Justia Civil Procedure Opinion Summaries

The federal district court in Washington State certified a question of law to the Washington Supreme Court. Plaintiffs Valerie Sampson and David Raymond (collectively, Sampson) were Washington residents who worked as commercial truck drivers for defendants Knight Transportation Inc., Knight Refrigerated, LLC, and Knight Port Services LLC (collectively, Knight). Plaintiffs brought this putative class action on behalf of themselves and others similarly situated for several alleged violations of Washington wage and hour laws. At issue here was Sampson's claim that piece-rate drivers must receive separate hourly compensation for all time spent "on-duty not- driving." The question the federal court posed to the Supreme Court was whether the Washington Minimum Wage Act required non-agricultural employers to pay their piece-rate employees per hour for time spent performing activities outside of piece-rate work. The Supreme Court responded: no. "All workers must be compensated for all hours worked in a work week in accordance with the Minimum Wage Act (MWA). For nonagricultural workers, WAC 296-126-021 validly allows employers to demonstrate compliance with the MWA's guaranty that Washington workers receive a minimum wage for each hour worked by ensuring that the total wages for the week do not fall below the statutory minimum wage for each hour worked. Accordingly, the plaintiffs in this case fail to demonstrate as a matter of law that they were uncompensated for time spent "loading and unloading, pre-trip inspections, fueling, detention at a shipper or consignee, washing trucks, and other similar activities." View "Sampson v. Knight Transp., Inc." on Justia Law

Defendants Merchants Building Maintenance, LLC and Merchants Building Maintenance Company (the MBM defendants) appeal from an order of the trial court denying their joint motion to compel arbitration. The MBM defendants moved to compel arbitration of a portion of plaintiff Loren Mejia's cause of action brought against them for various violations of the Labor Code under the Private Attorneys General Act of 2004 (PAGA). The MDM defendants moved to compel arbitration of that portion of Mejia's PAGA claim in which she seeks "an amount sufficient to recover underpaid wages." The Court of Appeal reduced the issue presented as whether a court could split a single PAGA claim so as to require a representative employee to arbitrate that aspect of the claim in which the plaintiff sought to recover the portion of the penalty that represented the amount sufficient to recover underpaid wages, where the representative employee has agreed to arbitrate her individual wage claims, while at the same time have a court review that aspect of the employee's claim in which the plaintiff sought to recover the additional $50 or $100 penalties provided for in section 558 of the Labor Code for each violation of the wage requirements. The Court of Appeal concluded that a single PAGA claim seeking to recover section 558 civil penalties could not be "split" between that portion of the claim seeking an "amount sufficient to recover underpaid wages" and that portion of the claim seeking the $50 or $100 per-violation, per-pay-period assessment imposed for each wage violation. The Court affirmed the trial court's order denying the MDM defendants' motion to compel arbitration in this case. View "Mejia v. Merchants Building Maintenance" on Justia Law

Defendants-appellants Catalina Restaurant Group, Inc., Carrows Restaurants, Inc., Carrows Family Restaurants, Inc., Coco’s Bakery Restaurants, Inc. and Coco’s Restaurants, Inc. (collectively, Catalina Defendants) appealed the partial denial of their motion to compel arbitration. Plaintiff-respondent Yalila Lacayo (Lacayo) was an employee of Catalina Defendants, and filed a plaintiff’s class action complaint on behalf of herself and others similarly situated (Class Members) against Catalina Defendants in superior court alleging numerous wage and hour violations under the Labor Code, and an injunctive relief claim under California’s unfair competition law (UCL). Catalina Defendants responded by filing a motion to compel arbitration of Lacayo’s individual claims, including the UCL claim, and dismissal of the class claims (Motion). The trial court granted the Motion as to Lacayo’s individual claims; refused to dismiss the class claims, instead letting the arbitrator decide if the class claims were subject to arbitration or a class action waiver; and denied the Motion as to the UCL claim; and stayed the matter until after arbitration was completed. Catalina Defendants on appeal argued the trial court erred by: (1) refusing to enforce the individual arbitration agreement according to its terms; and (2) refusing to compel arbitration of Lacayo’s UCL claim. In supplemental briefing, both parties addressed whether Catalina Defendants could appeal the trial court’s order granting arbitration of individual claims but refusing to dismiss the classwide claims, leaving the decision for the arbitrator. The Court of Appeal found Catalina Defendants could not appeal the portion of the Motion that granted arbitration for Lacayo’s individual claims and the refusal to dismiss the class claims. The Court of Appeal only addressed the order finding that the UCL claim was not subject to arbitration, and affirmed the trial court's order denying defendants' Motion as to the UCL claim. View "Lacayo v. Catalina Restaurant Group Inc." on Justia Law

Cash Depot underpaid employees for their overtime work. Fast filed suit under the Fair Labor Standards Act, 29 U.S.C. 203 (FLSA), on behalf of himself and other Depot employees. Depot hired an accountant to investigate. The accountant tallied Depot’s cumulative underpayments at less than $22,000. Depot issued checks to all underpaid current and former employees covered by the suit and issued checks to Fast for his underpaid wages, for liquidated damages under the FLSA, and for Fast’s disclosed attorney fees to that point. Fast and his attorney never cashed their checks. The district court denied a motion to dismiss because Fast contested whether Depot correctly calculated the amount it owed but granted partial summary judgment for Depot, “to the extent that [it] correctly calculated” what it owed Fast. Eventually, Fast conceded that Depot correctly paid the missing wages and urged that only a dispute over additional attorney fees remained. After Fast’s demand for additional attorney fees went unanswered, he filed a motion for attorney fees. The court determined that because Fast was not a prevailing party for the purposes of the FLSA, he was not entitled to attorney fees, and granted Depot summary judgment. The Seventh Circuit affirmed. Fast never received a favorable judgment. View "Fast v. Cash Depot, Ltd." on Justia Law

Plaintiffs filed class actions arising from a merger agreement between Dominion and SCANA Corporation, a former utility company in which plaintiffs were stockholders. Plaintiffs alleged that defendants aided and abetted a breach of fiduciary duty in negotiating the merger agreement. After defendants removed to federal court under the Class Action Fairness Act of 2005 (CAFA), the district court remanded to state court.Defendants challenged the district court's remand orders on appeal. The Fourth Circuit granted the petitions for permission to appeal and reversed the district court's judgment, holding that the the class action lawsuits were properly removed from the state courts and should, pursuant to CAFA, be litigated in the District of South Carolina. View "Dominion Energy, Inc. v. City of Warren Police & Fire Retirement System" on Justia Law

Three women allege that Memphis failed to submit for testing the sexual assault kits (SAKs) prepared after their sexual assaults. They allege that Memphis possessed over 15,000 SAKS that it failed to submit for testing, resulting in spoliation, and sought to certify a class of women whose kits Memphis failed to test. The district court dismissed with prejudice all of Plaintiffs’ claims except those under the Equal Protection Clause. Two years of discovery apparently cost Memphis over $1 million. Discovery revealed that the SAKs of two plaintiffs were tested soon after their assaults. The third plaintiff’s SAK was submitted for testing 10 years after her 2003 assault. The district court granted Memphis summary judgment as to two plaintiffs and struck the class allegations, finding that no amount of additional discovery would allow Plaintiffs to sufficiently demonstrate commonality. The Sixth Circuit reversed. Plaintiffs were moderately diligent in pursuing discovery, although somewhat blameworthy in relying on the city’s representations that discovery would be forthcoming. Memphis unreasonably delayed producing discovery material and additional discovery might have changed the outcome. Expenditures of time and money alone do not justify terminating discovery where a plaintiff has been diligent and may still discover information that could establish a genuine issue of material fact. View "Doe v. City of Memphis" on Justia Law

Darilyn Baker, individually and on behalf of a class of more than 500 persons similarly situated, appealed dismissal of her class action against Autos, Inc. d/b/a Global Autos, Robert Opperude, James Hendershot, RW Enterprises, Inc., and Randy Westby, for claimed violations of the North Dakota Retail Installment Sales Act, N.D.C.C. ch. 51-13, and state usury laws. Baker also appealed an order denying her motion to amend the judgment. Baker argued the retail sellers failed to make required disclosures of certain finance charges and late fees in retail installment contracts and they lost their regulated lender status and were subject to state usury laws. After review, the North Dakota Supreme Court concluded the retail installment contracts failed to disclose loan fees as finance charges, and therefore reversed and remanded for further proceedings. View "Baker v. Autos, Inc., et al." on Justia Law

In 2005-2006, Blake and Orkis took out mortgages from JP Morgan to buy homes. In 2013, they filed a class action against JP Morgan under the Real Estate Settlement and Procedures Act, alleging a scheme to refer homeowners to mortgage insurers in exchange for streams of kickbacks. The Act has a one-year statute of limitations that runs from the date of the violation, 12 U.S.C. 2614. Blake and Orkis argued that, rather than the limitations period running from the mortgage closing, each kickback separately violated the Act and had its own limitations period. The Third Circuit accepted that argument. While the kickbacks ended more than a year before they sued, they attempted to piggyback on a different class action filed in 2011 that raised the same claims against JP Morgan but was dismissed. As members of that putative class, they argued, the limitations period should toll for them under the Supreme Court’s 1974 “American Pipe & Construction” decision. The Third Circuit affirmed the dismissal of their suit, citing the Supreme Court’s 2018 holding in “China Agritech” that a timely class action should never toll other class actions under American Pipe, which applies only to toll individual claims. View "Blake v. JP Morgan Chase Bank NA" on Justia Law

Timlick filed a class action complaint, alleging that after defaulting on a loan, Timlick received a collection letter from a third-party debt collector (NES) that did not comply with section 1812.701(b) of the Consumer Collection Notice law because certain statutorily-required language was not in a type-size that was at least the same as used to inform Timlick of the debt, or 12-point type. NES moved for summary judgment on the basis that it cured the alleged violation within the 15-day period prescribed by section 1788.30(d) and sent a letter to Timlick’s attorney, enclosing a revised collection letter. Timlick did not dispute NES’s facts but argued section 1788.30(d) should not apply. The trial court granted NES summary judgment. The court of appeal reversed. A debt collector that violates the minimum type-size requirement for consumer collection letters can utilize the procedure for curing violations under the Rosenthal Fair Debt Collection Practices Act, but the trial court erred by dismissing the entire putative class action, as this allowed the debt collector to unilaterally “pick off” the named plaintiff and avoid class action litigation. View "Timlick v. National Enterprise Systems, Inc." on Justia Law

The settlement agreement—and in particular, the intent of the settling parties—determines the preclusive effect of the previous action. The settlement agreement in this case released plaintiff's and the class's claims against various parties, but it explicitly did not release any claims against Kohlberg.The Ninth Circuit held that, because the settlement specifically did not release plaintiff's and the class's claims against Kohlberg, claim preclusion did not bar plaintiff's current claim. Therefore, the district court erred by dismissing the action on claim preclusion grounds. The panel reversed and remanded for further proceedings. View "Wojciechowski v. Kohlberg Ventures, LLC" on Justia Law