This article originally appeared in the Los Angeles Daily Journal and San Francisco Daily Journal on November 28, 2018.

The Northern District of California comprehensively updated its Procedural Guidance for Class Action Settlements on Nov. 1, 2018, requiring increased disclosures for preliminary and final settlement approvals, and more transparency in post-distribution accounting. Failure to follow the guidance may result in delay or denial of settlement approval. Federal class action lawyers should be aware of the updated settlement approval rules in the Northern District of California, one of the busiest and most influential districts for class action litigation.
Continue Reading Northern District Releases Guidance for Class Action Settlements

In the past few years, class action lawsuits challenging privacy practices, particularly internet privacy practices, have expanded. But, these lawsuits often challenge practices that do not cause any actual damage, which can make it difficult to reach a settlement, particularly of a Rule 23(b)(3) class. So, how can parties wanting to settle proceed?
Continue Reading Ninth Circuit Confirms that a Cy Pres Only Settlement Can Work In Privacy Class Action

In Campbell-Ewald v. Gomez, 136 S. Ct. 663 (Jan. 20, 2016), the Supreme Court resolved a split among courts and held that an unaccepted settlement offer of complete individual relief does not moot the plaintiff’s lawsuit.  However, the Court expressly left open the question of “whether the result would be different if a defendant deposits the full amount of the plaintiff’s individual claim in an account payable to the plaintiff, and then the court enters judgment for the plaintiff in that amount.”  136 S. Ct. at 672. 
Continue Reading Mooting Class Actions by Offer of Judgment – Episode 2: The Ninth Circuit Strikes Back

For years, litigants have battled over whether a defendant’s offer of judgment, which completely satisfies the plaintiff’s individual claim, can moot a class action. In Campbell-Ewald v. Gomez, 136 S. Ct. 663 (2016), the U.S. Supreme Court recently held that no case is mooted when a plaintiff refuses to accept an offer of judgment.  The Supreme Court, however, left open the question of what happens when a defendant follows through with its offer by tendering complete individual relief, depositing the monetary relief with the court, and moving for entry of judgment.
Continue Reading Mooting Plaintiff’s Class Action Even After Plaintiff Refuses An Offer Of Judgment

On January 20, 2016, in a highly anticipated decision (see October 27, 2015 blog) that will have implications for class action practice nationwide, the U.S. Supreme Court ruled that an unaccepted offer of judgment sufficient to completely satisfy an individual claim does not moot that claim or any class claim. The Supreme Court’s decision partially resolves a vigorously contested question of constitutional law that has been the subject of great dispute among federal Courts of Appeals for the last decade—whether a Rule 68 offer of judgment for complete relief deprives a court of Article III jurisdiction to hear only a “case or controversy.”  In a 6-3 decision, the Supreme Court held that a live case and controversy still exists when a plaintiff refuses to accept an offer of judgment.  In so holding, however, the Supreme Court suggested that it might reach a different decision if a defendant deposits funds sufficient to satisfy the plaintiff’s individual claims, and then obtains a judgment from the trial court in this amount.        
Continue Reading Not Taking “Yes” For An Answer: U.S. Supreme Court Rules That Unaccepted Offer Of Complete Individual Relief Does Not Moot Plaintiff’s Individual Or Class Action Claim

Over recent years the United States Supreme Court has waded deep into the waters of class certification, significantly altering the playing field for class action claims.  As the Supreme Court continues its 2015 session, it takes on issues that may continue to alter the landscape, including (i) whether settlement with a class representative can be used to effectively terminate class claims, (ii) whether a class action can proceed even though the plaintiff representative has incurred no concrete, actual damage, and (iii) the validity of statistical modeling to substantiate alleged class-wide damages claims. 
Continue Reading Supreme Court Takes On Class Actions, Again

In Campion v. Old Republic Protection Company, Inc., No. 12-56784, (Dec. 31, 2014) the Ninth Circuit Court of Appeals held that a putative class representative’s appeal was moot because he had no personal stake in the case after voluntarily settling his individual claims.  Douglas Campion brought a class action against Old Republic asserting causes of action arising out of Old Republic’s allegedly arbitrary denial of claims made by him on a home warranty policy.  The U.S. District Court for the Southern District of California denied Campion’s motion to certify the class and granted Old Republic’s motion for partial summary judgment on Campion’s claims under the California Consumers Legal Remedies Act.  Campion then settled his individual claims with Old Republic, and the parties agreed to dismiss without prejudice any class action claims under the California Unfair Competition Law.  However, in the stipulation for dismissal, the parties agreed that Campion retained his right to appeal the district court’s rulings on the putative class claims.  Campion subsequently appealed the district court’s orders regarding class certification.
Continue Reading It’s Not Personal: Ninth Circuit Denies Putative Class Representative’s Appeal as Moot

In Laffitte v. Robert Half International, Inc., No. BC321317, ___ Cal.App.4th ___ (Oct. 29, 2014; pub. ord. Nov. 21, 2014), the California Court of Appeal affirmed a $19,000,000 settlement that included an attorneys’ fee award of one-third the settlement amount.  Mark Lafitte filed a wage and hour class action suit against Robert Half International alleging violations of the Labor and Business and Professions Codes.  The parties settled, and the terms provided that Robert Half would pay a gross settlement amount of $19,000,000, of which class counsel’s attorneys’ fees would be no more than 6,333,333.33.  Additionally, the proposed settlement included a “clear sailing” provision assuring that Robert Half would not oppose the court’s fee award if the amount was less than or equal to the specified amount.
Continue Reading Clear Sailing Ahead For Class Counsel in California Settlement

Over the last several months, Judge Richard Posner has authored a triumvirate of opinions reversing the district courts’ approval, over objections, of consumer class action settlements—Eubank v. Pella Corp., 753 F.3d 718 (7th Cir. 2014), Redman v. RadioShack Corp., 768 F.3d 622 (7th Cir. 2014), and Pearson v. NBTY, Inc., No. 12-1245, 2014 WL 6466128 (7th Cir. Nov. 19, 2014)—each of which could charitably be described as scathing. Among other things, Judge Posner takes aim at the manner in which a settlement is valued for purposes of determining attorney’s fees (administration costs and cy pres awards are not part of the value to the settlement class), the method of calculating attorney’s fees (a ratio based on actual value to the class, not the maximum potential value), and the manner and content of notice to the class as well as the claims process (simplification is key). While the class action bar awaits the impact of these decisions, there are several key lessons to be learned.
Continue Reading Now That That’s Settled: The Status of Class Action Settlements in the Seventh Circuit after Pella, Radioshack and NBTY

In Concepcion v. Amscan Holdings, Inc. et al., — Cal.Rptr.3d —-, 2014 WL 595822 (Cal.App. 2 Dist. Feb. 18, 2014) the California Court of Appeal rejected class counsel’s fee award where class counsel’s billing records were provided to the trial court for review, but were not provided to the defendant’s counsel.
Continue Reading Everyone Gets To See The Evidence: The California Court Of Appeal Rejects an Attorneys’ Fee Award Based On The Trial Court’s In Camera Review Of Class Counsel’s Billing Records

In Collado v. Toyota Motor Sales, U.S.A., Inc., Nos. 11-57013, 11-57023, 11-57030 (9th Cir. Dec. 16, 2013), the Ninth Circuit Court of Appeals reversed a district court’s attorneys’ fees award in a class action settlement alleging malfunctioning Toyota Prius headlights.  The Ninth Circuit held that the district court incorrectly applied federal law instead of state law to determine the amount of recoverable attorneys’ fees.  The district court should have used California’s lodestar method (reasonable hours times reasonable rates) and not the federal percentage of recovery method (25% benchmark).
Continue Reading Ninth Circuit Rejects Percentage Method To Determine Attorneys’ Fees In Class Action Settlement