Class Certification : Class Action Defense Strategy Blog

California Court of Appeal Holds Defendant Did Not Waive Its Right To Compel Arbitration By Waiting Until After Class Certification Where Other Class Members--But Not Plaintiff--Had Agreed To Arbitrate

Posted on December 22, 2011 by Sheppard Mullin

By Thomas Kaufman and Travis Anderson

In Sky Sports, Inc. v. Superior Court, (2nd Dist., Div. 3, Dec. 15, 2011) Case No. B233820, the California Court of Appeal held that a defendant does not waive its right to compel arbitration of a class action by waiting to file a motion to compel arbitration until the class has been certified, where some of the class members, but not the class representative, signed arbitration agreements with defendant.

Tags: Class Certification

The California Court of Appeal Again Chips Away at In re Tobacco II

Posted on May 24, 2011 by Sheppard Mullin

By David Snyder and Shannon Petersen

Knapp v. AT&T Wireless Services, Inc. (Case No. G043744, May 20, 2011) __Cal.App.4th__, is the latest in a line of recent class action cases limiting the scope of In re Tobacco II Cases (2009) 46 Cal.4th 298. In Tobacco II, the California Supreme Court held that a named plaintiff in a putative class action must have suffered injury-in-fact to bring a claim for violation under the fraud prong of California's Unfair Competition Law (the "UCL"), but that the named plaintiff need not show actual injury to unnamed class members. The court in Knapp held that Tobacco II applies only to standing, and not commonality, which requires a separate analysis. For this reason, the Fourth Appellate District upheld the trial court's order denying plaintiff's motion for class certification, finding that because AT&T Wireless did not make uniform representations to proposed class members, common issues of law did not predominate over individual issues and a class should not be certified under the UCL.

Tags: Class Certification

Eighth Circuit Denies Class Certification of UCL Cause of Action Despite Tobacco II's Holding

Posted on September 21, 2010 by Sheppard Mullin

By Paul Seeley

In Avritt v. Reliastar Life Ins., __ F.3d__ (8th Circ. 8-12-2010), the Eighth Circuit Court of Appeal affirmed an order denying class certification of a putative class of California annuity investors who were allegedly misled by the defendant. The opinion re-affirms the federal rules that require the plaintiff to show that it can prove reliance and damages on a class-wide basis before the court certifies a class while simultaneously limiting the persuasive authority of Tobacco II.

Tags: Class Certification, Federal Class Action

Second Circuit Court of Appeals Finds Arbitration Provision Waiving Class Actions Unenforceable And Applies Stolt-Nielsen to Deny Class Arbitration

Posted on July 30, 2010 by Sheppard Mullin

By Judy Suwatanapongched

On July 12, 2010, the United States Court of Appeals for the Second Circuit held an arbitration provision barring class actions unenforceable because the provision was unconscionable under California law. Then, citing the recent decision in Stolt-Nielsen S.A. v. AnimalFeeds International Corp., 130 S. Ct. 1758 (2010), the Second Circuit affirmed the denial of the defendants’ motion to stay and compel arbitration because the parties had not agreed to class arbitration.

Tags: Class Certification

Ninth Circuit Clarifies Rule 23 Class Certification Standard

Posted on May 11, 2010 by Sheppard Mullin

By John M. Landry and Jonathan D. Moss

In Dukes v. Wal-Mart Stores, Inc., Nos. 04-16688, 04-16720, 2010 WL 1644259 (9th Cir. Apr. 26, 2010), the United States Court of Appeals for the Ninth Circuit, sitting en banc, affirmed in part and reversed in part an order certifying what is likely the largest class of employment claims in the history of the United States. The decision is highly significant for class action practitioners in all areas of the law because it clarifies the standard in the Ninth Circuit for determining whether a party has met its burden under Rule 23 of the Federal Rules of Civil Procedure to certify a class.

Tags: Class Certification

Tenth Circuit Reaffirms That a Case Terminates When the Class Representative's Claims Become Moot Before Class Certification

Posted on December 31, 2009 by Sheppard Mullin

By Sascha Henry and Paul Seeley

In Clark v. State Farm Mutual Automobile Insurance Co., Nos. 07-1454, 07-1466, the Tenth Circuit affirmed a district court's order denying class certification because it lost jurisdiction when the representative plaintiff's claims became moot. Clark shows how a defendant's request for a merits determination before class certification was rewarded when the resulting decision mooted the named plaintiff's claim and defeated class certification.

Tags: Class Certification

Fourth District Court of Appeal Upholds Two Denials of Class Certification: Addresses In Re Tobacco Cases and Acknowledges Differences in Damages Can Defeat Certification

Posted on December 23, 2009 by Sheppard Mullin

By Ruben Escalante

Two recent Fourth District Court of Appeal cases affirmed the denial of class certification. Kaldenbach v. Mutual of Omaha Life Insurance Co., 178 Cal.App.4^th 830 (2009), was one of the first cases to address the California Supreme Court's decision in the In re Tobacco II Cases, 46 Cal. 4^th 298 (2009). Evans v. Lasco Bathware, Inc., 178 Cal.App.4^th 1417 (2009), held that differences in damages could be a reason for denying class certification.

Tags: Class Certification

Fifth Circuit Denies Class Certification Of Kickback Claims Under RESPA

Posted on December 22, 2009 by Sheppard Mullin

By John Stigi and Martin White

In Mims v. Stewart Title Guaranty Co., 2009 WL 4642631 (5th Cir. Dec. 9, 2009), the United States Court of Appeals for the Fifth Circuit considered whether plaintiffs can bring class claims under Section 8(b) of the Real Estate Settlement Procedures Act of 1974 (“RESPA”), codified in relevant part at 12 U.S.C. § 2607(c), where a service provider’s fee “bears no relationship” to the service provided. After careful consideration, the Fifth Circuit concluded that “class issues do not predominate” in such situations, because determining whether the fee charged was reasonable or unreasonable necessarily required a “transaction-by-transaction” analysis, and that a class action is not a “superior method” to trying such individualized claims.

Tags: Class Certification, RESPA

California Court of Appeal Affirms Denial of Class Certification Based On Presence of Individual Issues While Rejecting Plaintiff's Argument Based on Tobacco II

Posted on December 22, 2009 by Sheppard Mullin

By Sascha Henry and Paul Seeley

In In re Vioxx Class Cases, (2009) __ Cal. App. 4th __, the trial court denied class certification after the defendant, Merck & Co., Inc. effectively showed that the plaintiff's theory of the case was grossly simplified. By introducing copious evidence showing the numerous factors that may relate to each class member's reliance and damages, Merck avoided class certification even in the face of its allegedly pervasive and misleading advertising campaign. The plaintiffs appealed, arguing that the California Supreme Court's decision in In re Tobacco II Cases, (2009) 46 Cal. 4th 298, undermined the trial court's rationale. The Court of Appeal, Second District, affirmed the trial court's denial of class certification.

Tags: Class Certification

Third Circuit Affirms District Court Order Granting Class Certification In Section 11 Securities Case

Posted on December 1, 2009 by Sheppard Mullin

By Christina Costley and Aimee Kahn

In In re Constar Int’l, Inc. Securities Litigation, No. 08-2461, 2009 WL 3462032 (3d Cir. Oct. 29, 2009), the United States Court of Appeals for the Third Circuit affirmed an order by the United States District Court for the Eastern District of Pennsylvania certifying a class of plaintiffs who brought suit under Section 11 of the Securities Act of 1933. The Court held that the district court did not abuse its discretion by certifying the class, notwithstanding defendants’ argument that the district court erred in concluding that the “predominance” element of Rule 23(b)(3) had been met before deciding whether the stock traded in an efficient market. The district court held that a claim for fraudulent statements in a registration statement under Section 11 (as distinct from a claim for securities fraud brought under Section 10(b) of the Securities Exchange Act of 1934) does not require plaintiffs to establish reliance or loss causation.

Tags: Class Certification

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Up-to-date information on class action litigation

California Court of Appeal Holds Defendant Did Not Waive Its Right To Compel Arbitration By Waiting Until After Class Certification Where Other Class Members--But Not Plaintiff--Had Agreed To Arbitrate

The California Court of Appeal Again Chips Away at In re Tobacco II

Eighth Circuit Denies Class Certification of UCL Cause of Action Despite Tobacco II's Holding

Second Circuit Court of Appeals Finds Arbitration Provision Waiving Class Actions Unenforceable And Applies Stolt-Nielsen to Deny Class Arbitration

Ninth Circuit Clarifies Rule 23 Class Certification Standard

Tenth Circuit Reaffirms That a Case Terminates When the Class Representative's Claims Become Moot Before Class Certification

Fourth District Court of Appeal Upholds Two Denials of Class Certification: Addresses In Re Tobacco Cases and Acknowledges Differences in Damages Can Defeat Certification

Fifth Circuit Denies Class Certification Of Kickback Claims Under RESPA

California Court of Appeal Affirms Denial of Class Certification Based On Presence of Individual Issues While Rejecting Plaintiff's Argument Based on Tobacco II

Third Circuit Affirms District Court Order Granting Class Certification In Section 11 Securities Case