Articles Posted in Class-Action

Publich Justice reports on its website:

The consumer and civil rights communities are closely watching AT&T Mobility v. Concepcion, a case that will be argued in the Supreme Court this November. Depending on how broadly the Court reads the question presented in Concepcion, the case could decide the fate of consumer and employee class actions for years to come.

Public Justice’s Senior Attorney Paul Bland, Staff Attorney Claire Prestel and Brayton-Baron Fellow Melanie Hirsch explain what is at stake in ATT Mobility v. Concepcion, a case with profound consumer and civil rights implications. The U.S. Supreme Court is scheduled to hear the case this fall. Click here to see what is at stake.

 

The Seventh U.S. Circuit Court of Appeals made a ruling this year that will be important to the work of our Chicago consumer class action attorneys. In Cunningham Charter Corp. v. Learjet Inc., 592 F.3d 805 (7th Cir. 2010), the court decided that federal courts retain jurisdiction under the Class Action Fairness Act, even when they decline to certify any class in the case at bar.

Cunningham bought one or more jets from Learjet and was dissatisfied. It filed a proposed class action against Learjet in Illinois state court for breach of warranty and product liability. Learjet removed it to federal court under CAFA, and Cunningham moved for class certification. That motion was denied, and without a class, the district judge thought it was appropriate to move the case back to state court. Learjet then petitioned for leave to appeal the remand order, and the Seventh agreed to hear it to resolve the issue of whether denial of class certification eliminates subject matter jurisdiction under CAFA.

The Seventh based its opinion almost entirely on the language of the Act. Crucially, the law says it applies to “any class action [within the Act’s scope] before or after the entry of a class certification order.” The majority wrote that this language was probably intended to give defendants the option of removing the case either before or after class certification. But they seized on the use of the indefinite article — a class certification order rather than the class certification order. This word choice shows that the law is not limited to cases in which a class certification order is eventually issued, the court wrote. In addition the law’s definition of a class action is any civil action filed under rules authorizing a class action — not as an action with a certified class. “As actually worded, (d)(8)… implies at most an expectation that a class will or at least may be certified eventually,” the court wrote.

Another part of the Act says a class certification order is “an order issued by a court approving the treatment of some or all aspects of a civil action as a class action.” This could imply that a class certification order is required for the claim to be a class action — if read in isolation. But again, the definition of a class action in this Act is a claim that is filed as a class action, not necessarily certified as one, the majority wrote. The court interpreted this language to mean that a class-action suit cannot be maintained as a class-action suit without the eventual certification of a class.

The Seventh then reviewed previous federal appellate decisions in agreement with this interpretation, including Vega v. T-Mobile USA, Inc., 564 F.3d 1256, 1268 n. 12 (11th Cir. 2009) as well as its own previous assumption in Bullard v. Burlington Northern Santa Fe Ry., 535 F.3d 759, 762 (7th Cir. 2008). If a state has different standards for class certification than Rule 23, the federal standard, the case could be denied class certification at the federal level, remanded, then continue as a class action at the state level. That would be contrary to the purpose of the Act, the court said. Finally, the Seventh cited the general principle that proper diversity jurisdiction is not revoked by changes that take place after the suit is filed. If diversity jurisdiction is proper before a class is certified, the majority wrote, it’s proper after a class is not certified.

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DiTommaso Lubin represents businesses caught on either side of a dispute about online or offline defamation of a business or its products or services. Our Chicago business attorneys have assisted our clients in removing damaging and false reviews from internet review sites run by their competitors. Self-publishing on the Internet, and sites like Yelp, make it easy for individuals to publish false information about a competitor or a business they don’t happen to like. Online business libel laws balance the need to protect small businesses from false and damaging information with the First Amendment right to free speech. Our Illinois trade libel and trade disparagment attorneys represent both plaintiffs and defendants in claims regarding false and misleading claims; deceptive online publishing; misuse of a trademark, logo or other identifying feature. You can contact one of our Nationwide Class Action attorneys at 630-333-0333 for a free consultation or contact one of our Chicago class action attorneys us online.

 

Our Chicago Class Action Lawyers Have Represented Auto-Buyers and buyers of other defective products in State-Wide and National Class Actions in courts in different parts of the United States. You can call one of our Nationwide class action lawyers for a free consultation at 630-333-0333 or contact us online.

 

Our Chicago online business libel attorneys were interested to see a series of articles about several ongoing lawsuits against online review website Yelp.com. According to a March 19 article from the Associated Press, multiple businesses allege the site demanded advertising dollars from them in exchange for control over negative and positive reviews. When potential advertisers declined, the lawsuits say, negative reviews appear or reappear. At least ten small businesses are part of a putative class action lawsuit filed in Los Angeles federal court — among them a Chicago bakery and a Washington, D.C. restaurant. At least two similar claims have been filed, both in California.

The ten-plaintiff lawsuit alleges extortion and attempted extortion by Yelp, saying it gained money “by means of wrongful acts and practices.” For example, the owner of Chicago’s Bleeding Heart Bakery said Yelp employees told her they would push bad reviews to the end of the list of reviews on the bakery’s Yelp page, in exchange for a paid sponsorship. The owner of a Long Beach, Calif. animal hospital said when he declined to pay for a sponsorship, a bad review that had previously disappeared from the page reappeared. A second bad review appeared later. Yelp CEO Jeremy Stoppelman said reviews come and go because the company uses a computer program to automatically remove reviews flagged as suspicious, such as negative reviews by a direct competitor. He claimed the only manipulation Yelp does is allowing companies to pick a positive review to place at the top of the site.

On April 6, Yelp called a news conference to announce changes it made to its site in response to the allegations. The site removed its “favorite review” feature that allowed business owners to choose a positive review for the top of the site. It will also allow users to see which reviews were filtered out, either because they were suspicious or because they violated review guidelines or terms of service. At the conference, Yelp announced future plans to form a Small Business Advisory Council to address these issues. Attorneys involved in the Yelp lawsuits said these were a step in the right direction, but declined to drop their claims.

As Highland Park, Ill. Internet product disparagement attorneys and Chicago business law lawyers, we’re not surprised that these businesses are claiming extortion rather than product disparagement. Under the federal Communications Decency Act, websites that host content provided by third-party users are not legally responsible for any content that is defamatory, negligent or otherwise legally actionable. That means Yelp is not responsible for defamatory postings by its users, even if it exercises editorial control over those postings. However, it may be responsible for content it provides itself. For that reason, small businesses like these plaintiffs have limited recourse in mnay instances to recover for online trade libel, even if they otherwise have strong cases. The extortion claims offer no such legal problem.

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NPR reports:

Years before it was made public, manufacturers, distributors and builders knew there was a big problem with imported drywall from China, according to documents introduced at a Miami trial. The problem with the drywall has affected thousands of homeowners. ….

According to Gonzales, who’s on the national plaintiffs’ steering committee for Chinese drywall, the case is important in another way as well.

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