Antitrust and Consumer Protection

Competition: 2016, Vol 25, No. 2

NEVER SAY NEVER: THE NINTH CIRCUIT’S MISGUIDED CATEGORICAL APPROACH TO INDIVIDUAL DAMAGES QUESTIONS WHEN ASSESSING RULE 23(B)(3) PREDOMINANCE

By John M. Landry1

I. INTRODUCTION

To qualify for class treatment under Federal Rule of Civil Procedure 23(b)(3), damages (or restitution) claims must present common questions that "predominate over any questions affecting only individual class members."2 Yet, calculating each class member’s damages inherently entails some degree of individual inquiry and proof. As a result, what role individual damages questions should properly play in a predominance inquiry is a source of controversy.

When questions concerning liability are entirely common, however, various courts of appeals accept that individual damages questions do not predominate. But these courts express this rule as a general—not categorical—one, recognizing that, in certain instances, individual damages questions can reach a level of magnitude and complexity sufficient to overwhelm common questions.

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