Justia U.S. 4th Circuit Court of Appeals Opinion Summaries

Articles Posted in Class Action
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This case concerned a class action filed against defendants for contamination of plaintiffs' properties by gasoline and a gasoline additive (the Koch action). Former Koch class members subsequently filed a new class action (the Ackerman action). On appeal, defendants challenged the district court's order abstaining from exercising jurisdiction under the Colorado River doctrine. The court held that 28 U.S.C. 1446(d) affected only the jurisdiction of the state court only with regard to the case actually removed to federal court; because Koch was not removed, the state court maintained jurisdiction over it, and the amendment to the complaint in that case was not void ab initio; and the district court was correct to consider the amended Koch complaint in determining whether the Koch and Ackerman actions were parallel, and the district court did not abuse its discretion when concluding that exceptional circumstances warranted abstention in favor of the pending Koch action. Accordingly, the court affirmed the district court's judgment. View "Ackerman v. ExxonMobil Corp." on Justia Law

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Plaintiffs commenced this putative class action alleging that defendants participated in a global Internet conspiracy to sell illegal prescription drugs, in violation of the laws of the United States and Virginia. At issue on appeal was whether the district court erred in dismissing the complaint against four foreign banks for lack of personal jurisdiction. The court concluded that Rule 4(k)(2) did not justify the exercise of personal jurisdiction over the banks because exercising jurisdiction over them would not, in the circumstances here, be consistent with the United States Constitution and laws. Subjecting the banks to the coercive power of the court in the United States, in the absence of minimum contacts, would constitute a violation of the Due Process Clause. Accordingly, the court affirmed the district court's orders dismissing the complaint against the banks. View "Unspam Technologies v. Chernuk" on Justia Law

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Plaintiffs, thirteenth North Carolina residents who lost access to in-home personal care services (PCS) due to a statutory change, brought suit challenging the new PCS program. The district court granted plaintiffs' motions for a preliminary injunction and class certification. Defendants appealed, raising several points of error. The court agreed with the district court's conclusion that a preliminary injunction was appropriate in this case. The court held, however, that the district court's order failed to comply with Federal Rule of Civil Procedure 65 because it lacked specificity and because the district court neglected to address the issue of security. Accordingly, the court remanded the case. View "Pashby v. Delia" on Justia Law

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Plaintiffs brought this civil enforcement action under the Employee Retirement Income Security Act of 1974 (ERISA), 29 U.S.C. 1001 et seq., alleging that defendants, the Bank, and individual members of the Bank's Corporate Benefits Committee, engaged in prohibited transactions and breached their fiduciary duties by selecting and maintaining Bank-affiliated mutual funds in the investment menu for the Bank's 401(k) Plan and the Bank's separate but related Pension Plan (collectively, the Plans). The court affirmed the district court's dismissal of the Pension Plan claims in the Second Amended Complaint on the basis that plaintiffs lacked Article III standing. The district court correctly determined that plaintiffs' remaining claims were time-barred under the limitations period in 29 U.S.C. 1113(1)(A). Finally, the district court's dismissal of the Third Amended Complaint with prejudice did not constitute an abuse of discretion where plaintiffs failed to file a motion to amend and had already amended their original complaint three times. Accordingly, the court affirmed the judgment of the district court. View "David v. Alphin" on Justia Law

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LG Display sought to appeal the district court's rejection of their assertions of federal court jurisdiction under the Class Action Fairness Act of 2005 (CAFA), 28 U.S.C. 1332. South Carolina initiated these cases in state court, alleging violations of the State's Antitrust Act and its Unfair Trade Practices Act (SCUTPA), S.C. Code 39-3-130, -180. The court concluded that CAFA's minimal diversity requirement was not satisfied in either of these cases, and the district court properly remanded them to state court. Accordingly, the petitions for appeal of LG Display were granted and the Remanded Decisions were affirmed. View "AU Optronics Corp. v. State of South Carolina" on Justia Law

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Plaintiffs David McCorkle and William Pender appealed a district court order dismissing two of their class action claims against Bank of America Corporation for alleged violations of certain provisions of the Employment Retirement Income Security Act of 1974 (ERISA). Their claims centered on the Bank's use of a normal retirement age (NRA) that allegedly violated ERISA in calculating lump sum distributions and further ran afoul of ERISA's prohibition of "backloading" the calculation of benefit accrual. Upon review, the Fourth Circuit agreed with the district court's conclusion that Plaintiffs failed to state a claim upon which relief could be granted, and it affirmed the district court's judgment to dismiss those claims. View "Pender v. Bank of America Corp." on Justia Law

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In this purported class action on behalf of borrowers holding home mortgage loans serviced by Bayview, plaintiffs claimed that Bayview improperly added fees to borrowers' accounts in violation of the West Virginia Consumer Credit Protection Act, W. Va. Code 46A-1-101 through 46A-8-102. At issue was whether, under the statute of limitations, "the due date of the last scheduled payment of the agreement" was June 5, 2007, the loan acceleration date set by Bayview. The court concluded that the acceleration date was the operative date for purposes of applying the statute of limitations, because no further payments were scheduled after that date. Thus, the court affirmed the district court's judgment that the statute of limitations began to run from the acceleration date, and that, therefore, plaintiffs' claims were time barred. View "Delebreau v. Bayview Loan Servicing, LLC" on Justia Law

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This case involved two putative class actions, consolidated on interlocutory appeal, brought by purchasers of real estate brokerage services in South Carolina. Each complaint alleged that the real estate brokerages serving as board members of the local multiple listing service (MLS) conspired to unfairly restrain market competition in violation of section 1 of the Sherman Antitrust Act, 15 U.S.C. 1. The court held that plaintiffs sufficiently pled the plurality of actors necessary for section 1 to apply. At this early stage of the litigation, the court was not in a position to weigh the alleged anticompetitve risks of the MLS rules against their procompetitive justifications. This rule of reason inquiry was best conducted with the benefit of discovery and the court expressed no view on the merits of the litigation beyond recognizing the sufficiency of the complaints. Therefore, the court affirmed the judgment of the district court and remanded for further proceedings. View "Robertson v. Sea Pines Real Estate Co." on Justia Law

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Plaintiff appealed the district court's judgment granting Chase's motion to dismiss her putative class action claim brought pursuant to the Maryland Credit Grantor Closed End Credit Provisions (CLEC), Md. Code Ann., Com. Law 12-1001 et seq. The district court concluded that federal regulations preempted relevant portions of the CLEC and that the retail sales installment contract signed by plaintiff and Chase's predecessor in interest did not mandate that Chase comply with the CLEC. The court held that the district court erred in concluding that the CLEC was preempted by the National Bank Act (NBA), 12 U.S.C. 1 et seq., or the Office of the Comptroller of the Currency (OCC) regulations. The court also held that the district court erred in dismissing plaintiff's breach of contract claim and remanded for further proceedings. View "Epps v. JP Morgan Chase Bank, N.A." on Justia Law

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This appeal arose from the dismissal of all claims alleged in a putative class action complaint filed pursuant to the Driver's Privacy Protection Act of 1994 (DPPA), 18 U.S.C. 2721-2725. Appellees (Lawyers) were South Carolina attorneys who in 2006 and 2007 instituted several "group action" lawsuits in South Carolina state court against numerous car dealerships under the South Carolina Regulation of Manufacturers, Distributors, and Dealers Act (Dealers Act), S.C. Code Ann. 56-15-10 et seq. Appellants (Buyers) were car buyers who received mailings from Lawyers regarding the Dealers Act litigation. Buyers sued Lawyers in this action alleging that Lawyers violated the DPPA when they obtained and used Buyers' personal information without their consent in connection with the Dealers Act litigation. The court held that the district court erred in its determination that the conduct of Lawyers did not constitute solicitation within the contemplation of the applicable DPPA prohibition. Nevertheless, the district court correctly ruled that Lawyers' conduct in respect to Buyers' personal information was undertaken in anticipation and in connection with litigation, a use permitted by the DPPA. View "Maracich v. Spear" on Justia Law