Van v. LLR, Inc.

FRCP Rule 23(b) requires that, when individualized issues that may cause difficulties in a class-action are substantiated, they must be reviewed by the district court to determine whether the claimant has proven by a preponderance of the evidence that questions common to the class predominated over that issue. Bowerman v. Field Asset Servs., 60 F.4th 459, 469 (9th Cir. 2023).

Alaska purchasers brought a class action against LuLaRoe, Inc. (LLR) pursuant to the Unfair Trade Practices and Consumer Protection Act (UTPCPA) after LLR collected sales taxes from purchasers that were calculated based on the location of the retailer, not the purchaser. The district court certified the class under Rule 23(b)(3) of the Federal Rules of Civil Procedure (FRCP). LLR appealed, arguing that the certification was improper because retailer-provided discounts given to some purchasers had purposefully offset the sales taxes. Rule 23(b) requires an individualized issue that may cause difficulties in a class-action be substantiated. Class certification issues must be reviewed by the district court to determine whether the claimant has proven by a preponderance of the evidence that questions common to the class predominated over that issue. Bowerman v. Field Asset Servs., 60 F.4th 459, 469 (9th Cir. 2023). The Court held that LLR substantiated an individualized issue and that the class should be de-certified. The Court found that by some claimants presented evidence that they had received those discounts. Accordingly, the Court reasoned found the evidentiary standard for substantiating a class action was not met. VACATED AND REMANDED.