The buyer of most of the operating assets of a company subject to a Lanham Act injunction was held by the Eleventh Circuit not to be subject to the injunction, even though the seller’s CEO and owner became president and part-owner of the buyer as part of the sale. ADT LLC v. NorthStar Alarm Services,…
Category: Civil Procedure
Dual Citizenship Does Not Create CAFA Jurisdiction
Two insurance class actions will remain in state court after the Eleventh Circuit’s decision in Life of the South Insurance Co. v. Carzell, 2017 WL 1174083 (11th Cir. Mar. 29, 2017) (Marcus, J.). The court held that federal diversity jurisdiction does not exist under the Class Action Fairness Act (CAFA) if all defendants and plaintiff…
When Confirming Diversity of Citizenship, Trust—but Verify
In Purchasing Power, LLC v. Bluestem Brands, Inc., 2017 WL 1046103 (11th Cir. Mar. 20, 2017), the Eleventh Circuit reminded litigants and their counsel that it is critical to confirm the citizenship of all relevant corporate entities in determining the existence of diversity jurisdiction, but reversed the district judge’s order imposing “inherent power” sanctions on…
The Second Time’s a Charm: Jury Deliberations Resume After Partial Delivery of Inconsistent Verdict
Wright Medical Technology, Inc., appealed from a $2,100,000 judgment entered against it following a jury trial, arguing that the jury had been improperly instructed as a matter of Utah law and also that the district judge should not have ordered the jury to continue deliberations after the deputy clerk began to read what turned out…
Unlawful and Non-Competitive Parallel Conduct is Still Insufficient to State a RICO Claim
The Eleventh Circuit relied on Twombly’s heightened pleading standard in affirming a dismissal for failure to state a RICO claim in Almanza v. United Airlines, 2017 WL 957191 (11th Cir. Mar. 13, 2017). The plaintiff Mexican nationals, representing a putative class, were charged a tourism tax by the defendant airlines as part of their airfare,…
CAFA’s Local-Controversy Provision Can’t Trump Federal-Question Jurisdiction
The Eleventh Circuit reinstated a federal RICO case but approved the denial of a motion to remand it to state court under the Class Action Fairness Act (CAFA) in Blevins v. Aksut, No. 16-11585, 2017 WL 782288 (11th Cir. Mar. 1, 2017). The court’s opinion confirms that CAFA’s local-controversy provision, 28 U.S.C. § 1332(d)(4), does not strip…
Federal Common Law Applies State Preclusion Rules to Judgments in Diversity Cases
The Eleventh Circuit cleaned up some conflicting precedent this week and confirmed that state-law rules determine the preclusive effect of judgments rendered by federal courts in diversity cases. In deciding that question in CSX Transportation, Inc. v. General Mills, Inc., 2017 WL 393704 (11th Cir. Jan. 30, 2017), the court reversed the district court’s judgment…
Patronage Capital Class Action Removable; Dismissal Affirmed
An electric cooperative organized under state law is nonetheless entitled to remove a putative class action to federal court under the “federal officer” removal statute, according to the Eleventh Circuit in Caver v. Central Alabama Electric Cooperative, 845 F.3d 1135 (11th Cir. 2017), which also affirmed dismissal of a complaint seeking immediate return of patronage capital. Specifically,…
Forum Selection Clause in Resort’s Registration Form Is Enforceable
The Eleventh Circuit upheld the dismissal of a personal injury complaint, finding a forum selection clause naming the Bahamas as the forum for any litigation between plaintiffs and defendants was valid and enforceable. In Feggestad v. Kerzner International Bahamas Ltd., No. 15-11773, 2016 WL 7210067 (11th Cir. Dec. 13, 2016), plaintiffs brought suit after a…
Americans with Disabilities Act Held to Allow “Competitive” Reassignment
The Eleventh Circuit handed the EEOC another recent defeat in U.S. Equal Employment Opportunity Commission v. St. Joseph’s Hospital, Inc., No. 15-14551, 2016 WL 7131479 (11th Cir. Dec. 7, 2016). The case involved cross-appeals after a jury found that the defendant hospital had acted in good faith despite its failure to accommodate a disabled nurse…