Washing machine lawsuit advances

Sears Holdings Corp. must face consumer class-action litigation over alleged washing machine defects, a federal appeals court in Chicago ruled after being asked to reconsider the issue by the U.S. Supreme Court.

Consumers accused the suburban-Chicago based retailer of selling appliances with faulty computer control systems. They also alleged that the front-loading machines, made by Whirlpool Corp. and sold under Sears’ Kenmore brand, accumulate mold.

After the appeals court last year said consumers in six states could pursue their claims collectively, Sears gained Supreme Court review. The high court, having earlier rejected class status in a case against Comcast Corp. for a lack of common damages, asked the Chicago panel to reconsider its ruling.

"There is a single, central, common issue of liability: whether the Sears washing machine was defective," U.S. Circuit Judge Richard Posner said in a ruling released last week reiterating that two classes be recognized.

"It would drive a stake through the heart of the class action device, in cases in which damages were sought," Posner said, "to require that every member of the class have identical damages."

FDIC shuts down 2 small banks

WASHINGTON » Regulators have closed small banks in Tennessee and Arizona, bringing the number of U.S. bank failures to 20 this year.

The Federal Deposit Insurance Corp. says it seized Community South Bank, based in Parsons, Tenn., with 15 branches and about $386.9 million in assets and $377.7 million in deposits as of June 30. It also shuttered Phoenix-based Sunrise Bank of Arizona, with six branches, $202.2 million in assets and $196.9 million in deposits.