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Consumer Class Actions: Attorneys’ Fees

The California Supreme Court recently reaffirmed the propriety of calculating fees as a percentage of the common fund made available to the class. Laffitte v. Robert Half Int’l Inc. (2016) 1 Cal. 5th 480, 485. The court affirmed the fee award of one-third of the common fund, holding that trial courts have further discretion to conduct a lodestar cross-check or forgo the lodestar analysis and use other means to evaluate the reasonableness of the requested fee percentage. Id. at 506. The mandate from Serrano v.

Consumer Class Actions: Standing to Appeal a Class Settlement Requires Intervention

In Hernandez v. Restoration Hardware, Inc., 4 Cal. 5th 260, 270 (2018), the California Supreme Court held that class members who object to a settlement need to intervene in the action to have standing to appeal any aspect of the settlement.

In contrast, the United States Supreme Court recently resolved a split of federal authority and unequivocally rejected intervention as a prerequisite for class member appeal and, instead, held that any class member who appears and objects before the trial court has standing to appeal:

Consumer Class Actions: Exception for stayed PAGA claims

However, dismissal of class claims is not appealable where the plaintiff continues to pursue a PAGA claim and individual arbitration, because there is no de facto final judgment for absent plaintiffs and thus no death knell effect. Young v. Remx, Inc. (2016) 2 Cal. App. 5th 630, 633. See also Nguyen v. Applied Med. Res. Corp. (2016) 4 Cal. App. 5th 232, 240.

Consumer Class Actions: Pre-Certification Discovery

California courts recognize the parties’ right to conduct appropriate pre-certification discovery. (Best Buy Stores, L.P. v. Superior Court (2006) 137 Cal. App. 4th 772 [40 Cal. Rptr. 3d 578]; Bartold v. Glendale Federal Bank (2000) 81 Cal. App. 4th 816, 827 [97 Cal. Rptr. 2d 226] (“[D]ue process requires ‘an opportunity to conduct discovery on class action issues before . . . documents in support of or in opposition to the motion must be filed . . .’ ”) quoting Carabini v. Superior Court (1994) 26 Cal. App. 4th 239, 243-244) [31 Cal. Rptr.

Consumer Class Actions: CONN. RULES FOR THE SUPERIOR COURT, PRACTICE BOOK §§ 9-7 THROUGH 9-10

§ 9-7. Class ActionsPrerequisites to Class Actions

One or more members of a class may sue or be sued as representative parties on behalf of all only if (1) the class is so numerous that joinder of all members is impracticable, (2) there are questions of law or fact common to the class, (3) the claims or defenses of the representative parties are typical of the claims or defenses of the class, and (4) the representative parties will fairly and adequately protect the interests of the class.

Consumer Class Actions: 1. Comparison With Federal Rule 23

The text of Rule 52.08 of the Missouri Supreme Court Rules is similar to that of Rule 23 of the Federal Rules of Civil Procedure.52 State ex rel. American Family Mutual Ins. Co. v. Clark, 106 S.W.3d 483, 490 (Mo. banc 2003); State ex rel. Byrd v. Chadwick, 956 S.W.2d 369, 379 (Mo. Ct. App. 1997); Grosser v. Kandel-Iken Builders, Inc., 647 S.W.2d 911, 916 (Mo. Ct. App. 1983). Because Mo. Sup. Ct. R.

Consumer Warranty Law: MISSISSIPPI

New Home Warranties: Miss. Code Ann. §§ 83-58-1 to 83-58-17

Structures Covered: Any new structure designed and used solely for residential use.

Eligible Buyers: Initial purchaser of a home and any subsequent purchaser during the warranty period.

Warrantors: Any person or entity that constructs a home or engages another to construct a home for the purpose of sale, including a home occupied initially by its builder as his residence.

Express Warranty Provisions: No applicable provisions.

Consumer Warranty Law: MISSOURI

Condominium Warranties: Mo. Rev. Stat. §§ 448.4-113 to 448.4-117

Structures Covered: Condominium unit and the common elements of the condominium.

Eligible Buyers: Purchaser of a unit and subsequent transferees within the warranty period.

Warrantors: Any seller, as to express warranties; the declarant and any person in the business of selling real estate, as to implied warranties.

Consumer Warranty Law: MONTANA

New Home Warranties: Mont. Code Ann. §§ 28-2-2201, 28-2-2202

Structures Covered: Construction of new residence.

Eligible Buyers: An owner or buyer.

Warrantors: General contractor, builder or developer.

Express Warranty Provisions: At least one year from completion of construction project or date of sale, with clear disclosure of terms.

Implied Warranties Provided/Duration: Not applicable.

Exclusions/Restrictions: Not applicable.

Consumer Warranty Law: NEBRASKA

Condominium Warranties: Neb. Rev. Stat. §§ 76-887 to 76-891.01

Structures Covered: Condominium unit and the common elements of the condominium.

Eligible Buyers: Purchaser of a unit and subsequent transferees.

Warrantors: Any seller, as to express warranties; the declarant and any person in the business of selling real estate, as to implied warranties.

Consumer Warranty Law: NEVADA

Condominium Warranties: Nev. Rev. Stat. §§ 116.4101 to 116.412

Structures Covered: Condominium unit and the common elements of the condominium (“common-interest community”).

Eligible Buyers: Purchaser of a unit.

Warrantors: Any declarant or dealer of units.

Consumer Warranty Law: Section 9-110. Security Interests Arising under Article 2 or 2A.

A security interest arising under Section 2-401, 2-505, 2-711(3), or 2A-508(5) is subject to this article. However, until the debtor obtains possession of the goods:

(1) the security interest is enforceable, even if Section 9-203(b)(3) has not been satisfied;

(2) filing is not required to perfect the security interest;

(3) the rights of the secured party after default by the debtor are governed by Article 2 or 2A; and

Consumer Warranty Law: ALABAMA

Condominium Warranties: Ala. Code §§ 35-8A-101 to 35-8A-417

Structures Covered: Condominium unit and the common elements of the condominium.

Eligible Buyers: Purchaser of a unit.

Warrantors: Any declarant or affiliate, or any person in the business of selling real estate.

Consumer Warranty Law: ALASKA

Condominium Warranties: Alaska Stat. §§ 34.08.510 to 34.08.700

Structures Covered: Condominium unit and the common elements of the condominium (“common interest community”).

Eligible Buyers: Purchaser of a unit.

Warrantors: Any declarant or dealer of units.

Consumer Warranty Law: CALIFORNIA

New Home Warranties: Cal. Civ. Code §§ 895 to 945.5 (West)

Structures Covered: Original construction intended to be sold as an individual dwelling unit, but not condominium conversions.

Eligible Buyers: The original purchasers and their successors in interest.

Warrantors: The general contractors, subcontractors, material suppliers, product manufacturers, and design professionals who contribute to an original dwelling unit.

Consumer Warranty Law: CONNECTICUT

New Home Warranties: Conn. Gen. Stat. §§ 47-116 to 47-121

Structures Covered: Newly constructed single family dwellings and conversion condominium units.

Eligible Buyers: The original buyer, heirs or designated representatives. Subsequent purchasers are not eligible, but vendor may not convey to an intermediate purchaser to avoid the warranties.

Consumer Warranty Law: DELAWARE

Condominium Warranties: Del. Code Ann. tit. 25, §§ 81-413 to 81-417

Structures Covered: Condominium unit and the common elements of the condominium.

Eligible Buyers: Purchaser of a unit.

Warrantors: Declarant, as to express warranties. Declarant and any dealer, as to implied warranties.

Consumer Warranty Law: DISTRICT OF COLUMBIA

Condominium Warranties: D.C. Code §§ 42-1903.16, 42-1903.17

Structures Covered: The condominium unit and any common elements.

Eligible Buyers: Any purchaser of a condominium unit.

Warrantors: The declarant.

Consumer Warranty Law: FLORIDA

Condominium Warranties: Fla. Stat. § 718.203

Structures Covered: The condominium unit; personal property transferred with the unit; all personal property and improvements for use of unit owners; the roof, structural components of a building or other improvements; mechanical, electrical and plumbing elements.

Eligible Buyers: Any purchaser of a condominium unit.

Warrantors: Developer of the condominium; contractor and all subcontractors and suppliers.

Consumer Warranty Law: GUAM

New Home Warranties: 5 Guam Stat. §§ 32501 to 32507

Structures Covered: New dwellings including condominiums converted from existing buildings.

Eligible Buyers: Initial buyer and subsequent buyers within the warranty period.

Warrantors: Developers, contractors, subcontractors (§ 32503).

Express Warranty Provisions: No applicable provisions.

Consumer Warranty Law: INDIANA

New Home Warranties: Ind. Code §§ 32-27-2-1 to 32-27-3-14

Structures Covered: New homes, meaning a new dwelling occupied for the first time after construction.

Eligible Buyers: Persons who execute a contract with a builder to buy a new home and who occupy the new home as its first occupant and as a resident; any purchaser of a new home; subsequent owners who own the home during the warranty period (§§ 32-27-2-2, 32-27-2-5).

Consumer Warranty Law: LOUISIANA

New Home Warranties: La. Stat. Ann. §§ 9:3141 to 9:3150

Structures Covered: Any new structure designed and used solely for residential use, with all related structures.

Eligible Buyers: Owner, including the initial purchaser and subsequent owners during the warranty period.

Warrantors: Any person or entity that constructs a home, or an addition thereto.

Express Warranty Provisions: No applicable provisions.

Consumer Warranty Law: MAINE

New Home Warranties: Me. Stat. tit. 10, §§ 1486 to 1490

Structures Covered: Any home constructed pursuant to a home construction contract.

Eligible Buyers: A person who contracts with a contractor for construction of a home for more than $3000 in materials or labor.

Warrantors: Home construction contractor.