In class action against PIMCO under the Commodity Exchange Act, Judge Posner of the U.S. Seventh Circuit Court of Appeals rejected the defendants’ argument that the district judge was required to determine which class members had suffered damages. “Putting the cart before the horse in that way would vitiate the economies of class action procedure; in effect the trial would precede the certification. It is true that injury is a prerequisite to standing. But as long as one member of a certified class has a plausible claim to have suffered damages, the requirement of standing is satisfied. A class will often include persons who have not been injured by the defendant’s conduct; indeed this is almost inevitable because at the outset of the case many of the members of the class may be unknown, or if they are known still the facts bearing on their claims may be unknown. Such a possibility or indeed inevitability does not preclude class certification. If the class definition clearly were overbroad, this would be a compelling reason to require that it be narrowed.” Kohen v. PIMCO, 571 F.3d 672 (7th Cir. 2009).
0 Comments