Plaintiffs sometimes seek to certify an “issues class” under Federal Rule of Civil Procedure 23(c)(4) (or an equivalent state court rule) if they anticipate difficulty certifying the entire case for class treatment, but certain issues maybe more likely to qualify for class treatment. The federal rule provides that “[w]hen appropriate, an action may be brought
Seventh Circuit
Seventh Circuit: Defendants Need Not Prove Merits of Defenses to Defeat Class Certification
By Wystan Ackerman on
Posted in Class Certification Standards
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…
Class Action Fairness Act: Punitive Damages and Local Controversy Exception Addressed in Recent Seventh Circuit Decision
By Wystan Ackerman on
Posted in Class Action Fairness Act
A recent Seventh Circuit decision made two rulings on issues arising under the Class Action Fairness Act (CAFA) that defendants may find useful in other cases. First, potential punitive damages exceeding a single-digit ratio may be considered in determining whether the class claims satisfy the $5 million threshold if compensatory damages are small or where…
Does Bristol-Myers Squibb Apply to Class Actions? D.C. and Seventh Circuit Issue New Decisions
By Wystan Ackerman on
Posted in Defense Strategy
This week the D.C. Circuit and Seventh Circuit issued decisions addressing a question that has been hotly debated by class action lawyers on the plaintiffs’ and defense sides: whether the Supreme Court’s decision on personal jurisdiction in Bristol-Myers Squibb Co. v. Superior Court of California, 137 S. Ct. 1773 (2017) (blog post)…
Offers of Judgment in Class Actions: Fifth and Seventh Circuits Weigh In
By Wystan Ackerman on
Posted in Defense Strategy
As highlighted in my June 16 blog post, the Supreme Court has granted certiorari, in Campbell-Ewald Co. v. Gomez, No. 14-857 (SCOTUSblog page), to decide whether an offer of complete relief to a named plaintiff renders a putative class action moot. Notwithstanding that the Supreme Court is about to decide this…
Can an Insurer Intervene in a Class Action to Protect Against a Collusive Settlement?
By Wystan Ackerman on
Posted in Defense Strategy
Liability insurers are sometimes faced with a difficult scenario: Their insured has been sued in a class action with potentially large stakes. The insurer believes they have no duty to defend and a denial of coverage is appropriate. But the result of declining to defend the insured is likely to be a “collusive” class action…
Injunction in Aid of Class Action Settlement Addressed by Seventh Circuit
By Wystan Ackerman on
Posted in Class Action Settlements
Defendants who are defending multiple class actions involving the same issue in different jurisdictions can sometimes be faced with a quandary when they want to settle. They might reach a settlement agreement with plaintiffs’ counsel in one of the cases, but until that settlement is final, which typically takes months, they may have to continue…
Class Action Settlement: Judge Posner Strikes Again At Excessive Plaintiffs’ Attorneys’ Fees
By Wystan Ackerman on
Posted in Class Action Settlements
Judge Posner of the Seventh Circuit continues to be prolific in authoring class action-related opinions. I enjoy blogging about these decisions because they are entertaining to read and usually relatively short and to the point, making them easy to get through and summarize here. This opinion, once again, concluded that an award of attorneys’ fees …
Attorneys’ Fees In Class Action Settlements Addressed By Judge Posner
By Wystan Ackerman on
Posted in Class Action Settlements
Judge Posner of the Seventh Circuit is a frequent author of class action-related opinions. His most recent one reversed an order approving a class action settlement because the attorneys’ fee award was too high. The case involved claims that RadioShack violated the Fair and Accurate Credit Transactions Act by putting expiration dates for credit card …
Class Action Settlement in Pella Windows Case Overturned By Seventh Circuit
By Wystan Ackerman on
Posted in Class Action Settlements
One of the prominent cases in which a products liability class action has been certified in recent years is Pella Corp. v. Saltzman, 606 F.3d 391 (7th Cir. 2010), involving windows that allegedly contained a design defect that allowed water infiltration. After the class was certified, a settlement was reached and approved by the …