Justia Class Action Opinion Summaries

When the Chicago Board of Education deems a school to be deficient, it implements a reconstitution, replacing all administrators, faculty, and staff. A school may be subject to turnaround if it has been on probation for at least one year and has failed to make adequate progress . Under the collective bargaining agreement, tenured teachers are placed in a pool where they continue to receive a full salary and benefits for one school year. If a tenured teacher does not find a new position within that year, she is honorably terminated. Others are eligible for the cadre pool where they can receive substitute assignments, paid per assignment. From 2004-2011, the Board reconstituted 16 schools. In 2011, the Board identified 74 schools by removing schools that met the objective criteria related to standardized test scores and graduation rates. Brizard chose the final 10 schools. All were in areas where African Americans make up 40.9% of tenured teachers. No schools were selected from the north side, where only 6.5% of tenured teachers are African American. Of the teachers displaced, 51% were African American, despite comprising just 27% of the overall CPS teaching population. Teachers and the Union filed suit. The court declined to certify a class of: All African American persons … teacher or para-professional staff … subjected to reconstitution. The court found that the plaintiffs had not met established a common issue and had not adequately shown that common questions of law or fact predominated over individual claims. The Seventh Circuit reversed, finding that the class can be certified under both Rule 23(b)(2) and 23(b)(3). View "Chicago Teachers Union v. Bd. of Educ. of the City of Chicago" on Justia Law

Chapman, proposed to represent a class, under 47 U.S.C. 227, the Telephone Consumer Protection Act, who received faxes from First Index despite not having given consent. First Index responded that it always had consent, though it may have been verbal (during trade shows or phone conversations). Discovery was conducted and experts’ reports submitted. Chapman asked the judge to certify a class of all persons who had received faxes from First Index since August 2005 (four years before the complaint was filed) without their consent. The court declined, ruling that the difficulty of deciding who had provided oral consent made it infeasible to determine the class. Chapman proposed a different class: All persons whose faxes from First Index either lacked an opt-out notice or contained one of three specific notices that Chapman believes violated FCC regulations. The court declined to certify that class, finding that Chapman had known about the potential notice issue from the outset of the litigation but had made a strategic decision not to pursue it earlier. Changing the focus of the litigation almost five years into the case was impermissible. The Seventh Circuit affirmed the decision not to certify a class, but vacated with respect to Chapman’s personal claim. View "Chapman v. First Index, Inc." on Justia Law

Plaintiffs alleged in five separate tort cases that they, or the deceased individuals they represent, suffered from pancreatic cancer due to their use of incretin-based therapies for diabetes, including those developed by Defendant Merck and other defendant drug companies. Merck removed to federal court under the Class Action Fairness Act, 28 U.S.C. 1332(d)(11)(A), (B), and plaintiffs moved to remand the cases. The district court denied the motions for remand and subsequent motions for reconsideration. The court held, however, that plaintiffs' petitions for permission to appeal removal to federal court were timely because a timely motion for reconsideration of an order denying or granting a motion for remand under 28 U.S.C. 1453(c)(1) restarts the ten-day period during which a party may file a petition for permission to appeal. The court further held that in none of the five cases did plaintiffs propose that the claims of one hundred or more persons be tried jointly and therefore, the cases do not constitute a mass action under CAFA. Accordingly, the court reversed and remanded with instructions to grant plaintiffs' motions to remand. View "Briggs v. Merck Sharp & Dohme" on Justia Law

Defendant was charged with violating Mass. Gen. Laws ch. 56, 42, which criminalizes certain false statements about political candidates or questions submitted to voters, after her political action committee published brochures criticizing a candidate for public office. Defendant filed a petition pursuant to Mass. Gen. Laws ch. 211, 3 seeking relief from the criminal complaint on the ground that section 42 is unconstitutional. The Supreme Judicial Court granted the requested relief, holding (1) section 42 is inconsistent with the fundamental right of free speech enshrined in article 16 of the Massachusetts Declaration of Rights and is, therefore, invalid; and (2) accordingly, the criminal complaint charging Defendant with violating section 42 must be dismissed. View "Commonwealth v. Lucas" on Justia Law

Kivisto, co-founder and former President and CEO of SemCrude, an Oklahoma-based oil and gas company, allegedly drove SemCrude into bankruptcy through his self-dealing and speculative trading strategies. SemCrude’s Litigation Trust sued Kivisto, and the parties reached a settlement agreement and granted a mutual release of all claims. A month later, a group of SemCrude’s former limited partners (Oklahoma Plaintiffs) sued Kivisto in state court, alleging breach of fiduciary duty, negligent misrepresentation, and fraud. The Bankruptcy Court for the District of Delaware granted Kivisto’s emergency motion to enjoin the state action, finding that the Oklahoma Plaintiffs’ claims derived from the Litigation Trust’s claims. The district court reversed, concluding that the claims were possibly direct and remanded. The Third Circuit concluded that the claims are derivative and reversed. Even if Kivisto owed the Oklahoma Plaintiffs unique, individual fiduciary duties in addition to the duties owed to them as unitholders, they could show neither that they were injured separately from the company or all other unitholders on the basis of that misconduct, nor that they were entitled to recovery of the units they allegedly would not have contributed or would have sold but for Kivisto’s misconduct. View "In re: Semcrude L.P." on Justia Law

Aero filed a class action in Florida state court in 2010 against defendants, alleging that defendants sent unsolicited facsimile advertisements to the putative class in violation of the Telephone Consumer Protection Act (TCPA), 47 U.S.C. 227(b)(1)(C). These claims concern conduct that took place in 2006 and are governed by a four-year statute of limitations. The Florida state court granted summary judgment in favor of defendants in 2013. Later that year, Ewing filed a similar class complaint in federal court against the same defendants containing similar allegations. Recognizing that more than four years had passed since the alleged conduct, the complaint alleges that the statute of limitations was tolled during the pendency of Aero’s purported class action. The court affirmed, under Griffin v. Singletary, the district court's judgment, concluding that the pendency of Aero's purported class action did not toll the statute of limitations for Ewing's purported class action. View "Ewing Indus. Corp. v. Bob Wines Nursery, Inc." on Justia Law

Aero filed a class action in Florida state court in 2010 against defendants, alleging that defendants sent unsolicited facsimile advertisements to the putative class in violation of the Telephone Consumer Protection Act (TCPA), 47 U.S.C. 227(b)(1)(C). These claims concern conduct that took place in 2006 and are governed by a four-year statute of limitations. The Florida state court granted summary judgment in favor of defendants in 2013. Later that year, Ewing filed a similar class complaint in federal court against the same defendants containing similar allegations. Recognizing that more than four years had passed since the alleged conduct, the complaint alleges that the statute of limitations was tolled during the pendency of Aero’s purported class action. The court affirmed, under Griffin v. Singletary, the district court's judgment, concluding that the pendency of Aero's purported class action did not toll the statute of limitations for Ewing's purported class action. View "Ewing Indus. Corp. v. Bob Wines Nursery, Inc." on Justia Law

After the merger of NationsBank and BankAmerica, shareholders filed class actions alleging violations of securities laws. The district court appointed Oetting as lead plaintiff and the Green law firm, as lead counsel. The litigation resulted in a $333 million settlement for the NationsBank class. The Eighth Circuit affirmed approval of the settlement over Oetting’s objection. On the recommendation of Green, the court appointed Heffler as claims administrator. A Heffler employee conspired to submit false claims, resulting in fraudulent payment of $5.87 million. The court denied Green leave to file a supplemental complaint against Heffler. Oetting filed a separate action against Heffler that is pending. After distributions, $2.4 million remained. Green moved for distribution cy pres and requested an additional award of $98,114.34 in attorney’s fees for post-settlement work. Oetting opposed both, argued that Green should disgorge fees for abandoning the class, and filed a separate class action, alleging malpractice by negligently hiring and failing to supervise Heffler and abandonment of the class. The court granted Green’s motion for a cy pres distribution and for a supplemental fee award and denied disgorgement. The Eighth Circuit reversed the cy pres award, ordering additional distribution to the class, and vacated the supplemental fee award as premature. The district court then dismissed the malpractice complaint, concluding that Oetting lacked standing. The Eighth Circuit affirmed that collateral estoppel precluded the rejected disgorgement and class-abandonment claims; pendency of an appeal did not suspend preclusive effects. View "Oetting v. Norton" on Justia Law

After the merger of NationsBank and BankAmerica, shareholders filed class actions alleging violations of securities laws. The district court appointed Oetting as lead plaintiff and the Green law firm, as lead counsel. The litigation resulted in a $333 million settlement for the NationsBank class. The Eighth Circuit affirmed approval of the settlement over Oetting’s objection. On the recommendation of Green, the court appointed Heffler as claims administrator. A Heffler employee conspired to submit false claims, resulting in fraudulent payment of $5.87 million. The court denied Green leave to file a supplemental complaint against Heffler. Oetting filed a separate action against Heffler that is pending. After distributions, $2.4 million remained. Green moved for distribution cy pres and requested an additional award of $98,114.34 in attorney’s fees for post-settlement work. Oetting opposed both, argued that Green should disgorge fees for abandoning the class, and filed a separate class action, alleging malpractice by negligently hiring and failing to supervise Heffler and abandonment of the class. The court granted Green’s motion for a cy pres distribution and for a supplemental fee award and denied disgorgement. The Eighth Circuit reversed the cy pres award, ordering additional distribution to the class, and vacated the supplemental fee award as premature. The district court then dismissed the malpractice complaint, concluding that Oetting lacked standing. The Eighth Circuit affirmed that collateral estoppel precluded the rejected disgorgement and class-abandonment claims; pendency of an appeal did not suspend preclusive effects. View "Oetting v. Norton" on Justia Law

Six Alaska prisoners jointly filed a pro se putative class-action complaint against various Department of Corrections officials. Their complaint listed 18 causes of action, many of which addressed changes in Department policy regarding inmate purchase and possession of gaming systems and restrictions on mature-rated video games. One of the prisoners moved for class certification and for appointment of counsel. The superior court denied the class action motion on the grounds that pro se plaintiffs could not represent a class, and denied the appointment of counsel. The Department then moved for dismissal of the prisoners’ complaint for failing to state a claim upon which relief could be granted. The superior court granted this motion on the ground that all of the claims were class action claims that could not be pursued. Two of the plaintiffs, Jack Earl, Jr. and James Barber, each filed an appeal (which were consolidated for the purposes of this opinion). They argued that the superior court erred in denying the motion for class certification, denying the motion for appointment of counsel, and dismissing the complaint for failure to state a claim upon which relief can be granted. Upon review of their arguments on appeal, the Supreme Court concluded the superior court did not err in denying class certification and appointment of counsel, but reversed the dismissal of the action and remanded for further proceedings. View "Barber v. Schmidt" on Justia Law