The Second Circuit recently vacated a district court ruling certifying a class of thousands of employee benefit plans whose fiduciaries contracted with the Teachers Insurance and Annuity Association of America (TIAA) to provide collateralized loans to plan participants, in a case that clarifies how courts must analyze challenges to Rule 23’s “predominance” requirement for class

If a tree falls in the forest but no one is around to hear it, did it make a sound?  Philosophers disagree.  If a product contains a contaminant but no one gets sick, did it cause an injury?  Judges disagree.

In the 2000s, enterprising plaintiffs’ attorneys attempted to push the boundaries of existing tort law by arguing that plaintiffs are entitled to damages for defects even when they cause no physical injury.  These so-called “no-injury” theories of liability were largely rejected by courts.  E.g., Rivera v. Wyeth-Ayerst Lab’ys, 283 F.3d 315, 320–21 (5th Cir. 2002) (dismissing “no-injury products liability law suit”); Johnson v. Bankers Life & Cas. Co., 2014 WL 4494284, at *7 (W.D. Wis. Sept. 12, 2014) (recognizing that in the “consumer product context, courts routinely find lack of standing where—while a product may have been defective in the hands of others—the individual plaintiffs did not suffer the defect and, therefore, suffered no injury”).

While these cases closed the door on “no-injury” product liability claims, they left open the possibility of other “no-injury” claims, such as claims that a manufacturing defect breached a warranty or constituted fraud.  E.g., Cole v. Gen. Motors Corp., 484 F.3d 717, 723 (5th Cir. 2007) (“Notably in this case, plaintiffs may bring claims under a contract theory based on the express and implied warranties they allege.”).

Whether and when “no-injury” claims are viable is a hotly debated question.  As more fully discussed below, courts disagree on whether a plaintiff who has purchased a contaminated or defective product—but who has successfully used the product for its intended purpose while suffering no physical injury—can maintain a claim.

Continue Reading A Closer Look: Does Purchasing a Defective or Contaminated Product Always Cause an Article III Injury?

A magistrate judge in the Western District of New York recently recommended dismissing the putative class action Tassmer et al v. Professional Business Systems, concluding that any risk of identity theft or other injury was too “speculative” to show standing.  The recommendation is in line with numerous other federal circuit and district courts similarly requiring plaintiffs in data breach cases to show concrete harm, not merely a risk of future harm.  This recommendation, if adopted, will be another helpful precedent for companies facing class action lawsuits as a result of a data breach or cyber hack.

Continue Reading No Harm, No Foul: New York Federal Court Recommends Dismissing Sensitive Data Breach Class Action for Lack of Standing

The Second Circuit recently reaffirmed the potential benefits of front-loading merits arguments as a strategy to defeat class actions. Kaye v. Merck & Co., 852 F. App’x 569 (2d Cir. 2021), affirmed a district court’s order granting summary judgment for the defendant in an action under the Telephone Consumer Protection Act where the fax