No. 21-385

Drasc, Inc., et al. v. Navistar International Corporation, et al.

Lower Court: Seventh Circuit
Docketed: 2021-09-09
Status: Denied
Type: Paid
Response RequestedResponse WaivedRelisted (2)
Tags: civil-procedure class-action due-process excusable-neglect opt-out reasonable-indication settlement
Key Terms:
DueProcess Securities ClassAction
Latest Conference: 2022-02-18 (distributed 2 times)
Question Presented (from Petition)

Federal Rule of Civil Procedure 23(c)(2)(B) mandates
that unnamed class members be given the right to "opt out"
of a class settlement after a court's preliminary approval.
To adequately protect the unnamed class members' due
process rights, courts including the Second and Tenth
Circuits follow the Reasonable Indication Standard for
determining whether a class member has sufficiently
expressed a desire to opt out. Here, the Seventh Circuit
has rejected the Reasonable Indication Standard and
replaced it with a standard that demands mechanically
rigid compliance with the district court's prescribed optout procedure. The questions presented are:

1. Does an unnamed class member who provides
reasonable indication of its intent to be excluded
from the class settlement sufficiently opt out (as
two circuits have held), or must the unnamed
class member rigidly adhere to the district
court's opt-out procedures (as one circuit has
held)?

2. Must a district court analyze an unnamed class
member's claim of excusable neglect for failing
to follow the class settlement opt-out procedure
under this Court's four-part test in Pioneer Inv.
Servs. Co. v. Brunswick Assocs. Ltd. P'ship , 507
U.S. 380, (1993)?

Question Presented (AI Summary)

Does an unnamed class member who provides reasonable indication of its intent to opt out sufficiently opt out, or must the class member rigidly adhere to the opt-out procedure?

Docket Entries

2022-02-22
Petition DENIED.
2022-01-12
DISTRIBUTED for Conference of 2/18/2022.
2021-12-23
Brief of respondents Navistar International Corporation and Navistar, Inc. in opposition filed.
2021-12-23
Letter dated December 23, 2021 from counsel for respondent Class Representatives submitted.
2021-11-09
Motion to extend the time to file a response is granted and the time is extended to and including December 27, 2021.
2021-11-08
Motion to extend the time to file a response from November 26, 2021 to December 27, 2021, submitted to The Clerk.
2021-10-27
Response Requested. (Due November 26, 2021)
2021-10-20
DISTRIBUTED for Conference of 11/5/2021.
2021-09-20
Waiver of right of respondent Class Representatives to respond filed.
2021-09-20
Waiver of right of respondents Navistar International Corporation and Navistar, Inc. to respond filed.
2021-09-07
Petition for a writ of certiorari filed. (Response due October 12, 2021)

Attorneys

Class Representatives
Jonathan D. SelbinLieff Cabraser Heimann and Bernstein, LLP, Respondent
Drasc, Inc., et al.
Owen James RarricKrugliak, Wikins, Griffiths & Dougherty Co., L.P.A., Petitioner
Navistar International Corporation and Navistar, Inc.
Roman Martinez VLatham & Watkins, LLP, Respondent