Justia Class Action Opinion Summaries
Machado v. System4 LLC
Plaintiffs were individuals who entered into contracts with Defendants for the provision of janitorial services to third-party customers. Plaintiffs filed this putative class action, alleging that Defendants violated the Massachusetts Wage Act. Defendants moved to stay the court proceedings pending arbitration according to the terms of the arbitration clause contained in the parties' franchise agreements. The superior court denied the motion, concluding that the arbitration clause was unenforceable as set forth in Feeny v. Dell Inc. (Feeney I). After the United States Supreme Court decided AT&T Mobility LLC v. Concepcion, Defendants sought appellate review, which the Supreme Court granted. The Supreme Court reversed the order invalidating the arbitration in light of its interpretation of Conception and its impact on Feeney I, as set forth in Feeney II, holding (1) Massachusetts public policy in favor of class proceedings in certain contexts may no longer serve, in and of itself, as grounds to invalidate a class waiver in an arbitration agreement; and (2) in this case, Plaintiffs failed to demonstrate they lacked a practical means to pursue their claims on an individual basis.View "Machado v. System4 LLC" on Justia Law
Feeney v. Dell Inc.
Plaintiffs commenced a putative class action against Defendant, alleging violations of Mass. Gen. Laws ch. 93A. Dell successfully moved to compel arbitration according to an arbitration agreement signed by the parties. An arbitrator concluded that the parties waived class action relief by signing the agreement. In Feeney I, the Supreme Court invalidated the class waiver provision in the arbitration agreement. In this subsequent appeal, the Supreme Court held that the arbitration agreement was properly invalidated where (1) Mobility LLC v. Concepcion, decided by the U.S. Supreme Court after Feeney I, precluded the invalidation of class waiver provisions in arbitration clauses in consumer contracts, such as the one at issue here, and therefore, Concepcion undid the principal rationale for the Court's decision in Feeney I; (2) a court is not foreclosed from invalidating an arbitration agreement that includes a class action waiver where a plaintiff can demonstrate he effectively cannot pursue a claim against the defendant in individual arbitration according to the terms of his agreement, thus rendering his or her claim nonremediable; and (3) Plaintiffs demonstrated that they could not pursue their statutory claim under the individual claim arbitration process required by the arbitration agreement.View "Feeney v. Dell Inc." on Justia Law
The Dow Chemical Corp. v. Blanco
Before the Supreme Court, a matter of first impression: "does Delaware recognize cross-jurisdictional tolling?" Plaintiff Jose Blanco was allegedly exposed to a toxic pesticide manufactured by Defendant Dow Chemical Corporation in 1979-1980. In 1993, he entered a class action lawsuit against Defendant in Texas. The case stalled in procedure, with class certification being ultimately denied. Defendants moved to dismiss, citing the run of the two-year statute of limitations. Plaintiff contended on appeal that the putative Texas action tolled the statute of limitations. The Delaware superior court concluded that Delaware recognized the doctrine of cross-jurisdictional class action tolling. Defendants filed for an interlocutory appeal with the Delaware Supreme Court. The Supreme Court held that until class action certification is denied, individual claims are tolled under Delaware law. Accordingly the Court answered the question in the affirmative, and remanded the case for further proceedings.
View "The Dow Chemical Corp. v. Blanco" on Justia Law
Posted in:
Class Action, Constitutional Law
Brinckerhoff v. Enbridge Energy Company, Inc.
The issue before the Supreme Court in this case was whether the Court of Chancery erred in dismissing a derivative and class action complaint against the general partner and other managers of a limited partnership. The governing limited partnership agreement provided that appellees had no liability for money damages as long as they acted in good faith. The Court of Chancery dismissed the complaint because it failed to allege facts that would support a finding of bad faith. After remand, the Court of Chancery held that appellants waived their alternative claims for reformation or rescission. Upon review of the matter, the Supreme Court affirmed.View "Brinckerhoff v. Enbridge Energy Company, Inc." on Justia Law
McWilliams v. City of Long Beach
This dispute arose out of a class action lawsuit filed by Plaintiff, a resident of Defendant City, challenging the City's telephone users tax (TUT) and seeking refund of the taxes paid. The trial court ruled that class claims for a refund were barred under Woosley v. State and dismissed the case. The court of appeal reversed in part, holding that Plaintiff could file a class claim for a TUT refund under the recently decided Ardon v. City of Los Angeles. In Ardon, the Supreme Court held that the Government Claims Act (Act) permits a class action claim by taxpayers against a local government entity for the refund of an unlawful tax in the absence of a specific tax refund procedure set forth in an applicable governing claims statute. The City appealed, asserting that its municipal code contained an "applicable governing claims statute" barring class action claims for a tax refund. The Supreme Court affirmed, holding that a local ordinance is not a "statute" within the meaning of the Act.View "McWilliams v. City of Long Beach" on Justia Law
Posted in:
Class Action, Tax Law
Perdue v. Green
Immediately following the release of the Supreme Court's previous decision in this case, the Alabama Legislature passed Act No. 2012-198, Ala. Acts 2012, which repealed the statutory provision that underpinned the decision in "Perdue I." In the prior case, the Court vacated the circuit court's judgment that approved a settlement agreement that ended class-action litigation involving the Alabama Prepaid Affordable College Tuition (PACT) program. Class member Carol Perdue objected to the trial court's approval of the settlement; the Supreme Court originally rejected plaintiffs' argument that Ala. Code 16-33C-19 did not prohibit the PACT Board from entering into the settlement, and that the agreement was "clearly contrary to state law." The Legislature specifically repealed 16-33C-19 and caused the Court to revise its previous decision. The Court found that the trial court exceeded its discretion in finding the settlement was fair, adequate and reasonable, found the retroactive application of the 2012 Act constitutional, and remanded the case for further proceedings.View "Perdue v. Green" on Justia Law
Posted in:
Class Action, Constitutional Law
McKenzie Check Advance of Fla., LLC v. Betts
Plaintiffs filed a class action complaint against a check advance company, asserting claims based on numerous Florida statutes. Plaintiffs later amended the complaint to add Tiffany Kelly as an additional plaintiff and named class member. Because Kelly had signed the version of Defendant's arbitration agreement that contained a class action waiver, this case focused on her contracts with Defendant. The trial court eventually denied Defendant's motion to compel arbitration, ruling that the class action waiver was unenforceable because it was void as against public policy. The court of appeal affirmed, finding that no other reasonable avenue for relief would be available if it enforced the class action waiver. After the court of appeal decided this case, the U.S. Supreme Court issued its decision in AT&T Mobility, LLC v. Concepcion. Applying the rationale of Concepcion to the facts set forth in this case, the Supreme Court quashed the court of appeal's decision, holding that the Federal Arbitration Act preempted invalidating the class action waiver in this case on the basis of the waiver being void as against public policy.View "McKenzie Check Advance of Fla., LLC v. Betts" on Justia Law
Posted in:
Antitrust, Arbitration & Mediation, Class Action, Constitutional Law, Consumer Law, Contracts
Berry v. Volkswagen Group of Am., Inc.
Darren Berry filed suit against Volkswagen, alleging violations of the Missouri Merchandising Practices Act (MMPA). The trial court certified a class on behalf of Missouri owners and lessors of Volkswagen vehicles (Class). The action settled. After the the settlement for Class was approved and paid out, the trial court held a hearing regarding attorneys' fees. The trial court awarded Class counsel attorney's fees after determining the lodestar amount to be $3,087,320 and applying a multiplier of 2.0 for a total award of $6,174,640 in attorneys' fees. Volkswagen challenged the award of attorneys' fees. The Supreme Court affirmed, holding (1) the lodestar amount was within the trial court's discretion; and (2) the multiplier applied to the lodestar amount was not an abuse of the trial court's discretion. Remanded.View "Berry v. Volkswagen Group of Am., Inc." on Justia Law
Posted in:
Class Action, Consumer Law
Kersten v. State Farm Mut. Auto. Ins. Co.
State Farm filed a complaint for negligence against Appellant, alleging that Appellant was at fault in an automobile accident with State Farm's insured. Appellant counterclaimed, alleging that State Farm was unjustly enriched as a result of having engaged in the deceptive and unlawful business practice of causing collection-style letters to be mailed in an attempt to collect unadjudicated, potential subrogation claims as debts. Appellant's counterclaim identified two putative classes. State Farm filed a motion to strike the class allegations. Rather than granting the motion to strike class allegations, the circuit court denied class certification "for the reasons stated in State Farm's motion." The Supreme Court reversed, holding that the circuit court acted without due consideration of the Court's foregoing case law on typicality, commonality, and predominance and therefore abused its discretion in prematurely denying class certification at the early pleading stage of this case. Remanded.View "Kersten v. State Farm Mut. Auto. Ins. Co." on Justia Law
Doe v. Southern Gyms, LLC
In 2010, plaintiff Jane Doe was contacted by detectives in the Baton Rouge Police Department and asked to identify whether she was the subject of a photograph, obtained from a video, captured by a pen camera which had been surreptitiously placed in the women’s shower/changing room of a fitness center in downtown Baton Rouge. Plaintiff was a member of a gym called “Anytime Fitness,” a fitness center owned by Southern Gyms, LLC. Further investigation by police revealed that an assistant manager and trainer at the fitness center secretly videotaped the plaintiff and other women in the women’s shower/changing room of the gym. The police told the plaintiff her image was one of four women discovered on the pen camera when the pen camera was turned over to police. Telschow was arrested and prosecuted for video voyeurism. He ultimately pleaded guilty to four counts of video voyeurism and sentenced to a nine month term of imprisonment. Ultimately the issue before the Supreme Court was whether the lower courts correctly applied the standards for analyzing class action certification set forth in La. C.C.P. art. 591, et seq. After reviewing the record and the applicable law, the Court found the lower courts erred in concluding the plaintiff satisfied the threshold requirement of numerosity, necessary for class certification. Accordingly, the Court reversed the district court's judgment which granted plaintiff’s motion for class certification.
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