Category Archives: Class Actions

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CAFA’s “Local Controversy” Exception Does Not Apply When Federal Court Has Independent Basis for Subject Matter Jurisdiction

Last month, the Eleventh Circuit rejected a plaintiff’s bid to keep her class action in state court even though CAFA’s local controversy exception would have required a remand. In Blevins v. Aksut, No. 16-11585, — F.3d —, (11th Cir. Mar. 1, 2017), the Court held that the “local controversy” exception to CAFA jurisdiction does not … Continue Reading

Federal Rules Advisory Committee Proposes Amendments to Rule Governing Class Actions in Federal Court

Since 2011, a Subcommittee of the Federal Rules Advisory Committee has been mulling changes to Rule 23 of the Federal Rules of Civil Procedure. On April 14, 2016, the Advisory Committee forwarded proposed changes to the Standing Committee on Rules of Practice and Procedure, recommending that they be published for public comment. On August 12, … Continue Reading

Eleventh Circuit Upholds Florida Unfair & Deceptive Trade Practice Act Class Certification Despite no Reliance by Class Members

The Eleventh Circuit upheld a Florida District Court’s certification of a class of consumers that purchased or leased 2014 Cadillac CTS Sedans in Florida. Carriulo et. al v. General Motors Company, Doc. No. 15-14442 (11th Cir. May 17, 2016). The consumers alleged General Motors violated Florida’s Unfair and Deceptive Trade Practices Act by affixing window stickers to the CTS Sedans that claimed the vehicles received five-star safety ratings from the National Highway Traffic and Safety Administration (“NHTSA”). Id. 3-6.

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The Alabama Legislature Solves Problem Created by the Eleventh Circuit

The Alabama legislature recently adopted legislation to prevent class actions in federal court under the Alabama Deceptive Trade Practice Act (“ADTPA”). As reported here last summer, the Eleventh Circuit held in Lisk v. Lumber One Wood Preserving LLC, 792 F.3d 1331 (11th Cir. 2015) that the ADTPA’s prohibition on class actions does not apply in … Continue Reading

New Proposed Rule from the CFPB Paves Way for Massive Increase in Class Actions Suits Against Financial Institutions

Last week, the Consumer Financial Protection Bureau (“CFPB”) issued a proposed rule which would prohibit mandatory arbitration provisions in millions of banking contracts, including contracts with consumers for credit cards and bank accounts. While financial institutions would still be allowed to offer arbitration as an option to customers individually, they would no longer be able … Continue Reading

New class action complaint alleges that post-payment interest charges for certain home mortgages are invalid because of insufficient disclosures under 24 C.F.R. § 203.558

A class action filed last week in the Northern District of Georgia disputes the ability of a lender to charge post-payment interest for certain home mortgage loans when the lender has not provided a very specific disclosure form. In Felix v. SunTrust Mortgage, Inc., No. 16-66, Sarah Felix alleges the she took out an FHA-insured … Continue Reading

CFPB Arbitration Study May Be First Step in Unlocking Floodgates of Consumer Class-Actions

Banks already looking over one shoulder to maintain compliance with regulatory reforms coming at them from the Dodd-Frank Wall Street Reform and Consumer Protection Act may soon need to start looking over the other. Class action lawsuits by customers are likely coming, despite contracts to the contrary. Many banks and other financial service providers include … Continue Reading

Eleventh Circuit upholds rule against tolling for successive class actions

The Eleventh Circuit has reaffirmed the rule announced in Griffin v. Singletary, 17 F.3d 356 (11th Cir. 1994), that there can be no piggybacking of successive class actions for statute of limitations purposes regardless of the reason the first class action failed. The Eleventh Circuit’s opinion in Ewing Industries Corp. v. Bob Wines Nursery, Inc., … Continue Reading

Eleventh Circuit throws open the door to state-law class actions in federal court

In a first-of-its-kind opinion that could open the class action flood gates, the Eleventh Circuit has held that state consumer fraud class actions may proceed in federal court even if the state consumer fraud statute expressly forbids class actions. If other courts follow suit, plaintiffs in at least eight other states that currently prohibit consumer … Continue Reading

Rule 68 Offers of Judgment Providing Full Statutory Damages Cannot Render a Complaint Moot or Defeat a Putative Class

In Walker v. Financial Recovery Services, Inc., No. 14-13769 (11th Cir. March 27, 2015), the court addressed the impact of an offer of judgment under Federal Rule of Civil Procedure 68 on both a putative class and its named representative’s complaint. In the district court below, Financial Recovery Services, Inc. (“FRS”)  successfully dismissed Walker’s complaint … Continue Reading

11th Circuit Affirms that Host State Consumer Protection Statutes Are Preempted as to Out-of-State State Chartered Banks to Same Extent as National Banks.

In recent years, a number of courts have held that the National Bank Act, 12 U.S.C. 21, et seq., (“NBA”), preempts application of state consumer protection laws against national banks where the state law “significantly impaired” the purpose of the federal act or its implementing regulations.  In Baptista v. J.P. Morgan Chase Bank, N.A., 640 … Continue Reading
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