Second Circuit Rules That Judges Can Decertify A Class After A Jury Verdict

The Second Circuit recently held that under Federal Rule of Civil Procedure 23, a district court judge can decertify a class after a jury verdict in favor of the class but before entering judgment, upholding a Southern District Court of New York decision granting defendants' post-verdict motion to decertify the class.  Joseph Mazzei v. The Money Store, TMS Mortgage Inc., HomEq Servicing Corp., No. 15-2054 (2d Cir. July 15, 2016).  The Second Circuit's decision confirms that after a court certifies a class, defendants should continue to develop evidence to seek to decertify the class even after a jury verdict in favor of the class.

Joseph Mazzei, the named plaintiff and putative class representative, sued a group of loan servicers and mortgage lenders alleging that their imposition of post-acceleration late fees on mortgage loans constituted a breach of contract.  Mazzei initially achieved certification for a class of borrowers who signed mortgages that were owned or