In analyzing class certification issues, courts have said that common issues may predominate in some cases even though damages would have to be determined individually for each class member. But what about where some class members have no damages? Recent federal appellate decisions have said that situation presents an issue of liability, not damages.
Class Certification Standards
Juridical Link Doctrine Rejected By Sixth Circuit
Federal courts of appeals have disagreed on whether a named plaintiff in a proposed class action can sue defendants who have not injured that plaintiff but allegedly have injured putative class members. This is not an uncommon scenario. Plaintiffs often attempt to bring putative class actions that are broader than their own claims, suing defendants…
Ninth Circuit Reiterates That Individualized Defenses Matter When Deciding Class Certification
A recent Ninth Circuit decision illustrates how defendants can use evidence on an individualized defense to potentially defeat class certification.
In Van v. LLR, Inc., — F.4th –, 2023 WL 2469909 (9th Cir. Mar. 13, 2023), the defendant allegedly charged sales tax that was not owed by Alaska purchasers on online purchases. While the…
Rules Enabling Act Key to New Ninth Circuit Decision on Class Certification
A sometimes-overlooked aspect of class action law is how class certification rules interact with the Rules Enabling Act, which provides that rules of procedure and evidence “shall not abridge, enlarge or modify any substantive right.” 28 U.S.C. § 2072(b). Some class actions attempt to use the class action device to evade obstacles to obtaining individual…
Fifth Circuit Upholds Striking of Class Allegations Based on Differences in State Law and Multiple Alleged Misrepresentations
One of the first significant class certification-related decisions of 2023 comes from the Fifth Circuit. While some trial courts hesitate to strike class action allegations on the pleadings, the district court here concluded very early in the case that it was clearly inappropriate for class certification. The Fifth Circuit agreed, in a published opinion that…
Class Definition in Class Action Settlement Must Be Limited to Class Members That Have Standing According to Eleventh Circuit
Last week the Eleventh Circuit addressed an issue that many class action practitioners probably haven’t thought much about: whether approval of a class action settlement requires that each class member obtaining relief have Article III standing to sue. Defendants typically want a broad class definition because they are focused on finality and buying peace. Plaintiffs…
Ninth Circuit Reverses Class Certification Order Because Liability Issues, Not Merely Damages, Were Individualized
The Ninth Circuit recently addressed an issue that tends to arise frequently in class certification motion practice: how trial courts should apply the predominance requirement where appellate decisions have said that the need to calculate individualized damages generally is not sufficient on its own to defeat class certification, but some putative class members likely have…
Third Circuit Maintains a Strict Approach to Numerosity and Highlights Circuit Split on Application of Evidentiary Rules to Class Certification Decisions
I used to say that denials of class certification on numerosity grounds were rare and that usually it was futile to oppose class certification on that ground. That’s becoming less true as some circuits, including the Third Circuit, have adopted a stricter approach to how plaintiffs must establish numerosity. If Plaintiffs are using an estimate…
Property Valuation Issues Are Ill-Suited for Class Certification According to the Sixth Circuit
A recent Sixth Circuit case addressed an issue that tends to arise frequently in various types of class actions, such as property insurance and environmental cases: whether property valuation issues are appropriate for class treatment. The answer here was “no,” and the opinion could be useful to defendants in other contexts.
Seventh Circuit: Defendants Need Not Prove Merits of Defenses to Defeat Class Certification
A recent Seventh Circuit decision makes an important point about how the principle that a court generally need not resolve the merits to decide class certification is bilateral – it applies to both affirmative claims and defenses. The plaintiff argued that the district court erred in denying class certification because there was one key defense…