U.S. Supreme Court Round Up – 2016-2017

The U.S. Supreme Court term that ended June 2017 included a number of decisions important to workplace law, as well as the confirmation of Justice Neil Gorsuch. Although functioning with only eight justices for most of the 2016-2017 term, the Court managed to achieve a strong consensus in each of its employment-related rulings.

However, the Trump Administration's complete reversal of several Obama Administration policies disrupted some highly anticipated decisions, which may be resolved by the Court in the next term. While the addition of Justice Gorsuch to the Court had little impact on this term, it likely will make a significant difference in the Court's future employment-related decisions. Therefore, with regard to employment law, this term might best be described as the calm before an uncertain future.

The Court produced nearly unanimous decisions, and maintained predictability and stability, in important areas such as class-action lawsuits, immigration, and ERISA. In these cases, the justices agreed that the letter of the law and the clear Congressional intent when passing the law weighed in favor of maintaining the status quo.

Class-Actions: Plaintiffs cannot use voluntary-dismissal tactic to appeal adverse ruling on class certification

The U.S. Supreme Court has ruled that plaintiffs may not voluntarily dismiss their class action lawsuit "with prejudice" in order to immediately appeal the denial of class certification, while simultaneously reserving the right to re-file their claim if the appellate court ruled in favor of certification. Microsoft Corp. v. Baker, No. 15-457 (June 12, 2017).

The U.S. Court of Appeals for the Ninth Circuit had sided with the plaintiffs and held that, "in the absence of a settlement, a stipulation that leads to a dismissal with prejudice does not destroy the adversity in that judgment necessary to support an appeal" of a class certification denial. The Supreme Court unanimously rejected the Ninth Circuit's reasoning, and reversed and remanded the case.

Writing for a court majority, Justice Ruth Bader Ginsburg stressed that the final judgment rule (now codified in 28 U.S.C. § 1291) preserves the proper balance between trial and appellate courts, minimizes harassment and delay that would result from repeated interlocutory appeals, and promotes the efficient administration of justice. The majority found that plaintiffs' voluntary-dismissal tactic did not give rise to a "final decision" under § 1291 because the tactic:

"invites protracted litigation and piecemeal appeals" that undermine the final judgment rule and the process Congress established for refining that rule and for determining when non-final orders may be immediately appealed; severely subverts Rule 23(f)'s careful calibration regarding class certification and class action litigation; permits only plaintiffs (and never defendants) to force an immediate appeal of an adverse certification ruling; and encourages plaintiffs with weak claims to dismiss their cases and immediately appeal, in the hopes of obtaining additional settlement leverage. Because the appellate court lacked jurisdiction under § 1291, the case was reversed and remanded.

The...

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