In the first court decision addressing National Bank Act preemption since the Supreme Court clarified the standard in Cantero v. Bank of America, N.A., 144 S. Ct. 1290 (2024), the Ninth Circuit reaffirmed that the Act does not preempt a California state law requiring banks to pay interest on funds held in their customers’ escrow accounts. See Kivett v. Flagstar Bank, FSB, 2024 WL 3901188 (9th Cir. Aug. 22, 2024).Continue Reading Ninth Circuit Addresses National Bank Act Preemption after Supreme Court Decision
Another California Federal Court Rules Movie Theater Is Not “Video Tape Service Provider” Under the VPPA.
A Central District of California court recently dismissed a putative privacy class action after determining that the movie theater defendants were not Video Tape Service Providers as defined by the Video Privacy Protection Act (“VPPA”). See Walsh v. California Cinema Investments LLC, 2024 WL 3593569 (C.D. Cal. July 29, 2024). Two other California federal courts recently have reached similar conclusions, and appeals of those rulings are currently pending before the Ninth Circuit. See Garza v. Alamo Intermediate II Holdings, LLC, 2024 WL 1171737, at *1 (N.D. Cal. Mar. 19, 2024); Osheske v. Silver Cinemas Acquisition Co., 700 F. Supp. 3d 921 (C.D. Cal. 2023).Continue Reading Another California Federal Court Rules Movie Theater Is Not “Video Tape Service Provider” Under the VPPA.
Eighth Circuit Reverses “Windfall” Fee Award to Class Counsel
Earlier this summer we reported that federal courts of appeals are more closely scrutinizing class action settlements that award class counsel outsized sums not reflecting counsels’ time spent on the litigation. Last week, the Eighth Circuit joined the trend by reversing an attorneys’ fee award of almost $80 million in a “megafund” case that “had barely gotten off the ground before it settled.” In re T-Mobile Customer Data Sec. Breach Litig., — F.4th —, 2024 WL 3561874, at *1 (8th Cir. July 29, 2024).Continue Reading Eighth Circuit Reverses “Windfall” Fee Award to Class Counsel
A Closer Look: Appellate Courts Closely Scrutinize Settlements
In two recent decisions, federal courts of appeals confirmed they are prepared to give close scrutiny to a class settlement that offers a hefty payday to plaintiffs’ counsel with very little genuine benefit to any class.Continue Reading A Closer Look: Appellate Courts Closely Scrutinize Settlements
Ninth Circuit Holds Spam Text Messages Are Not Prerecorded Voices Under TCPA
Last week, the Ninth Circuit rejected an attempt to broaden the scope of the Telephone Consumer Protection Act (“TCPA”), 47 U.S.C. § 227, when it held that text messages not containing audio could not violate the TCPA’s prohibition against sending messages with “artificial or prerecorded voices.” See Trim v. Reward Zone USA LLC, — F.4th –, 2023 WL 5025264, at *4 (9th Cir. Aug. 8, 2023). Continue Reading Ninth Circuit Holds Spam Text Messages Are Not Prerecorded Voices Under TCPA
SCOTUS Set to Resolve Circuit Split over Stays Pending Arbitration Appeal
The Supreme Court recently granted certiorari in a case to resolve a circuit split that has serious implications for companies who are unsuccessful in their efforts to enforce arbitration provisions in federal district courts.
In Coinbase, Inc. v. Bielski, No. 22-105, the defendant moved to compel arbitration in two putative class actions. The motions to compel were denied, and the defendant sought stays while it appealed the denials—which the Federal Arbitration Act gives defendants an automatic right to do. See 9 U.S.C. § 16. Both motions to stay were denied, and the Ninth Circuit affirmed both decisions.Continue Reading SCOTUS Set to Resolve Circuit Split over Stays Pending Arbitration Appeal
Third Circuit Adopts “Reasonable Reader” Standard to Evaluate FCRA Claims.
Banks, lenders, and other financial institutions who submit information to credit reporting agencies should take note of a recent Third Circuit decision adopting a “reasonable reader” standard for evaluating whether a credit report was inaccurate or misleading under Fair Credit Reporting Act (“FCRA”).Continue Reading Third Circuit Adopts “Reasonable Reader” Standard to Evaluate FCRA Claims.
Supreme Court Decision Makes It Easier to Waive Right to Arbitration
On May 23, 2022, the Supreme Court unanimously held that a party opposing arbitration is not required to demonstrate prejudice to show that the other party has waived its contractual arbitration rights.
Before today’s decision, nine federal courts of appeals had adopted the rule that a “party can waive its arbitration right by litigating only when its conduct has prejudiced the other side.” Morgan v. Sundance, 596 U.S. __ (2022). Two other circuits had held no showing of prejudice was required.Continue Reading Supreme Court Decision Makes It Easier to Waive Right to Arbitration