Eversheds Sutherland 11th Circuit Business Blog
content top

Eleventh Circuit Bans Incentive Payments to Lead Plaintiffs in Class Actions

In what appears to be a first, the Eleventh Circuit recently held that federal law prohibits so-called “incentive payments” to class representatives, even as part of an agreed settlement. The court acknowledged that it was forging a new path in Johnson v. NPAS Solutions, LLC, 975 F.3d 1244, 1248–49 (11th Cir. 2020)—identifying errors that it said had “become commonplace in everyday...

Foundry Employees’ Action is a “Mass Action” Subject to Removal Under the Class Action Fairness Act

The Eleventh Circuit has clarified the scope of the “local event exception” to the federal-court jurisdiction over “mass actions” conferred by the Class Action Fairness Act (“CAFA”), holding that claims by former foundry employees against manufacturers and distributors of products used at the foundry are not within the exception.  Spencer v. Specialty Foundry Prods. Inc., 2020 WL...

Eleventh Circuit Affirms Dismissal With Prejudice of Auto Shops’ RICO Complaint Against Insurers

The Eleventh Circuit has affirmed the dismissal with prejudice of a putative class action brought by auto body collision repair shops against dozens of insurers and alleging RICO violations, fraud, and unjust enrichment.  Crawford’s Auto Center, Inc. v. State Farm Mutual Automobile Insurance Co., 2019 WL 6974428 (Dec. 20, 2019). The plaintiffs alleged that the defendant insurers...

Class Action Seeking Reinstatement of Life Insurance Policies Was Properly Removed to Federal Court

In Anderson v. Wilco Life Ins. Co., 2019 WL 6242199 (11th Cir. Nov. 22, 2019), the Eleventh Circuit reversed the district court’s order remanding to state court a putative class action against a life insurance company. The case had been properly removed under the Class Action Fairness Act (“CAFA”), the appeals court held, because the plaintiff’s request for an order requiring...

Courts Must Evaluate Unnamed Class Members‘ Standing before Class Certification

Courts coping with overbroad class definitions that include uninjured class members have produced a cacophony of opinions. A first question often addressed in these opinions is whether the problem is one of Article III standing or of meeting Rule 23’s class certification requirements, or both. Senior Judge Stanley Marcus’ opinion for the Eleventh Circuit in Cordoba v. DirecTV, LLC,...

No Multiplier for Home Depot Class Action Lodestar Fee Award

In a class action settlement, one of the most difficult issues for negotiation is often how—and how much—class counsel will be paid.  In many cases, a cap on the fee is negotiated:  the defendant agrees not to object to a fee application within the cap, which can be a percentage of the so-called “common fund” received by the class in the settlement, or a fixed amount.  Less common is...

« Older Entries