Any good litigator can tell you that removal is proper where there is diversity of citizenship and the amount in controversy exceeds $75,000. Diversity generally requires that no defendant be a citizen of the same state as the plaintiff. By way of example, consider a lawsuit filed by Paul, a Pennsylvania citizen, in Pennsylvania state court against Daniel from California and David, also a Pennsylvania citizen. At first glance, it would seem there is no diversity because David is from Pennsylvania and he is a “forum defendant”. However, not all litigators may realize that in certain jurisdictions a defendant can … Continue Reading
The Most Important Class Action Decisions of 2018 and a Quick Look at What’s to Come
As the new year begins, this is a good time to recap two of the major Supreme Court decisions from the past year impacting class action law, and to look ahead to a couple big decisions on the horizon.
Looking Back
Arbitration and Class Actions
First, in Epic Systems Corporation v. Lewis, the Court confirmed that class action waivers in arbitration agreements are enforceable in employment contracts, even where the employee is covered by the National Labor Relations Act (NLRA). Within a year after the Supreme Court’s decision in AT&T Mobility LLC v. Concepcion, which held that the … Continue Reading
Seventh Circuit Allies With FCRA Class Action Plaintiffs on Spokeo Grounds.
Below, Richmond-based litigators Bryan A. Fratkin and Heidi E. Siegmund examine the Seventh Circuit’s recent holding that an employment applicant’s missed opportunity to address a background check constitutes sufficient injury to confer standing.
On August 29, the Seventh Circuit reentered the multi-front fray that has broken out among lower courts in the wake of the Supreme Court’s 2016 decision in Spokeo v Robins, 136 S. Ct. 1540 (2016). Robertson v. Allied Solutions began with a familiar fact pattern: Robertson applied for a job with Allied, and Allied decided not to hire her based on a negative, but accurate, background … Continue Reading
Ninth Circuit Holds Collective Claims Made on Behalf of ERISA Plans Survive Motion to Compel Arbitration
In a published decision issued yesterday, the U.S. Court of Appeals for the Ninth Circuit held that collective claims for alleged breaches of fiduciary duty under ERISA were not subject to the arbitration agreements in plaintiff employees’ employment contracts. Instead, since those claims were brought for the benefit of the ERISA plans in which the plaintiffs participated as a whole, they were outside the scope of the employees’ individual arbitration agreements, and could be litigated in court on a collective basis.
Qui Tam Claims Guided the Court’s Analysis, and May Guide Plaintiffs’ Counsel Going Forward
The Ninth Circuit’s decision may … Continue Reading
Supreme Court Reins in California Courts’ Approach to Specific Jurisdiction
Below, Chicago-based litigator Matt Gold weighs in on the implications of last week’s Supreme Court decision rejecting the sliding scale approach to specific jurisdiction in mass tort proceedings.
On June 19, 2017, the Supreme Court reinforced its narrow application of specific jurisdiction in mass tort proceedings in an 8-1 decision in Bristol-Myers Squibb Company v. Superior Court of California. In the class action context, this ruling may impede future class representatives attempting to forum shop by filing suit in a state court that not only lacks general jurisdiction over the defendant, but also lacks a direct connection to the … Continue Reading
A Cautionary Tale: Counterclaim Class Action Stuck in State Court
Diane Flannery and Annie Cai Larson provide their thoughts below on a Seventh Circuit Court of Appeals decision from earlier this year that held a counterclaim-defendant could not rely on CAFA to avoid state court.
The Class Action Fairness Act (CAFA) was enacted in 2005 to expand the subject-matter jurisdiction that Federal courts had over class actions. Yet CAFA’s reach is not unlimited, and in some instances, a corporation may still be stuck litigating a large-scale class action in state court—a venue friendly to class action plaintiffs.
Earlier this year, the Seventh Circuit Court of Appeals held in Tri-State Water … Continue Reading
Second Circuit Holds Data Breach Class Action Plaintiff Lacks Sufficient Injury to Support Standing
Those who tuned in to McGuireWoods’ data breach class action webinar last month know that attacking the plaintiff’s standing can be an effective defense strategy in these cases. Here’s our analysis of the most recent appellate decision on that issue.
Last Tuesday, the Second Circuit Court of Appeals affirmed the district court’s dismissal of a putative class action filed against a merchant in connection with a data breach of customer information, holding that the cardholder failed to allege sufficient injury to establish standing.
The decision adds yet another data point for practitioners feeling out the boundaries for when the exposure … Continue Reading
California High Court: Arbitration Clause Cannot Bar Claims for Public Injunctive Relief
Last week, David S. Reidy provided his analysis of the California Supreme Court’s recent decision invalidating an arbitration and class waiver provision in a credit card customer agreement. We jumped at the chance to republish his McGuireWoods Legal Alert here.
On April 6, the California Supreme Court issued the latest in an ongoing series of cases resisting preemption of California state law under the Federal Arbitration Act (FAA) and again testing the limits of the U.S. Supreme Court’s jurisprudence under the FAA.
The decision purports to limit the enforceability in California of arbitration clauses that address injunctive relief, and will … Continue Reading
What’s in FICALA? Part 2 – MDLs
Earlier this month, I wrote about the class-action provisions of the new Fairness in Class Action Litigation Act, which has passed out of the Judiciary Committee and is headed for a floor vote in the House. At the end of that post, I promised a further explanation of the mass action provisions as well. These provisions are aimed primarily at multi-district litigation (MDL), which is rapidly becoming a substitute for class proceedings when dealing with numerous personal-injury claims.
Section 4 – would amend the federal jurisdiction statute, allowing the court to sever claims made by an in-state plaintiff if … Continue Reading
The New, Improved FICALA – What’s In the House Class Action Bill?
The House of Representatives has reintroduced the Fairness in Class Action Litigation Act (FICALA), and it’s more substantial than the 2015 version. The previous version, you may recall, attempted to reinforce the typicality requirement to minimize the number of “no injury” class actions brought. It cleared the House, but died in the Senate. It appears that House Republicans sense an opportunity with the new administration to enact more sweeping class reforms.
I testified in support of the 2015 Act, and having read the new bill, I like it even more. I think it lives up to its … Continue Reading