Impact of the U.S. Supreme Court’s Decision in Trump v. CASA, Inc. on Universal Injunctions and Class Actions

Preparing for a trial is a tense and stressful process for attorneys and their clients. Sometimes, during trial preparation, a crucial piece of evidence can come to light that may push a case from a path towards trial to a path towards a settlement agreement. A “settlement” or “compromise” under Louisiana law is just that – an agreement between the parties to settle the dispute raised in the lawsuit, usually with the exchange of a sum of money. Often, settlements are reached in the weeks leading up to trial or even on the courthouse steps.

This type of scenario occurred in Nola Title Company, LLC v. Archon Information Systems. While in the thick of trial preparation, audio recordings from one of the parties were discovered. That party concluded this evidence would be prejudicial to its case at trial, which spurred settlement negotiations. The parties eventually agreed to a compromise and notified the court of the settlement via an email to the judge’s law clerk. The next day, the attorneys reported to court and verbally outlined the terms of the settlement agreement on the official court record.

Two weeks later, the defendants hired new counsel. Two months after that, counsel for the plaintiff forwarded the formal settlement documents to memorialize the agreement that was made between the parties and entered into the court’s record. However, the defendants refused to sign the paperwork and did not timely make the payments that previously were agreed upon. Therefore, the plaintiff filed a motion to enforce the settlement agreement.

In opposition to the motion to enforce, the defendants argued: 1) that their prior counsel did not have authority to enter into the settlement agreement; and 2) that the agreement on the record of the court was invalid because it did not include a provision about the audio recording, which the defendant claimed was a key element of the agreement between the parties. After an evidentiary hearing, the trial court found that the settlement that was stated on the record was an enforceable settlement agreement.

The Louisiana Court of Appeals for the Fourth Circuit affirmed the ruling of the trial court. In its opinion, the appellate court includes a summary of the law governing settlements in Louisiana. After a thorough review of the applicable law, the court came to the following conclusions:

• The settlement agreement on the record of the court was a binding settlement agreement, even if the parties contemplated a future formal written agreement;
• When a compromise is placed on the record, the recital must include full disclosure of the material terms;
• Any “missing terms” from the recorded settlement agreement were not a material element of the settlement; and
• The defendants’ prior counsel had authority to enter into the settlement as written.

Based upon the court’s ruling, if the parties have a meeting of the minds and settlement terms are entered on the trial court record, there are no “do-overs” or “take-backs.” It is important to “make sure you are sure” when entering the crucial courthouse steps settlement agreement.

References:

Nola Title Company, LLC v. Archon Information Systems, et. al., 2022-CA-0967 (La. App. 4 Cir. 4/13/23), 360 So. 3d 166.

The Louisiana Supreme Court recently held that failure to pay filing fees necessary to add a defendant does not invalidate the proceeding as to other defendants. Prior to the ruling, Louisiana courts held that a failure to pay for one defendant invalidated the entire proceeding.

In Kirt v. Metzinger 2019-C-1162 (La. 04/03/20), plaintiffs requested a medical review panel after the death of their mother due to complications after surgery. Plaintiffs named three defendants—two doctors and the hospital. A letter from the Patient’s Compensation Fund Oversight Board (PCF) was mailed to the plaintiffs, confirming that the defendants were qualified under the Louisiana Medical Malpractice Act, and informing the plaintiffs that they were required by La. R.S. 40:1231.8 to pay a filing fee of $100 per named defendant within forty-five days of the mailing of the letter. Plaintiffs responded, requesting to add two additional defendants to the panel, one of whom was an unidentifiable nurse. Plaintiffs also included payment of $500.

The PCF responded that it was unable to add the nurse without proper identification. Three weeks later, plaintiffs notified the PCF they were also unable to identify the nurse. Upon request, Parish Anesthesia was added to the panel instead. Nearly five months later, plaintiffs provided the PCF with the identity of the nurse in question and requested she be added. The PCF sent confirmed the addition and requested another $100 filing fee which was never paid. Nevertheless, the medical review panel thereafter determined that none of the defendants, including the nurse, breached their standard of care. Suit followed against all defendants.

The defendants moved for summary judgment, arguing that the failure to pay the additional filing fee invalidated the proceeding as to all defendants. The trial court granted this motion, and the appellate court affirmed. Reversing the lower courts, the Supreme Court found that the failure to pay the additional $100 filing fee did not invalidate the entire proceeding. The court observed that separate confirmation letters sent by the PCF provided a different forty-five day period during which to pay the filing fee tied to each individual defendant.

The Kirt court stated: “[t]he notion of ‘one filing fee’ for every panel proceeding cannot be reconciled with the different payment deadlines that arise when the PCF sends separate letters confirming defendants’ qualified status. A single filing fee cannot be subject to different payment deadlines.” The court dismissed only the nurse and remanded the remainder of case to the lower courts.

Chad A. Sullivan is a partner with Keogh, Cox & Wilson, Ltd. Prior to becoming an attorney, he worked as a licensed Registered Nurse. He utilizes his background in nursing on a daily basis in his law practice that primarily focuses on automobile liability, medical malpractice, nursing home litigation, healthcare professional licensure and discipline, and products liability.

Keogh Cox attorneys Andrew Blanchfield, Chris Jones, and Chelsea Payne successfully defeated class certification in an action students brought to recover a partial refund of tuition and fees they claim they were owed after in-person classes were converted to remote learning because of the COVID-19 global pandemic. See Miazza v. Board of Supervisors of Louisiana State University and Agricultural and Mechanical College.

In 2021, plaintiffs Taylor Gunter and Michael Miazza filed a lawsuit seeking a partial refund of the tuition they paid to LSU for Spring 2020 classes. They alleged that they were entitled to a partial refund of tuition and certain fees because in-person classes were cancelled in the wake of the COVID-19 pandemic. In lieu of in-person classes, remote learning went into effect after spring break, from March 30, 2020 through the end of the spring semester.

In addition to their own claims for partial refunds, the plaintiffs tried to bring the case as a class action and moved to certify a class defined as: “All students who, as of March 13, 2020, were enrolled at Louisiana State University's main campus in Baton Rouge who paid Tuition and/or Fees for the Spring 2020 semester, or on whose behalf such payment was made.”

After the completion of discovery for class certification, and after the dismissal of Plaintiff Michael Miazza’s claim, Plaintiff Taylor Gunter filed a Motion for Class Certification. After hearing, the Trial Court certified the class as alleged, finding all the requirements for class certification set forth in La. C.C.P. art. 591 were satisfied. LSU appealed the decision to the First Circuit Court of Appeals.

The First Circuit reversed the Trial Court’s judgment and found the Plaintiff failed to satisfy all of the requirements for class certification. After conducting a rigorous analysis of the class certification requirements, the Court concluded that “a multitude of individualized inquiries and proof make up the liability and damages issues essential to the putative plaintiffs’ implied contract claims.” The Court identified some of these “individualized inquiries” as follows:

• which representations in each school’s or college’s catalogs, bulletins, and website materials did the putative plaintiff rely upon in developing his or her expectation and what particular facilities and on-campus opportunities did a putative plaintiff expect to utilize;

• whether the putative plaintiff has historically utilized on-campus facilities and opportunities; which facilities and/or on-campus opportunities, if any, were necessary for a particular school's or college's course completion;

• whether a putative plaintiff was satisfied with the online instruction, course credits received, and grading options provided; and

• whether a putative plaintiff actually suffered any financial loss, mindful of each student’s particular situation.

Ultimately, the Court concluded that the record lacked sufficient evidence to support findings of offers and acceptances, where were necessary (1) to establish meetings of the mind and (2) conclude each putative plaintiff and LSU consented to an implied contract. Any determination of liability for an implied contract also is dependent upon proof of facts individual to each putative class member. Therefore, the class would degenerate into a series of individual trials.

The First Circuit concluded that certification of the case as a class action was an abuse of discretion. It reversed the Trial Court’s judgment and decertified the matter. Plaintiff filed a Writ Application with the Louisiana Supreme Court. On January 14, 2025, the Louisiana Supreme Court denied Plaintiff’s Writ Application, finally resolving the class certification issue. As a result, Plaintiff cannot pursue class certification, but rather may only pursue her own individual claim.

References:

Miazza v. Board of Supervisors of Louisiana State University and Agricultural and Mechanical College, 2023-1194 (La. App. 1 Cir. 8/9/24), 394 So.3d 874, writ denied, 2025 WL 87255 (La. 1/14/25).