Class Action Defense Cases-In re New Century Mortgage: Judicial Panel On Multidistrict Litigation (MDL) Denies Defense Request To Centralize Class Action Litigation In The Central District of California

Mar 9, 2007 | By: Michael J. Hassen

Class Action Lawsuits did not Warrant Pretrial Coordination Pursuant to 28 U.S.C. § 1407 Judicial Panel on Multidistrict Litigation (MDL) Holds

Three class action lawsuits were filed in Indiana and California against New Century Financial, New Century Mortgage and Home123; Indiana plaintiffs’ lawyer moved the Judicial Panel on Multidistrict Litigation (MDL) to centralize the lawsuits for pretrial purposes in the Northern District of Indiana, but then moved to withdraw the request “asserting that they have reached an agreement with plaintiff in [one of] the Central District of California [cases] … that negates their need for transfer.” In re New Century Mortgage Corp. Prescreening Litig., 473 F.Supp.2d 1383, 1383 (Jud. Pan.Mult.Lit. 2007). Defense attorneys opposed withdrawal of the motion and requested that the cases transferred to Indiana; plaintiffs in both Central District of California cases opposed centralization. Id. The Panel denied the motion, concluding that centralization was not warranted. The Panel explained, “In this docket containing just three actions pending in two districts, which were originally filed over a year ago, the proponents of centralization have failed to persuade us that any common questions of fact and law are sufficiently complex and/or numerous to justify Section 1407 transfer in this docket at this time. Alternatives to transfer exist that can minimize whatever possibilities there might be of duplicative discovery and/or inconsistent pretrial rulings.” Id., at 1384 (citations omitted).

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