Thorogood v. SEARS, ROEBUCK AND CO.
678 F.3d 546
7th Cir.2012Background
- Thorogood sued Sears over alleged stainless steel drum not entirely stainless; class action certification issue in district court; Thorogood’s class was decertified on appeal; Murray filed a near-copycat California class action removed to federal court; Sears sought injunction under All Writs Act to prevent Murray and others from pursuing serial class actions; Supreme Court later remanded after Smith v. Bayer to reconsider in light of that decision; district court decertified Thorogood’s class and dismissed his individual suit as moot after an offer of judgment; district court in California had previously rejected collateral estoppel against Murray but later allowed discovery; this court previously ordered injunction to prevent further copycat class actions but acknowledged nonparties might not be bound.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Murray may be enjoined under the All Writs Act | Thorogood/Thorogood's counsel argue Murray's suit is a continuation of class action harassment. | Sears contends Murray is bound by our decertification and that injunction is proper to prevent systemic abuse. | Yes, injunction allowed against Murray and others to curb class-action harassment. |
| Whether nonparties to Thorogood are bound by its judgment | Thorogood argued adequate representation bound unnamed class members. | Sears argued nonparties could be bound by preclusive effects of the judgment. | Nonparties cannot be bound unless properly represented; Murray not bound by Thorogood's judgment. |
| Impact of Smith v. Bayer on binding nonparties | Smith supports extending preclusion to bind class members in similar actions. | Smith rejects binding nonparties by a rejected class action; policy considerations insufficient to override nonparty rule. | Smith disfavors binding nonparties; requires other avenues for relief. |
| Proper remedy for copycat class actions after Bayer decision | Remedial tools remain to prevent multiplicitous actions. | Need for alternative mechanisms (stare decisis, MDL, Rule changes). | Sears must pursue other paths; injunction against Murray was not sustainable under Bayer and related principles. |
Key Cases Cited
- United States v. New York Telephone Co., 434 U.S. 159 (Supreme Court 1977) (All Writs Act power to aid court judgments; extends to nonparties under certain circumstances)
- Hansberry v. Lee, 311 U.S. 32 (Supreme Court 1940) (Nonparty bound by class action judgment only if adequately represented)
- Taylor v. Sturgell, 553 U.S. 880 (Supreme Court 2008) (Nonparty preclusion through adequate representation; principles of relatedness)
- Smith v. Bayer Corp., 131 S. Ct. 2368 (Supreme Court 2011) (Class-action rulings cannot bind nonparties; alternatives to preclusion discussed)
- Phillips Petroleum Co. v. Shutts, 472 U.S. 797 (Supreme Court 1985) (Due process considerations for class action effects on absent members)
