NFIB has submitted an amicus brief to the United States Supreme Court in the case of LabCorp v. Luke Davis, et al. The case raises the question of whether individuals who have not suffered any legal injury can be included in class action lawsuits in federal courts. NFIB contends that the Ninth Circuit's interpretation of the requirements for a class action under Federal Rule of Civil Procedure 23 is incorrect and could negatively impact small businesses involved in class action litigation.
Beth Milito, Vice President and Executive Director of NFIB’s Small Business Legal Center, commented on the potential consequences: "In class action lawsuits, the outcome of the case is often determined by the size of the class because as the plaintiff count grows, so does the financial burden for defendants. Most small businesses do not have in-house legal teams at their disposal, nor do they have the resources to afford costly attorney fees. Frivolous class action lawsuits are already a nearly impossible financial undertaking for a small business owner. The Ninth Circuit’s ruling that uninjured individuals can be included in a class action, thereby inflating the size of the class, will only further stack the odds against small businesses."
The NFIB brief outlines three main arguments: first, that the Ninth Circuit's interpretation of Rule 23 conflicts with Article III of the Constitution and the Rules Enabling Act; second, that including uninjured individuals creates disparities between class representatives and members, challenging typicality requirements under Rule 23; third, that such inclusion poses significant harm to defendants like small businesses.
The NFIB Small Business Legal Center aims to defend small business owners' rights in court. Currently, NFIB is engaged in over 40 cases across federal and state courts nationwide as well as at the U.S. Supreme Court.
