A recent Ninth Circuit decision highlights the importance of the defendant clearly pleading the basis for alleging the amount in controversy in a notice of removal under the Class Action Fairness Act (CAFA). In this case, after the defendant prevailed on a summary judgment motion and the plaintiff appealed, the Ninth Circuit vacated and remanded
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Ninth Circuit Limits Attorneys’ Fees in Class Action Settlements
A recent Ninth Circuit decision clarified that the benefit to the class is the “touchstone for determining the reasonableness of attorneys’ fees in a class action.” Under this decision, the fee should not be based on the maximum potential class recovery (as some courts have held for many years), or a lodestar amount that bears…
Juridical Link Doctrine Rejected By Sixth Circuit
Federal courts of appeals have disagreed on whether a named plaintiff in a proposed class action can sue defendants who have not injured that plaintiff but allegedly have injured putative class members. This is not an uncommon scenario. Plaintiffs often attempt to bring putative class actions that are broader than their own claims, suing defendants…
Ninth Circuit Reiterates That Individualized Defenses Matter When Deciding Class Certification
A recent Ninth Circuit decision illustrates how defendants can use evidence on an individualized defense to potentially defeat class certification.
In Van v. LLR, Inc., — F.4th –, 2023 WL 2469909 (9th Cir. Mar. 13, 2023), the defendant allegedly charged sales tax that was not owed by Alaska purchasers on online purchases. While the…
Second Circuit Casts Doubt on Named Plaintiff Service Awards And Leaves Enforceability of Future Release For Another Day
Last week the Second Circuit issued a new decision affirming, with one exception, the approval of a $5.6 billion revised class action settlement in the long-running Visa/Mastercard antitrust litigation. (See my blog post on the Second Circuit’s reversal of a prior settlement in 2016.) The opinion and two concurrences in Fikes Wholesale, Inc. v. HSBC…
Rules Enabling Act Key to New Ninth Circuit Decision on Class Certification
A sometimes-overlooked aspect of class action law is how class certification rules interact with the Rules Enabling Act, which provides that rules of procedure and evidence “shall not abridge, enlarge or modify any substantive right.” 28 U.S.C. § 2072(b). Some class actions attempt to use the class action device to evade obstacles to obtaining individual…
Fifth Circuit Upholds Striking of Class Allegations Based on Differences in State Law and Multiple Alleged Misrepresentations
One of the first significant class certification-related decisions of 2023 comes from the Fifth Circuit. While some trial courts hesitate to strike class action allegations on the pleadings, the district court here concluded very early in the case that it was clearly inappropriate for class certification. The Fifth Circuit agreed, in a published opinion that…
First Circuit Rejects Class Action Settlement Based on Potential Intra-class Conflict, But Approves Named Plaintiff Incentive Awards
When negotiating a class action settlement, lawyers on both sides may need to consider whether subgroups within the class need to be separately represented by different counsel. The First Circuit recently reached that conclusion in Murray v. Grocery Delivery E-Services USA Inc., 2022 WL 17729630 (1st Cir. Dec. 16, 2022).
Murray involved three different…
Ninth Circuit Addresses Class Representative Incentive Awards and Attestation Requirement
A recent Ninth Circuit decision on a class action settlement, In re Apple Inc. Device Performance Litigation, 2022 WL 4492078 (9th Cir. Sept. 28, 2022), received significant attention in the legal media. It addressed several issues of significance to lawyers negotiating class settlements: (1) class representative incentive awards; (2) a requirement that class members…
Class Definition in Class Action Settlement Must Be Limited to Class Members That Have Standing According to Eleventh Circuit
Last week the Eleventh Circuit addressed an issue that many class action practitioners probably haven’t thought much about: whether approval of a class action settlement requires that each class member obtaining relief have Article III standing to sue. Defendants typically want a broad class definition because they are focused on finality and buying peace. Plaintiffs…