Berrien v. New Raintree Resorts International, LLC
276 F.R.D. 355
N.D. Cal.2011Background
- Plaintiffs are California residents and members of the Raintree Vacation Club with a non-ownership contract structure.
- Defendants are Raintree Resorts International (RRI), RVC Members, LLC, and Bech; they are not parties to the members’ contracts.
- Bech sent a June 2009 notice announcing a Special Assessment to fund improvements.
- A July 2, 2009 postcard suggested refunds but signaled possible re-issuance of the Special Assessment.
- A second Special Assessment was charged around November 2009, with similar reservation-block language for nonpayment.
- Plaintiffs seek class certification for all California residents charged the 2009 Special Assessments, over 5,000 members.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Adequacy of class representatives | Berrien et al. adequate; no conflicts shown | Potential conflicts from intra-class interests | Adequacy satisfied; conflicts not actual. |
| Predominance of common questions for intentional interference | Common issues predominate; scope of contracts unclear | Individualized inquiries necessary for contract terms and damages | Common questions predominate; certified. |
| Predominance of common questions for UCL claim | Unfairness based on unauthorized special assessments common | Need individualized injury analysis per contract terms | Common questions predominate; certified. |
| Effect of voluntary payment and equitable setoff defenses on certification | Defense defenses do not defeat predominance | These defenses require individual assessments | No defeat; defenses do not preclude certification. |
Key Cases Cited
- Falcon v. General Tel. Co. of Cal., 457 U.S. 147 (1982) (rigorous analysis required for class certification; overlap with merits)
- Wal-Mart Stores, Inc. v. Dukes, 131 S. Ct. 2541 (2011) (requires rigorous analysis; common issues predominate where appropriate)
- Langbecker v. Electronic Data Systems Corp., 476 F.3d 299 (5th Cir. 2007) (intra-class conflicts; not all conflicts defeat certification)
- Blackie v. Barrack, 524 F.2d 891 (9th Cir. 1975) (potential conflicts are not enough for denial at certification)
- Doninger v. Pacific Northwest Bell, Inc., 564 F.2d 1304 (9th Cir.1977) (guidance on class certification standards)
- In re Wells Fargo Home Mortgage Overtime Pay Litig., 571 F.3d 953 (9th Cir.2009) (predominance focus on relationship between common and individual issues)
- Yokoyama v. Midland National Life Ins. Co., 594 F.3d 1087 (9th Cir.2010) (damages do not defeat certification when common issues predominate)