Archive for Class Actions

7th Cir. Holds Non-Cardholder Must ‘Directly Benefit’ to Be Bound by Cardholder Agreement

The U.S. Court of Appeals for the Seventh Circuit recently held that the minor child of a credit card account holder was not bound by the arbitration clause in the cardholder agreement because she did not become an authorized user of the account by using the credit card. The Seventh Circuit also held that the

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9th Cir. Holds ‘Increased Risk of Future Identity Theft’ Sufficient for Standing in Data Breach Class Action

In a data breach putative class action, the U.S. Court of Appeals for the Ninth Circuit recently held that the plaintiffs sufficiently alleged Article III standing based on an alleged “increased risk of future identity theft.” In so ruling, the Ninth Circuit rejected the defendant’s argument that Clapper v. Amnesty International USA, 568 U.S. 398

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ED NY Dismisses FDCPA Claim Based on Non-Disclosure of Potential Fees, Costs

The day before the Second Circuit shut down reverse-Avila claims with its decision in Taylor v. Financial Recovery Services, Inc., the U.S. District Court for the Eastern District of New York dismissed an FDCPA Avila claim involving potential future fees and costs in Derosa v. Computer Credit, Inc. A copy of the opinion is available at:  Link to

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9th Cir. Holds No NBA Preemption for State Law on Escrow Accounts, TILA Escrow Account Rules Not Retroactive

The U.S. Court of Appeals for the Ninth Circuit recently held that the National Bank Act (NBA) did not preempt California’s state escrow interest law, which requires financial institutions to pay at least 2 percent simple interest per annum on escrow account funds. In so ruling, the Court also held that the federal Truth in

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9th Cir. Affirms Dismissal of FCRA Putative Class Action for Lack of Standing

The U.S. Court of Appeals for the Ninth Circuit recently affirmed the dismissal of a consumer’s putative class action alleging willful violations of the federal Fair Credit Reporting Act (FCRA) for lack of standing under Spokeo, Inc. v. Robins, 136 S. Ct. 1540 (2016). In so ruling, the Court held that merely printing a credit

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Calif. Supreme Court Holds Non-Intervening Unnamed Class Member Has No Right to Appeal

The California Supreme Court recently held that unnamed class members do not become parties of record under Cal. Code of Civil Procedure section 902, with the right to appeal the class settlement, judgment or attorney fees award, unless they formally intervene in the class litigation before the action is final. A copy of the opinion

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Calif. App. Court (1st Dist) Affirms Denial of Class Cert for Lack of Evidence Identifying Putative Class Members

The California Court of Appeal for the First District recently affirmed an order denying class certification because the plaintiff did not present evidence to demonstrate how putative class members can be identified from the defendant’s records. A copy of the opinion in Noel v. Thrifty Payless, Inc. is available at:  Link to Opinion. In July 2013,

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Calif. App. Court (4th Dist) Upholds Denial of Class Cert, Rules Injunctive Claims Not Easier to Certify

The California Court of Appeal for the Fourth District recently affirmed an order denying class certification in a declaratory relief action because the plaintiff failed to establish ascertainability, predominance and superiority. In so ruling, the Appellate Court held that California Code of Civil Procedure section 382 did not have an equivalent to Rule 23(b)(1)(A) or

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9th Cir. Rejects Attempt to Hold Lenders Liable for Promoter’s Alleged TCPA Violations

The U.S. Court of Appeals for the Ninth Circuit recently affirmed a trial court’s judgment in favor of several lender defendants in a putative TCPA class action, ruling that the defendants could not be vicariously liable under the TCPA for a promoter’s text messages because the promoter was either not the defendants’ agent or the

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2nd Cir. Affirms Judgment in Defendants’ Favor in TCPA Putative Class Action

The U.S. Court of Appeals for the Second Circuit recently affirmed the entry of judgment on the pleadings against the plaintiff in a putative class action alleging that a text message sent by a third party on behalf of a hospital reminding the plaintiff about a flu shot violated the federal Telephone Consumer Protection Act (TCPA),

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6th Cir. Reverses Contempt Sanction Against Defendant That Thwarted Paying Plaintiff Class Counsel’s Fees

The Sixth Circuit Court of Appeals recently concluded that distributing all of a company’s cash to its owners after a class action settlement was reached but before the court’s order to pay became final, thus leaving the company without the ability to pay class counsel’s fees or administration costs as required under the settlement agreement,

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7th Cir. Upholds Class Settlement Despite Atty Fee Award in Excess of Award to Class

The U.S. Court of Appeals for the Seventh Circuit recently held, over extensive objections by intervenors, that the trial court did not abuse its discretion in approving a class action settlement, despite alleged problems with the class notice and the fact that the attorneys’ fees award exceeded the total award to the class. In so

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