Two Key Cases Governing Class Action Litigation

01 September 2010 Publication


On March 31, the U.S. Supreme Court decided Shady Grove Orthopedic Associates v. Allstate Insurance Co. The court held that Federal Rule of Civil Procedure 23 — deemed by the opinion as the “one-size-fits-all formula for deciding the class-action question” — prevails over state laws that would otherwise limit a plaintiff’s option of filing a claim as a class action.

Many state legislatures, including Texas’, pass laws creating statutory causes of action but then add provisions that prevent filing the claim as a class action. One Texas law, for example, creates a statutory consumer claim against a company that fails to timely provide customer rebates in the manner described by the company’s offer. Another regulates commercial e-mail solicitation. Both of these statutes also prevent plaintiffs from filing their claims as state class actions.

Under the Shady Grove decision, the same claims that the Texas Legislature determined should not be eligible as state class actions are now, nevertheless, subject to becoming federal class actions. That assumes, of course, that other federal procedural requirements are met, including the requirement that the amount in controversy exceeds $75,000 and that the litigants be diverse, i.e., citizens of different states.

Read more.

Related Services


RCE PTA Carve-Out Resumes After Interference
18 September 2019
The Ninth Circuit Expected to Rule that Doctors Can Be Wrong in the Winter v. Gardens False Claims Act Case
18 September 2019
Legal News: Government Enforcement Defense & Investigations
Upcoming Webinar: Maximizing Solar Tax Credits - Navigating the Start of Construction Rules (Part 1)
17 September 2019
Renewable Energy Outlook
When Birds Finally Find a Nest
17 September 2019
Dashboard Insights
Lacktman, Ferrante Cited in mHealth Intelligence About Ryan Haight Act
19 September 2019
mHealth Intelligence
Tinnen Discusses How Viewpoint Diversity Helps Businesses Thrive
18 September 2019
Vernaglia Comments on AHA v Azar Decision
18 September 2019
MedPage Today
Lach Comments on Launch of New Group
16 September 2019
BizTimes Milwaukee
MedTech Impact Expo & Conference
13-15 December 2019
Las Vegas, NV
Review of 2020 Medicare Changes for Telehealth
11 December 2019
Member Call
BRG Healthcare Leadership Conference
06 December 2019
Washington, D.C.
CTeL Telehealth Fall Summit 2019
04-06 December 2019
Washington, D.C.