Eversheds Sutherland 11th Circuit Business Blog
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En Banc Court Stands by Ban on Class-Action Incentive Payments for Plaintiffs

Nearly two years after a divided three-three judge panel held that federal law prohibits “incentive payments” to named class representatives (see our previous blog post here), the Eleventh Circuit denied a petition to rehear that case en banc. Johnson v. NPAS Solutions, LLC, 2022 U.S. App. LEXIS 21455 (11th Cir. Aug. 3, 2022). The denial effectively upholds that prohibition across...

Interlocutory Appeal Properly Taken from Declaratory Judgment on Insurer’s Duty to Defend; Ambiguous Exclusion Construed in Favor of Coverage

When a liability insurer seeks a declaratory judgment on whether it has a duty to defend and indemnify an insured, and the district court enters an order finding a duty to defend but putting off a decision on the duty to indemnify, is that nonfinal order subject to interlocutory appeal? In James River Insurance Co. v. Ultratec Special Effects Inc., 22 F.4th 1246 (11th Cir. Jan. 13,...

Court Affirms Summary Judgment in Employer’s Favor on ERISA Claims Arising from Discontinuation of Life Insurance

In Klaas v. Allstate Insurance Co., 2021 U.S. App. LEXIS 38473 (11th Cir. Dec. 28, 2021), the Eleventh Circuit affirmed summary judgment in the employer’s favor on ERISA claims stemming from the employer’s discontinuation of retirees’ life insurance benefits. Until 2013, Allstate provided eligible Allstate employees with life insurance that continued after the employee’s retirement....

Court Rejects Creditors’ Due Process Challenge to Release of Bankrupt Debtor’s Affiliates

In Jackson v. Le Centre on Fourth, LLC (In re Le Centre on Fourth, LLC), 2021 U.S. App. LEXIS 33845 (11th Cir. Nov. 15, 2021), the Eleventh Circuit rejected creditors’ due process challenge to the release afforded to the debtor’s affiliates in a confirmed Chapter 11 plan. The creditors were plaintiffs in a tort suit filed after Willie Jackson was struck and injured by a vehicle driven...

Federal Presumption of Arbitrability Limited to Disputes That Are Immediate, Foreseeable Results of Contractual Performance

After concluding that the most natural reading of an arbitration agreement did not cover the dispute in Calderon v. Sixt Rent a Car, LLC, 2021 U.S. App. LEXIS 20854 (11th Cir. July 14, 2021), the Eleventh Circuit held more broadly that the Federal Arbitration Act’s strong presumption of arbitrability applies only if “the dispute in question was an immediate, foreseeable result of the...

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