Justia Class Action Opinion Summaries

Respondents filed a complaint against AT&T Mobility LLC ("AT&T"), which was later consolidated with a putative class action, alleging that AT&T had engaged in false advertising and fraud by charging sales tax on phones it advertised as free. AT&T moved to compel arbitration under the terms of its contract with respondents and respondents opposed the motion contending that the arbitration agreement was unconscionable and unlawfully exculpatory under California law because it disallowed classwide procedures. The district court denied AT&T's motion in light of Discover Bank v. Superior Court and the Ninth Circuit affirmed. At issue was whether the Federal Arbitration Act ("FAA"), 9 U.S.C. 2, prohibited states from conditioning the enforceability of certain arbitration agreements on the availability of classwide arbitration procedures. The Court held that, because it "stands as an obstacle to the accomplishment and execution of the full purposes and objectives of Congress," quoting Hines v. Davidowitz, California's Discover Bank rule was preempted by the FAA. Therefore, the Court reversed the Ninth Circuit's ruling and remanded for further proceedings consistent with the opinion.

The representative of the estate of a deceased individual filed a civil rights suit (42 U.S.C. 1983). The court denied the motion of another (Gresham) for joinder, amendment of the complaint to include Gresham's claims, and class action certification. The Sixth Circuit held that it lacked jurisdiction to consider an appeal. Gresham was not a party to the case, in which there has been no entry of a final or appealable order disposing of all issues. The court declined to treat the filing as a petition for mandamus.

Employees filed a class action in Illinois state court, concerning violations of wage and hour laws. The company removed the case, pursuant to the Class Action Fairness Act, 28 U.S.C. 1453(c)(1). The federal district court remanded to state court. The Seventh Circuit reversed, holding that the company presented plausible evidence that the case satisfied the jurisdictional amount in controversy requirement ($5,000,000) and the employees did not demonstrate that it was legally impossible for them to recover that amount.