Last week, the US Supreme Court ruled that an offer of judgment under Federal Rule of Civil Procedure 68 made to the lead plaintiff in a class action lawsuit, in addition to a separate free-standing settlement offer in the same amount, does not render the lawsuit moot.
In Campbell-Ewald Co. v. Gomez, No. 14-857, 2016 WL 228345 (U.S. Jan. 20, 2016), Jose Gomez filed a class-action lawsuit seeking damages under the Telephone Consumer Protection Act as a result of unwanted text messages he and others received from Campbell-Ewald Company. Before Gomez had filed his motion for class certification, Campbell made an offer of judgment to him under Federal Rule of Civil Procedure 68 which would have satisfied his personal claim entirely. Gomez allowed this offer to lapse after 14 days, as specified by the rule. Campbell then moved to dismiss the case, claiming that no controversy remained after its offer provided Gomez with complete relief. Both the District Court and the Ninth Circuit Court of Appeals disagreed with Campbell.
Continue Reading Supreme Court Says Offering to Settle Cannot Moot Class Action Suits