Hunter v. Runyan
2011 Ark. 43
| Ark. | 2011Background
- Settling Plaintiffs filed a class action in Pulaski County against the Company over underpayment of benefits based on the policy term “actual charges.”
- The class action sought monetary and nonmonetary relief, including a declaration of the meaning of “actual charges” and protection against premium increases.
- A nationwide, multi-case settlement was reached and preliminarily approved, binding six related federal actions.
- Notice was sent to over 250,000 potential class members; about 9 objectors appeared at the fairness hearing, including Crager, Hunter, and Shepherd.
- Crager, Hunter, and Shepherd sought intervention; Crager also challenged final settlement approval; the circuit court denied intervention requests and then approved the settlement.
- Crager appeals the denial of intervention and the final settlement; Hunter and Shepherd appeal the denial of their intervention, challenging procedural defects and merits.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the circuit court had subject-matter jurisdiction to approve the class settlement | Shepherd argues amendment 80 precludes jurisdiction due to lack of adversity | Company/Settling Plaintiffs contend Rule 23(e) requires court review and confers jurisdiction | The circuit court had subject-matter jurisdiction under Rule 23(e) and amendment 80. |
| Whether Crager has standing to appeal the settlement denial | Crager attempted to intervene but remained in the class | Crager lacks standing to appeal since unnamed class members who do not intervene cannot appeal | Crager’s appeal is dismissed for lack of standing. |
| Whether Hunter and Shepherd validly intervened under Rule 24 | Intervention was warranted to protect their interests | Motions were procedurally defective or lacked a pleaded claim to intervene | Motions denied for failure to comply with Rule 24(c) and for lack of adequate intervention showing; no abuse of discretion. |
| Whether unnamed objectors/de facto delays justify denial of intervention and affect due process | Objectors sought to protect rights; delay harms class members | Delay and need for orderly settlement justify denial | Delay grounds supported denial of permissive intervention; due-process concerns preserved for appellate review in other contexts. |
Key Cases Cited
- Ballard v. Advance Am., 349 Ark. 545, 79 S.W.3d 835, 349 Ark. 545 ((2002)) (unnamed class members lacking intervention cannot appeal settlements)
- DeJulius v. Sumner, 373 Ark. 156, 282 S.W.3d 753, 373 Ark. 156 ((2008)) (control of intervention standing and abandonment rules reaffirmed)
- Haberman v. Lisle, 317 Ark. 600, 884 S.W.2d 262, 317 Ark. 600 ((1994)) (intervention and standing principles in class actions)
- Luebbers v. Advance Am., 348 Ark. 567, 74 S.W.3d 608, 348 Ark. 567 ((2002)) (standing and related appeals by unnamed class members)
- Devlin v. Scardelletti, 536 U.S. 1, 122 S. Ct. 2005, 536 U.S. 1 ((2002)) (rule for unnamed class members to appeal in federal context)
- MacSteel Division of Quanex v. Ark. Oklahoma Gas Corp., 363 Ark. 22, 210 S.W.3d 878 ((2005)) (distinguishes jurisdictional concepts from justiciability under Arkansas law)
- UHS of Ark., Inc. v. Charter Hosp. of Little Rock, Inc., 297 Ark. 8, 759 S.W.2d 204 ((1988)) (declaratory judgment jurisdiction not conferred; need independent equitable basis)
