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Defendants Successfully Persuade Appellate Court To Reverse Order Certifying Class
December 29, 2009 2:38 PM | Posted by Driskell, Fentrice | Print this page
The defendants won on appeal by highlighting the individualized differences among the class members with respect to proof of liability and damages. When a customer would swipe his or her debit card at self-service gas pumps without entering a personal identification number, Hess Corporation (“Hess”) would obtain a preauthorization for the purchase from the customer’s bank. Some banks would place a hold on funds in a customer’s account for $50 or more as part of the preauthorization process.
The plaintiffs claimed that the holds would last for several days and sued for damages for caused by the lack of access to the restricted funds. The plaintiffs also sought injunctive and declaratory relief on the ground that Hess allegedly failed to provide adequate advance notice to its customers regarding the holds. The trial court certified a class, and the defendants appealed.
The defendants asserted on appeal that the individual issues predominated over the common issues because: (1) not all banks placed holds as a result of the preauthorization requests; (2) the lengths of the holds varied; (3) Hess’s alleged conduct in providing advanced notice regarding the holds was not the same toward each member of the putative class; and (4) and not all class members sustained damages.
The appellate court agreed and concluded that the trial court abused its discretion by certifying a class. The order was reversed, and the case was remanded for further proceedings.
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