A recent decision from the Texas Supreme Court in the case USAA Casualty Insurance Co. v. Letot gives useful tips for lawyers defending against class action lawsuits. The court talked about important issues with class certification, providing key strategies for defense lawyers.
Standing to Seek Injunctive Relief:
The court decided that a named plaintiff can’t ask for injunctive relief if it’s unlikely they will face the same problem again. In this case, the plaintiff, who had a vintage Mercedes, couldn’t show she was likely to have the same issue again. This means plaintiffs need to show a clear chance of a future injury to get injunctive relief.
Predominance Requirement:
The court noted that issues with standing can make it hard to meet the predominance requirement in class actions. If standing needs very personalized questions, class certification might not be right. In this case, different class members had different views on whether the insurer should tell the Texas Department of Transportation (DOT) about a total loss, making it hard to prove predominance.
Typicality Requirement:
The named plaintiff’s claim didn’t meet the typicality requirement because it was too strong. Her unique situation, involving a vintage car and specific objections to the insurer’s actions, made her a poor representative for the class. This shows that picking a strong class representative can sometimes hurt the plaintiffs.
Key Takeaways for Defense Lawyers:
- Challenge Injunctive Relief: Argue that the chance of future injury is too small.
- Focus on Individualized Standing Issues: Use the personal nature of standing to challenge the predominance requirement.
- Question the Typicality of the Named Plaintiff: Point out how a very strong plaintiff may not represent the class well.
This decision provides a guide for defense strategies in class action lawsuits, highlighting the importance of standing, predominance, and typicality in class certification.
Krystin Collins Attorney at Law
krystin@krystincollins.com
713-775-0332
Or fill out this form and we shall get back to you!