April 16-20, 2007

Table of Contents

CLASS ACTION CASES

• West v. AK Steel Corp.
• Sanford v. MemberWorks, Inc.
• Fireside Bank v. Superior Court of Santa Clara County

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U.S. 6th Circuit Court of Appeals, April 20, 2007
West v. AK Steel Corp., No. 06-3442
In a class action lawsuit brought under ERISA by early retirees in a company's pension plan who elected to receive their pension benefits under the plan in the form of a lump-sum payment, partial summary judgment and an award in favor of plaintiffs is affirmed where: 1) there was jurisdiction under ERISA for the claims; 2) each plaintiff was entitled to have his or her lump-sum distribution reevaluated using a whipsaw calculation, plus interest; 3) there was no error in holding that the plan could not use a preretirement mortality discount in performing the whipsaw calculation; and 4) the Pension Protection Act of 2006 is not retroactive in application, and thus, has no effect on this case. Read more...

U.S. 9th Circuit Court of Appeals, April 16, 2007
Sanford v. MemberWorks, Inc., No. 05-55175
In an action alleging violations of 39 U.S.C. section 3009 and related state law claims arising from plaintiff's purchase of a set of fitness tapes by phone, an order confirming an arbitration award is affirmed in part, and vacated in part where: 1) plaintiff's appeal was timely; 2) the order compelling arbitration was erroneous as the district court failed to rule upon a contract formation issue before compelling arbitration; but 3) dismissal of claims against one defendant was proper as it never mailed unordered merchandise to plaintiff for purposes of section 3009, and there was no abuse of discretion in dismissing state law claims as to that defendant. Read more...

Supreme Court of California, April 16, 2007
Fireside Bank v. Superior Court of Santa Clara County, No. S139171
In a class action brought against a bank arising out of certain debt collection attempts, a court of appeals' judgment denying bank's challenge to a ruling on the substantive merits of the action is reversed where the trial court abused its discretion in ruling on the merits concurrent with deciding that a class could be certified, but before class notice had gone out. Read more...