The Fifth Circuit recently upheld certification of a Rule 23(b)(2) class where the plaintiffs sought only injunctive relief, and the court squarely rejected a rule against “fail-safe” class definitions that other circuits have adopted. Although this case involved relatively unique issues, this decision is significant in that it is a relatively plaintiff-friendly decision from a
Injunctions
Preliminary Injunctions in Insurance Class Actions: Is Losing “Peace of Mind” from Insurance Irreparable Harm?
Two recent California federal court decisions have held that insureds’ loss of “peace of mind” when life insurance policies lapse constitutes irreparable harm sufficient to warrant granting a preliminary injunction where the other requirements for a preliminary injunction are found to be satisfied. In an April 26, 2012 blog post, I wrote about Yue…
Preliminary Injunctions in Insurance Class Actions: California Federal Court Enjoins Life Insurer From Implementing Rate Increase
Preliminary injunctions in insurance class actions are relatively rare, which is why the recent decision granting such an injunction in Yue v. Conseco Life Ins. Co., 2012 U.S. Dist. LEXIS 46565 (C.D. Cal. Apr. 2, 2012), caught my attention. The case involves life insurance products sold by Conseco Life that apparently became a particularly…
Insights from the ABA 2011 National Institute on Class Actions – Part 1
I recently attended the ABA’s 2011 National Institute on Class Actions. I will try to highlight here what I saw as key points that either I had not heard before or provided an interesting new twist on an important issue. I’ll split this up into several posts because there is a fair amount to discuss. …
Injunctions of State Court Proceedings Pending Approval of a Proposed Class Action Settlement in Federal Court: Injunction Issued in Chinese Drywall MDL
When a federal court grants preliminary approval to a proposed class action settlement, can it enjoin parallel state court proceedings while the notice and final approval process take place? Judge Fallon of the Eastern District of Louisiana recently found such an injunction appropriate in In re Chinese-Manufactured Drywall Products Liability Litigation, 2011 U.S. Dist.
Seventh Circuit Injunction Against Repetitive Class Action Remanded For Reconsideration In Light Of Smith v. Bayer
On the final day of the Supreme Court term, the Court vacated and remanded the Seventh Circuit’s decision in Thorogood v. Sears, Roebuck & Co. for reconsideration in light of the Court’s opinion in Smith v. Bayer Corp. (see my blog post on Smith). In Thorogood, the Seventh Circuit, after previously ruling that…
Smith v. Bayer Corp. Opinion: Potential Impact on Insurance Class Actions
The Supreme Court failed to take the opportunity to resolve the pressing problem of relitigation in class actions, but suggested some potential solutions. On June 16, the Supreme Court issued its opinion in Smith v. Bayer Corp., addressing whether a federal court, after denying class certification, can enjoin a state court from adjudicating a…
Injunctive Relief in Insurance Class Actions: New Third Circuit Decision Raises Interesting Issues
Can a court certify a class action to decide an insurance coverage issue, and then issue an injunction requiring an insurer to apply the court’s ruling to claims of class members? A recent Third Circuit opinion danced around that question, without directly taking it on, holding only that the district court could not issue that…
Smith v. Bayer Corp.: Potential Impact on Insurance Class Actions
I previously posted on Wal-Mart Stores, Inc. v. Dukes. Another pending Supreme Court case that could affect insurance class actions is Smith v. Bayer Corp., No. 09-1205 (docket).
Smith involves the scope of a federal court’s power to enjoin members of a proposed (not certified) class from continuing to seek class certification…