Class actions

  • June 25, 2010
    Guest Post

    By Alan B. Morrison, Lerner Family Associate Dean for Public Interest & Public Service, George Washington University Law School
    Like a brakeless train careening down a mountain, the Supreme Court delivered another blow to those seeking to avoid having their claims shunted off into arbitration when it held in Rent-a Center v. Jackson (No. 09-497, June 21, 2010) that the company's contract with its employee gave the power to the arbitrator, instead of a court, to decide when the terms of the arbitration were unconscionable. The 5-4 decision is significant in its own right (and wrongly decided as well), but that outcome is hardly surprising given the single-mindedness with which a narrow majority of the Court has pushed the Federal Arbitration Act of 1925 (FAA) into places that its authors could never have foreseen.

    The FAA was passed by Congress to overcome decisions that made agreements to arbitrate unenforceable, even between two sophisticated businesses, the only ones that were seeking to use arbitration instead of the courts in those days. In recent years, the Court has embraced arbitration with a passion and upheld arbitration clauses that applied not only to contract claims, but to claims arising under federal laws of all kinds, including those barring discrimination in employment on grounds of race, gender, age, and other protected categories. Moreover, although the FAA contains an exception for contracts involving employees working "in commerce," the Court narrowly construed this exemption so that the employment agreements of workers who, under the prevailing interpretation of the Commerce Clause in 1925, could not constitutionally have been reached then, had their claims forced into arbitration so long as they, or as the Court ruled in a subsequent case, their union, "agreed" to have those claims arbitrated. The Court also rejected attempts by states to preclude arbitrations in certain situations, or impose conditions on their use, beyond those generally applicable all contracts, such as the defense of unconscionability.

  • May 13, 2010
    Guest Post

    By Michael R. Masinter, Professor of Law, Shepard Broad Law Center, Nova Southeastern University
    It's difficult to overstate just how disastrous a decision the U.S. Court of Appeals for the Eleventh Circuit recently issued regarding the Americans with Disabilities Act (ADA). The Eleventh Circuit ruling dismissed a lawsuit challenging a Florida county's lack of voting machines for disabled individuals. That decision, American Association of People with Disabilities v. Harris, holds that a violation of Title Two regulations enacted pursuant to an express grant of rulemaking authority cannot be the basis for a claim asserting a violation of Title Two's various prohibitions, and does so largely by relying on Alexander v. Sandoval.

    Sandoval forbade private enforcement of Title VI disparate impact regulations because Title VI of the Civil Rights Act of 1964 is spending clause legislation that SCOTUS previously had construed only to forbid intentional discrimination. Because under the Roberts and Rehnquist Courts spending clause statutes were not ordinarily privately enforceable, those that are privately enforceable must, we are told, contain within the statute the source of potential state liability to private parties given the contractual nature of liability - it arises from accepting federal funds, so states must know what comes with the money, and they know from the statute, not from regulations later enacted, what can expose them to liability by accepting that money. Since Title VI only forbade intentional discrimination, disparate impact claims relying on regulations could not be said to be claims for a violation of Title VI, and therefore the regulations, even if valid, were not privately enforceable.

    Leaving aside everything that is wrong with the Court's treatment of spending clause statutes, Title Two of the ADA isn't spending clause legislation, it is legislation enacted under section five of the Fourteenth Amendment, which gives Congress express authority to impose federal law on states irrespective of whether they accept federal dollars. Congress legislates under section five as a sovereign, not as a dispenser of federal money.

  • April 30, 2010

    The massive oil spill in the Gulf of Mexico, which has reportedly reached the coast, is threatening fisheries and fragile ecosystems, and spurring litigation.

    A group of Louisiana fisherman, shrimpers and commercial boaters filed suit against BP, the oil company renting the offshore drilling rig that continues to spill oil into the Gulf after a deadly explosion. According to an attorney involved in the suit, Daniel Becnel Jr., people from all five states lining the Gulf Coast have voiced interest in joining the expanding class action.

    Coast Guard officials estimate that the now-sunken rig is continuing to leak 5,000 barrels of oil daily -- five times the initial estimate. There is no indication that the well will be sealed any time soon.

    The spill provoked significant responses from federal and state officials. Louisiana Gov. Bobby Jindal declared a state of emergency. Homeland Security Secretary Janet Napolitano called the incident "a spill of national signifigance," and created two command posts in Alabama and Louisiana to monitor the federal response. Interior Secretary Ken Salazar launched an immediate review, including on-site inspections of 30 offshore drilling rigs and 47 production platforms operating in the Gulf. The U.S. Navy and Air Force are also included in managing the spill, lending scores of vessels and aircraft to an operation already involving over 1,000 people.

  • April 27, 2010

    More than a year after oral argument, a narrowly divided federal appeals court affirmed certification of the largest class action in American history. In Dukes v. Wal-Mart, more than one million potential plaintiffs are suing the retailer for gender discrimination. 

    "The lawsuit, brought in 2001, accuses the retailer of systematically paying women less than men, giving them smaller raises and offering women fewer opportunities for promotion," The New York Times reports. "The plaintiffs stressed that while 65 percent of Wal-Mart's hourly employees were women, only 33 percent of the company's managers were." 

    Considering the case en banc, the U.S. Court of Appeals for the Ninth Circuit sided with the plaintiffs by a vote of 6-5. Casting the deciding vote was Clinton appointee Judge Susan Graber, who wrote in concurrence, "If the employer had 500 female employees, I doubt that any of my colleagues would question the certification of such a class. Certification does not become an abuse of discretion merely because the class has 500,000 members."

    The Recorder reports

    Judge Michael Daly Hawkins wrote Monday's majority 9th Circuit opinion, joined by Graber and Judges Stephen Reinhardt, Raymond Fisher, Richard Paez and Marsha Berzon. All were appointed by Democrats.

  • January 27, 2010

    A recent ACS panel discussion focused on a string of Supreme Court cases that some court observers and lawmakers say limit individual and class action lawsuits. The event, "Access to Justice in Federal Courts," included a keynote address from the ACLU's Anthony Romero and two panel discussions moderated by New York University School of Law Professor Arthur R. Miller.

    The first panel discussion focused on the recent Supreme Court decisions, Ashcroft v. Iqbal and Bell Atlantic v. Twombly, which have given federal district court judges greater discretion to quickly dismiss lawsuits. Those decisions have sparked concern among civil rights groups and spurred lawmakers to push legislation that would remove strictures on access to the courts.

    During the panel discussion on Iqbal and Twombly, Alexander A. Reiner, Benjamin N. Cardozo School of Law professor and counsel to Javaid Iqbal before the U.S. Supreme Court, said those decisions have given courts the ability to "get rid of cases they don't like." He added that civil rights cases, in particular, have been hindered by those decisions.

    The panel on class action litigation, also focused on recent Supreme Court decisions that have created restrictions and other limitations on class actions. Elizabeth J. Cabraser, a partner at Lieff Cabraser Heimann & Bernstein, LLP noted an activist bent of the current Supreme Court. "We have a court with a frequent majority that claims not to be in the business of judicial activism or making new law," Cabraser said. "But we have new law after new law after new law cooked up in the Supreme Court. It is a radical court."

    Video of the Romero's keynote address and both panel discussions are available here or by clicking picture below.