BP Exploration & Production Inc., et al. v. Lake Eugenie Land & Development, Inc., et al.

Case Updates

In the coalition brief, the Chamber argued that the Fifth Circuit improperly interpreted a certified class in a way that expanded it to include parties never injured. The brief argued that the Fifth Circuit’s decision ignores settled principles of Article III standing and class action practice. This interpretation will ultimately reduce the assurance that settlement agreements will be implemented as intended. With such uncertainty, defendants may be considerably less likely to commit to settlement, knowing that the class of plaintiffs is subject to change at any time. The Chamber pointed out that if allowed to stand, it will become much more difficult for parties to resolve class actions through settlement. This would result in a vast increase in unnecessary litigation that will cost parties time and money and expend scarce judicial resources. Additionally, the likelihood that improper plaintiffs would receive unwarranted settlement distributions will increase. Consumers would also be harmed, since they will ultimately bear the burden of paying increased costs to fund the litigation of class actions. Ultimately, the Fifth Circuit’s current holding endangers the certainty of Rule 23 and Article III which should be provided in every class action. This important procedural function can be realized only if the parties can count on the court to apply fundamental principles assuring the and fairness of the class action procedure.

The Chamber filed the brief jointly with the United States Hispanic Chamber of Commerce, the National Association of Manufacturers, the American Tort Reform Association, and the American Petroleum Institute.

Catherine E. Stetson and Jaclyn L. Dilauro of Hogan Lovells US LLP represented the U.S. Chamber of Commerce as co-counsel to the U.S. Chamber Litigaiton Center.