7th Circuit upholds denial of class action, statutory damages

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Note: This story has been edited to reflect a change by the 7th Circuit Court of Appeals Sept. 22, 2011.

In an appeal of the denial of a proposed class-action lawsuit based on the finding the attorney was inadequate to represent the class, the 7th Circuit Court of Appeals noted that the attorney’s demeanor on appeal didn’t help his cause.

In Blanca Gomez and Joan Wagner-Barnett v. St. Vincent Health Inc., No. 10-2379, Blanca Gomez and Joan Wagner-Barnett, former employees of St. Vincent Health, appealed the District Court’s decision to not certify the proposed class, the denial of the plaintiffs’ requests for statutory penalties, and the amount of damages awarded to Barnett in their suit alleging St. Vincent violated the notice provisions regarding how the two could extend their health insurance coverage within the period prescribed by statute.

Before this case was filed, the District Court dismissed a similar suit, Brown-Pfifer v. St. Vincent Health Inc., No. 1:06-CV-236, 2007 WL 2757526 (S.D. Ind. Sept. 20, 2007), in which those who did not timely receive their COBRA notices sued St. Vincent. During May 2004 and January 2006, nearly 266 of the 1,570 people who received health benefits from St. Vincent and experienced qualifying events didn’t receive timely COBRA notices. The same attorney in Brown-Pfifer, Ronald Weldy, was the attorney in the instant case.

Instead of appealing the dismissal of Brown-Pfifer, the case was re-filed with two new named plaintiffs, Gomez and Barnett. U.S. Judge Sarah Evans Barker found the proposed class counsel would inadequately represent the proposed class, and denied class certification. Ruling on the plaintiffs’ individual claims, the judge awarded no damages to Gomez, as she had testified that she wouldn’t have purchased the COBRA coverage even if she had received the notice on time. Judge Barker awarded Barnett, who testified she would have purchased the coverage and had medical expenses after her employment ended with St. Vincent, $396 in damages. Judge Barker also declined to impose statutory penalties against St. Vincent.

The 7th Circuit Court of Appeals affirmed the lower court in all respects, even though it had some reservations about the District Court’s determination that “such other relief” that may be awarded under the COBRA notification enforcement provision could include an award of medical expenses incurred as a result of the COBRA notification violation, minus deductibles and premiums the beneficiary would have paid to get coverage under COBRA.

“While we are reticent to condone without limitation this method of compensation in COBRA-notification violation cases, we find no error in this particular case. The district court awarded the monetary damages pursuant to subsection 1132(c)(1)’s ‘such other relief’ provision, and the award does not contradict the section’s plain text,” wrote Judge Michael Kanne.

They also affirmed the decision to not impose statutory penalties against St. Vincent, noting the case lacks any evidence of an administrator’s bad faith or gross negligence.

Finally, the judges affirmed the decision that the plaintiffs’ counsel wasn’t an adequate representative of the class. Judge Barker found that Weldy’s actions during his attempts to represent the proposed classes in both suits didn’t make him an adequate class counsel. In Brown-Pfifer, another judge found, among other things, that Weldy wasn’t diligent in prosecuting his proposed class action. In the instant case, he had been ordered to pay expenses in conjunction with St. Vincent’s motion to compel.

The judges found Weldy’s arguments on appeal to be unpersuasive.

“If counsel wished to convince us that the district court abused its discretion by finding him inadequate to represent the proposed class, his demeanor on appeal has not helped his cause. He has (perhaps mistakenly) misrepresented fundamental facts. And he has relied on hyperbole in the place of persuasive argument, failing to refute the district court’s reasoning,” wrote Judge Kanne.


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  1. I have an open CHINS case I failed a urine screen I have since got clean completed IOP classes now in after care passed home inspection my x sister in law has my children I still don't even have unsupervised when I have been clean for over 4 months my x sister wants to keep the lids for good n has my case working with her I just discovered n have proof that at one of my hearing dcs case worker stated in court to the judge that a screen was dirty which caused me not to have unsupervised this was at the beginning two weeks after my initial screen I thought the weed could have still been in my system was upset because they were suppose to check levels n see if it was going down since this was only a few weeks after initial instead they said dirty I recently requested all of my screens from redwood because I take prescriptions that will show up n I was having my doctor look at levels to verify that matched what I was prescripted because dcs case worker accused me of abuseing when I got my screens I found out that screen I took that dcs case worker stated in court to judge that caused me to not get granted unsupervised was actually negative what can I do about this this is a serious issue saying a parent failed a screen in court to judge when they didn't please advise

  2. I have a degree at law, recent MS in regulatory studies. Licensed in KS, admitted b4 S& 7th circuit, but not to Indiana bar due to political correctness. Blacklisted, nearly unemployable due to hostile state action. Big Idea: Headwinds can overcome, esp for those not within the contours of the bell curve, the Lego Movie happiness set forth above. That said, even without the blacklisting for holding ideas unacceptable to the Glorious State, I think the idea presented above that a law degree open many vistas other than being a galley slave to elitist lawyers is pretty much laughable. (Did the law professors of Indiana pay for this to be published?)

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  4. Joe, you might want to do some reading on the fate of Hoosier whistleblowers before you get your expectations raised up.

  5. I had a hospital and dcs caseworker falsify reports that my child was born with drugs in her system. I filed a complaint with the Indiana department of health....and they found that the hospital falsified drug screens in their investigation. Then I filed a complaint with human health services in Washington DC...dcs drug Testing is unregulated and is indicating false positives...they are currently being investigated by human health services. Then I located an attorney and signed contracts one month ago to sue dcs and Anderson community hospital. Once the suit is filed I am taking out a loan against the suit and paying a law firm to file a writ of mandamus challenging the courts jurisdiction to invoke chins case against me. I also forwarded evidence to a u.s. senator who contacted hhs to push an investigation faster. Once the lawsuit is filed local news stations will be running coverage on the situation. Easy day....people will be losing their jobs soon...and judge pancol...who has attempted to cover up what has happened will also be in trouble. The drug testing is a kids for cash and federal funding situation.