CALIFORNIA CLASS ACTION LAW

Category: Stay

Justice Scalia Stays Execution of Judgment in Louisiana Tobacco Case, Setting Up Potentially Important Review of Scope of Due Process Protection in Class Action Litigation

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Setting up a potentially important review by the U.S. Supreme Court of the scope of federal Due Process Clause protection in class actions, Justice Antonin Scalia granted an application for stay on Friday by Philip Morris USA, Inc. in Philip Morris USA Inc. v. Scott, No. 10A273, — S.Ct. —-, 2010 WL 3724564 (U.S.  Sept. 24, 2010) (mem.).  Plaintiffs brought a class action against several tobacco companies on behalf of all Louisiana smokers, alleging that the companies defrauded the plaintiff class by “distort[ing] the entire body of public knowledge” about the addictive effects of nicotine.  Id. *1 (quoting Scott v. American Tobacco Co., 2004-2095, p. 14. (La. App. 2/7/07) 949 So. 2d 1266, 1277).  The Fourth Circuit Court of Appeal of Louisiana granted relief on that theory, and entered a judgment requiring applicants to pay $241,540,488 (plus accumulated interest of about $29 million) to fund a 10-year smoking cessation program for the benefit of the members of the plaintiff class.  Id. The Supreme Court of Louisiana declined review.  Id. Defendants asked Justice Antonin Scalia “in [his] capacity as Circuit Justice for the Fifth Circuit, to stay the judgment until this Court can act on their intended petition for a writ of certiorari.” Id.

Justice Scalia recited the standard for a single Justice to enter such a stay, pursuant to 28 U. S. C. § 2101(f): Read the rest of this entry »

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Central District Denies Motion to Compel Class Arbitration, But Grants Stay Pending Outcome of Supreme Court’s Decision in AT&T Mobility v. Concepcion

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The United States District Court for the Central District of California denied a class action defendant’s motion to compel arbitration, but granted its motion to stay.  Lopez v. American Express Bank, FSB, No. CV 09-07335 SJO (MANx), 2010 WL 3637755 (C.D. Cal. Sept. 17, 2010).

Plaintiffs sued Defendants American Express Bank, FSB, and American Express Centurion Bank’s (collectively, “Defendants”) alleging causes of action relating to the terms and conditions of credit cards. Id. *1.  Defendants moved to compel arbitration.  Id. The Court denied, finding that the class action waiver contained in the Agreement between the parties was unconscionable under California law, and therefore, the Plaintiffs could not be compelled to arbitrate. Id. Defendants brought the present motion to reconsider.

The Court determined that the Supreme Court’s grant of certiorari in AT & T Mobility LLC v. Concepcion, — U.S. —-, 130 S. Ct. 3322, — L. Ed. 2d —-, 2010 WL 303962 (May 24, 2010) constitutes a material difference in fact and law, potential change in controlling law, and justifiable reason to reconsider its prior. Id. *3.

The specific question that the Supreme Court will resolve is: Read the rest of this entry »

Southern District Grants Stay Pending Appeal of Denial of Class-Wide Arbitration

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The Southern District of California granted a stay of proceedings pending appeal of the trial court’s refusal to compel class-wide arbitration.  Del Rio v. CreditAnswers, LLC, No. 10cv346-WQH-BLM, 2010 WL 3418430 (S.D. Cal. Aug. 26, 2010) (slip op.). Read the rest of this entry »