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Saturday, April 05, 2008

Second Circuit Rejects Class Certification in "Light" Tobacco Litigation

Last Thursday, the Second Circuit issued McLaughlin v. American Tobacco Company, No. 06-4666 (2d Cir. Apr. 3, 2008), reversing Judge Jack Weinstein's certification of a class including virtually all Americans who had purchased cigarettes labeled as "light" or "lights." Plaintiffs alleged that they were deceived into believing that “light” cigarettes are healthier than “full-flavored” cigarettes. The court of appeals held that the class could not meet Federal Rule of Civil Procedure 23(b)(3)'s requirement that the common questions predominate over the individual questions for a number of reasons, including the need for each plaintiff to show that he or she relied on defendants' deceptions. The court of appeals acknowledged that a district court may partially certify a case on common issues (even where individual questions predominate on other issues) under Rule 23(c)(4), but held that use of that Rule was impermissible in this case because it would not “reduce the range of issues in dispute and promote judicial economy.”

Note that the Supreme Court has granted review in another "light" tobacco case, Altria v. Good, 07-562. That case presents the question whether the plaintiffs' claims are preempted by federal law.

Posted by Brian Wolfman on Saturday, April 05, 2008 at 04:40 PM in Class Actions, Consumer Litigation | Permalink | Comments (0) | TrackBack (1)

Friday, April 04, 2008

The Ninth Circuit Decides Roommates.com -- Is It the Right Decision for Consumers?

by Greg Beck and Paul Alan Levy

The en banc Ninth Circuit yesterday decided an issue of great importance to consumers on the Internet. The issue: In what circumstances can web site operators that pose discriminatory questions that violate anti-discrimination laws be immune from liability when those who sell or rent housing express discriminatory preferences in response? Cutting back on  his own more expansive opinion for a three-judge panel, and largely following the useful amicus brief submitted by the ACLU in support of neither party, Judge Kozinski's opinion walks a careful line and reaches a decision that protects consumers from unlawful discrimination while at the same preserving the broad protections granted web sites that host consumer criticisms against  suits – and threats of suit  – that seek to shut them down.

Continue reading "The Ninth Circuit Decides Roommates.com -- Is It the Right Decision for Consumers?" »

Posted by Paul Levy on Friday, April 04, 2008 at 12:44 PM in Internet Issues | Permalink | Comments (0) | TrackBack (0)

Consumer Lawyer on ABC News

ABC News has put together a web page to accompany last night's story featuring Jessica Attie, a legal services lawyer fighting foreclosures in Brooklyn. The message to homeowners -- if you have legal claims, get a lawyer -- has been missing from most of the media coverage of the crisis, which has focused instead either on homeowners choosing to walk away from overmortgaged homes, or on the frustrations of homeowners trying to work with their lenders or through the HOPE NOW servicer consortium. In many subprime foreclosure cases that appear hopeless on the financial side, there can be significant fraud, deceptive practices or Truth in Lending claims that will permit homeowners to restructure (and reduce) their mortgage debt. Picture_4

Posted by Alan White on Friday, April 04, 2008 at 09:41 AM in Foreclosure Crisis | Permalink | Comments (1) | TrackBack (0)

Nifty Subprime Data Maps

Picture_2For state and county-level data, derived from LPI's rich database, on easy-to-use maps, check out the New York Fed's interactive page. You can find information on the percentage of households with subprime mortgages (designated here by the industry-preferred term "nonprime"), the percentage in foreclosure, the number of REO units (foreclosed properties owned by lenders) and more. The data are from December 2007. Hat tip to Lauren Willis.

Posted by Alan White on Friday, April 04, 2008 at 09:23 AM in Food and Nutrition | Permalink | Comments (0) | TrackBack (0)

Thursday, April 03, 2008

Texas Supreme Court limits uninsured motorist coverage.

In what I find to be a very interesting opinion, but not that surprising, the Texas Supreme Court has supported the insurance industry's position that uninsured motorist coverage doesn’t cover a collision with just part of a motor vehicle. In Nationwide Insurance Co. v. Elchehimi, the court found no liability under an uninsured motorists provision because there was no contact with a “vehicle.”

The case involved a driver who hit an axel-wheel assembly that had separated from an unidentified semi-trailer truck. The court held that contact with a piece of a motor vehicle that comes off of the motor vehicle, is not contact with a motor vehicle for purposes of the uninsured motorist statute. In other words, if an uninsured vehicle is in an accident and your car runs into it, your uninsured motorist coverage will apply. On the other hand, if the car’s bumper comes off during the accident and damages your car or injures you, uninsured motorist coverage will not apply. I guess a law professor could play with this and query what happens if the vehicle splits in half during the collision. Is each half a “vehicle,” or neither? I am not an expert in insurance law, but it seems to me that this is just another example of a big insurance company prevailing in a consumer lawsuit.

Posted by Richard Alderman on Thursday, April 03, 2008 at 11:23 AM | Permalink | Comments (1) | TrackBack (0)

Tuesday, April 01, 2008

Mortgage broker compensation

The incentives created by mortgage broker compensation structures, such as yield spread premiums, have been blamed for contributing to the reckless lending in the subprime mortgage market. The Treasury Department and Federal Reserve proposals, as well as various bills in Congress, are all taking aim at broker compensation and supervision. To find out what is going on in the market right now, check out this interesting discussion among brokers over at the Implode-o-Meter about Countrywide's decision, announced yesterday, to limit total broker compensation to 4% of loan amounts.

Posted by Alan White on Tuesday, April 01, 2008 at 12:24 PM in Other Debt and Credit Issues | Permalink | Comments (2) | TrackBack (0)

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