Standing After Neale: Third Circuit Clarifies Jurisdictional Standing And Predominance Analysis In Consumer Class Actions

Action Item: The Court of Appeals for the Third Circuit addresses federal jurisdiction, Article III standing, and scrutiny of class certification motions in the putative consumer fraud class action lawsuit against Volvo.

On July 22, 2015, in Joanne Neale, et al. v. Volvo Cars of North America, LLC, et al., the Court of Appeals for the Third Circuit vacated and remanded the United States District Court for the District of New Jersey's decision to certify six statewide classes in a consumer fraud class action lawsuit accusing Volvo Car Corp. of selling vehicles with defective sunroofs. This decision highlights three critical issues percolating in class action litigation. First, recognition of the granular level of detail with which the court will analyze federal jurisdiction. Second, that unnamed, putative class members are not required to demonstrate Article III standing provided that the named representative has standing, whether in the context of a litigation class