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Juthamas Suwatanapongched is an associate in the Business Trial Practice Group in the firm's Los Angeles office.

July 21, 2015 Update: On July 20, 2015, the Ninth Circuit Court of Appeals denied Microsoft’s petition for rehearing en banc and amended its March 18, 2015, opinion to add a footnote supporting the conclusion that it had jurisdiction because a stipulated dismissal is an appealable judgment.  The amended opinion can be accessed here.

We recently reported on a Ninth Circuit Court of Appeals opinion reversing a district court’s decision to strike class action allegations in a putative class action against Microsoft.  Baker v. Microsoft Corp., No. 12-35946, 2015 U.S. App. LEXIS 4317 (9th Cir. Mar. 18, 2015).  In Baker v. Microsoft Corporation, the Ninth Circuit panel of judges held that proof that individual class members were damaged by an alleged defect (here, a defect in Xbox 360 video game consoles resulting in scratched game discs) was not necessary for a class action to be certified.  Id. at *20.  You can read the full article here.
Continue Reading Baker v. Microsoft Corporation Revisited: Video Gaming Company Seeks to Stop Class Action Plaintiffs From Shortcutting the Appeals Process

July 21, 2015 Update: On July 20, 2015, the Ninth Circuit Court of Appeals amended its March 18, 2015, opinion to add a footnote supporting the conclusion that it had jurisdiction because a stipulated dismissal is an appealable judgment.  The amended opinion can be accessed here.

The Ninth Circuit Court of Appeals recently reversed a district court’s decision to strike the class action allegations in Baker v. Microsoft Corp., No. 12-35946, 2015 U.S. App. LEXIS 4317 (9th Cir. Mar. 18, 2015).  In Baker, the putative class alleged that a design defect in Xbox 360 video game consoles caused the consoles to malfunction and scratch game discs – although only 0.4% of Xbox console owners reported such problems.  Id. at *1-4.  The majority opinion held that the district court should have followed an earlier Ninth Circuit decision rejecting the notion that individual manifestations of a defect preclude resolution of claims on a class-wide basis.  Id., citing Wolin v. Jaguar Land Rover N. Am., LLC, 617 F.3d 1168 (9th Cir. 2010).  “[P]roof that [a alleged design defect] caused individual damages is not necessary . . . Rather, plaintiffs’ breach of express warranty claim presents a common factual question – is there a defect? – and a common mixed question of law and fact – does that defect breach the express warranty?”  Baker, 2015 U.S. App. LEXIS 4317 at *16-17.  Notably, the Ninth Circuit’s decision only determined that the district court misapplied the law in striking the class action allegations from the complaint.  Id. at *20.  The decision expressly disclaimed any determination of whether the issues would be best decided on a class-basis or whether class certification should be granted.  Id. 
Continue Reading Baker v. Microsoft Corporation: Ninth Circuit Court of Appeals Decision in Class Action Against Video Gaming Company May Make It More Difficult to Defeat Class Actions

In Dennis v. Kellogg Company, No. 11-55674 & No. 11-55706, 2012 U.S. App. LEXIS 18576 (9th Cir. Sept. 4, 2012), the Ninth Circuit Court of Appeals reversed the district court’s approval of a class action settlement because the terms of the settlement did not meet the legal standards for cy pres distribution. In particular, the settlement did not (1) sufficiently relate the cy pres distributions to the plaintiff class or the class’s underlying legal claims; (2) identify the ultimate recipients of the cy pres awards; and (3) set forth any limiting restrictions on those recipients or the awards they would receive. Id. at *3.
Continue Reading Dennis v. Kellogg Company: Ninth Circuit Court of Appeals Sets Aside Class Action Settlement Because Terms Did Not Meet Legal Standards for Cy Pres Distribution

In American Honda Motor Company, Inc. v. Superior Court of Los Angeles County, 199 Cal. App. 4th 1367 (2011), the California Court of Appeal for the Second Appellate District clarified that, under California law, a party moving for class certification in a breach of warranty action must provide “substantial evidence of a defect that is substantially certain to result in malfunction during the useful life of the product.” American Honda Motor Co., Inc., 199 Cal. App. 4th at 1375.
Continue Reading California Court of Appeal Clarifies Breach of Warranty Law in Class Actions and Vacates Order Certifying Class of Consumers in American Honda Motor Company, Inc. v. Superior Court

In Walnut Producers of California v. Diamond Foods, Inc., Case No. C060346 (August 16, 2010), the California Court of Appeal for the Third Appellate District held that a class arbitration waiver in an agreement between walnut producers and a walnut processor is not unconscionable. Plaintiffs include Walnut Producers of California, a nonprofit cooperative marketing association whose members are walnut growers, and walnut producer George J. Miller Ranch, Inc. Defendant Diamond Foods is the successor by way of merger to Diamond Walnut Growers, Inc. (“Co-op”), an agricultural cooperative.
Continue Reading California Court of Appeal Holds Class Action Waiver in Commercial Contract Not Unconscionable

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