Question on visual impairment settlement

[OKW Lover]

I was re-listening to the Podcast segment on the settlement in the class action lawsuit about visual impairment. I wondered about the enforceability of the provision in the settlement that prohibited future class action settlements. How can a settlement in this case apply to other parties that may not have been a part of the class in this case?

 

[jcb]

I was re-listening to the Podcast segment on the settlement in the class action lawsuit about visual impairment. I wondered about the enforceability of the provision in the settlement that prohibited future class action settlements. How can a settlement in this case apply to other parties that may not have been a part of the class in this case?

Volumes have been written about this issue but the general answer is that once a class action settles, and the class settlement is approved, the settlement binds the "absent" class members. See Cooper v. Federal Reserve Bank of Richmond, 467 U. S. 867, 874 (1984) ("nder elementary principles of prior adjudication a judgment in a properly entertained class action is binding on class members in any subsequent litigation").

Given the high stakes of class actions, particularly those that seek millions in damages, it isn't surprising that lots of lawyers spend lots of billable hours arguing over the "preclusive" effects of prior class decisions.

Because class action settlements are binding on even the absent class members, federal courts apply a special set of Rules before approving a "settlement class" (i.e., a class that is formed specifically to get a class settlement approved) because, once a settlement class is presented, the court must naturally be concerned that the defendant and the plaintiffs are colluding (though for different motives).

The fairness issue (of being bound by a class settlement) is addressed by the fact that there are several different types of class actions. Where, as in this case (and the WDW Segway class action, I might add) the settlement primarily requires the defendant to take or refrain from action, courts need not give the class the opportunity to "opt out" (though, as we know from the Segway class, the court must give interested class members notice of the class and the opportunity to object to the settlement terms).

Different rules apply when damages are the primary relief sought. Then, absent class members must be given the right to opt out of the settlement.

This is very general and, with some exceptions, I'm not using the precise terminology. Also, there are numerous exceptions, but by now you have to be sorry you asked so I won't belabor the point any further.

 

[OKW Lover]

Thanks for the amplification Jack. Although I'm not a lawyer, nor do I play one on TV, I did work in a regulated industry for a long time. Part of my job there was preparing filings (testimony and pleadings) with our state and federal regulators so I picked up some legal knowledge along the way. I appreciate the extra explanation.

 

[jcb]

So you had to work with lawyers. I'm so sorry.

On a side note, can you come fix my power? It just went out and then I heard a loud explosion a block or so away. This is the 3rd time it has happened.

 

[OKW Lover]

So you had to work with lawyers. I'm so sorry.

On a side note, can you come fix my power? It just went out and then I heard a loud explosion a block or so away. This is the 3rd time it has happened.

I appreciate the condolences.

I didn't work on the dangerous end of the business Jack so I probably can't help with the power. The noise you heard was most likely either a blown cutout (easily fixed by the power company) or a transformer blowing (takes a bit longer to exchange). If this is the 3rd time its happened in a relatively short period of time (i.e., less than 3 years) its time that the power company paid more attention to your circuit.

 

[jcb]

I expect it is a blown cutout. 3rd time in 2years. I suspect the cut outs installed 30 years ago are failing seriatim. I can't complain too loudly. The power company is a (good) client.

 

[doconeill]

We actually had a cutout blow to pieces on a pole near our old apartment. We were watching TV in bed in the morning, then there was this sound like a motorcycle right outside - except we were on the third floor. And the LED clock dimmed, and the TV acted funny...then BOOM.

Found pieces of the cutout on the ground nearby, smoking...

 

[jcb]

DW has been told it was the transformer which means we are without power for another hour and a half without power. I've removed myself to the local Starbucks to get work done.

Don't pity me. The coffee is fresh.