalf of 600 clients, including Maxon. ILG, Wells Fargo and class counsel mediated all pending claims. In 2011, class counsel moved for preliminary approval of a proposed class and settlement; Wells Fargo agreed to pay $19 million, including attorney fees to class counsel, to settle all class claims and $6 million for the ILG claims. At the preliminary approval hearing, the court was told that ILG’s clients would opt out of the class action. Contrary to that explanation, ILG assisted its class member clients in securing the benefits of the class action settlement rather than in opting out to seek recompense from the $6 million fund. ILG claimed that that settlement was for its attorney fees, but was willing to pay $1,750 to each plaintiff for a claim arguably not resolved in the class action. Maxon objected. The trial court issued a temporary restraining order requiring ILG to deposit the funds into escrow. The appeals court affirmed. The court presiding over the class action had jurisdiction to consider the propriety of the settlement of class member claims, even for class members represented by ILG and had a duty to ensure that ILG’s fees were reasonable in light of the overall result. View "Lofton v. Wells Fargo Home Mortg." on Justia Law
Posted in:
Class Action, Legal Ethics
Decker v. GE Healthcare Inc.
In 2005, in connection with a magnetic resonance imaging procedure (MRI), Decker received a dose of Omniscan, a gadoliniumbased contrast agent manufactured by GEHC. After taking Omniscan, Decker developed Nephrogenic Systemic Fibrosis (NSF). In 2012, the Deckers sued GEHC, as part of a multidistrict litigation (MDL). Before the Deckers’ case, hundreds of similar cases in the MDL involving GEHC had been settled. The Decker case was the first case in the MDL to go to trial. The jury returned a verdict in favor of the Deckers on a failure-to-warn claim, awarding $5 million in damages. The Sixth Circuit affirmed, rejecting claims that the district court judge should have recused himself from the trial and a motion for a new trial; made several erroneous evidentiary rulings, which were applicable to all MDL cases; erroneously denied GEHC’s motion for a new trial because insufficient evidence supported the jury’s verdict regarding the causation element of the Deckers’ failure-to-warn claim; and erroneously failed to issue two proposed jury instructions. View "Decker v. GE Healthcare Inc." on Justia Law
Oxbow Constr., LLC v. Eighth Judicial Dist. Court
These consolidated writ petitions arose from a construction-defect action initiated by The Regent at Town Centre Homeowners’ Association against Oxbow Construction, LLC. Oxbow served as the general contractor of the Regent at Town Centre mixed-use community (Town Centre). The Association, on behalf of itself and the condominium unit-owners, served Oxbow with Nev. Rev. Stat. 40 notice, alleging construction defects in the common elements of the condominiums. The district court ultimately allowed claims seeking Chapter 40 remedies to proceed for alleged construction defects in limited common elements assigned to multiple units containing at least one “new residence.” Both parties filed writ petitions challenging the district court’s rulings. The Supreme Court denied both petitions, holding that the district court did not act arbitrarily or capriciously by (1) failing to perform a Nev. R. Civ. P. 23 class-action analysis; (2) determining that previously occupied units in Town Centre did not qualify for Chapter 40 remedies; and (3) concluding that the Association could pursue Chapter 40 remedies for construction defects in the common elements of buildings containing at least one previously unoccupied unit, i.e., a “new residence.” View "Oxbow Constr., LLC v. Eighth Judicial Dist. Court" on Justia Law
Posted in:
Class Action, Construction Law
Dynamex v. Super. Court
Plaintiff, seeking to represent approximately 1,800 drivers engaged by Dynamex as independent contractors, filed suit against Dynamex for violation of California law when the courier and delivery services company converted the status of all drivers from employee to independent contractor. After Dynamex's motion to decertify the class was denied, the company petitioned for a writ of mandate. The court issued an order to show cause why respondent superior court should not be compelled to vacate its order denying the motion to decertify the class; granted the petition in part; concluded that the superior court correctly allowed plaintiffs to rely on the Industrial Welfare Commission (IWC) definition of an employment relationship for purposes of those claims falling within the scope of Wage Order No. 9-2001; with respect to those claims falling outside the scope of the Wage Order, the common law definition of employee will control; and as to those claims, the court granted the petition to allow the superior court to reevaluate whether, in light of the Supreme Court's decision in Ayala v. Antelope Valley Newspapers, Inc., class certification remains appropriate by focusing its analysis on differences in the defendant's right to exercise control rather than variations in how that right was exercised. View "Dynamex v. Super. Court" on Justia Law
Posted in:
Class Action, Labor & Employment Law
A.S. v. SmithKline Beecham Corp
A.S., who suffers from a congenital birth defect, and his mother, Miller, who ingested Paxil while pregnant, sued GSK in the Philadelphia County Court, alleging that all parties were citizens of Pennsylvania. GSK removed the case based upon diversity. On plaintiffs’ motion, the case was consolidated with other Paxil cases before a district court judge who had previously held that GSK was a citizen of Pennsylvania and who remanded A.S.’s case and the other consolidated cases to state court. The case returned to state court on January 4, 2012. On June 7, 2013, the Third Circuit issued its opinion in Johnson, which held that GSK was a citizen of Delaware. Less than 30 days after the Johnson decision, GSK filed a second notice of removal in A.S.’s case and in eight other cases with the same procedural posture. The district court denied the motion and certified its order for interlocutory review. The Third Circuit directed remand to state court, holding that the second removal request was untimely under 28 U.S.C. 1446(b) because there had been a final order. View "A.S. v. SmithKline Beecham Corp" on Justia Law
Craig v. FedEx Ground Package Sys., Inc.
Numerous class actions throughout the country were filed against FedEx Ground Package System, Inc. by former and current delivery drivers for the company. Plaintiffs claimed they were improperly classified as independent contractors rather than as employees under both state and federal law. The class actions were consolidated, and the Kansas class action was designated as the lead case. A federal district court granted summary judgment for FedEx, determining that the Kansas class plaintiffs were independent contractors under the Kansas Wage Payment Act (KWPA). The district court relied on this decision to enter summary judgment for FedEx in all the other statewide class actions, concluding that Plaintiffs were independent contractors, rather than employees, under each respective state’s substantive law. Plaintiffs appealed. The Court of Appeals for the Seventh Circuit certified to the Kansas Supreme Court questions regarding the proper classification of the FedEx drivers under the KWPA. The Supreme Court answered that, under the undisputed facts presented, the plaintiff delivery drivers were employees of FedEx for purposes of the KWPA. View "Craig v. FedEx Ground Package Sys., Inc." on Justia Law
Posted in:
Class Action, Labor & Employment Law
Georgia-Pacific Consumer Products, LP v. Ratner
The named plaintiffs in this class action owned real property in Mallard Pointe, a residential neighborhood in Effingham County. Georgia-Pacific Consumer Products, LP has operated the Savannah River Mill nearby since 1986. Plaintiffs argued that their real property was contaminated by hydrogen sulfide gas released from the decomposition of solid waste sludge released by the mill. As a result, they have been exposed to noxious odors, their use and enjoyment of their property has been impaired, and the value of their property has diminished. Plaintiffs sued Georgia-Pacific for nuisance, trespass, and negligence. The plaintiffs sought not only to recover monetary damages for themselves, but they proposed to seek relief for a class of other nearby property owners. Georgia-Pacific appealed the certification of the class, and the Court of Appeals affirmed. Upon the petition of Georgia-Pacific, the Supreme Court issued a writ of certiorari to review the decision of the Court of Appeals, and concluded after that review that the trial court abused its discretion when it certified the class. The Supreme Court reversed the judgment of the Court of Appeals
View "Georgia-Pacific Consumer Products, LP v. Ratner" on Justia Law