Dist. Ct. did not err in requiring defendant to bear costs of providing notice to plaintiff’s proposed nationwide class members under circumstances where: (1) plaintiff had initially sought, but was denied proposed certification for nationwide class action in plaintiff’s lawsuit alleging violation of Telephone Consumer Protection Act, but allowed plaintiff to certify class of only Illinois residents; (2) Dist. Ct. based said limitation on U.S. Supreme Court decision in Bristol Myers Squibb Co.,182 U.S. 244; (3) Dist. Ct. then granted summary judgment in favor of plaintiff's class of Illinois residents; (3) during pendency of instant case, Ct. of Appeals, in Mussat, 953 F.3d 441, held that Bristol Myers did not apply to case of nationwide class action filed in federal court under federal statute; and (4) instant Dist. Ct. reopened its decision to limit class to Illinois residents, ultimately certified nationwide class and granted summary judgment in favor of nationwide class. While ordinary rule requires plaintiff to initially bear cost of notice to class, especially where liability has yet to be determined, Dist. Ct. could impose said costs on defendant, where: (1) Dist. Ct. had already made defendant liable on merits of case after it had certified class of Illinois residents, but before class certification and necessary notice had been given to non-Illinois residents; and (2) Dist. Ct. could thus place notice costs on defendant once defendant’s liability on merits had been established. Ct. further observed that defendant could seek to recover said notice costs should it prevail on merits of case on appeal.
Federal 7th Circuit Court
Civil Court
Class Action