BSH resolves class action lawsuit alleging defective washing machines
Clients BSH Home Appliances Corporation
Jones Day client BSH Home Appliances Corporation ("BSH") reached a claims-made settlement in a class action lawsuit brought by purchasers of certain BSH front-load washing machines who alleged that the machines were defective because of a propensity to develop foul odors.
BSH retained Jones Day to handle this case after a federal district court certified four statewide classes on the theory that each purchaser was harmed at the time of purchase by paying a premium price for a defective product.
The Jones Day team filed a petition for permission to appeal within the 14 day deadline prescribed by Federal Rule of Civil Procedure 23(f). BSH argued, among other things, that the certification decision was inconsistent with the teachings of Wal-Mart Stores, Inc. v. Dukes, 131 S. Ct. 2541 (2011), and that the district court erred in concluding that expert evidence admitted on a motion for class certification need not comply with the requirements of Daubert v. Merrell Dow Pharmaceuticals, Inc., 509 U.S. 579 (1993). When the Ninth Circuit denied permission to appeal, BSH sought reconsideration based upon the U.S. Supreme Court's decision in Comcast Corp. v. Behrend, 133 S. Ct. 1426 (2013). The Ninth Circuit denied permission to appeal and reconsideration, and BSH filed for a writ of certiorari to the U.S. Supreme Court. This case raised important issues surrounding whether consumer classes may remain certified in the absence of any reliable classwide proof of injury and damages.
Cobb v. BSH Home Appliances Corporation, No. 10-711 (C.D. Cal.); No. 13-80000 (9th Cir.); No. 13-138 (U.S.)