550 S.W.3d 716
Tex. App.2018Background
- Jessica Growden (on behalf of a putative class) sued Good Shepherd seeking only a declaratory judgment under the Texas Declaratory Judgments Act, alleging its hospital contract and billing (Chargemaster) allowed billing uninsured patients unreasonably high amounts.
- Growden was billed $25,308.92 for her minor daughter’s brief ER visit; she was uninsured and alleged charges exceeded reasonable value.
- Growden filed a motion to certify the class shortly after filing suit and pursued discovery relevant to class claims.
- Before class certification, Good Shepherd unconditionally waived and wrote off Growden’s bill and swore it would make no further collection attempts; Growden did not pay.
- The trial court dismissed the entire suit as moot for lack of subject-matter jurisdiction; Growden appealed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether defendant’s unilateral waiver of the named plaintiff’s claim moots the class claims (picking-off) | Growden: waiver was strategic to moot class claims; relation-back/picking-off exception should preserve class claims because her timely motion to certify was pending | Good Shepherd: unconditional write-off mooted Growden’s individual and class claims; dismissal for lack of jurisdiction appropriate | Court: Applying federal picking-off doctrine, waiver looked ad hoc and occurred while a timely certification motion and discovery were pending; trial court erred — class claims not mooted |
| Whether Growden’s individual declaratory claim remained live after waiver | Growden: underlying declaratory claim is moot because Good Shepherd waived the bill | Good Shepherd: waiver moots the individual claim | Held: Individual substantive DJA claim is moot and dismissal of that part was proper |
| Whether Growden’s DJA attorney-fee claim survived mootness | Growden: under DJA her claim for attorney fees remains a live, justiciable controversy even if substantive relief is moot | Good Shepherd: attorney-fee claim was moot along with substantive claims | Held: DJA attorney-fee claim remains live; trial court erred by dismissing Growden’s individual attorney-fee claim; class-fee claim reversal follows from preserving class claims |
| Whether Good Shepherd’s waiver was part of standard procedure or a litigation tactic (relevance to picking-off) | Growden: waiver was ad hoc and not consistent with provider policy; supports inference of strategic picking-off | Good Shepherd: waiver was proper and not strategic; it had attempted to work with Growden to find funding | Held: Record (policy on bad debt showed no unconditional waiver procedure) supports inference waiver was ad hoc and strategic; favors picking-off exception |
Key Cases Cited
- Heckman v. Williamson Cty., 369 S.W.3d 137 (Tex. 2012) (standing and mootness principles; Texas exceptions to mootness in class actions)
- Sosna v. Iowa, 419 U.S. 393 (U.S. 1975) (relation-back doctrine for class actions where class certification creates separate legal status)
- Zeidman v. J. Ray McDermott & Co., 651 F.2d 1030 (5th Cir. 1981) (recognizing picking-off exception where defendant tenders full individual claims to avoid class certification)
- Camarena v. Tex. Employment Comm’n, 754 S.W.2d 149 (Tex. 1988) (attorney-fee claims under the DJA can remain live even if substantive claims become moot)
- Allstate Ins. Co. v. Hallman, 159 S.W.3d 640 (Tex. 2005) (trial court discretion to award equitable attorney fees under the DJA)