In Re: Checking Account Overdraft LitigationRESPONSE/REPLY to 2124 Notice of Supplemental AuthorityS.D. Fla.November 29, 2011 UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF FLORIDA MIAMI DIVISION CASE NO. 1:09-MD-02036-JLK IN RE: CHECKING ACCOUNT OVERDRAFT LITIGATION MDL No. 2036 THIS DOCUMENT RELATES TO: FIFTH TRANCHE ACTION Rider, et al. v. Regions Financial Corp., et al. E.D. Ark. Case No: 4:11-cv-0375-JLH S.D. Fla. Case No. 1:11-cv-23172-JLK PLAINTIFFS’ RESPONSE TO DEFENDANTS’ NOTICE OF SUPPLEMENTAL AUTHORITY IN SUPPORT OF MOTION TO COMPEL ARBITRATION AND DISMISS OR STAY PROCEEDINGS Plaintiffs hereby respond to Defendants’ Notice of Supplemental Authority [DE # 2124] regarding their Motion to Compel Arbitration [DE # 1932]. Regions’ citation to the Supreme Court’s remand in Branch Banking & Trust v. Gordon, 2011 WL 3876982 (U.S. Nov. 14, 2011), is misplaced, as the Supreme Court’s decision to grant certiorari, vacate, and remand for further consideration is a non-merits procedural ruling that has no precedential value. E.g., Sutherland v. Ernst & Young LLP, 768 F. Supp. 2d 547, 550 (S.D.N.Y. 2011). Regions’ suggestion that the Supreme Court’s decision is an indication that the court “intends for Concepcion to apply to arbitration agreements between banks and their customers” is completely unfounded. As the district court noted in Sutherland, “GVR orders are not final determinations on the merits.” 768 F. Supp. 2d at 550 (citing Tyler v. Cain, 533 U.S. 656, 666 n.6 (2001)). Instead, these procedural orders “are issued where intervening developments ‘reveal Case 1:09-md-02036-JLK Document 2174 Entered on FLSD Docket 11/29/2011 Page 1 of 6 2 a reasonable probability that the decision below rests upon a premise that the lower court would reject if given the opportunity for further consideration, and where it appears that such a redetermination may determine the ultimate outcome’ of the matter.” Id. (quoting Wellons v. Hall, 130 S. Ct. 727, 731 (2010)). On remand, however, a lower court may find the intervening decision inapplicable. See, e.g., Stutson v. United States, 516 U.S. 193, 196 (1996); United States v. Vanorden, 414 F.3d 1321, 1323 (11th Cir. 2005). Moreover, as the district court noted in Sutherland “[t]he expressions of the [lower court] on the merits, if not reversed, will thus continue to have precedential effect notwithstanding the issuance of a GVR order, and ‘until contrary authority is decided, are likely to be viewed as persuasive authority if not the governing law of the . . . Circuit.’” 768 F. Supp. 2d at 550-51 (citing Boehner v. McDermott, 332 F. Supp. 2d 149, 156 (D.D.C. 2004), and United States v. Adewani, 467 F.3d 1340, 1343 (D.C. Cir. 2006)). As this Court has already considered the enforceability of Regions’ arbitration clause post-Concepcion and found it to be unconscionable, the Supreme Court’s decision to vacate and remand Gordon for further consideration in light of Concepcion is of no consequence. Case 1:09-md-02036-JLK Document 2174 Entered on FLSD Docket 11/29/2011 Page 2 of 6 3 Dated: November 29, 2011. Respectfully submitted, /s/ Aaron S. Podhurst Aaron S. Podhurst, Esquire Florida Bar No. 063606 apodhurst@podhurst.com Robert C. Josefsberg, Esquire Florida Bar No. 40856 rjosefsberg@podhurst.com Peter Prieto, Esquire Florida Bar No. 501492 pprieto@podhurst.com Stephen F. Rosenthal, Esquire Florida Bar No. 0131458 srosenthal@podhurst.com John Gravante, III, Esquire Florida Bar No. 617113 jgravante@podhurst.com PODHURST ORSECK, P.A. City National Bank Building 25 W. Flagler Street, Suite 800 Miami, FL 33130-1780 Tel: 305-358-2800 Fax: 305-358-2382 /s/ Bruce S. Rogow Bruce S. Rogow, Esquire Florida Bar No. 067999 brogow@rogowlaw.com BRUCE S. ROGOW, P.A. Broward Financial Center 500 East Broward Boulevard Suite 1930 Fort Lauderdale, FL 33394 Tel: 954-767-8909 Fax: 954-764-1530 Co-Lead Counsel for Plaintiffs /s/ Robert C. Gilbert Robert C. Gilbert, Esquire Florida Bar No. 561861 rcg@grossmanroth.com Stuart Z. Grossman, Esquire Florida Bar No. 156113 szg@grossmanroth.com David Buckner, Esquire Florida Bar No. 60550 dbu@grossmanroth.com Seth E. Miles, Esquire Florida Bar No. 385530 sem@grossmanroth.com GROSSMAN ROTH, P.A. 2525 Ponce de Leon Boulevard Eleventh Floor Coral Gables, FL 33134 Tel: 305-442-8666 Fax: 305-779-9596 Coordinating Counsel for Plaintiffs Case 1:09-md-02036-JLK Document 2174 Entered on FLSD Docket 11/29/2011 Page 3 of 6 4 /s/ E. Adam Webb E. Adam Webb, Esquire Georgia Bar No. 743910 Adam@WebbLLC.com Matthew C. Klase, Esquire Georgia Bar No. 141903 Matt@WebbLLC.com G. Franklin Lemond, Jr., Esquire Georgia Bar No. 141315 FLemond@WebbLLC.com WEBB, KLASE & LEMOND, L.L.C. 1900 The Exchange, S.E. Suite 480 Atlanta, GA 30339 Tel: 770-444-9325 Fax: 770-444-0271 /s/ Russell W. Budd Russell W. Budd, Esquire Texas Bar No. 03312400 rbudd@baronbudd.com Bruce W. Steckler, Esquire Texas Bar No. 00785039 bsteckler@baronbudd.com Mazin A. Sbaiti, Esquire Texas Bar No. 24058096 msbaiti@baronbudd.com BARON & BUDD, P.C. 3102 Oak Lawn Avenue Suite 1100 Dallas, TX 75219 Tel: 214-521-3605 Fax: 214-520-1181 /s/ Michael W. Sobol Michael W. Sobol, Esquire California Bar No. 194857 msobol@lchb.com Roger N. Heller, Esquire California Bar No. 215348 rheller@lchb.com Jordan Elias, Esquire California Bar No. 228731 jelias@lchb.com LIEFF CABRASER HEIMANN & BERNSTEIN L.L.P. Embarcadero Center West 275 Battery Street, 30th Floor San Francisco, CA 94111 Tel: 415-956-1000 Fax: 415-956-1008 /s/ David S. Stellings David S. Stellings, Esquire New York Bar No. 2635282 dstellings@lchb.com LIEFF CABRASER HEIMANN & BERNSTEIN L.L.P. 250 Hudson Street 8th Floor New York, NY 10013 Tel: 212-355-9500 Fax: 212-355-9592 Case 1:09-md-02036-JLK Document 2174 Entered on FLSD Docket 11/29/2011 Page 4 of 6 5 /s/ Ruben Honik Ruben Honik, Esquire Pennsylvania Bar No. 33109 rhonik@golombhonik.com Kenneth J. Grunfeld, Esquire Pennsylvania Bar No. 84121 kgrunfeld@golombhonik.com GOLOMB & HONIK, P.C. 1515 Market Street Suite 1100 Philadelphia, PA 19102 Tel: 215-985-9177 Fax: 215-985-4169 /s/ Ted E. Trief Ted E. Trief, Esquire New York Bar No. 1476662 ttrief@triefandolk.com Barbara E. Olk, Esquire New York Bar No. 1459643 bolk@triefandolk.com TRIEF & OLK 150 E. 58th Street 34th Floor New York, NY 10155 Tel: 212-486-6060 Fax: 212-317-2946 Plaintiffs’ Executive Committee Case 1:09-md-02036-JLK Document 2174 Entered on FLSD Docket 11/29/2011 Page 5 of 6 6 UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF FLORIDA CASE NO. 09-MD-02036-JLK IN RE: CHECKING ACCOUNT OVERDRAFT LITIGATION MDL No. 2036 CERTIFICATE OF SERVICE I hereby certify that on November 29, 2011, I electronically filed the foregoing document with the Clerk of the Court using CM/ECF. I also certify that the foregoing document is being served this day on all counsel of record or pro se parties identified on the attached Service List in the manner specified, either via transmission of Notices of Electronic Filing generated by CM/ECF or in some other authorized manner for those counsel or parties who are not authorized to receive electronically Notices of Electronic Filing. /s/ Robert C. Gilbert Robert C. Gilbert, Esquire Florida Bar No. 561861 GROSSMAN ROTH, P.A. 2525 Ponce de Leon Boulevard Eleventh Floor Coral Gables, FL 33134 Tel: 305-442-8666 Fax: 305-779-9596 Case 1:09-md-02036-JLK Document 2174 Entered on FLSD Docket 11/29/2011 Page 6 of 6