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Chipman v. Northwest Healthcare Corp.
2012 MT 242
| Mont. | 2012
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Background

  • Plaintiffs Chipman, Wallen, and Hames are KRMC employees and class representatives challenging the discontinuation of the CIB sick-leave buy-back program.
  • NWHC is the umbrella parent; KRMC, Brendan House, The Summit are affiliates; AHS and NOSM are for-profit subsidiaries.
  • CIB allowed eligible employees to accrue and cash out hours at retirement/severance; policy adopted at different times across entities (2002-2007).
  • KRMC terminated CIB on July 1, 2008; 1,254 employees were eligible at termination, later growing to over 1,500 by 2011.
  • District Court certified a class defined as status employees employed on or before June 30, 2008 across multiple Employers; this appeal challenges standing and certification.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Standing of named Plaintiffs to sue non-KRMC Employers Employees have a contractual/withdrawal-right interest via a unified policy. Plaintiffs lack injury against non-KRMC Employers; no direct dealings with those entities. Standing to sue non-KRMC Employers affirmed due to juridical link and concerted scheme.
Whether class certification under Rule 23(a)-(b) was proper Common contract terms and uniform CIB policy support class treatment. Differences among employees could require individual inquiries; commonality not met under Wal-Mart guidance. Class certification affirmed under Rule 23(a) and (b)(1)-(2) for a unified policy and substantial common issues.

Key Cases Cited

  • Powder River County v. State, 2002 MT 259 (Mont. 2002) (three-part justiciability test for standing)
  • McKamey v. State, 268 Mont. 137 (Mont. 1994) (declaratory judgments for threatened injuries to rights)
  • Gryczan v. State, 283 Mont. 433 (Mont. 1997) (standing for declaratory relief based on threatened prosecution)
  • La Mar v. H&B Novelty & Loan Co., 489 F.2d 461 (9th Cir. 1973) (juridical link concept in class actions)
  • Murer v. Montana State Compensation Fund, 257 Mont. 434 (Mont. 1993) (juridical link and conspiracy/court-type exceptions to class action)
  • Wal-Mart Stores, Inc. v. Dukes, 131 S. Ct. 2541 (U.S. 2011) (Wal-Mart commonality standard following stricter class-wide proof)
  • Diaz v. Blue Cross & Blue Shield, 363 Mont. 151 (Mont. 2011) ( Rule 23 analysis; rigorous analysis required)
  • Cates v. Cooper Tire & Rubber Co., 253 F.R.D. 422 (N.D. Ohio 2008) (illustrative of typicality where benefits stem from same plan)
  • Bova v. City of Medford, 564 F.3d 1093 (9th Cir. 2009) (ripeness/standing in post-retirement benefits)
  • Auerbach v. Board of Educ., 136 F.3d 104 (2d Cir. 1998) (standing when benefits are contingent on future retirement)
Read the full case

Case Details

Case Name: Chipman v. Northwest Healthcare Corp.
Court Name: Montana Supreme Court
Date Published: Oct 30, 2012
Citation: 2012 MT 242
Docket Number: DA 12-0050
Court Abbreviation: Mont.