Ruling Maps Out Class Action Defense Plan: Plaintiffs Win, but Court Exposes Weak Points

January 31, 2016 – In The News
Business Insurance

Gerald E. Arth was featured in the Business Insurance article, “Ruling Maps Out Class Action Defense Plan: Plaintiffs Win, but Court Exposes Weak Points.” Full text can be found in the January 31, 2016, issue, but a synopsis is below.

The U.S. Supreme Court’s 6-3 ruling in Campbell­-Ewald Co. v. Jose Gomez suggested that there may have been a different ruling if proffered payment was submitted in an account payable to the plaintiff, which would have caused the court to enter a judgment for the plaintiff in that amount.

Although the high court sided with the plaintiff in this matter, companies may have been introduced to a new method of minimizing the amount of class action litigation filed.

“The ruling, both the majority and the dissent, leaves open the prospect that a defendant can moot a class action by making an offer of judgment and actually tendering payment of the judge to the court,” said Fox Rothschild’s Gerald Arth.