Gibbons Law Alert

Gibbons Law Alert

Tagged: Consumer Class Action Defense

Third Circuit Confirms Prospective Application of New Jersey Supreme Court’s Shelton Decision, Dooming Underlying Class Action

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Posted in Class Action Defense

On May 21, 2015

In a recent precedential decision, the Third Circuit, in Bohus, et al. v. Restaurant.com, held that the New Jersey Supreme Court’s Shelton decision — responding to a question of law certified by the Third Circuit as to the proper interpretation of the Truth in Consumer Contract, Warranty, and Notice Act (“TCCWNA”) — may be applied prospectively, thus defeating the class claims and leaving only two individual claims for a $100 penalty.

Third Circuit Confirms That Challenged Expert Testimony Must Survive Daubert Challenges in Order to Demonstrate Conformity with Rule 23

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Posted in Class Action Defense

On April 20, 2015

Drawing upon its own precedent and that of the Supreme Court in Comcast v. Behrend, the Third Circuit recently held in In re Blood Reagents Antitrust Litig. that a district court must resolve any Daubert challenges to proffered expert testimony as part of its “rigorous analysis” of the requirements for class certification.

Third Circuit Holds Truth in Consumer Contract Notice and Warranty Act Claim May Not Be Based Upon Omission of Price Information

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Posted in Class Action Defense

On December 2, 2014

In Watkins v. DineEquity, Inc., the Third Circuit recently considered whether the District Court properly dismissed a putative class action brought against Applebee’s and International House of Pancakes, in which Plaintiff claimed that Defendants violated the New Jersey Truth in Consumer Contract Notice and Warranty Act (“TCCNWA”) by failing to disclose beverage prices on their menus. In affirming the District Court’s dismissal, a divided Third Circuit panel ruled that the “TCCNWA encompasses only illegal provisions in writings covered by the statute, and does not make actionable omissions, including the omission of beverage prices from a restaurant menu.”

Third Circuit Finds Proposed Dual Service as Class Counsel and Class Representative Does Not Preclude CAFA Removal

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Posted in Class Action Defense

On June 9, 2014

The Third Circuit recently considered whether the District Court properly denied a motion for remand brought by a pro se plaintiff, an attorney also seeking to serve as class counsel, who argued that since his “dual service” precluded class certification in federal court, the defendant could not aggregate the proposed class’s claims to satisfy the $5 million amount in controversy under the Class Action Fairness Act (“CAFA”). In affirming the denial of the plaintiff’s remand motion, the Third Circuit built upon recent Supreme Court precedent confirming that a plaintiff cannot stipulate to less than $5 million in damages to avoid the federal court’s subject matter jurisdiction under CAFA.

Hobbs Act Remains a Formidable Obstacle in Challenging FCC Regulations Under the TCPA

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Posted in Class Action Defense

On May 19, 2014

In Nack v. Walburg, the plaintiff consented to receive a fax advertisement from the defendant. But, because the fax lacked an “opt-out” notice arguably required by regulations promulgated under the Telephone Consumer Protection Act (“TCPA”), plaintiff filed a class action complaint, seeking millions of dollars in class-wide statutory damages under the TCPA. The district court granted summary judgment in favor of the defendant, holding that the pertinent regulation should be narrowly interpreted to require opt-out notices only for unsolicited faxes, not invited faxes. The Eighth Circuit, however, relying on an amicus brief from the FCC, disagreed and reversed, holding that the Hobbs Act prevented judicial review of administrative regulations, except on appeal from a prior agency review. The court expressed skepticism as to “whether the regulation (thus interpreted) properly could have been promulgated under the statutory section” at issue but suggested that defendant seek a stay of the civil proceedings while it pursued administrative remedies.

The Sixth Circuit Reaffirms its Holding in Glazer v. Whirlpool Allowing Plaintiffs with Moldy Washers to Proceed United as a Class

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Posted in Class Action Defense

On October 21, 2013

The litigations involving allegedly defective Whirlpool washing machines are back in the legal headlines with the most recent installment hailing from the Sixth Circuit’s decision in Glazer v. Whirlpool Corp., a decision which—following remand from the Supreme Court of the United States—reaffirmed a prior order certifying a class action lawsuit. The Sixth Circuit’s certification order may, however, face scrutiny from the Supreme Court once again.

How Will the Supreme Court’s Decision in American Express Company v. Italian Colors Restaurant Impact Class Action Litigation

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Posted in Class Action Defense

On October 16, 2013

In American Express Company v. Italian Colors Restaurant, the Supreme Court recently furthered its holding in AT&T Mobility LLC v. Concepcion by making it clear that the Federal Arbitration Act (“FAA”) does not permit courts to invalidate contractual waivers of class arbitration on the ground that the plaintiff’s cost of individually arbitrating a federal statutory claim exceeds the potential recovery. Italian Colors reflects the “overarching principle that arbitration is a matter of contract,” and that “courts must rigorously enforce arbitration agreements according to their terms,” including terms that specify “with whom the parties will arbitrate,” as well as “the rules under which arbitration will be conducted.”

Third Circuit Emphatically Enforces Last Year’s Ruling in Marcus on Rule 23(a) Prerequisites

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Posted in Class Action Defense

On October 9, 2013

In Hayes v. Wal-Mart Stores, Inc., the Third Circuit determined that the plaintiff consumer failed to satisfy Rule 23’s ascertainability and numerosity requirements for class actions as articulated in Marcus v. BMW of North America, LLC and remanded the matter to the District Cout so that the plaintiff could address the clarified requirements expressed in Marcus, which was not yet decided at the time of the District Court proceedings in Hayes. By doing so, the Third Circuit demonstrated that it intends to continue vigilantly enforcing Rule 23’s threshold requirements for plaintiffs.

Seventh Circuit Allows comScore Privacy Litigation to Proceed as a Class Action

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Posted in Class Action Defense

On August 6, 2013

In what has been dubbed, “the largest privacy class action suit ever,” the Seventh Circuit in Harris v. comScore, Inc., refused interlocutory review of the District Court’s order granting class certification. Although utterly silent as to the basis for denying review under Fed. R. Civ. P. 23(f), the Court of Appeal’s decision is likely to impact future privacy class actions as well as corporate culture as we know it.

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