An Arrow Is Removed From The Quiver Of Class Action Defendants By The Supreme Court's Ruling in Campbell-Ewald v. Gomez
on February 29, 2016
Anyone that has participated in the prosecution or defense of a class action knows that the attorneys' fees, costs, and expenses involved can be substantial. Prior to the United States Supreme Court's decision in Campbell-Ewald Co. v. Gomez, No. 14-857 (Dec. Jan. 20, 2016), class action defendants in cases pending in federal court had a rarely-used, but potentially powerful weapon at their disposal to terminate class actions in their early stages through the use of Federal Civil Rule 68 offers of judgment. The main issue addressed in Campbell-Ewald was under what circumstances, if any, a defendant's settlement offer and/or Rule 68 offer of judgment to the named plaintiff that provides complete relief to the named plaintiff could involuntarily terminate the named plaintiff's case and in turn terminate the putative class action. Id. at slip op. at 1. The Campbell-Ewald Court found that such an offer, without acceptance, does nothing to bind the named plaintiff. Id. at 2. It therefore has no effect on the named plaintiff's claim or, in turn, the putative class claims. Id. The decision may leave the door slightly ajar for class action defendants, as it reserves for another day the issue of whether a defendant's placement of the full amount of the plaintiff's claim in an account payable to the plaintiff, or a similar irrevocable tender of complete relief to the plaintiff, would render the plaintiff's claim moot. Id. at 11....