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Class Actions

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In a 5-4 decision issued on 28 May 2019, the United States Supreme Court held that the federal removal statute does not permit a third-party counterclaim defendant to remove a class action from state court to federal court. This decision prevents a defendant sued by way of a third-party counterclaim in state court from litigating in federal court notwithstanding the Class Action Fairness Act’s (CAFA) broad language allowing “any defendant” to remove a class action…

Multi-party trials are increasingly being used across Europe. In Italy, where class action rules were enacted in January 2010, Parliament recently passed a new bill which will have a material impact on Italian class action law. The new bill is aimed at broadening the scope of class actions and the range of possible claimants. Opt-in system The Italian class action is based on an opt-in system which distinguishes it from class action for example in…

UNITED STATES – In a 5-4 decision, the U.S. Supreme Court recently held that classwide arbitration must be explicitly called for in an arbitration agreement to be enforceable. Specifically, the Court held that ambiguity as to whether the parties agreed to arbitration on a classwide basis cannot provide a “contractual basis” sufficient to compel class arbitration. Plaintiff Frank Varela filed the underlying lawsuit against his employer, Lamps Plus Inc., after a hacker gained access to…

UNITED KINGDOM – A significant development in UK class actions landed today – with the English Court of Appeal issuing a judgment that requires the UK Competition Appeal Tribunal (“CAT”) to reconsider certification of an opt out class action issued against Mastercard on behalf of approx 46.2m people and valued at £14.098bn.  The judgment is published in full here and provides strong guidance to the CAT, indicating that a collective proceedings order will now be…

Overtime class actions are in the headlines again. On February 22, 2019, a class action claim seeking damages of over $100 million was filed against Flight Centre, an Australia-based travel services provider with stores in Canada and internationally. The claim alleges that Flight Centre systematically failed to pay overtime to its retail sales employees, referred to as “travel consultants”, requiring them to consistently work more than their scheduled hours, and implemented policies that fail to…

UNITED STATES – In a groundbreaking decision handed down on January 25, 2019, the Illinois Supreme Court unanimously held that private entities cannot collect biometric data from consumers without their consent, pursuant to the Illinois Biometric Information Privacy Act (740 ILCS 14/1 et seq.) (“BIPA”). Crucially, the Court held that individuals have standing to bring a claim under BIPA even without a showing of actual harm. Plaintiff Stacy Rosenbach filed suit against Six Flags amusement…

To paraphrase Pharaoh Ramses II, so it is written, so it shall be done. In Schein, Inc. v. Archer and White Sales, Inc., 586 U.S. __ (January 8, 2019), the first opinion by Justice Kavanaugh, a unanimous Supreme Court reiterated this principle of the Federal Arbitration Act. Specifically, the Court confirmed that when an arbitration agreement delegates to an arbitrator the question of whether the agreement applies to a particular dispute, courts have no power to decide…

CANADA – The Ontario Superior Court has dismissed a proposed class action involving the securities of a foreign company purchased on foreign exchanges. In a recent decision, Justice Belobaba found that Ontario lacked jurisdiction simpliciter or, alternatively, was forum non conveniens. This decision reinforces “[t]he prevailing international norm that securities litigation should take place in the forum where the securities trading took place.” Background In 2015, a German carmaker (the “Manufacturer”) admitted that it had…

Introduction On September 6, 2018, the Ninth Circuit Court of Appeals in California breathed fresh life into a case brought by a putative class of retired professional football players (“players”) against the National Football League (“NFL”). See Dent v. NFL, No. 15-15143, 2018 U.S. App. LEXIS 25302 (9th Cir. Sep. 6, 2018) (“Dent”). The players assert that the NFL directly provided medical care and supplied powerful prescription drugs to players, in violation of federal and…

Introduction An Inquiry currently underway in Australia offers good insights into whether, and if so in what circumstances, third party litigation funding, particularly of class actions, should be permitted. Traditionally, third party litigation funding has been prohibited in many countries, and there has been resistance to proposals for its introduction or expansion.  Litigation funding has been permitted in Australia for some time, however.  The experience there, as reviewed in the current Inquiry and summarised in…