(The opinions expressed here are those of the author, a
columnist for Reuters.)
By Jenna Greene
June 23 (Reuters) - When the U.S. Supreme Court earlier
this year agreed to take up medical testing company Laboratory
Corporation of America's appeal of a class certification order,
it was one of the buzziest cases of the term.
The parties, along with amici in 19 friend-of-the-court
briefs and the legal press - me included - cast it as a
potentially monumental matter, one that could upend class action
litigation by making it more difficult for plaintiffs to bring
cases.
What we got instead was ... nothing. A little over a month
after oral argument, the high court on June 5 dismissed the case
as improvidently granted, though Justice Brett Kavanaugh
dissented from the majority's one sentence order.
In issuing the so-called dismiss as improvidently or DIG,
the justices tacitly admitted that it was a mistake to grant
certiorari in the first place, though presumably not because of
the question presented.
The question that remains unanswered is whether a class be
certified if it contains uninjured members - an issue that the
high court circled in two prior class certification
decisions, Tyson Foods ( TSN ) v. Bouaphakeo in 2016 and TransUnion ( TRU ) v.
Ramirez in 2021, but left open.
Why instead of a firecracker did Labcorp v Davis turn out to
be a dud? The most likely answer is procedurally nuanced,
involving a tangle of superseding district court orders.
Still, how the case unspooled offers a window into when and
why the justices DIG a case, a rare move where the court takes
no action, instead leaving the appellate decision in place.
Here, it meant a win for a class of blind plaintiffs suing
Labcorp for violations of the Americans with Disabilities Act,
allowing them to proceed with their suit in Los Angeles federal
court. An unconventional move by Deepak Gupta, who represented
the class action plaintiffs, could also provide a model for
advocates looking to DIG a case - but more on that later.
Labcorp did not respond to requests for comment, and the
company's outside counsel, Jones Day partner Noel Francisco,
declined to comment through a firm spokesperson.
A bit of context: Legal scholars say that from 1955 to 2005,
the justices disposed of an average of two to three cases per
term via DIGs, a move that typically requires agreement from at
least six justices. There was one such dismissal in 2023-2024
and a total of three this term. (The other two were both
securities class actions, with Gupta also getting a DIG in
litigation against chipmaker Nvidia ( NVDA ). The other case involved
Meta's Facebook.)
The court often declines to offer an explanation for DIG-ing
a case, leaving onlookers to speculate on what went awry, said
Michael Solimine, a professor at the University of Cincinnati
College of Law and co-author of the DIG study, via email.
For example, after oral argument the justices might realize
there was a jurisdictional issue, or they might identify another
problem that made the case a poor vehicle to address the
question at hand, Solimine said. "Or it could simply be that
there was no majority that could decide the case."
In Labcorp, according to Kavanaugh's dissent, the obstacle
that kept the court from deciding the case was mootness -
meaning, technically, that the class certification order that
Labcorp appealed was no longer in effect and had been supplanted
by subsequent district court orders. Kavanaugh, however, deemed
the concern "insubstantial" and wrote that he would have ruled
in favor of the company on the merits.
Originally filed in 2020, the suit against Labcorp was
brought on behalf of visually impaired people who were unable to
use check-in kiosks when arriving for blood draws or other
medical tests.
Labcorp argued that thousands of class members were
uninterested in using the kiosks, preferring to check in with a
person at the front desk. That meant they sustained no injury
and lacked standing to sue under Article III of the U.S.
Constitution, Labcorp said.
U.S. District Court Judge Fernando Olguin in May of 2022
certified a damages class. Labcorp had appealed the order, and
the 9th U.S. Circuit Court of Appeals last year in an 8-page,
unpublished opinion had upheld Olguin's decision.
But there was a wrinkle. While Labcorp's interlocutory
appeal was pending, the district court modified the class
certification order two times to tweak how the class was
defined.
That meant the order before the Supreme Court was
inoperative, Gupta argued for the class action plaintiffs. With
no live controversy, any decision by the high court would be
nothing more than an advisory opinion, the Gupta Wessler
co-founder said.
This jurisdictional argument wasn't something the class
action plaintiffs initially flagged in opposing Labcorp's cert
petition (though they raised it in their respondent's brief when
they suggested that the court DIG the case, as did seven law
professors in an amicus brief).
In an unusual step, Gupta, who was hired after cert was
granted, filed a letter with the court on April 23, six days
before oral argument and after briefing was complete, to
reiterate the jurisdictional problems and again ask the court to
DIG the case.
Sending the letter felt like "waving a red flag in front of
a bull," Gupta told me, drawing the focus on procedural
questions rather than the merits. "I wanted to make sure the
court understood the problem here."
Writing in response, Francisco called the letter "nothing
more than an improper surreply," and said the arguments were
meritless.
The justices' interest was piqued. During oral arguments in
April, Justice Clarence Thomas asked why the court had
jurisdiction to rule on a lower court's "inoperative" order.
Later, Justice Sonia Sotomayor said, "I still don't see how this
is not an advisory opinion."
And Justice Elena Kagan remarked, "We're staring at the
wrong order."
Little wonder the court opted for a DIG.