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Posts tagged as “Class Actions”

8th Cir. Reverses Data Breach Class Settlement, Holds Appellate Bond Not to Include Delay-Based Administrative Costs

In a data breach putative class action, the U.S. Court of Appeals for the Eighth Circuit recently held that the trial court had not conducted the required “rigorous analysis” of Federal Rule of Civil Procedure 23(a)’s class certification prerequisites when certifying the settlement class or when evaluating arguments raised by class objectors. Additionally, the Eighth Circuit also reversed the trial court’s ruling on the amount of the appeal bond, holding that an appellate bond should not include costs associated with delays in administering a class action settlement while the matter was on appeal. A copy of the opinion in Jim…

8th Cir. Holds Trial Court Did Not Err in Using ‘Percentage of the Benefit’ Over ‘Lodestar’ in TCPA Class Fee Award Dispute

In an appeal involving the settlement of four separate class actions under the federal Telephone Consumer Protection Act (TCPA), the U.S. Court of Appeals for the Eighth Circuit recently held that the trial court did not abuse its discretion by electing to use the “percentage-of-the-benefit” method to calculate class counsel’s fee award, as opposed to the “lodestar” method. The Eighth Circuit also held that the trial court did not abuse its discretion by allowing the respective class counsel to distribute the award amongst themselves without judicial oversight or approval. A copy of the opinion in Lindsey Thut  v.  Life Time…

8th Cir. Upholds Class Settlement in ‘Excessive Property Inspection’ Case, Rejects Attempt to Add Trespass Claims

The U.S. Court of Appeals for the Eighth Circuit recently affirmed a district court’s approval of a proposed class settlement in an action arising from a mortgage loan servicer’s practice of automatically ordering and charging for drive-by property inspections on delinquent borrowers, holding that the district court did not abuse its discretion. In so ruling, the Court also affirmed the trial court’s denial of a borrower’s motion to join a trespass claim to the putative class action. A copy of the opinion in Kenneth Njema v. Wells Fargo Bank, N.A. is available at:  Link to Opinion. In 2008, four borrowers…

7th Cir. Upholds Dismissal of Unlawful Data Retention Claim Under Spokeo

The U.S. Court of Appeals for the Seventh Circuit recently held that although a consumer’s suit against a cable service provider for failing to destroy his personal information was a substantive violation of the federal Cable Communications Policy Act, it failed to allege a concrete injury sufficient to confer standing.

9th Cir. Rejects ‘Administrative Feasibility’ or ‘Ascertainability’ Class Cert. Requirement

The U.S. Court of Appeals for the Ninth Circuit recently held that class action plaintiffs are not required to demonstrate that there is an administratively feasible way to determine who is in a class in order for the class to be certified. In so ruling, the Ninth Circuit noted that the Sixth, Seventh, and Eighth Circuits have similarly ruled. See Sandusky Wellness Ctr., LLC v. Medtox Sci., Inc., 821 F.3d 992, 995–96 (8th Cir. 2016); Rikos v. Procter & Gamble Co., 799 F.3d 497, 525 (6th Cir. 2015); Mullins v. Direct Digital, LLC, 795 F.3d 654, 658 (7th Cir. 2015),…

6th Cir. Holds Mere Mention of Defense Not Enough to Defeat Predominance Under Rule 23

The U.S. Court of Appeals for the Sixth Circuit recently reversed a district court’s denial of class certification and dismissal of consolidated complaints alleging that a mortgage lender violated the federal Telephone Consumer Protection Act (TCPA) by sending “junk faxes” to businesses without their consent or a pre-existing business relationship. In so ruling, the Court held: (a) the mere mention of a defense is not enough to defeat the predominance requirement under Fed. R. Civ. P. 23(b)(3); and (b) an unaccepted settlement offer or offer of judgment does not moot a plaintiff’s case. A copy of the opinion in Bridging…

2nd Cir. Rules Successful Offer of Judgment Mooted TCPA Putative Class Action

The U.S. Court of Appeals for the Second Circuit recently held in a non-precedential opinion that a consumer, in the circumstances of this case, did not have standing to bring putative class action claims after entry of judgment in his favor on his individual claims pursuant to the defendants’ offer of judgment under Rule 68 of the Federal Rules of Civil Procedure.

CD Calif. Holds Non-Bank Not ‘True Lender’ on Allegedly Usurious Loans Extended in Name of Bank

The U.S. District Court of the Central District of California recently dismissed a borrower's putative class action complaint against a non-bank that supposedly was the "true lender" for allegedly usurious student loans that were extended in the name of a bank.

3rd Cir. Holds No TCPA Coverage Under Businessowners Insurance Policy

The U.S. Court of Appeals for the Third Circuit recently held that a businessowners insurance policy did not cover a class action judgment that arose out of unsolicited advertisement communications in violation of the federal Telephone Consumer Protection Act. A copy of the opinion in Auto-Owners Insurance Company v. Stevens & Ricci Inc. is available at:  Link to Opinion. A business was solicited by an advertiser who claimed to have a fax advertising program that complied with the TCPA, 47 U.S.C. § 227. The business allowed the advertiser to fax thousands of advertisements to potential customers on its behalf. Six years later, a…

3rd Cir. Upholds Denial of Class Cert. on ‘Ascertainable Loss,’ Causation Deficiencies

The U.S. Court of Appeals for the Third Circuit recently affirmed a denial of class certification, holding that the plaintiffs’ theory was insufficiently supported by class-wide evidence to demonstrate the fact of damages whether on the issues of “ascertainable loss” or “causal relationship,” and failed to establish that common questions would predominate over individual questions. A copy of the opinion in Harnish v. Widener Univ. Sch. of Law is available at:  Link to Opinion. A group of former law students filed a class action against their law school, alleging that the school violated the New Jersey Consumer Fraud Act (NJCFA) and…

6th Cir. Reverses Dismissal of Class Action That Overlapped With Earlier-Filed Class Action

The U.S. Court of Appeals for the Sixth Circuit recently reversed a district court’s dismissal of a putative class action lawsuit, holding that while the district court was correct that the first-to-file rule applied because of a previous class action involving substantially the same parties and claims, it was an abuse of discretion to dismiss the present case given the jurisdictional and procedural hurdles the plaintiffs would face if forced to become part of the earlier class action filed in another federal judicial district. A copy of the opinion in Baatz v. Columbia Gas Transmission, LLC is available at:  Link to Opinion.…