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23
No. 13-1339 1ln tbe $wrtme @rurt of tlle @rlitgù åtrted SPOKIIO, INC'' PE{TroNER, THOMASROBINS, . RESPoNDENT. On Writ of Certiorari to the United States Court of Appeals for the Ninth Circuit . BRIEF oF AI,ABAMA. CoLoRADo, IIhCHIGAN,. . NEBTqAS&A, TENÑESSEE, WEST VIRGINIA, WISCoNSIN, AND IryYoMING As Amcr Cunr¡r rN SUPPoRT oF PETITIoNER July 9, 2015 Luther Stiange Alabøma Atørnq, Gen eral Ani]rèY\¡ t. Brasher . . lSo!ícitor Generø\, Cgunsgl of !eco*,, . Brett J. Taìiey D epuiy S olícitor G en er aI O¡'rrco or ruo Ai¡neue . AtronNoy Gnxrn¡r- 501 Washington Ave. Montgor.n ery; 4L 36130 (334).242-73O0, abrasher@agg : state: al:us Aounsel for Amici .Curiae [additional.counsèl listeil on iusidè cover]
Transcript

No. 13-1339

1ln tbe $wrtme @rurt of tlle @rlitgù åtrted

SPOKIIO, INC''PE{TroNER,

THOMASROBINS,. RESPoNDENT.

On Writ of Certiorari to the United States Courtof Appeals for the Ninth Circuit

. BRIEF oF AI,ABAMA. CoLoRADo, IIhCHIGAN,. .

NEBTqAS&A, TENÑESSEE, WEST VIRGINIA, WISCoNSIN,AND IryYoMING As Amcr Cunr¡r rN SUPPoRT oF

PETITIoNER

July 9, 2015

Luther StiangeAlabøma Atørnq, Gen eral

Ani]rèY\¡ t. Brasher . .

lSo!ícitor Generø\,Cgunsgl of !eco*,, .

Brett J. TaìieyD epuiy S olícitor G en er aI

O¡'rrco or ruo Ai¡neue .

AtronNoy Gnxrn¡r-501 Washington Ave.Montgor.n ery; 4L 36130(334).242-73O0,abrasher@agg : state: al:usAounsel for Amici .Curiae

[additional.counsèl listeil on iusidè cover]

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Bou

nty

Hun

ter

Is N

otW

orhi

ng,4

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D. L

. REv

. 215

(198

3)..

John

H. B

eisn

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Mat

thew

Sho

rs, J

essi

caD

avid

son

Mile

r, C

lass

Act

ion

"Cop

s":

Publ

ic S

erua

nts

or P

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eEn

trepr

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rs?,

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. L. R

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John

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equi

rem

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n Ar

ticle

III

Støn

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. L. R

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Cla

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ue P

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The

Pro

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tatu

tory

Dar

nage

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Act

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REv

. 103

(200

9)

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ama

(199

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ttach

ed t

o St

atem

ent

of D

r. Jo

hn B

. Hen

dric

ks a

t Mâs

s To

rtsan

d C

lass

Act

ions

: Hea

rings

Bef

ore

the

Subc

omm

. on

Cou

rts a

nd In

telle

ctua

lPr

oper

ty o

f the

Hou

se C

omm

. on

the

10

Judi

ciar

y, 1

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Con

g. (

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. 5, 1

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)

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n P.

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& G

eorg

e M

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loak

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t,R

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(199

6)

t5,2

7

Coh

en,

82 V

A. L

.

I

INTR

oDU

cTI0

N A

ND

INTE

RES

T oF

AM

ICI C

unTe

¡

The

atní

ci c

uri,a

e ar

e St

ates

con

cern

ed th

at lo

wer

cour

t dec

isio

ns h

ave

upse

t the

bal

ance

bet

wee

npr

ovid

ing

inju

red

parti

es a

cces

s to

the

cour

ts a

nden

surin

g th

at b

usin

esse

s ar

e no

t fac

ed w

ith a

busi

ve,

no-h

arm

law

suits

.l By

elim

inat

ing

the

inju

ry-in

-fact

requ

irem

ent

of s

tand

ing,

thes

e de

cisi

ons

have

unle

ashe

d a

torre

nt o

f pot

entia

lly fi

rm-k

illing

cla

ssac

tions

for t

echn

ical

stâ

tuto

ry v

iola

tions

that

hav

eca

used

no

actu

al h

arm

to p

lain

tiffs

. Thi

s C

ourt

shou

ld re

affrr

m th

at a

ctua

l har

m is

nec

essa

ry to

esta

blis

h Ar

ticle

III s

tand

ing

and

rest

ore

a ba

lanc

eth

at re

spec

ts th

e in

tere

sts

of b

oth

cons

umer

s an

dbu

sine

sses

.Th

e ex

perie

nce

of l}

:.e a

rnic

i Sta

tes

dem

onst

rate

sth

e ne

ed fo

r bal

ance

in o

ur s

yste

m o

f civ

il lit

igat

ion.

In re

spon

se to

wid

espr

ead

abus

e of

the

clas

s ac

tion,

man

y of

t}:e

a,m

íci S

tate

s, w

orki

ng w

ith C

ongr

ess

and

the

cour

ts, h

ave

enac

ted

thor

ough

goin

g re

form

sof

cla

ss a

ctio

n lit

igat

ion

desi

gned

to e

limin

ate

abus

ew

hiÌe

mai

ntai

ning

a v

ehic

le to

redr

ess

wid

espr

ead

inju

ries.

The

low

er c

ourt'

s de

cisi

on u

nder

min

es th

est

andi

ng r

equi

rem

ents

of A

rticl

e III

and

thre

aten

s to

retu

rn u

s to

the

"bad

old

day

s" o

f cla

ss-a

ctio

n ab

use,

whe

re la

wye

r-driv

en a

ctio

ns w

ere

desi

gned

to

prod

uce

larg

e fe

es ra

ther

than

to m

ake

inju

red

parti

es w

hole

.By

aÌI

but e

limin

atin

g its

cor

e co

mpo

nent

-inju

ryin

fact

-the

low

er c

ourt'

s de

cisi

on s

trips

sta

ndin

g of

1 Th

e on

ici S

tate

s do

not

nee

d co

nsen

t of

the

parti

es to

frle

this

brie

f. Se

e Su

p. C

t. R

. 3?(

4).

2

its c

onst

itutio

nal r

ole

as th

e "e

ssen

tial a

ndun

chan

ging

par

t of

th

e ca

se-o

r-con

trove

rsy

requ

irem

ent o

f Arti

cle

fII."

Lujø

n u.

Def

ende

rs o

fW

ild.Ii

fe,5

04 U

.S. 5

55, 5

60 (1

992)

. Equ

atin

g in

jury

infa

ct w

ith te

chni

cal s

tatu

tory

vio

latio

ns,

nam

edpl

aint

iffs

can

driv

e cl

asse

s nu

mbe

ring

in t

hem

illion

s. T

hese

act

ions

ofb

en s

eek

billio

ns o

r eve

ntri

llions

of d

olla

rs in

sta

tuto

ry d

amag

e aw

ards

on

beha

lf of

put

ativ

e cl

ass

mem

bers

who

hav

e su

ffere

dno

act

ual h

arm

. So

perv

erse

are

the

ince

ntiv

escr

eate

d un

der t

his

stan

ding

reg

ime

that

clas

sm

embe

rs h

ave

begu

n to

forg

o ac

tual

dam

ages

alto

geth

er,

seek

ing

inst

ead

to s

inpl

ifu th

e ex

pans

ion

of th

e cl

ass

and,

con

sequ

ently

, th

e st

atut

ory

dam

age

awar

d. Req

uirin

g co

ncre

te in

jury

in fa

ct fo

r sta

tuto

ryda

mag

es re

stor

es n

eede

d ba

lanc

e. It

ens

ures

that

the

plai

ntiff

s se

ekin

g st

atut

ory

dam

ages

are

thos

e w

hoha

ve b

een

actu

ally

har

med

by

a de

fend

ant's

con

duct

and

have

a s

take

in th

e lit

igat

ion

beyo

nd th

e da

mag

eaw

ard

itsel

f. It

ensu

res

that

the

defe

ndan

ts in

suc

hIa

wsu

its a

re b

usin

esse

s w

hose

act

ions

hav

e ac

tual

lyha

rmed

con

sum

ers.

And

it e

nsur

es th

at e

nfor

cem

ent

is ta

rget

ed to

pra

ctic

es th

at h

ave

caus

ed a

ctua

lha

rm-a

s op

pose

d to

thos

e m

ost c

ondu

cive

to cl

ass

certi

ficat

ion.

The

Cou

rt sh

ould

reve

rse

the

deci

sion

of t

heIo

wer

cou

rt an

il re

affir

m th

at th

e st

andi

ng a

naly

sis

requ

ires

actu

al h

arm

to e

stab

lish

inju

ry in

fact

inst

atut

ory

dam

ages

litig

atio

n.

3

Su[{n

rAR

Y oF

AR

GTT

MEN

T

The

cons

eque

nces

of t

he C

ourt'

s de

cisi

on in

this

case

go

far b

eyon

d w

heth

er R

obin

s ca

n co

ntin

ue h

issu

it ag

ains

t Spo

keo.

The

Cou

rt ha

s th

e op

portu

nity

to re

stor

e ba

lanc

e to

â s

yste

m th

at h

as b

een

upse

t by

the

unw

illing

ness

of t

he lo

wer

cou

rts to

enf

orce

the

inju

ry-in

-fact

requ

irem

ent o

f sta

ndin

g in

stat

utor

yda

mag

es c

lass

act

ions

. Th

is re

ticen

ce h

as le

d to

aw

ave

of n

o-in

jury

, win

dfal

l cla

ss a

ctio

ns th

atun

derm

ine

the

goal

s of

sta

tuto

ry-d

amag

es l

aws.

By

rees

tabl

ishi

ng th

e in

jury

-in-fa

ct r

equi

rem

ent,

this

Cou

rt ca

n re

stor

e ba

lanc

e to

our

sys

tem

of l

itiga

tion.

I. Th

e St

ates

hav

e w

orke

d w

ith C

ongr

ess

and

the

judi

ciar

y to

lim

it cl

ass

actio

n ab

use

and

ensu

reba

lanc

e in

the

judi

cial

sys

tem

.A.

By

rest

orin

g in

jury

in fa

ct to

its

right

fui p

lace

,th

e C

ourt

can

avoi

d a

retu

rn to

the

Wild

Wes

t of

clas

s ac

tion

abus

e th

at s

tate

s, C

ongr

ess,

and

the

judi

ciar

y ha

ve tr

ied

to c

iviliz

e. T

he e

xper

ienc

e of

the

amic

i Sta

tes

dem

onst

rate

s th

at c

lass

act

ions

are

uniq

uely

l'ul

nera

ble

to a

buse

s th

at s

ubor

ilinat

e th

ein

tere

sts

of th

e cl

ass

mem

bers

to

the

inte

rest

s of

the

clas

s's c

ouns

el a

nd re

pres

enta

tive.

In th

e 19

90s,

clas

s ac

tions

wer

e ou

t of c

ontro

l. C

erta

in ju

dges

rout

inel

y ce

rtifie

d na

tionw

ide

clas

ses

with

out

scru

tiny

and

appr

oved

ineq

uita

ble

clas

s se

ttlem

ents

that

pro

vide

d lit

tle c

ompe

nsat

ion

for a

bsen

t cla

ssm

embe

rs.

B. M

any

stat

es re

cogn

ized

thes

e ab

uses

and

inst

itute

d si

gnifi

cant

cla

ss-a

ctio

n re

form

s, s

uch

ashe

ight

ened

cer

ti-fic

atio

n pr

oced

ures

and

inte

rlocu

tory

appe

al o

f cer

tific

atio

n or

ders

. The

Sta

te o

f Ala

bam

a,

4

the

lead

am

icus

her

e, w

as a

t the

van

guar

d of

bot

h of

thes

e tre

nds.

Ala

bam

a su

ffere

d fro

m it

s sh

are

ofcl

ass-

actio

n ab

uses

and

the

econ

omic

dam

age

they

caus

e, b

ut it

impl

emen

ted

refo

rms

afte

r tho

se a

buse

sca

me

to li

ght.

If th

e in

jury

-in-fa

ct re

quire

men

t is

wea

kene

d an

d ab

usiv

e st

atut

ory

clas

s ac

tions

are

allo

wed

to

proc

eed,

muc

h of

this

wor

k w

ill be

und

one.

II. B

y el

imin

atin

g th

e ne

ed fo

r act

ual h

arm

, the

low

er c

ourt'

s ap

proa

ch to

inju

ry in

fact

ups

ets

the

bala

nce

and

invi

tes

a ne

w \¡

¡ave

of a

busi

ve s

tatu

tory

dam

ages

cla

ss a

ctio

ns.

A. T

he c

lass

act

ion

and

stat

utor

y da

mag

es a

rebo

th im

porta

nt to

ols

that

ena

ble

an a

ggrie

ved

party

to v

indi

cate

inju

ries

that

mig

ht o

ther

wis

e go

unre

dres

sed.

Com

bine

d th

ey a

te p

artic

ular

lypo

wer

ful,

as th

ey a

llow

con

sum

ers

to p

ursu

esi

gnifi

cant

dam

ages

aga

inst

def

enda

nts

for

wid

espr

ead

abus

es th

at C

ongr

ess

has

soug

ht to

stam

p ou

t. Bu

t alth

ough

thes

e de

vice

s ca

n do

muc

hgo

od, u

nmoo

red

from

trad

ition

al p

roce

dura

lIim

itatio

ns o

n lit

igat

ion,

they

can

als

o ca

use

grea

tde

stru

ctio

n. B

y w

eake

ning

the

inju

ry-in

-fact

requ

irem

ent

of s

tanù

ing,

Iow

er c

ourts

hav

e al

low

edm

assi

ve c

lass

act

ions

see

king

firm

-killi

ng d

amag

es to

proc

eed

agai

nst d

efen

dant

s th

at h

ave

caus

ed n

oha

rm. D

oing

so

not o

nly

unde

rmin

es s

tand

ing

as a

gate

keep

er a

gain

st c

lass

-act

ion

abus

e; it

und

erm

ines

the

clas

s ce

rtific

atio

n pr

oces

s as

weI

I.B.

The

rule

ann

ounc

ed b

y th

e lo

wer

cou

rtco

llaps

es th

e st

andi

ng a

naly

sis

and

uncl

erm

ines

the

four

par

t tes

t of R

uIe

23(a

). Th

e th

ree

elem

ents

of

inju

ry in

fact

, cau

satio

n, a

nd re

dres

sabi

-lity

are

"the

irred

ucib

le c

onst

itutio

nål m

inim

um o

f sta

ndin

g."

5

Luja

n, 5

O4

U.S

. at 5

60. T

he lo

wer

cou

rt's

rule

,ho

wev

er,

furth

er re

duce

s th

e an

alys

is d

own

to o

nequ

estio

n-di

d th

e de

fend

ant a

llege

dly

fail

to c

onfo

rmits

beh

avio

r to

the

stat

ute?

Thi

s ap

proa

ch o

bvia

tes

the

need

for a

ny s

ubst

ântiv

e in

quiry

into

inju

ry in

fact

, cau

satio

n, a

nd re

dres

sabi

Lity

.Si

mila

rly, t

he R

uIe

23(a

) req

uire

men

ts o

fnu

mer

osity

, co

mm

onal

ity, t

ypic

ality

, and

ade

quat

ere

pres

enta

tion

are

a ne

cess

ary

chec

k on

cla

ss-a

ctio

nab

use.

In n

o-ha

rm c

lass

act

ions

, how

ever

, the

sere

quire

men

ts h

ave

no re

al fo

rce.

No-

harm

cla

sses

tend

to n

umbe

r in

the

milli

ons,

and

sin

ce th

ey s

eek

com

pens

atio

n fo

r mer

e te

chni

cal s

tatu

tory

vio

latio

ns,

com

mon

ality

and

typi

calit

y pr

esen

t no

bar t

o cl

ass

certi

frcat

ion.

In fa

ct, c

lass

mem

bers

mây

eve

n ag

ree

to fo

rgo

actu

al d

amag

es s

o as

to m

ake

the

clas

s as

hom

ogen

eous

as

poss

ible

. Th

e go

al o

f the

clas

sac

tion-

mak

ing

inju

red

parti

es w

hole

-bec

omes

subo

rdin

ate

to th

e go

al o

f cre

atin

g a

bigg

er a

nd n

ore

lucr

ativ

e cl

ass.

C. N

o-ha

rm c

lass

act

ions

rou

tinel

y se

ek s

tatu

tory

dam

ages

in th

e bi

llions

or e

ven

trillio

ns o

f dol

lars

for

clas

s m

embe

rs th

at s

uffe

r no

conc

rete

inju

ry.

Aìth

ough

a w

indf

all f

or c

lass

cou

nsel

, the

se m

assi

vesu

its a

re o

ften

pote

ntia

l firm

kille

rs w

'ith s

ubst

antia

iin

terro

rem

effe

ct. S

ince

cla

ss c

ertif

icat

ion

in th

ese

case

s is

a fo

rego

ne c

oncl

usio

n, d

efen

dant

s ar

e fa

ced

with

a "y

our m

oney

or y

our l

ife" c

hoic

e. T

hey

can

eith

er s

ettle

or b

et th

e fir

m o

n a

favo

rabl

e ou

tcom

e.III

. The

Cou

rt ca

n re

stor

e ne

eded

bal

ance

by

reaf

firm

ing

that

inju

ry in

fact

requ

ires

actu

al h

arm

.Th

e C

ourt

can

end

this

con

fusi

on a

nd s

tave

off

ane

\ry w

âve

of c

lass

-act

ion

abus

e by

sim

ply

6

âckn

owle

dgin

g th

at C

ongr

ess

pa6s

es s

tatu

tes

âgai

nst

the

back

drop

of

cons

titut

iona

l req

uire

men

ts,

incl

udin

g st

andi

ng. D

oing

so

rest

ores

inju

ry in

fact

toits

pro

per

plac

e an

d en

sure

s th

at s

tatu

tory

-dam

ages

sche

mes

bet

ter a

ccom

plis

h th

eir g

oals

. Def

enda

nts

wou

ld fa

ce p

artie

s th

ey h

ad h

arm

ed b

y th

eir c

ondu

ct.

Plai

ntiff

s w

ould

hav

e a

stak

e in

the

litig

atio

n be

yond

the

dam

age

awar

d its

elf,

dire

ctin

g lit

igat

ion

tow

ards

prac

tices

that

cau

se h

arm

to c

onsu

mer

s an

d ag

ains

tpa

rties

who

eng

age

in th

ose

prac

tices

. R

esto

ring

bala

nce

wou

ld th

us b

ette

r ac

com

plis

h th

e go

als

Con

gres

s se

t out

to a

chie

ve in

pas

sing

sta

tuto

ry-

dam

ages

law

s w

hile

avo

idin

g th

e da

nger

of

over

enfo

rcem

ent.

This

Cou

rt sh

ould

rev

erse

the

low

er c

ourt.

ARG

UM

ENT

Our

sys

tem

stri

kes

a ha

rd-fo

ught

bal

ance

betw

een

the

right

of t

he in

jure

d to

reco

ver d

amag

esan

d th

e rig

ht o

f def

enda

nts

to b

e fre

e fro

m a

busi

velit

igat

ion.

By

faiL

ing

to e

nfor

ce th

e in

jury

-in-fa

ctre

quire

men

t, lo

wer

cou

rts h

ave

upse

t tha

t bal

ance

,al

low

ing

win

dfal

l cla

ss a

ctio

ns to

con

tinue

aga

inst

defe

ndan

ts w

ho h

ave

harm

ed n

o on

e. B

y re

stor

ing

inju

ry in

fact

to it

s rig

htfu

l pla

ce in

the

stan

ding

anal

ysis

, thi

s C

ourt

can

rese

t tha

t bal

ance

whi

levi

ndic

atin

g th

e pu

rpos

e of

sta

tuto

ry-d

amag

es la

ws.

I. Th

e St

ates

hav

e a

stro

ng in

tere

st in

ensu

ring

a ba

lanc

ed le

gal s

yste

m.

In lln

e am

ici S

tate

s' ex

perie

nce,

cla

ss a

ctio

ns a

rean

impo

rtant

pro

cedu

raì d

evic

e fo

r ef

ficie

ntco

nsum

er li

tigat

ion,

but

als

o un

ique

ly v

ulne

rabl

e to

7

abus

e. T

hese

vul

nera

bilit

ies

are

driv

en in

larg

e pa

rtby

the

huge

dam

age

awar

ds w

aitin

g at

the

end

of a

succ

essf

ul li

tigat

ion,

lead

ing

to tw

o pr

oble

ms.

Firs

t,cl

âss

coun

sel h

as "a

pow

erfu

l frn

anci

al in

cent

ive

to[it

igat

e] th

e ca

se o

n te

rms

favo

rabl

e to

them

selv

es,

but n

ot n

eces

saril

y fa

vora

ble

to th

eir u

nkno

wn

clie

nts,

" an

d ce

rtain

ly n

ot fa

vora

ble

to th

e pu

blic

at

larg

e. D

ukes

u. W

aI-M

art,

Inc.

, 5O

9 F.

3d i

168,

119

9(9

th C

ir. 2

007)

(Kle

infie

ld, J

., di

ssen

ting)

, reu

'd, W

aI-

Mar

t Sto

res,

Inc.

u. D

uhes

, 131

S. C

t. 25

47 (2

07I).

Seco

ndly

, bec

ause

of t

he le

vera

ge o

f agg

rega

ted

clai

ms,

a c

ourt'

s pr

elim

inar

y de

cisi

on to

cer

tify

acl

ass

may

coe

rce

a de

fend

ant

to s

ettle

, esp

ecia

llyw

hen

the

only

alte

rnat

ive

is to

"bet

[] [th

e] c

ompa

nyon

â si

ngle

jury

ver

dict

." M

chey

nold

s u.

Men

illLy

nch,

Pie

rce,

Fen

ner &

Sm

ith, I

nc.,

672

F.3d

482

,49

1 (7

th C

fu. 2

012)

. With

out p

rope

r saf

egua

rds

topr

even

t the

cer

tific

atio

n of

abu

sive

cla

ss a

ctio

ns,

clas

s co

unse

l hav

e an

ince

ntiv

e to

brin

g bi

gger

and

bigg

er c

lass

es s

eeki

ng la

rger

and

larg

er d

amag

es,

with

def

enda

nts

all b

ut c

ompe

lled

to s

ettle

.

A.

The

atni

ci S

tate

s ha

ve b

orne

witn

ess

to th

e m

agni

tude

of a

buse

the

clas

s ac

tion

can

invi

te,

The

thre

at o

f cl

ass-

actio

n ab

use

is n

otsp

ecul

ativ

e. D

urin

g th

e 19

90s,

the

ømic

i Sta

tes

wer

ein

unda

ted

with

friv

olou

s cl

ass

actio

ns th

at c

ame

with

sig

nific

ant e

cono

nic

cost

. The

Iead

arn

icus

her

e,A-

laba

ma,

had

a fr

ont-r

ow s

eat t

o m

any

of th

e w

orst

of th

ese

abus

es. A

laba

ma

judg

es in

cer

tain

cou

ntie

sw

ere

know

n to

cer

tify

natio

nwid

e cl

ass

actio

ns w

ithIit

tle o

r no

anal

ysis

. Fro

m 1

995

to 1

997,

a to

tal o

f 91

puta

tive

clas

s ac

tions

wer

e fiì

eil in

six

A-la

bam

a

8

coun

ties.

Sta

tesi

de A

ssoc

s., C

lass

Act

ion

Løw

suíts

inSt

øte

Cou

rts: A

Cas

e St

udy

in A

laba

rna

(199

8)(a

ttach

ed to

Sta

tem

ent o

f Dr.

John

B. H

endr

icks

at

Mas

s To

rts a

nd C

lass

Act

ions

: Hea

rings

Bef

ore

the

Subc

omm

. on

Cou

rts a

nd In

telle

ctua

l Pr

oper

ty o

f the

Hou

se C

omm

. on

the

Juùi

ciar

y, 1

05th

Con

g. (i

\tlar

. 5,

1998

)).2

Judg

es c

ertif

ied

clas

ses

irr 4

3 of

thos

e ca

ses;

in a

t lea

st 3

8, th

e ce

rtific

atio

n w

as e

x pa

rte a

nden

tere

d on

or s

hortl

y af

ter t

he d

ay th

e co

mpl

aint

was

filed

. Id.

Law

yers

coi

ned

a co

lorfu

l ter

m fo

r the

sequ

ick,

e*

parte

cer

hfíc

atio

n or

ders

: the

"driv

e-by

''cl

ass

actio

n. S

ee, e

.9.,

Mitc

hell

u. H

& R

Blo

ck, I

nc.,

783

So. 2

d. 8

72, 8

18 (A

la. 2

000)

(Hoo

per,

C.J

.,di

ssen

ting)

.C

ompo

undi

ng th

is p

robl

em, m

any

judg

es w

ere

sim

ilarly

lax

in

revi

ewin

g pr

opos

ed cl

ass

settl

emen

ts. T

his

lack

of d

iligen

ce le

d to

col

lusi

onbe

twee

n na

med

pla

intif

fs a

nd d

efen

dant

s an

dun

fairn

ess

to a

bsen

t cla

ss m

embe

rs .

In H

offm

øn, e

taI

. u. B

ank

of B

osto

n, fo

r exa

mpÌ

e, a

hom

eow

ner

chal

leng

ed th

e Ba

nk o

f Bos

ton

s pr

âctic

e of

hol

ding

too

muc

h m

oney

in it

s m

ortg

age

escr

ow a

ccou

nts,

whi

ch p

reve

nted

the

hom

eow

ners

fro

m s

pend

ing

that

mon

ey u

ntil

they

had

pai

d of

f the

ir m

ortg

ages

. See

Kam

íIew

ícz

u. B

a,nh

of B

osto

n C

orp.

, 92

F.3d

506

(7th

Cir.

199

6) (

disc

ussi

ng H

offm

an, e

t aI.

u. B

ancB

osto

nM

ortg

. Cor

p., N

o. C

V-91

-188

0 (A

ìa. C

ir. C

I., J

an. 2

4,19

94)).

The

set

tlem

ent i

n th

at ca

se, a

ppro

ved

by a

nAl

abam

a ju

dge,

requ

ired

the

bank

to re

turn

the

over

âges

imm

edia

tely

, bu

t als

o aw

arde

d m

ore

than

$8.5

milI

ion

in a

ttorn

eys'f

ees

to b

e pa

id b

y cl

ass

o

mem

bers

out

of p

ocke

t. Ka

mile

wic

z, 9

2 F.

3d a

t 508

-09

. The

ups

hot w

as th

at m

any

abse

nt c

lass

mem

bers

paid

out

mor

e in

fees

than

they

rece

ived

in re

fund

s.Fo

r one

Mai

ne re

side

nt, t

he s

ettle

men

t res

ulte

d in

a$2

.19

cred

it an

d $9

1.33

deb

it fro

m h

is b

ank

acco

unt.

See

Køm

ilew

icz,

100

F.3

d at

L34

9 (E

aste

rbro

ok,

J.,

diss

entin

g); s

ee ø

lso,

e.9

., Ba

rty J

ù/.e

iet,

Mat

h of

aC

lass

-Act

ion

Suit:

Win

ning

' $2.

19 C

osts

.f91

.33,

N.Y

.Tr

ltos,

Nov

. 27,

199

5, a

t 41.

3 Si

mila

rly, a

Tex

asre

side

nt r

ecei

ved

no c

redi

t and

a $

144

debi

t. Se

eBe

nn u

. Ban

cBos

ton,

No.

3:9

6-C

V-09

74-J

, at 2

-4(N

.D-

Tex.

Oct

. 4, 1

996)

; Edd

ie C

urra

n, Y

ou W

in, Y

ouPø

y, M

our-o

c. (A

la.),

Dec

. 29,

199

9, a

t 14,

auøí

Iabl

e at

799

9 IV

LNR

724

8175

; Su

san

P. K

onia

k&

Geo

rge

M. C

ohen

, Und

er C

loah

of S

ettle

men

t, 82

vA. L

. REv

. 105

1, 1

054-

68 (

1996

).

Alab

ama

was

far f

rom

alo

ne, p

artic

ular

ly in

the

area

of s

ettle

men

t abu

se. I

n llli

nois

, a c

lass

com

prom

ised

its

fals

e-ad

verti

sing

cla

ims

agai

nst

Pola

nd S

prin

g fo

r a s

ettle

men

t of d

isco

unte

d w

ater

and

char

itabl

e co

ntrib

utio

ns. S

ee E

dwar

d D

.M

urph

y, P

olan

d, S

prin

g Se

ttles

Pur

ity S

uit,

PoR

TI,A

ND

PR

ESS

HER

AID

, Nov

. 6, 2

003,

at 6

8,au

aíIa

ble

o,t 2

OO

3 W

LNR

134

7168

4 (d

iscu

ssin

gR

amse

y u.

Nes

tle W

øter

s N

. Atn

., In

c. d

./b/a

Pol

and,

Sprin

g W

ater

Co.

, No.

03

CH

K 81

7 (IÌ

L C

ir. C

t., N

ov.

5, 2

003)

). Th

e na

med

pla

intif

f rec

eive

d $1

2,00

0, a

ndth

e pl

aint

iffs'

Iaw

yers

rece

ived

$1.

35 m

illion

. Id.

Acl

ass

in T

exas

com

prom

ised

its

clai

m th

atBl

ockb

uste

r ch

arge

d ex

cess

ive

late

fees

for a

settl

emen

t of c

oupo

ns g

ivin

g pl

aint

iffs

$1 o

ff a

vicl

eo

2 Av

aila

b le

at h

ttp;//

com

mdo

cs.h

ouse

. go

v/co

nmitt

ees/

judi

ciar

y/hj

u599

21.0

00/h

ju59

92l_

Of.h

tm

(ast

vis

ited

July

7, 2

015)

.

a Au

øilø

ble

at h

l,T,p

://w

ww

.n¡ti

mes

.com

/l995

/11/

21lu

s/m

ath-

of-a

-cl

ass-

actio

n-su

it-w

inni

ng-2

.19-

cost

s-91

.33.

htm

Ì Q

ast v

isite

dJu

ly 7

,201

5).

10

rent

al; m

eanw

hile

, the

cla

ss a

ttorn

eys

rece

ived

$9.

25m

illion

in fe

es. S

ee B

lock

bust

er S

ettle

s La

te-fe

e Su

itw

ith C

ertif

icat

e Pl

az, H

oust

oN C

HR

oN.,

Jan.

13,

20O

2, a

uøíIa

ble

or 2

002

WLN

R 1

3576

864

(dis

cuss

ing

Scot

t u. B

lock

bust

er 1

¿c.,

No.

DI6

2-53

5, (

Jeffe

rson

Cnt

y., T

ex.,

2001

)). A

nd, i

n G

eorg

ia, a

cla

ssco

mpr

omis

ed it

s cl

aim

that

Coc

a-C

ola

impr

oper

lyad

ded

swee

tene

rs to

its

drin

ks fo

r a s

ettle

men

t of

50-

cent

cou

pons

; th

e cl

ass's

cou

nsel

rec

eive

d $1

.5m

illion

. Law

yers

Get

$1.

5 M

illíon

, Clie

nts

Get

50

Cen

ts O

ff, F

ULT

oN C

ouN

Ty D

ArLy

REp

., N

ov. 2

1,19

97. S

ee g

ener

olly

S. R

ep. N

o. 1

09-1

4, a

t 10-

20 (

Feb.

28, 2

OO

5) (c

iting

exa

mpi

es fr

om A

laba

ma,

Cal

iforn

ia,

Del

awar

e, F

lorid

a, Il

linoi

s, K

ansa

s, M

inne

sota

, New

York

, and

Tex

as).

B.

Man

y st

ates

rec

ogni

zed

the

prob

lem

and

, to

geth

er w

ithC

ongr

ess

and

the

judi

ciar

y,im

plem

ente

d re

form

s.

Hap

pily

, thr

ough

sus

tain

ed le

gisl

ativ

e an

dju

ùici

al e

ffort,

man

y st

ates

hav

e re

cogn

ized

the

inhe

rent

pro

blem

s w

ith c

lass

litig

atio

n an

d ha

veim

plem

ente

d im

porta

nt re

form

s to

miti

gate

them

.Th

ese

stat

e re

form

s ru

n th

e ga

mut

from

ven

ue r

ules

to c

ertif

icat

ion

proc

edur

es.

For e

xam

ple,

sta

tes

have

ado

pted

rigo

rous

proc

edur

es fo

r cla

ss c

ertif

icat

ion.

In 1

997,

the

Supr

eme

Cou

rt of

A-la

bam

a ad

opte

d th

e rig

orou

s"fe

dera

l app

roac

h" to

cer

tific

atio

n, E

x pø

rte A

rn.

Banh

ers

Life

Ass

ur. C

o. o

f F\a

.,715

So.

2d

186,

187

(Ala

. 199

7), a

nd h

eld

that

"[a]

cla

ss s

houl

d no

t be

certi

fied

with

out n

otic

e to

the

defe

ndan

t." E

x pa

rte

11

Citi

corp

Acc

epta

nce

Co.

, 1nc

.,715

So.

2d

199,

2O

5(A

la. 1

997)

. The

Ala

bam

a Le

gisl

atur

e la

ter

esta

blis

hed

deta

iled

proc

edur

es to

gov

ern

clas

sce

rtific

atio

n. S

ee A

t e. C

oDÐ

S 6

-5-6

4L.

The

Texa

sLe

gisl

atur

e lik

ewis

e en

acte

il co

mpr

ehen

sive

cla

ss-

actio

n re

form

, whi

ch s

et o

ut p

roce

dure

s th

at p

artie

sm

ust f

ollo

w d

urin

g cl

ass-

actio

n lit

igat

ion.

See

H.B

. 4,

78 L

eg. R

eg. S

ess.

(Tex

. 200

3) (c

odìfi

ed in

par

t at

TEx.

Cñ.

PR

¿,c.

& R

EM. C

oDE

$ 26

.001

et s

eq.);

see

also

Com

paq

Com

pute

r C

orp.

u. L

apra

y, 1

35 S

.W.3

d65

7, 6

71 (T

ex. 2

004)

(hol

ding

that

Tex

as s

tate

cou

rts"m

ust p

erfo

rm a

'rigo

rous

ana

lysi

s'bef

ore

rulin

g on

clas

s ce

rtific

atio

n to

det

erm

ine

whe

ther

all

prer

equi

site

s to

cer

tific

atio

n ha

ve b

een

met

").Si

mila

rly, F

lorid

a no

w re

quire

s th

at a

tria

l cou

rtm

ay "c

ertif

r a c

lass

act

ion

only

afte

r it d

eter

min

esth

roug

h rig

orou

s an

alys

is th

at th

e el

emen

ts o

f the

clas

s ac

tion

rule

hav

e be

en m

et."

Sem

inol

e C

nty.

u.

Tiuo

li O

rland

o As

socs

. Ltd

-,920

So.

2d

8I8,

823

-24

(FIa

. Dis

t. C

t. Ap

p. 2

006)

(rev

ersi

ng a

cla

ssce

rtific

atio

n or

der).

Oth

er s

tate

s ha

ve a

dopt

edsi

mila

r ref

orm

s. S

ee, e

.9.,

H.B

. 198

4 (L

a. 1

997)

(cod

fied

at L

A. C

oDE

Crv

. PR

oc. A

NN

. arts

. 591

-97)

(set

ting

out p

roce

dure

s th

at L

ouis

iana

cou

rts m

ust

follo

w w

hen

certi

fyin

g a

clas

s ac

tion)

; Bee

gal u

. Par

hW

. Ga.

IIery

,925

Ã.2

d 68

4, 6

97 (N

.J. 2

007)

(hol

ding

that

New

Jer

sey

cour

ts "s

houl

d un

derta

ke a

'rig

orou

san

alys

is' t

o de

term

ine

if th

e re

quire

men

ts o

f the

[cla

ss-c

ertif

rcat

ion]

rul

e ha

ve b

een

met

').R

efor

m h

as fo

cuse

d on

cla

ss c

ertif

icat

ion

for g

ood

reas

on-b

ecau

se o

f set

tlem

ent p

ress

ure,

the

clas

sce

rtific

atio

n de

cisi

on is

ofte

n t}:

'e o

nly

cont

este

dde

cisi

on th

at a

cou

rt m

akes

in a

cla

ss-a

ctio

n ca

se.

One

mec

hani

sm to

less

en th

e w

eigh

t atta

ched

to a

T2

certi

ficat

ion

(and

to p

rolo

ng th

e pe

riod

durin

g w

hich

the

clas

s re

pres

enta

tive

and

defe

ndan

t are

trul

yad

vers

e) is

to p

rovi

de fo

r im

med

iate

app

ella

te r

evie

wof

the

certi

ficat

ion

orde

r. M

any

stat

es h

ave

done

so.

,See

H.B

. 102

7 (C

olo.

200

3) (c

odifi

ed a

t CoL

o. R

Ev.

SrAr

. S 1

3-20

-901

); S.

B. 1

9 (G

a. 2

005)

(cod

ified

at G

a.C

oDE

ANN

. $ 9-

11-2

3(9)

); H

.B. 2

764

(I{an

. 200

4)(c

odifi

ed a

t KeN

. SrA

r. AN

N. $

60-

223(Ð

); H

.B. 1

211

(A{o

. 200

a) (c

odifi

ed a

t Mo.

REV

. SrA

r. S

512.

020(

3));

H.B

. 394

(Ohi

o 19

98)

(cod

ified

at O

HIo

REv

. CoD

EAN

I\L $

250

5.02

(B)(S

)); H

.B. 2

008/

S.8.

152

2 (T

enn.

2011

) (co

difie

d at

TEN

N. C

oDE

ANN

. $ 2

7-1-

125)

; H.B

.4

(Tex

. 200

3) (c

odifi

ed â

t TEx

. CIv

. PR

AC. &

REM

.C

oDE

S 51

.014

(âX3

)).St

ates

did

not

act

alo

ne. C

ongr

ess

also

got

invo

lved

, pas

sing

the

Cla

ss A

ctio

n Fa

irnes

s Ac

t in

2005

. Arrd

a n

umbe

r of

dec

isio

ns fr

om th

is C

ourt

also

help

ed to

rest

rain

som

e of

the

wor

st c

lass

-act

ion

abus

es.

See,

e.9

., C

ornc

ast

Cor

p. u

. Beh

rend

. L33

S.

Ct.7

426

(201

3);

Stan

dard

, Fire

Ins.

Co.

u. K

now

les,

133

S. C

t. 13

45 (2

013)

; Wal

-Mar

t St

ores

, Inc

. u.

Duh

es, I

}L S

. Ct.

2547

(2O

I7);

Dur

a Ph

arrn

., In

c. u

.Br

oud.

o, 5

44 U

.S. 3

36 (2

005)

.

II,

Low

er c

ourt

deci

sion

s w

eake

ning

the

inju

ry-in

-fact

requ

irem

ent h

ave

upse

t the

bala

nce

of o

ur ju

dici

al s

yste

rn.

The

resu

lt of

sta

te a

nd fe

dera

l ref

orm

s is

that

clas

s-ac

tion

abus

es, a

lthou

gh n

ot e

limin

ated

, hav

ebe

en le

ssen

ed in

man

y st

ates

, to

the

bene

fit o

f the

irci

tizen

s. T

he le

ad a

mic

us is

a p

rime

exam

ple.

Than

ks to

a c

ombi

natio

n of

legi

slat

ion

and

judi

cial

deci

sion

s, t

he A

mer

ican

Tor

t Ref

orm

Ass

ocia

tion

no

Iong

er li

sts

any

loca

lity

in A

.Iaba

ma

as a

"jud

icia

lhe

lihol

e." S

ee A

iu. T

oRT

RE¡

'oR

M A

ss'N

, 201

4120

15JU

DIo

IAT

HEL

LHoL

ES 7

-43

(2oL

5). A

¡d A

-laba

ma

has

cons

iste

ntly

topp

ed lis

ts o

f sta

tes

with

the

mos

tfa

vora

ble

busi

ness

clim

ates

. See

, e.9

,, SI

TESE

LÐC

TIoN

, To

P TE

N B

USI

NES

S C

LIM

ATES

(201

4);

SMAI

L Bu

srN

Ess

& EN

TREp

REN

EUR

SHIP

Cou

¡rcr¡,

,SM

AIL

BUSI

NES

S Po

LIcY

IND

EX 2

014:

RAN

KNG

TH

EPo

LIcY

MEA

SUR

ES A

ND

CoS

TS IM

PAC

TIN

G S

MÀL

LBU

SNES

S AN

D E

NTR

EPR

ENEI

JRSH

IP 2

(201

4) Q

istin

gAl

abam

a as

7 o

f 50)

.

But t

he c

aval

ier

non-

appl

icat

ion

of th

e st

andi

ngdo

ctrin

e to

Rul

e 23

cla

ss â

ctio

ns r

âise

s th

e sa

me

conc

erns

abo

ut d

ue p

roce

ss a

nd fa

irnes

s th

at th

eSt

ates

and

Con

gres

s ha

ve w

orke

d so

har

d to

redr

ess.

In c

ombi

natio

n, s

tatu

tory

dam

ages

and

no-

harm

Iaw

suits

ups

et th

e ba

lanc

e irr

our

litig

atio

n sy

stem

and

thre

aten

to re

turn

us

to th

e 'b

ad o

ld d

ays"

of

abus

ive

clas

s lit

igat

ion.

A.

Our

Con

stitu

tion

and

judi

cial

syst

em c

reat

e a

bala

nce

betw

een

secu

ring

the

right

of t

he in

jure

d to

rece

ive

rest

itutio

n an

d pr

otec

ting

defe

ndan

ts f

rom

abu

sive

litig

atio

n.Fu

ndam

enta

l fai

rnes

s re

quire

s th

at a

bal

ance

be

stru

ck b

etw

een

the

right

s of

pla

intif

fs a

ndde

fend

ants

. O

n th

e on

e ha

nd, o

ur s

yste

m g

ener

ally

allo

ws

anyo

ne w

ho is

har

med

to s

ue to

reco

ver

for

thei

r dam

ages

. On

the

othe

r, ce

rtain

pro

cedu

ral

safe

guar

ds-s

ome

prud

entia

l, ot

hers

con

stitu

tiona

l-ex

ist t

o pr

otec

t def

enda

nts

from

unf

air l

itiga

tion.

For

inst

ance

, in

case

s in

volv

ing

puni

tive

dam

ages

, th

is

I4C

ourt

has

poin

ted

to "[

e]le

men

tary

not

ions

of

fairn

ess"

in

inva

lidat

ing

awar

ds w

holly

disp

ropo

rtion

ate

to th

e un

derly

ing

offe

nse.

BM

W o

fN

. Am

., In

c. u

. Gor

e, 5

17 U

.S. 5

59, 5

74-7

6 (L

gg6)

.Th

is C

ourt

has

spok

en o

f the

nee

d to

,,st

rike

aba

lanc

e" b

etw

een

copy

'righ

t hol

ders

and

thos

eac

cuse

d of

infri

ngin

g th

at c

opyr

ight

. So

ny C

orp.

of

Am. u

. Uni

uers

al C

ity S

tudi

os, l

nc.,

464I

J.5.

41,

7, 4

42(1

984)

. And

this

Cou

rt ha

s ex

amin

ed e

fforts

by

Con

gres

s ín

qui

tam

act

ions

to b

alan

ce th

ego

vern

men

t's in

tere

st in

'?oo

t[ing

] ou

t fra

ud' a

gain

stth

e th

reat

of "

stifl

ing

para

sitic

law

suits

.,, G

raha

mC

nty.

Soi

l & W

ater

Con

seru

atio

n D

ist.

u. [J

.5. e

x re

l.W

ilson

, 559

U.S

. 2S0

, 294

-95

(2O

I0).

The

Con

stitu

tion

itsel

f hel

ps to

mai

ntai

n th

isba

lanc

e by

lim

iting

the

juris

dict

ion

of fe

dera

l cou

rtsto

"cas

es"

and

"con

trove

rsie

s.,'

U.S

. CoN

sr. a

rt. II

I,$

2, c

l. 1.

"[T]

he c

ore

com

pone

nt o

f sta

ndin

g is

an

esse

ntia

l and

unc

hang

ing

part

of th

e ca

se-o

r-co

ntro

vers

y re

quire

men

t of

Arti

cle

III."

Luja

n, á

04U

.S. a

t 560

. Tha

t cor

e co

mpo

nent

is it

self

mad

e up

of

thre

e el

emen

ts-in

jury

in f

act,

caus

atio

n, ã

ndre

dres

sabi

lity-

whi

ch a

re

,,the

irred

ucib

leco

nstit

utio

nal m

inim

um o

f sta

ndin

g.,,

Id,.

at 5

6O-6

I.Th

ese

requ

irem

ents

exi

st fo

r a re

ason

. The

yen

sure

that

pla

intif

fs a

re th

ose

who

hav

e th

emse

lves

been

inju

red

and

have

"a p

erso

nal s

take

in th

eou

tcom

e of

the

cont

rove

rsy

as to

ass

ure

that

con

cret

ead

vers

enes

s w

hich

sha

rpen

s th

e pr

esen

tatio

n of

issu

es."

Phillí

ps P

etro

leum

Co.

u. S

hutts

, 472

IJ.S

.79

7, 8

O4

(198

5). T

hey

prev

ent b

ount

y hu

ntin

glit

igat

ors

from

brin

ging

sui

ts w

here

thei

r onl

yco

ncre

te in

tere

st is

the

dam

age

awar

d its

elf.

Verm

ont

Agen

cy o

f Nat

ural

Res

. u. (

J.5,

ex

rel.

15

Steu

ens,

529

U.S

. 765

, 773

(200

0) ("

tAln

inte

rest

tha

is m

erel

y a

'byp

rodu

ct' o

f the

sui

t its

elf c

anno

t giv

,ris

e to

a co

gniz

able

inju

ry in

fact

for A

¡ticl

e II

stan

ding

pur

pose

s.").

And

they

ens

ure

that

a p

arty

ino

t sub

ject

to s

uit u

nles

s it

has

caus

ed h

arm

.

B.

The

stat

utor

y-da

mag

es c

lass

act

ior

and

the

effe

ctiv

e el

imin

atio

n of

thr

inju

ry-in

-fact

requ

irem

ent h

avt

upse

t the

bal

ance

.

The

com

bina

tion

of th

e cl

ass

actio

n an

d st

atut

or.'

dam

ages

, with

out

a ro

bust

inju

ry-in

-fac

requ

irem

ent t

o co

nstra

in th

em, m

akes

abu

srin

evita

ble.

Sta

tuto

ry d

amag

es a

nd th

e cl

ass

actio

rar

e bo

th p

ower

fuI t

ools

that

ena

ble

an a

ggrie

ver

party

to v

indi

cate

inju

ries

that

mig

ht o

ther

wis

e gr

unre

dres

sed.

But

toge

ther

, the

y cr

eate

"a p

erfe

cst

orm

in w

hich

two

inde

pend

ent

prov

isio

ns c

ombi

n<to

cre

ate

com

mer

cial

wre

ckag

e fa

r gre

ater

thar

eith

er c

ould

alo

ne."

Stillm

och

u. W

eis

Mar

hets

, Inc

.38

5 F.

App

'x 26

7, 2

76 (4

th C

ir. 2

010)

@ilk

inso

n, J

.co

ncur

ring)

.C

lass

act

ions

and

sta

tuto

ry d

amag

es s

ervt

esse

ntia

lly th

e sa

me

func

tion.

The

y en

cour

age

'litig

atio

n by

offs

ettin

g di

sinc

entiv

es to

sui

t whe

reth

e al

lege

d w

rong

doin

g in

volv

es n

omin

al fi

nanc

ia.

harm

." Sh

eila

B.

Sche

uerm

an, D

ue p

roce

s¿Fo

rgot

ten:

TÌt

e Pr

oble

m o

f Sta

tuto

ry D

amag

es a

nr)

Cla

ss A

ctio

ns,

74 M

:o. L

. REV

. 108

, 111

(200

9). I

not

her w

ords

, the

y se

ek to

mak

e lit

igat

ion

both

mor

em

arke

tabl

e an

d m

ore

attra

ctiv

e to

pla

intif

fs,

atto

rney

s.

1b

Cla

ss a

ctio

ns, b

y th

eir n

atur

e, e

ndan

ger

the

judi

cial

pro

cess

by

crea

ting

imm

ense

pre

ssur

e to

settl

e. S

ee, e

.g.,

AT&T

Mob

ílity

LLC

u. C

once

pcío

n,13

1 S.

Ct.

7740

, 175

2 (2

011)

('Bu

t whe

n da

mag

esal

lege

dly

owed

to te

ns o

f tho

usan

ds o

f pot

entia

lcl

aim

ants

are

agg

rega

ted

and

deci

ded

at o

nce,

the

risk

of a

n er

ror w

iII o

ften

beco

me

unac

cept

able

.Fa

ced

with

eve

n a

smal

l cha

nce

of a

dev

asta

ting

loss

,de

fend

ants

wi-l

l be

pres

sure

d in

to s

ettli

ngqu

estio

nabl

e cl

aim

s.");

Coo

pers

& L

ybra

nd, u

.Li

uesa

y,43

7 U

.S. 4

63, 4

76 (1

978)

("C

ertif

icat

ion

of a

Iarg

e cl

ass

may

so

incr

ease

the

defe

ndan

t's p

oten

tial

dam

ages

liabi

lity

and

litig

atio

n co

sts

that

he

may

find

it ec

onom

ical

ly p

rude

nt to

set

tle a

nd to

aba

ndon

a m

erito

rious

def

ense

."). A

¡d m

embe

rs o

f thi

s C

ourt

have

reco

gniz

ed th

at w

hen

the

clas

s ac

tion

and

stat

utor

y da

mag

es m

eet,

that

dan

ger

is m

agni

fied.

aW

here

cla

ss m

embe

rs h

ave

suffe

red

actu

al lo

ss,

such

mas

sive

cla

ss a

ctio

ns m

ight

be

the

nece

ssar

y-an

d ev

en d

esira

ble-

cons

eque

nce

of le

gisl

atio

nde

sign

ed to

mak

e th

e ag

grie

ved

who

le. B

ut if

act

ual

ha¡m

is n

ot re

quire

d to

brin

g su

ch a

n ac

tion,

then

the

tradi

tiona

l gat

ekee

pers

of s

tand

ing

and

clas

sce

rtific

atio

n fa

i-l, a

nd p

artie

s w

ho h

ave

not h

urt

a Se

e Sh

ødy

Gro

ue O

rthop

edíc

Ass

ocs-

, P.

A. u

. Alls

tøte

Ins.

Co.

,55

9 U

.S.3

93, 4

45 n

.3 (

2010

) (G

insb

urg,

J.,

diss

entin

g) (

,Ti¡h

enre

pres

enta

tive

plai

ntiff

s se

ek s

tatu

tory

dam

ages

, pïe

ssur

e to

settl

e m

ay b

e he

ight

ened

bec

ause

a c

lass

act

ion

pose

s th

e ris

kof

mas

sive

liab

ility

unm

oore

d to

act

ual i

njur

y.");

Tya

ns (

Jnio

nLL

C v

. Fed

,era

l Tfø

dn C

omm

h,53

6 U

.S. 9

15 (2

002)

({em

edy,

J., d

isse

ntin

g fro

m d

enia

l of c

ert.)

(not

ed th

at th

e pe

titio

ner

face

d a

cÌas

s ac

tion

of 1

90 m

illion

indi

vidu

als

seek

ing

stat

utor

yda

mag

es "

appr

oach

ing

9190

bi.J

-lion

," "q

ushi

ng J

iabi

lity',

that

held

con

sequ

ence

s fo

¡ 'b

oth

the

natio

nal e

cono

my

and

petit

ione

r's t

hous

ands

of e

mpl

oyee

s.").

17

anyo

ne fa

ce th

e pr

ospe

ct o

f dev

asta

ting-

and

poss

ibly

firm

-kiJ

ling-

win

dfal

l jud

gmen

ts.

C.

Wea

keni

ng th

e in

jury

-in-fa

ctre

quire

men

t col

laps

es th

e st

andi

ngan

alys

is â

nd th

e te

st fo

r cl

ass-

actio

n ce

rtific

atio

n,If

a m

ere

stat

utor

y vi

olat

ion

can

be a

n in

jury

infa

ct, s

tand

ing'

s tra

ditio

nal r

ole

as a

gat

ekee

per

toIit

igat

ion

falls

aw

ay, a

nd m

eani

ngfu

l cla

ss-a

ctio

nce

rtific

atio

n an

alys

is g

oes

with

it.

Des

pite

this

Cou

rt's

repe

ated

ass

ertio

n th

at in

jury

in fa

ct,

caus

atio

n, a

nd re

dres

sabi

lity

are

"the

irred

ucib

leco

nstit

utio

nal m

inim

um o

f sta

ndin

g,"

Lujø

n, 5

O4

U.S

. at 5

60, t

he lo

wer

cou

rts h

ave

furth

er re

duce

dth

e te

st w

hen

dete

rmin

ing

stan

ding

in st

atut

ory-

dam

ages

litig

atio

n. A

s th

e co

urt b

elow

adm

itted

inits

dec

isio

n, "

[w]h

ere

stat

utor

y rig

hts

are

asse

rteil,

how

ever

, our

cas

es h

ave

desc

ribed

the

stan

ding

inqu

iry a

s bo

iling

dow

n to

ess

entia

lly th

e in

jury

-in-

fact

pro

ng."

Rob

ins

u. S

pohe

o, In

c., 7

42 F

.3d

4O9,

4L4

(9th

Cir.

201

4) (i

nter

nal c

itatio

ns a

nd q

uotâ

tion

mar

ks o

mitt

e¿I)

cert.

grø

nted

., 13

5 S.

Ct.

1892

(201

5).

And

yet t

he lo

wer

cou

rt's

rule

wou

ld a

ctua

lly re

duce

the

stan

ding

ana

lysi

s ev

en fu

rther

to o

ne q

uest

ion-

ùid

the

defe

ndan

t al

lege

dly

fail

to co

nfor

m it

sbe

havi

or to

the

stat

ute?

If t

he a

nsw

er to

that

ques

tion

is y

es, t

he s

tand

ing

inqu

iry w

ould

esse

ntia

lly e

nd.

Wea

keni

ng th

e in

jury

-in-fa

ct re

qui.r

emen

t doe

sm

ore

than

und

erm

ine

Artic

le II

I sta

ndin

g; it

als

oco

llaps

es th

e cl

ass-

actio

n ce

rtifrc

atio

n an

alys

is. T

his

Cou

rt ha

s de

scrib

ed th

e cl

ass

actio

n as

an

18

exce

ptio

nal l

egal

dev

ice,

one

that

mus

t mee

tex

cept

iona

l sta

ndar

ds to

mov

e fo

rwar

d. W

al-M

ørt,

131

S. C

t- at

255

O-5

I. Th

ose

stan

dard

s of

num

eros

ity,

com

mon

ality

, ty

pica

lity,

and

ade

quat

ere

pres

enta

tion,

set

forth

in R

uIè

23, m

ust b

e"a

ffirm

ativ

ely

dem

onst

rate

[d]"

by th

e pa

rty s

eeki

ngcl

ass

certi

-fica

tion.

Id..

at 2

551.

The

se s

tand

ards

are

indi

spen

sibl

e, t

he a

naly

sis

of w

heth

er th

ey a

re m

et,

rigor

ous.

Id.

But u

nder

the

prec

eden

t set

by

the

low

er c

ourt,

the

Rul

e 23

sta

ndar

ds a

re a

ll bu

t dis

pens

ed w

ith a

ndth

e an

alys

is o

f whe

ther

or n

ot th

ey a

re m

et re

nder

edpe

rfunc

tory

. Cla

sses

see

king

stâ

tuto

ry d

amag

es te

ndto

num

ber i

n th

e hu

ndre

ds o

f tho

usan

ds,

if no

t the

milli

ons.

Sin

ce th

ese

actio

ns a

llege

a b

are

tech

nica

lvi

olat

ion

of th

e st

atut

e, is

sues

of c

omm

onal

ity a

ndt¡l

pica

lity

are

swep

t aw

ay. I

n fa

ct, n

amed

pla

intif

fsm

ay s

impl

y w

aive

cla

ims

of a

ctua

l dam

ages

in o

rder

to a

void

rais

ing

any

ques

tion

abou

t com

mon

ality

or

t¡aic

ality

. See

, e.9

., Sa

feco

Ins.

Co.

of A

m. u

. Bur

r,55

1 U

.S. a

7, 5

a (2

OO

7); M

unøy

u. G

MAC

Mor

tg.

Cor

p., 4

34 F

.3d

948,

953

(7th

Cir.

200

6) ('

IJnl

ess

adi

stric

t cou

rt fin

ds th

at p

erso

nal i

njur

ies

are

larg

e in

rela

tion

to s

tatu

tory

dam

ages

, a

repr

esen

tativ

epl

aìnt

iff m

ust b

e al

low

ed to

fore

go c

laim

s fo

rco

mpe

nsat

ory

dam

ages

in o

rder

to a

chie

ve c

lass

certi

ficat

ion.

"). T

his

situ

atio

n st

ands

in d

irect

cont

rast

to tr

aditi

onal

cla

ss-c

ertif

icat

ion

anal

ysis

,w

here

the

plai

ntiff

can

not p

reva

iì by

show

ing

"mer

ely

that

they

hav

e al

l suf

fere

d a

viol

atio

n of

the

sam

e pr

ovis

ion

of la

w."

WaI

-Mar

l, 13

1 S.

Ct.

at 2

55L.

Of c

ours

e, o

nce

the

clas

s is

cer

tifie

d, th

e ca

se is

esse

ntia

lly o

ver,

with

set

tlem

ent

follo

wilg

qui

ckly

.Th

us, t

he c

lass

act

ion

is tu

rned

on

its h

ead.

The

19

mor

e in

sign

ficân

t the

act

ual d

amag

es, t

he m

ore

Iikel

y a

win

dfal

l cla

ss a

ctio

n w

ilÌ s

urvi

ve th

ece

rtific

atio

n pr

oces

s an

d fo

rce

a pr

ofita

ble

settl

emen

t.Ef

forts

by

the

dist

rict c

ourts

to m

anuf

actu

re s

ome

sort

of re

stra

int o

n no

-har

m c

lass

act

ions

hav

e fa

iled.

Face

tl w

ith a

n ex

plos

ion

of n

ew li

tigat

ion,

dis

trict

judg

es h

ave

been

figh

ting

â re

ar-g

uard

act

ion

agai

nst w

incl

fall

clas

s ac

tions

, ref

usin

g to

certi

fyth

em u

nder

the

"sup

erio

rity''

ana

lysi

s. S

ee g

ener

ally

Hoþ

S. H

osfo

rd, A

uoid

ing

Anni

h,ila

tion:

Wy

Tria

lJu

d,ge

s Sh

ould

. Ref

use

to C

ertif

y A

FAC

TA C

lass

Actio

n fo

r Sta

tuto

ry D

ømøg

es W

here

the

Rec

ouer

yW

ould

, Lih

ely

Leau

e th

,e D

efen

d'øn

t Fac

ing

Imm

inen

tIn

solu

ency

, 81

MIs

s. L

.J. 7

941

(201

2). U

nder

RuI

e23

(bX3

), a

party

see

king

cla

ss c

ertif

icat

ion

mus

tsh

ow th

at a

cla

ss a

ctio

n is

"sup

erio

r to

othe

rav

aila

ble

met

hods

for t

he fa

irfl a

nd e

ffrci

entfl

adju

dica

t[ion

] of t

he c

ontro

vers

y."

FED

. R. C

tv. P

.23

(bX3

). So

me

dist

rict c

ourts

hav

e he

ld th

at b

ecau

seda

mag

es s

ough

t are

so

out o

f pro

porti

on t

o th

e ac

tual

harm

suf

fere

d, th

e cl

ass

actio

n is

not

sup

erio

r to

anin

divi

dual

act

ion

and

certi

ficat

ion

is in

appr

opria

te.

This

app

roac

h, h

owev

er, h

as a

n un

deni

able

flaw

-it la

cks

supp

ort i

n R

ule

23. T

he S

even

thC

ircui

t ove

rtu¡n

ed, o

n ab

use

of d

iscr

etio

n gr

ound

s, a

dist

rict c

ourt'

s re

fusa

l to c

ertif

y a

clas

s ac

tion

brou

ght b

y pr

ofes

sion

al p

lain

tiffs

with

mor

e th

anfif

ty n

o-ha

rm c

lass

act

ions

und

er th

eir b

elt.

Judg

eEa

ster

broo

k, w

ritin

g fo

r th

e Se

vent

h C

ircui

t,re

ject

ed w

hat h

e vi

ewed

as

an a

ttem

pt b

y th

e di

stric

tju

dge

to "

curta

il th

e ag

greg

ate

dam

ages

for

viol

atio

ns h

e de

emed

triv

ial,"

not

ing

that

sta

tute

s"m

ust b

e en

forc

ecl r

athe

r tha

n su

bver

ted.

" M

urra

y,

20

434

F.3d

at 9

53-5

4. F

ollo

win

g th

e Se

vent

h C

ircui

t'sÌe

ad, t

he N

inth

Circ

uit í

n Ba

tem

øn u

. Am

eric

anM

ultí-

Cin

ema,

I¿c.

foun

d a

dist

rict c

ourt

judg

eab

used

his

dis

cret

ion

in re

fusi

ng to

cer

tify,

on

supe

riorit

y gr

ound

s, a

cla

ss s

eeki

ng $

290

milli

on fo

rte

chni

cal v

iola

tions

of t

he F

air a

nd A

ccur

ate

Cre

dit

Tran

sact

ions

Act

(FAC

TA).

623

F.3d

708

, 712

-13

(gth

Cir.

201

0). B

oth

cour

ts c

oncl

uded

that

any

exc

essi

veaw

ard

coul

d be

redu

ced

afte

r tria

l, a

smal

l com

fort

tode

fend

ants

pre

ssur

ed t

o se

ttle

afte

r cer

tific

atio

n.

IlL

The

Cou

rt ca

n re

stor

e ba

lanc

e by

reite

ratin

g th

at in

jury

in fa

ct re

quire

sac

tual

har

m.

Wha

t dis

trict

judg

es c

anno

t acc

ompl

ish

thro

ugh

ad h

oc ju

stifi

catio

ns, t

his

Cou

rt ca

n do

sin

ply

byre

itera

ting

wha

t it

has

said

aga

in a

nd a

gain

-st

andi

ng re

quire

s a

conc

rete

inju

ry. N

o ne

w ru

les

orte

sts

are

neei

led.

The

Con

stitu

tion'

s Ar

ticle

III c

ase

or c

ontro

vers

y re

quire

men

t pro

vide

s th

e an

swer

. By

reaf

firm

ing

this

con

stitu

tiona

l prin

cþIe

, the

Cou

rtca

n re

stor

e ba

lanc

e to

the

syst

em, e

nsur

ing

acce

ss to

the

cour

ts fo

r tho

se w

ho h

ave

been

har

med

whi

lepr

otec

ting

the

ilue

proc

ess

right

s of

ilefe

ndan

tsag

ains

t abu

sive

litig

atio

n.At

the

sam

e tim

e, th

e C

ourt

can

help

to e

nsur

eth

at s

tatu

tory

dam

ages

acc

ompl

ish

thei

r obj

ectiv

es.

By re

quiri

ng a

ctua

l har

m, t

he C

ourt

will

enco

urag

eac

tion

by p

lain

tiffs

who

hav

e a

stak

e in

the

litig

atio

nbe

yond

the

dam

age

awar

d its

elf.

The

pow

erfu

l too

lsC

ongr

ess

incl

uded

in st

atut

ory-

dam

ages

leg

isla

tion

will

be d

irect

ed a

t har

mfu

l pra

ctic

es a

s op

pose

d to

mer

e te

chni

cal v

iola

tions

.

27

A.

A pr

oper

app

licat

ion

of th

e in

jury

-in

-fact

requ

irem

ent

will

elim

inat

eun

fair

win

dfal

l cla

ss a

ctio

ns.

An a

ctua

l inju

ry is

fou

ndat

iona

l to

the

cons

titut

iona

l sta

ndin

g in

quiry

. In

orde

r to

sue,

âpl

aint

iff m

ust h

ave

been

har

mec

l by

a de

fend

ant i

n a

way

that

is re

rlres

sibl

e in

cou

rt. T

he p

rinci

ple

of "n

oha

rm, n

o to

rt'is

axi

omat

ic in

the

law

; no

mat

ter h

owre

ckle

ss th

e dr

iver

, no

mat

ter h

ow m

any

law

s he

brea

ks, w

ithou

t har

m th

ere

is n

o ca

use

of a

ctio

n.Bu

t in

stat

utor

y-da

mag

es c

ases

, Iow

er c

ourts

have

dra

mat

ical

ly d

epar

ted

from

thes

e pr

inci

ples

base

d on

a m

isin

terp

reta

tion

of t

his

Cou

rt's

prec

eden

t.1.

Low

er c

ourts

hav

e w

hittl

ed a

way

the

inju

ry-in

-fa

ct re

quire

men

t by

rely

ing

exte

nsiv

ely

upon

tlic

ta in

a lin

e of

cas

es-S

ierrø

CIu

b u.

Mor

ton,

405

lJ.S

. 727

(1,9

72),

Lind

,a R

.S. u

. Ric

hard

. D

., 4l

O U

.S. 6

14(1

973)

, and

Wør

th u

. Sel

d.in

, 422

U.S

. 490

(197

5).

Wør

th }:

.as

been

par

ticul

arþ

infL

uent

ial.

Ther

e,qu

otin

g fro

m a

foot

note

in L

índ,

ø -R

.S.,

the

Cou

rtex

plai

ned

that

"[tlh

e ac

tuâl

or t

hrea

tene

d in

jury

requ

ired

by A

rt. II

I may

exi

st s

olel

y by

virt

ue o

{'st

atut

es c

reat

ing

lega

1 rig

hts,

the

inva

sion

of w

hicb

crea

tes

stan

ding

;" 42

2U.5

.490

, 500

(197

5).

This

sta

tem

ent c

anno

t be

read

to e

limin

ate

the

inju

ry-in

-fact

requ

irem

ent.

It i¡s

tead

sup

ports

th€

inno

cuou

s pr

opos

ition

that

Con

gres

s ca

n cr

eâte

ne\

ÃIe

gal r

ight

s an

d ne

w c

ause

s of

act

ion;

Con

gres

s "h

arth

e po

wer

to d

efin

e in

jurie

s an

d ar

ticul

ate

chai

ns o

caus

atio

n th

at w

i-ll g

ive

rise

to a

cas

e or

con

trove

rsJ

whe

re n

one

exis

ted

befo

re."

Luja

n,50

4 U

.S. a

t 58(

22

@en

nedy

, J.,

conc

urrin

g) (

citín

g W

ørth

). Th

at th

eC

ourt

did

not i

nten

d to

laun

ch a

radi

cal d

epar

ture

from

the

inju

ry-in

-fact

req

uire

men

t is

sup

porte

d by

the

fact

that

the

Cou

rt 'h

as s

eldo

m in

voke

d its

forn

ulat

ion

[of a

ctua

l or t

hrea

tene

d in

jury

]" se

t for

thin

t]ne

War

th li

ne o

f cas

es. J

ohn

S. H

addo

ck,

Artic

ulat

ing

A "R

atio

nal C

onne

ctio

n" R

equí

rem

ent

inAr

tícle

III S

tand

ing,

66

SrAN

. L. R

Ev. 1

425,

142

7(2

Ot4

).

Low

er c

ourts

, ho

wev

er, h

ave

show

n no

retic

ence

in a

ppþi

ng W

arth

bro

aðJy

, pa

rticu

larly

whe

nst

atut

ory

dam

ages

are

invo

lved

. See

id,.

("In

cont

rast

,ci

rcui

t cou

rts re

gula

rly r

ecite

this

lang

uage

to fi

ndAr

ticle

III

stan

ding

on

the

basi

s of

a st

atut

ory

viol

atio

n.");

Ha.

mm

er u

. San

n's

8., I

nc.,

754

F.gd

492

,49

8 (8

th C

ír. 2

0L4)

cer

t. d.

enie

d, 1

85 S

. Cr.

1125

(201

5) ("

Not

ably

, thi

s la

ngua

ge is

with

out l

imita

tion:

the

actu

al-in

jury

req

uire

men

t may

be

satis

fre d

sol

ely

by th

e in

vasi

on o

f a le

gal r

ight

that

Con

gres

scr

eate

d,.")

; Tou

rgem

an u

. Col

lins

Fin.

Ser

us.,

Inc.

, 755

F.3d

110

9, 1

114

(gth

Ct.2

0t4)

; Don

oghu

e u.

But

td,o

gIn

uest

ors

Gen

. P'sh

ip, 6

96 F

.gd

I7O

, L75

(2d

Cir.

2072

). But a

s th

is C

ourt

has

expÌ

aine

d, W

arth

doe

s no

tsu

ppor

t the

pro

posi

tion

that

Con

gres

s ha

s th

eco

nstit

utio

nal p

ower

to c

onfe

r st

andi

ng w

ithou

tac

tual

har

m. I

nste

ad, C

ongr

ess

crea

tes

new

cha

ins

ofca

usat

ion

agai

nst a

con

stitu

tiona

l ba

ckdr

op,

subj

ect

to th

e sa

me

stan

ding

req

uire

men

t of i

njur

y in

fact

as

any

othe

r cau

se o

f act

ion.

2. T

he lo

wer

cou

rts' r

eadi

ng o

f Wør

th w

ould

giv

eC

ongr

ess

plen

ary

auth

ority

ove

r st

andi

ng.

It is

bla

ck

1&ì: i'l: ... .)å f

23

lette

r law

that

eve

ry li

tigat

ion

requ

ires

a ca

use

ofac

tion,

an

inju

ry in

fact

, and

a re

med

y. C

ongr

ess

can

prov

ide

the

caus

e of

act

ion

and

the

rem

edy,

but

onl

yth

e lit

igan

t can

sup

ply

the

harm

, mak

ing

inju

ry in

fact

"a h

ard

floor

of A

rticl

e III

juris

dict

ion

that

cann

ot b

e re

mov

ed b

y st

atut

e."

Sum

mer

s u.

Eør

thIs

land

Inst

.,555

U.S

. 488

,497

(2O

Og)

.

The

low

er c

ourt'

s op

inio

n cr

ashe

s th

roug

h th

atflo

or. I

t al

low

s no

-inju

ry p

lain

tiffs

to u

se th

eex

iste

nce

of a

caus

e of

act

ion

anal

a re

med

y to

boot

stra

p th

emse

lves

stra

ight

pas

t the

inju

ry-in

-fact

requ

irem

ent

and

into

cou

rt. B

ut a

ithou

gh th

evi

olat

ion

of a

sta

tute

can

pro

vide

a c

ause

of a

ctio

nan

d a

rem

edy,

it ca

nnot

, by

itse

lf, r

esul

t in

an in

jury

in fa

ct.

Con

gres

s ha

s no

con

stitu

tiona

l aut

horit

y to

pas

s a

stat

ute

that

say

s ot

herw

ise.

Tln

e Lu

jøn

cour

t, in

inte

rpre

ting

the

War

th li

ne o

f câs

es, e

xplâ

ined

,"[S

tatu

tory

] br

oaile

ning

fof

l the

cat

egor

ies

of in

jury

that

may

be

alle

ged

in su

ppor

t of s

tand

ing

is a

diffe

rent

mat

ter f

oom

aba

ndon

ing

the

requ

irem

ent

that

the

pârty

see

king

revi

ew m

ust h

imse

lf ha

vesu

ffere

d an

inju

ry."

504

U.S

. at 5

78. A

rrd th

e C

ourt

in W

arth

reco

gniz

ed th

is lim

itatio

n as

wel

l-"O

fco

urse

, Ar

t. III

's re

quire

men

t re

mai

ns: t

he p

Ìain

tiff

still

mus

t alle

ge a

dis

tinct

and

pal

pabl

e in

jury

tohi

mse

lf, e

ven

if it

is a

n in

jury

sha

red

by a

larg

e cì

ass

of o

ther

pos

sibl

e lit

igan

ts."

War

th,4

22U

.S.

at 5

O\.

Alth

ough

Con

gres

s ha

s th

e po

wer

to cr

eate

ast

atut

ory

caus

e of

act

ion

and

rem

edy,

it c

anno

tco

nfer

sta

ndin

g on

a p

lain

tiff w

ho is

not

act

ually

harm

ed. F

or e

xam

ple,

prio

r to

the

pass

age

of th

eFa

ir C

redi

t Rep

ortin

g Ac

t (FC

RA)

, an

aggr

ieve

d

24pa

rty m

ight

hav

e be

en a

ble

to s

ue a

cre

dit r

epor

ting

agen

cy u

nder

any

num

ber o

f com

mon

law

or

stat

utor

y ca

uses

of a

ctio

n. B

ut in

ord

er to

hav

eAr

ticle

III s

tand

ing

to d

o so

, he

or s

he w

ould

nee

d to

alle

ge a

n ac

tual

inju

ry.

Con

gres

s ca

nnot

rem

ove

that

requ

irem

ent

bypa

ssin

g a

new

stâ

tute

. It c

an c

reat

e a

new

cau

se o

fac

tion

to s

impl

ify r

ecov

ery

for i

njur

ed p

artie

s. It

can

crea

te s

tatu

tory

dan

ages

in c

ases

whe

re a

ctua

lda

mag

es a

re s

mal

l or d

ifÊcu

Ìt to

asc

erta

in, a

nd it

can

crea

te a

righ

t of a

ctio

n in

case

s ot

herw

ise

barre

d by

prud

entia

l sta

ndin

g ru

les.

It ca

n ev

en c

reat

e a

new

Iega

l rig

ht th

e vi

olat

ion

of w

hich

may

giv

e ris

e to

ala

wsu

it, s

uch

as c

allin

g to

col

lect

a d

ebt a

_fte

r ace

rtain

hou

r at n

ight

. Wha

t it c

anno

t do

is e

limin

ate

the

requ

irem

ent

for a

n in

jury

in fa

ct th

at is

mor

eth

an th

e m

ere

viol

atio

n of

the

stat

ute

itsel

f. It

cann

ot"e

rase

Arti

cle

III's

stan

ding

requ

irem

ents

by

stat

utor

ily g

rant

ing

the

right

to s

ue to

a p

lain

tiff

who

wou

id n

ot o

ther

wis

e ha

ve s

tanù

ing.

" Røi

nes

u.By

rd,,

527

U.S

. 811

, 820

n.3

(199

7). O

ther

wis

e,st

andi

ng w

ould

be

limite

d on

ly b

y th

e w

ill of

Con

gres

s, n

ot th

e le

tter o

f the

Con

stitu

tion.

B.

A ro

bust

sta

ndin

g re

quire

rnen

the

lps

acco

mpl

ish,

rat

her

than

hind

ers,

the

goal

s of

sta

tuto

ry-

darn

ages

law

s.

Req

uirin

g a

party

see

king

stâ

tuto

ry d

amag

es t

osh

ow a

ctua

l har

m w

ould

not

onl

y co

nstra

in a

busi

vean

d un

fair

clas

s ac

tions

. It

wou

ld a

lso

bette

r ser

veth

e go

als

of s

tatu

tory

-dam

ages

law

s th

an th

e lo

wer

cour

t's u

nbou

nded

app

roac

h to

sta

ndin

g.

)äå;

i

ffi;r

'ii,Ê;

i *i :Í..

'åì I tj I I 1l i j il ,i I I : i I l ; l

25

Stat

utor

y da

mag

es s

erve

sev

era-

l pur

pose

s. T

hey

enco

urag

e ci

tizen

s to

enfo

rce

the

law

, whi

ch is

parti

cula

rly im

porta

nt â

t a ti

me

of s

trapp

ed s

tate

and

fede

ra-l

budg

ets.

The

y ea

se a

cces

s to

the

cour

tsby

allo

win

g fo

r rec

over

y, e

ven

whe

n da

mag

es a

resm

all o

r diff

icul

t to

quan

tify.

Arrd

they

hel

p to

ens

ure

com

plia

nce

by th

e in

dust

ries

they

regu

late

. Win

dfal

lcl

ass

actio

ns u

nder

mile

thes

e go

als.

1. L

egis

lativ

e hi

stor

y de

rnon

stra

tes

that

Con

gres

sen

acte

d st

atut

ory-

ilam

ages

law

s to

cor

rect

ser

ious

abus

es a

nd fi

ll ga

ps i¡

r the

law

, not

to a

llow

win

dfal

lcl

ass

actio

ns fo

r tec

hnic

al v

iola

tions

. For

inst

ance

,w

hen

it en

acte

d th

e Fa

ir D

ebt C

olle

ctio

ns P

ract

ices

Act,

Con

gres

s po

inte

d to

"the

use

of a

busi

ve,

dece

ptiv

e, a

nd u

nfai

r deb

t col

lect

ion

prac

tices

" th

at"c

ontri

bute

to th

e nu

mbe

r of p

erso

nal b

ankr

uptc

ies,

to m

arita

l ins

tabi

lity,

to th

e lo

ss o

f job

s, a

nd to

inva

sion

s of

indi

vidu

al p

rivac

y."

15 U

.S.C

. $ 1

692(

a).

It al

so n

oted

that

exi

stin

g la

ws

wer

e "in

adeq

uate

topr

otec

t con

sum

ers.

" 15

U.S

.C. S

169

2@).

Con

gres

sde

scrib

ed th

e ac

cura

te c

redi

t rep

ortin

g re

quire

men

tsin

the

FC

RA

as "e

ssen

tial t

o th

e co

ntin

ued

func

tioni

ng o

f the

ban

king

sys

tem

," an

d ne

cess

ary

toen

sure

that

repo

rting

age

ncie

s "e

xerc

ise

thei

r gra

vere

spon

sibi

litie

s w

ith fa

irnes

s, im

parti

ality

, and

are

spec

t for

the

cons

umer

's rig

ht to

priv

acy.

" 15

U.S

.C. $

168

1(a)

(1),

(a)(a

). Th

e le

ad H

ouse

spo

nsor

of

FAC

TA d

escr

ibed

the

legi

slat

ion

as c

ritic

al in

the

frght

aga

inst

iden

tity

thef

t, w

hich

ât t

he ti

me

was

estim

ated

to c

ost A

mer

ican

con

sum

ers

$50

billio

n a

year

. 149

Con

g. R

ec. 2

1734

(2O

O3)

(sta

tem

ent

ofR

ep.

26

Bach

us).s

In u

rgin

g hi

s co

lleag

ues

to su

ppor

tFA

CTA

, he

sugg

este

d it

was

as

"impo

rtant

in fi

nanc

eas

the

natio

nal i

nter

stat

e hi

ghw

ay s

yste

m is

to u

s in

trans

porta

tion.

" .Id

.

Thes

e la

ws

and

othe

rs li

ke th

em w

ere

enac

ted

toad

dres

s se

rious

abu

ses

that

thre

aten

ed n

ot o

nly

cons

umer

s, b

ut th

e fo

unda

tions

of t

he e

cono

my.

Con

gres

s cr

eate

d po

wer

fui t

oois

to e

nd th

ose

abus

esan

d m

ake

the

inju

red

who

le. B

ut a

wea

kene

d in

jury

-in

-fact

req

uire

men

t allo

ws

ente

rpris

ing

parti

es to

dire

ct th

ese

tool

s at

nar

row

tech

nica

l sta

tuto

ryvi

olat

ions

that

bea

r litt

le re

latio

n to

the

prob

lem

sC

ongr

ess

soug

ht to

add

ress

.2.

The

low

er c

ourts

' rul

e en

cour

ages

litig

atio

n to

redr

ess

tech

nica

l vio

latio

ns, i

nste

ad o

f foc

usin

glit

igat

ion

on th

e m

ost s

erio

us v

iola

tions

of s

tâtu

tory

right

s. T

he ju

dici

al s

yste

m is

alre

ady

expe

nùin

gsi

gnfic

ant

reso

urce

s ad

judi

catin

g th

ese

no-h

arm

,w

ind-

fall

clas

s ac

tions

. It

Leys

oto

u. M

ama

Mia

1.,

Inc.

, t}re

pla

intif

f sou

ght t

o br

ing

a w

ird-fa

ll cl

ass

actio

n on

beh

alf o

f 46,

000

mem

bers

for u

p to

$46,

000,

000

for t

echn

ical

vio

latio

ns o

f FAC

TA th

atca

used

no

harm

to th

e cl

ass

mem

bers

. 25

5 F.

R.D

.69

3,69

4-95

(S.D

. FIa

. 200

9). t

he d

efen

dant

was

aIo

cal r

esta

uran

t w

ith a

ppro

xim

atel

y 94

0,00

0 in

asse

ts. I

n an

othe

r FA

CTA

cas

e, L

opez

u. K

B To

ysR

etai

l, In

c., p

lain

tiff s

ough

t up

to 9

2.9

billio

n in

dam

ages

bec

ause

the

defe

ndan

t pr

inte

d th

e fir

stfo

ur, r

athe

r th

an ju

st th

e la

st fr

ve, d

igits

of h

is c

redi

tca

rd n

umbe

r. N

o. C

V 07

-144

-JFW

(C

Wx)

(C

.D. C

aI.

JuIy

18,

200

7) @

oc. 2

8). T

he fi

rst f

our d

isits

of a

27

cred

it ca

rd n

umbe

r pr

ovid

e no

info

rmat

ion

abou

t the

cust

omer

, bu

t rat

her

iden

tify

the

issu

ing

bank

. Id.

InPa

rher

u, T

ime

War

ner E

nter

taín

men

t C

o., L

.P.,

plai

ntiff

sou

ght c

ertif

icat

ion

of a

cla

ss o

f 12

milli

on to

purs

ue u

p to

$12

billi

on fo

r vio

latio

ns o

f the

Cab

lePr

ivac

y Ac

t. 33

1 F.

3d 1

3, 2

5-26

(2d

Ctu

. 200

3)(N

ewm

an,

J, c

oncu

rring

). Th

e Se

cond

Circ

uit n

oted

that

the

"pro

spec

t of a

stu

nnin

gly

larg

e da

mag

esaw

ard

loom

s as

the

resu

lt of

tech

nica

-l vi

olat

ions

of

the

Cab

le A

ct th

at a

ffect

pot

entia

lly m

illion

s of

subs

crib

ers.

" Id.

at 2

7. A

rrd in

Tay

lor u

. Acx

iom

Cor

pora

tion,

pla

intif

fs la

unch

ecl a

no-

harm

cla

ssac

tion

seek

ing

stat

utor

y da

mag

es u

nder

the

Driv

ers'

Priv

acy

Prot

ectio

n Ac

t of $

2,50

0 fo

r 20

milli

on c

lass

mem

bers

-for a

tota

l aw

ard

of $

5 tri

llion.

No.

2:0

7-cv

-000

1 (E

.D. T

ex. J

an.4

,20O

7) (D

oc. 1

). Th

ese

are

only

a fe

w o

f the

man

y no

-har

m, w

incl

fall

clas

sac

tions

that

hav

e be

en fi

led

unde

r st

atut

ory-

dam

ages

law

s. S

ee, e

.€'.,

Sch

euer

man

, sup

ra a

t, 10

4-07

, 111

-15.

Dec

ades

of e

xper

ienc

e ha

ve il

emon

stra

ted

that

clas

s ac

tions

tend

to fo

ilow

the

path

of l

east

resi

stan

ce. T

his

prob

lem

is

mos

t obv

ious

lyde

mon

stra

ted

by th

e ph

enom

enon

of t

he "p

iggy

-bac

lC'

or "c

oat-t

aii"

clas

s ac

tion

that

has

pla

gued

effo

rts to

enco

urâg

e pr

ivat

e en

forc

emen

t of t

he la

w. I

nste

ad o

ffrl

ling

enfo

rcem

ent g

aps,

"[e]

mpi

rical

dat

a sh

ow th

at. .

. cl

ass

actio

n la

wye

rs p

redo

min

antly

file

'copy

cat'

or 'c

oatta

il' Ia

wsu

its th

at fo

llow

on

the

heel

s of

gove

rnm

ent

inve

stig

atio

ns."

John

H.

Beis

ner,

Mat

thew

Sho

rs, J

essi

ca D

avid

son

MiII

er, C

loss

Actio

n "C

ops"

: Pub

lic S

erua

nts

or

Priu

ate

Entre

pren

eurs

?, 5

7 SI

AN. L

. REv

. 144

1, 1

453

(200

5).

The

reas

on is

pur

e do

llars

and

cen

ts--{

Iass

cou

nsel

5 Av

øila

b le

øt }

l'ttp:

//ww

w.

gpo.

gov

/fdsy

s/pk

g/C

REC

-200

3-09

-1O

/pcI

flCR

EC-2

003-

09-1

0.pd

f (a

st v

isite

d Ju

ly 7

, 201

5).

28

"pre

fer

'no

rese

arch

' law

suits

that

app

ear l

ikel

y(fr

om th

e in

vest

igat

ion

itsei

f) to

yie

ld lu

crat

ive

settl

emen

ts w

ith o

nly

a m

inim

al in

vest

men

t of t

ime

and

mon

ey."

Id. a

t 745

3-54

. As

a re

sult,

this

t¡1p

e of

clas

s ac

tion

fai-l

s to

"bro

aden

the

scop

e of

Ìaw

enfo

rcem

ent,

but r

athe

r on

ly in

tens

ifies

the

pena

lty."

John

C. C

offe

e, J

r., R

escu

íng

the

Priu

ate

Atto

rney

Gen

eral

: Why

the

Mod

,el o

f the

Law

yer

As B

ount

yH

unte

r Is

Not

Wor

hing

, 42

MD

. L. R

sv. 2

75, 2

23(1

e83)

.

Muc

h in

k ha

s be

en s

pille

d on

way

s to

bet

ter

chan

nel s

o-ca

lled'þr

ivat

e at

torn

eys

gene

rali'

tow

ard

frllin

g th

e ga

ps in

pub

lic e

nfor

cem

ent o

f the

law

. But

wea

keni

ng th

e in

jury

-in-fa

ct re

quire

men

t doe

s no

the

lp. B

ecau

se o

f the

com

mon

ality

and

typi

calit

yan

alys

is o

f Rul

e 23

(a),

clas

s co

unse

l hav

e an

ince

ntiv

e to

see

k ou

t nar

row

, tec

hnic

al v

iola

tions

of

the

law

. The

se a

ctio

ns a

re m

ore

likel

y to

sur

vive

the

certi

ficat

ion

proc

ess

and

resu

lt in

a p

rofrt

able

settl

emen

t. O

n th

e ot

her

hand

, the

mor

e se

rious

the

viol

atio

n, t

he m

ore

serio

us th

e ha

rm-a

nd th

e m

ore

com

plic

ated

the

fact

pat

tern

. If g

iven

the

choi

cebe

twee

n a

diffi

cult

case

invo

lvin

g ac

tual

har

m a

nd a

stra

ight

forw

ard,

no-

harm

cla

ss a

ctio

n, c

lass

cou

nsel

will

choo

se th

e la

tter.

3. F

inal

ly, a

lthou

gh C

ongr

ess

certa

inly

inte

nded

for c

itize

n-en

forc

emen

t of t

he la

w, d

oing

so

with

out a

mea

ning

ful s

tand

ing

requ

irene

nt r

aise

s th

e sp

ecte

rof

ove

renf

orce

men

t. As

this

Cou

rt ha

s re

cogn

ized

,w

hen

a go

vern

men

t age

ncy

is in

volv

ed,

a co

mpl

exba

lanc

ing

act h

elps

to li

mit

actio

ns to

thos

e th

at a

rem

ost i

mpo

rtant

. "An

age

ncy

gene

rally

can

not a

ctag

ains

t eac

h te

chni

cal v

iola

tion

of th

e st

atut

e it

isch

arge

d w

ith e

nfor

cing

." H

echl

er u

. Cha

ney,

4?0

U.S

.

.;ffi-

,#r

. ä .$ '.tu-

.,'ti -rr

l ä 'i ,ì: .ir !: ä f t, iì ll Ì. I i l ! ' :

.)o

821,

831

(198

5). R

athe

r, an

age

ncy

face

d w

ith a

clec

isio

n ab

out w

heth

er to

pur

sue

an e

nfor

cem

ent

actio

n "m

ust n

ot o

nly

asse

ss w

heth

er a

vio

latio

n ha

soc

curre

d,"

but m

ust a

lso

look

to "w

heth

er a

genc

yre

sour

ces

are

best

spe

nt o

n th

is v

iola

tion

or a

noth

er,

whe

ther

the

agen

cy is

like

ly to

succ

eed

if it

acts

,w

heth

er th

e pa

rticu

lar e

nfor

cem

ent a

ctio

n re

ques

ted

best

fits

the

agen

cy's

over

all p

olic

ies,

and

, ind

eed,

whe

ther

the

agen

cy h

as e

noug

h re

sour

ces

toun

derta

ke t

he a

ctio

n at

aIl.

" Id,

.

In p

rivat

e ac

tions

, the

doc

trine

of s

tand

ing,

and

parti

cula

rly it

s in

jury

-in-fa

ct r

equi

rem

ent,

serv

es a

role

as

a si

mila

r che

ck o

n ov

eren

forc

emen

t. C

ourts

are

not "

publ

icly

fund

ed fo

rum

.s fo

r the

ven

tilat

ion

ofpu

blic

grie

vanc

es o

r th

e re

finem

ent o

fju

rispr

uden

tial u

nder

stan

ding

." Va

lley

Forg

eC

hris

tíøn

CoI

I. u.

Am

eric

øtls

Un¿

ted

for S

epør

øtio

n of

Chu

rch

& St

ate,

Inc.

, 454

U.S

. 464

, 473

í982

).Vi

olat

ions

of t

he la

w, n

o m

atte

r ho

w s

erio

us, d

o no

tgi

ve li

tigan

ts "

a sp

ecia

l lic

ense

to ro

am th

e co

untry

''in

sea

rch

of w

rong

s to

righ

t. Id

. at 4

87. E

ven

in q

zitø

ln c

ases

, thi

s C

ourt

has

foun

d th

at re

lato

rs h

ave

stan

tling

not

on

the

basi

s of

a s

tatu

tory

vio

latio

n or

the

boun

ty th

ey w

ill re

ceiv

e if

the

suit

is s

ucce

ssfu

l,bu

t rat

her a

s an

ass

igne

e of

the

inju

ry in

fact

suffe

red

by th

e U

nite

d St

ates

. Ver

rnon

t Age

ncy,

529

U.S

. at 7

72-7

4.

Ove

renf

orce

men

t com

es a

t a c

ost;

it st

rails

judi

cial

reso

urce

s, c

hills

pro

duct

ive

activ

ities

, and

gene

rate

s un

fair

resu

lts. A

s co

mm

enta

tors

exam

inin

g th

is p

robl

em h

ave

reco

gniz

ed,

"Not

aII

subs

tant

ive

prin

cipl

es n

eces

saril

y w

arra

nten

forc

emen

t to

the

nth

degr

ee."

Ric

hard

A.

Nag

arec

la, A

ggre

gatio

n an

d lts

Dis

cont

ents

: Clø

ss

30

Settl

emen

t Pr

essu

re,

Cla

ss-W

ide

Arbi

tratio

n, a

ndC

AFA,

706

Cor

,rn¡.

L. R

Ev. 1

872,

188

4 (2

006)

.Th

e in

jury

-in-fa

ct re

quire

men

t cha

nnel

s lit

igat

ion

tow

ards

pro

duct

ive

ends

. It e

nsur

es th

at th

ose

who

have

act

ually

suf

fere

d ha

rm a

s a

resu

lt of

ano

ther

'sco

nduc

t are

dire

ctin

g lit

igat

ion

tow

ards

thos

eac

tiviti

es a

nd a

gain

st th

ose

parti

es th

at.c

ause

d th

eha

rm. W

ithou

t the

inju

ry-in

-fact

req

uire

men

t to

cons

train

them

, cla

ss re

pres

enta

tives

will

sim

ply

seek

the

mos

t luc

rativ

e ac

tion

for t

hem

selv

es,

rega

rdle

ss o

f the

soc

ial b

enef

it or

the

purp

ose

of th

est

atut

e in

que

stio

n.**

rr

Stat

utor

y da

mag

es s

erve

an

impo

rtant

purp

ose,

but

they

can

be

abus

ed,

parti

cula

rly w

hen

com

bine

d w

ith cl

ass

actio

ns. I

f thi

s C

ourt

wer

e to

adop

t the

sta

ndin

g ru

le e

nunc

iate

d by

the

low

erco

urt,

the

very

pro

blem

s th

e St

ates

wor

ked

so h

ard

to s

olve

-elim

inat

ing

abus

ive

clas

s ac

tions

thro

ugh

robu

st c

ertif

icat

ion

proc

edur

es a

nd re

duce

d pr

essu

reto

set

tle-a

re li

kely

to re

turn

.A

bala

nce

mus

t be

st¡u

ck b

etw

een

robu

sten

forc

emen

t of l

aws

mea

nt to

pro

tect

con

sum

ers

and

cost

ly, e

cono

mic

ally

des

truct

ive

win

dfal

l cla

ssac

tions

. For

tuna

tely

, the

Con

stitu

tion

has

alre

ady

stru

ck th

at b

alan

ce b

y re

quiri

ng a

ctua

l har

m fo

rAr

ticle

III s

tand

ing.

31

CoN

cl,u

sroN

The

Cou

rt sh

ould

rev

erse

the

Nin

th C

ircui

t

Res

pect

fully

sub

mitt

ed,

Luth

er S

trang

eAt

torn

e! G

ener

øl

Aldr

ew L

. Bra

sher

Solic

itor G

ener

alC

ouns

el o

f Rec

ord

Bret

t J. T

alle

yD

eput

y So

licíto

r Gen

eral

OFF

Í cE

oF

THE

AT,A

BAM

AAm

onN

ev G

p¡lo

n¡¡,

501

Was

hing

ton

Ave.

Mon

tgom

ery,

AL

3613

0(3

34) 2

42-7

300

abra

sher

@ag

o.st

ate.

al.u

sJu

Iy 9

, 201

5


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