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Explore the dynamics and challenges in U.S. class action cases, including state vs. nationwide suits, opt-in vs. opt-out classes, attorneys' fees, and the impact of choice of law on claims viability. Learn about Multi-District Litigation, Tort Actions under CAFA, and Mass Actions under MMTJA.
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Recent Developments In Group Actions in the United States Elizabeth Cabraser Sara Gourley Luanne Sacks John Sherk March 2, 2006
Agenda • Recurring Issues In U.S. Class Action Cases • Litigation vs. Settlement • Statewide vs. Nationwide • Opt-in vs. Opt-out Classes • Attorneys’ Fees • Efforts To Address These Issues • Multi-District Litigation • Tort Actions Under CAFA • Mass Actions under MMTJA • Administrative Claims Processes • Vaccine • Black Lung • Asbestos? • Challenges
Which Forum’s Law Will Apply • In re Phillips Petroleum Co. v. Shutts, 472 U.S. 797 • forum must have “significant contact or significant aggregation of contacts” to claims of each class member such that applying law would not be arbitrary or unfair • Phillips determines which jurisdictions’ law could apply, not necessarily which jurisdiction’s law must • Analysis complicated by “Depecage” • issue-specific choice of law
Why Does Choice of Law Matter ? • No federal consumer fraud or tort damages statutes • Each state legislates independently • Some allow consumer class actions • Some cap damages • Some do not allow punitive damages • Statutes of limitation differ • Choice of law can determine viability of claims • Country • State
MultiDistrict Litigation (“MDLs”) • MDL statute centralizes multiple federal cases in one forum • Coordinates pretrial litigation • Mechanism to aggregate claims even absent class actions • No statute requires state courts to coordinate • Some states have intra-state “MDLs”
Class Action Fairness Act - 28 U.S.C. § 1332 • “Federalizes” Interstate Class Actions • 2 main provisions: • Expands federal jurisdiction/removal • Requires notification to state and federal authorities of all proposed settlements
Multiparty, Multiforum Trial Jurisdiction Act (“MMTJA”) – 28 U.S.C. § 1369 • Federal jurisdiction requires: • Minimal (not complete) diversity between adverse parties • Single accident, discrete location, 75 deaths • The federal court must abstain from hearing such a civil action if: • The “substantial majority” of plaintiffs and the “primary defendants” are citizens of same state, AND • The laws of that same state will govern the claims asserted
MMTJA Trials • Liability and damages bifurcated: cases remanded to state courts for damages trials • Appeal of liability determination: prior to remand
Class Action Challenges • Industry Specific Issues • Consumer Electronics • Automobiles • Tobacco • Pharmaceutical/Medical Device • Environmental • Aviation • Attorneys’ Fees • Settlement
Recent Developments In Group Actions in the United States Elizabeth Cabraser Sara Gourley Luanne Sacks John Sherk March 2, 2006