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Laboratory Corp. of America Holdings v. Davis, Docket No. 24-304

The Supreme Court was ready to weigh in on whether a lawsuit for damages could include people who were never hurt alongside those who actually suffered harm, but then it decided not to decide. After agreeing to hear the case, the Justices dismissed it as improvidently granted and sent it back without ruling on the question. That means there’s still no clear answer on whether a class action can pack together injured and uninjured members under the federal rules. Justice Brett Kavanaugh disagreed with that move and wrote a dissent. He would have liked the Court to tackle the issue head-on. What this all means is that lower courts and companies are still left guessing about how to handle these mixed classes in big lawsuits.

Summary of the Case

LabCorp, a national diagnostic laboratory provider, installed touchscreen "e-check-in" kiosks in its California patient centers. Because these kiosks weren't accessible to blind or visually impaired patients, several legally blind individuals sued LabCorp. They claimed the company denied them "full and equal enjoyment" of services under the Americans with Disabilities Act and California's Unruh Civil Rights Act.

The plaintiffs sought to certify a statewide class action that could potentially seek damages up to $500 million per year. This class would include all legally blind patients who "due to their disability, were unable to use" the kiosks.

LabCorp challenged the class certification, arguing that the definition included people who weren't actually harmed - specifically, blind individuals who wouldn't have used the kiosks anyway due to personal preference or habit. The Ninth Circuit Court of Appeals allowed the class to proceed, applying its precedent that permits classes that "potentially include more than a de minimis number of uninjured class members." LabCorp then asked the Supreme Court to review whether a damages class action can include both injured and uninjured members.

Opinion of the Court

In a brief per curiam (by the court) order, the Supreme Court dismissed the case as "improvidently granted," meaning they decided not to rule on the issue after all. The Court provided no analysis of either the procedural questions or the class certification issues, leaving the Ninth Circuit's judgment intact without addressing the merits.

Dissenting Opinions

Justice Kavanaugh dissented from the dismissal. He argued that:

• The case should not have been dismissed on procedural grounds. He rejected the plaintiffs' argument that LabCorp appealed the wrong certification order, noting that the later "clarification" order didn't materially change the original certification.

• On the merits, Justice Kavanaugh believed that the federal rules governing class actions prohibit certifying a damages class that "includes both injured and uninjured members." He argued that a class of uninjured individuals cannot share a common injury, which conflicts with several previous Supreme Court decisions.

• Allowing overly broad class certifications forces defendants into settlements and ultimately imposes costs on consumers, retirees, and workers by inflating liability exposure. He would have reversed the Ninth Circuit's decision.

When Class Actions Can Include Potentially Uninjured Members

This case highlights a tension in class action law about who can be included in a lawsuit seeking damages. Three key legal frameworks are at play:

1. The ADA and California's Unruh Act both require businesses to provide "full and equal" access to people with disabilities. The Unruh Act allows for $4,000 in damages per violation, regardless of actual harm suffered.

2. Federal class action rules require that common questions "predominate" over individual ones before a damages class can proceed. This requirement aims to ensure class treatment is both convenient and fair.

3. Federal rules allow immediate appeals of class certification decisions because certifying large classes with potentially uninjured members can create enormous liability risks and pressure to settle regardless of the merits.

The Ninth Circuit's approach allows certification even when more than a small number of class members may lack any injury, as long as "some evidence of injury" exists for others. Justice Kavanaugh viewed this exception as incompatible with class action rules and Supreme Court precedents, which he believes require each class member to share a common injury.

This case reflects the ongoing challenge of balancing the need to address widespread discrimination through class actions while preventing overly broad certifications that might lead to unfair settlements or violate defendants' due process rights.