The Internal Revenue Service, following several adverse court decisions, announced in 2006 that it would cease collecting the federal excise tax on long distance and bundled services and allow federal taxpayers to obtain a refund by checking a box on their federal tax returns. In August 2006, plaintiff served a demand on the City and its […]
Trial Court Wrongly Analyzed Rees-Levering Motor Vehicle Sales and Finance Act.
Plaintiff filed a class action pursuant to the Rees-Levering Motor Vehicle Sales and Finance Act [Civil Code section 2981] on behalf of those who had their vehicles repossessed by or voluntarily surrendered to a car dealership. Plaintiff had missed several car payments and voluntarily surrendered her car, whereupon she was sent a Notice of Intention to […]
Approval Of Class Action Settlement Reversed.
A class action against credit agencies, which issued negative credit reports after debts were discharged, settled, and the district court approved the class action settlement. The Ninth Circuit reversed, explaining: “The settlement agreement, like others we have approved in the past, granted incentive awards to the class representatives for their service to the class. But unlike the […]
With Class Action Waiver Under Federal Arbitration Act State May Not Refuse To Enforce Arbitration Contract.
The U.S. Supreme Court held that, where a contract is subject to the Federal Arbitration Act, a court may not refuse to enforce an arbitration clause with a class action waiver on grounds that such a clause is unconscionable. AT&T Mobility LLC v. Concepcion (U.S.Supr.Ct.; April 27, 2011) 131 S.Ct. 1740, [179 L.Ed.2d 742, 79 U.S.L.W. […]
In A Motion For Class Certification In Securities Action, Proof Of Misrepresentations Or Misleading Omissions Is Not A Prerequisite.
In a securities fraud action brought by retirement plans under section 10b of the Securities Exchange Act of 1934, plaintiffs sought to certify a class. In such a class certification action, a plaintiff must prove reliance on a material misrepresentation or omission made by a defendant. Plaintiffs invoked the “fraud on the market” presumption which provides […]
Employer Mandated Tip Pooling Not Illegal.
Class action plaintiffs alleged their casino employer violated Labor Code sections 351 and Code of Civil Procedure section 631.8. The appellate court affirmed, stating that “given the absence of legislative intent to prohibit employer-mandated tip pooling,” it could not conclude the practice is illegal. Avidor v. Sutter’s Place, Inc. (Cal. App. Sixth Dist.; January 23, 2013) 212 Cal.App.4th 1439.
No Commonality Among Employment Decisions Means No Class Action.
In Wal-Mart Stores, Inc. v. Dukes (U.S. Sup. Ct.; June 20, 2011) 131 S.Ct. 2541, [180 L.Ed.2d 374], current and past employees of Wal-Mart sought injunctive relief, punitive damages and back pay for themselves as well as 1.5 million female employees, alleging discrimination against women under Title VII of the Civil Rights Act of 1964. A federal district court […]
Class Action Against Life Insurance Company Not Precluded.
Plaintiffs purchased life insurance policies. The death benefit payable to survivors varies with the performance of the funds each customer selects. Because the policyholder bears the risk associated with the investments, some federal circuits have held that the policies qualify as securities. Accordingly, the federal trial court dismissed the class action under the Securities Litigation Uniform […]
Class Certification Should Not Have Been Denied Without An Opportunity To Amend.
Senior citizens in a mobile home park subject to rent control alleged they were induced into a condominium conversion through false promises about their lot prices, but once they converted, the owners raised the prices so high, they couldn’t afford them. They appealed an order denying their motion to certify a class action for breach […]
Injunction Against Using Automatic Dialer To Call Cell Phones.
The district court granted a preliminary injunction motion and provisional class certification restraining a debt collection service from using an automatic dialer to place calls to debtors’ cellular telephones. The Ninth Circuit affirmed, finding the plaintiff demonstrated irreparable harm due to invasion of consumers’ rights of privacy under the Telephone Consumer Protection Act [TCPA, 47 […]
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