Welcome to Critical Mass, Law.com's weekly briefing for class action and mass tort attorneys. Bank of America won a court challenge to the small business loan program in the $2 trillion COVID-19 stimulus package. More class actions over refunds target universities such as Purdue. A new class action adds to a bulk of coronavirus cases against Princess Cruise Lines.

Feel free to reach out to me with your input. You can email me at [email protected], or follow me on Twitter: @abronstadlaw.

 

BofA Wins Ruling Over COVID-19 Small Biz Loans

In what could be the first judicial decision to interpret portions of the $2 trillion relief bill over COVID-19, a federal judge declined to grant a temporary restraining order that would have forced Bank of America to change its rules restricting which small businesses could apply for loans under the economic stimulus program.

A quick backgrounder: The CARES Act (which stands for Coronavirus Aid, Relief and Economic Security Act), passed on March 27, includes a $349 billion Paycheck Protection Program for small businesses. Filed on the day the program launched, a class action alleged Bank of America was unlawfully limiting its loan applicants to certain of its customers. Bank of America countered that the CARES Act did not forbid such restrictions, which it imposed to allow the program to run more efficiently.

At a Friday hearing, U.S. District Judge Stephanie Gallagher of the District of Maryland appeared skeptical about the plaintiffs' ability to bring the suit under the CARES Act. And this week, she declined to grant a temporary restraining order against Bank of America, noting she was reluctant to take action while so many details about the program remain uncertain.

Michael Dockterman (Steptoe & Johnson) told me that judges in civil cases so far have declined to grant emergency TRO motions amid the crisis unfolding around them over the coronavirus. For instance: one judge called an emergency filing last month over allegedly counterfeit unicorn drawings "insensitive," and another denied an emergency action in a case brought by Godfrey Johnson over the Paycheck Protection Program's details.

"I think everybody needs to be more careful now as to what they find is an emergency," Dockterman told me. "Don't tell me that it rises to a situation of life and death. We're dealing with life and death right now."

 

Universities Get a Rush of Refund Lawsuits

Universities are feeling the brunt of consumer class actions brought over closed campuses due to the coronavirus, with new lawsuits filed against Purdue University, the University of Miami and Jerry Fallwell's Liberty University in the past week. The suits all seek refunds, primarily for room and board fees, given that COVID-19 forced campuses to close their doors.

Arizona Board of Regents faced the first class action, brought last month by DiCello Levitt Gutzler.

Here's a summary of the new lawsuits:

>>Purdue University: Milberg Phillips Grossman, Cohen & Malad and Evangelista Worley filed a class action seeking pro rata refunds for room and board fees.

>>University of Miami: Anastopoulo Law Firm filed a class action alleging students should get refunds, because the closures resulted in a declining value of their education.

>>Liberty University: DiCello Levitt Gutzler, MichieHamlett and Matthew S. Miller LLC filed a class action against Liberty University seeking pro rata refunds.

Meanwhile, Southwest Airlines joined United Airlines in getting hit with a class action alleging it failed to provide refunds rather than credits for future flights. And Six Flags faces two class actions, filed by Bursor & Fisher and Khashayar Law Group, alleging it had continued to charge monthly and season ticket holders after closing its amusement parks on March 13.

Princess Cruise Lawsuits Crowned With Class Action

Princess Cruise Lines got hit with a class action last week alleging gross negligence in its handling of the quarantined Grand Princess, where 21 passengers and crew got coronavirus and two of them died. Lieff Cabraser and Mary Alexander & Associates filed the class action on behalf of more than 2,000 passengers of the voyage, which left San Francisco on Feb. 21 for Hawaii even though, according to the lawsuit, Princess Cruise Lines knew about COVID-19 on its ships.

Debi Chalik (Chalik & Chalik), whose firm has filed 16 individual lawsuits on behalf of Grand Princess passengers, was skeptical that a class action would succeed for claims of personal injuries and medical expenses, primarily because of the contract passengers agreed to when they purchased the cruise trip tickets. She said:

"In these cases, against Princess Cruise Lines, it has to be brought in the Central District of California in Los Angeles, in federal court. They've also specified in their contract they will not allow class actions. I stand to believe that every part of their passenger ticket contract will be held up in a court of law considering it always has been for every other reason. If they say you can't bring a class action, you can't bring a class action. That's what you agreed to as a passenger."

Here's what else is happening:

Grammar Gaffe? After helping Andrus Wagstaff increase its common benefit compensation in the pelvic mesh litigation, Blank Rome sued the firm over $500,000 in unpaid legal fees. Andrus Wagstaff insists Blank Rome is owed less than $200,000. Why the difference? In a new filing, Blank Rome claims it's a matter of punctuation in the contract—periods and bullet points, to be exact.

Suing Heroes: As more states issue executive orders or pass laws limiting liability for doctors and hospital staff on the front lines of the coronavirus pandemic, lawyers practicing in medical malpractice expect a slowdown in the filing of new cases. New York, New Jersey and Michigan have insisted on the legal protections, and Florida is considering similar measures. "A lot of people are thinking their practices are in danger," said New York plaintiffs' attorney John Hochfelder (The Law Firm of John M. Hochfelder). "You don't want to be the one suing heroes."

Equifax Sanctions: Objector lawyer Ted Frank (Hamilton Lincoln Law Institute) has filed a motion for sanctions against class counsel in the $1.4 billion Equifax settlement now before the Eleventh Circuit. Frank is one of several objectors appealing the settlement's approval by U.S. District Judge Thomas Thrash, of the Northern District of Georgia, who criticized them in his order earlier this year. Frank, in moving for sanctions, is fighting a $20,000 bond request from class counsel that he called "punitive," "abusive" and "harassing."

Thanks for reading Critical Mass! Stay safe, and I will be back next week.