Eversheds Sutherland 11th Circuit Business Blog
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State Law Determines Whether Claim Brought Under Federal Statutory Law is Direct or Derivative

Federal courts should look to state law to decide whether a claim brought under a federal statute is direct or derivative, according to the Eleventh Circuit. The court addressed this issue for the first time in Freedman v. magicJack Vocaltec Ltd., 2020 WL 3467396 (11th Cir. June 25, 2020), a class action filed by a shareholder, alleging that the defendant corporation, magicJack, made...

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...

Bankruptcy Preemption/Preclusion Defense Does Not Preclude Class Certification in FDCPA/FCCPA Case

In an opinion vacating a district court order denying class certification, the Eleventh Circuit held that whether the Bankruptcy Code precludes and/or preempts the Fair Debt Collection Practices Act (“FDCPA”), 15 U.S.C. § 1962 et seq., and the Florida Consumer Collection Practices Act (“FCCPA”), Fla. Stat. § 559.55 et seq., raised issues common to all class members.  Sellers v....

Legal Challenge by Frustrated Supporters of 2016 Bernie Sanders Campaign Rejected

As the country approaches the next presidential election in 2020, the Eleventh Circuit closed the book on a putative class action filed by supporters of Bernie Sanders during his last bid for the Democratic Party’s nomination in 2016. Wilding v. DNC Services Corp., 2019 WL 5539021 (11th Cir. Oct. 28, 2019), “pit[ted] a political party against some of its supporters,” who alleged that...

Eleventh Circuit Joins Majority of Circuits in Holding That FAA Prohibits Pre-Hearing Discovery From Non-Parties

After twenty years of litigation in Managed Care Advisory Group, LLC v. Cigna Healthcare, Inc., 2019 WL 4464301 (Sept. 18, 2019), the Eleventh Circuit issued a per curiam opinion reversing the enforcement of arbitral summonses and holding that the FAA implicitly withholds the power to compel documents from non-parties without summoning them to testify. Beginning in 1999, medical...

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