For the second time in as many months, the Eleventh Circuit addressed the question of who—a court or an arbitrator—decides whether an arbitration agreement allows for class arbitration. The court faced this question just last month in Spirit Airlines, Inc. v. Maizes, 899 F.3d 1230 (11th Cir. 2018), but its more recent decision in JPay, Inc….
Category: Class Actions
Spirited Court Widens Circuit Split Over Who Decides Class Arbitrability
In Spirit Airlines, Inc. v. Maizes, 2018 WL 3866335 (11th Cir. Aug. 15, 2018), the Eleventh Circuit concluded that an arbitration agreement providing that the rules of the American Arbitration Association (“AAA”) will cover all disputes constitutes clear and unmistakable evidence that the parties intended for an arbitrator to decide whether class arbitration is available….
Survey of 2017 Eleventh Circuit Decisions Published
The Mercer Law Review recently published its annual survey of noteworthy Eleventh Circuit decisions. The Class Actions article, authored by our own Tom Byrne and Stacey Mohr, analyzes the court’s 2017 decisions on CAFA jurisdiction, the impact of arbitration agreements on class actions, the preclusive effect of prior actions, class action settlements, and class certification disputes….
Procedural Lapses Short-Circuit Attack on Statute Aimed at Incentivizing Nuclear Plant Construction
The abandonment of the V.C. Summer nuclear project in South Carolina and the questionable status of Plant Vogtle in Georgia have garnered headlines in recent months and raised questions about the validity of state statutes authorizing utility companies to preemptively charge customers for the design and construction of new nuclear facilities using rate hikes. In…
Bank Did Not Waive Arbitration Rights Against Unnamed Class Members
In the latest appeal emanating from the Checking Account Overdraft Litigation MDL proceeding pending in the Southern District of Florida, the Eleventh Circuit returned to a question that it dodged in a previous appeal: whether Wells Fargo waived its arbitration rights as to unnamed members of a certified class. Gutierrez v. Wells Fargo Bank, NA,…
Rival Class Counsel Battle Over Settlement
An unseemly squabble between rival class-action firms drew the attention of the Eleventh Circuit in Technology Training Associates, Inc. v. Buccaneers Ltd. Partnership, 2017 WL 4819371 (11th Cir. Oct. 26, 2017). The court remanded the case for further combat over approval of an approximately $20 million class action settlement in a Telephone Consumer Protection Act…
Court Compels Individual Arbitration of Consumer Class Action
In Larsen v. Citibank FSB, 871 F.3d 1295 (11th Cir. Sept. 26, 2017), the Eleventh Circuit reversed the Southern District of Florida’s denial of a motion to compel arbitration of a consumer debt class action. The plaintiff, David Johnson, filed a putative class action alleging that Defendant KeyBank had improperly changed the sequence of debit…
“Gateway” Issue Delegation to an Arbitrator is Enforceable, Without Qualifications; Circuit Split Noted
The Eleventh Circuit enforced an employment-related arbitration agreement’s provision delegating to the arbitrator “gateway” questions of arbitrability in Jones v. Waffle House, Inc., 866 F3d 1257 (11th Cir. Aug. 7, 2017). The opinion, written by Judge Marcus and joined by Judge Hull and Judge Clevenger visiting from the Federal Circuit, also rejects the notion, adopted by the…
Primary Defendants Tied to Liability for Damages in Class Actions Seeking Monetary Relief
In an opinion published June 14, 2017, Hunter v. City of Montgomery, 2017 WL 2634162, the Eleventh Circuit affirmed the lower court’s remand order under the home state exception to the Class Action Fairness Act (“CAFA”). The central issue was the classification of a party as one of the “primary defendants” within the meaning of CAFA….
Preclusive Effect of Engle Findings Against Tobacco Cases Does Not Violate Due Process
In a 7-3 decision, the Eleventh Circuit sitting en banc declined to overrule Walker v. R.J. Reynolds Tobacco Co., 734 F.3d 1278 (11th Cir. 2013), and held (again) that a jury’s negligence and strict liability findings in the Engle class action against tobacco companies may be given preclusive effect in follow-on individual cases without violating…