Konarzewski v. Ganley, Inc.
2017 Ohio 4297
| Ohio Ct. App. | 2017Background
- Plaintiffs filed a class action alleging OCSPA (Ohio Consumer Sales Practices Act) violations based on Ganley’s use of a Retail Installment Sales Contract (RISC) and a Conditional Delivery Agreement (CDA), claiming the forms contained misleading and one-sided terms.
- Trial court granted plaintiffs partial summary judgment on liability for OCSPA violations and initially denied class certification; an earlier panel reversed that denial and remanded to conform the class to OCSPA’s actual-damages requirement.
- Plaintiffs proposed a revised class: purchasers within two years who bought using the RISC together with the CDA and “did not receive the benefit of the bargain and as a result suffered actual damages.”
- The trial court certified the revised class under Civ.R. 23(B)(3); defendants appealed the certification order.
- The court of appeals reviewed whether the Civ.R. 23 requirements — particularly predominance and identifiability under (B)(3) — were satisfied in light of Ohio Supreme Court precedents requiring proof of actual damages by common evidence.
- The court reversed class certification, holding plaintiffs failed to show common proof that every class member suffered actual damages and that class members could be identified without individualized inquiries.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Civ.R. 23 requirements satisfied for class certification | The modified class (limited to those who didn’t receive benefit of bargain and suffered actual damages) meets Civ.R. 23(A) and (B)(3) and complies with OCSPA’s actual-damages rule | Class cannot be certified because proof of injury/damages is individualized and predominance is lacking; class members not readily identifiable | Reversed — class certification under Civ.R. 23(B)(3) improper because plaintiffs did not show common proof of fact-of-damage and class is not identifiable without individualized inquiries |
| Whether liability-commonality suffices absent common proof of damages | Liability is common (OCSPA violation) and therefore predominates over damages questions | Liability alone is insufficient; Felix and Cullen require common proof of actual injury at certification | Held for defendant — liability commonality does not relieve plaintiffs of proving fact-of-damage by common evidence |
| Whether class definition complies with OCSPA’s actual-damages limitation | The added language (did not receive benefit of the bargain and suffered actual damages) cures earlier defect | Definition still requires transaction-by-transaction proof to identify injured class members | Held for defendant — the definition still prevents identifying class members without individualized inquiries |
| Whether trial court properly applied Cullen/Felix rigorous-analysis standard | Plaintiffs argue trial court did perform rigorous analysis and had already found liability on summary judgment | Defendants argue trial court glossed over individualized damage inquiries and ignored Felix’s common-proof requirement | Held for defendant — trial court’s analysis was flawed and inconsistent with Felix/Cullen; it failed to require common evidence of injury |
Key Cases Cited
- Marks v. C.P. Chem. Co., Inc., 31 Ohio St.3d 200 (1987) (trial court has broad discretion on class certification subject to Civ.R. 23)
- Hamilton v. Ohio Savs. Bank, 82 Ohio St.3d 67 (1998) (class certification discretion must be exercised within Civ.R. 23 framework)
- Cullen v. State Farm Mut. Auto Ins. Co., 137 Ohio St.3d 373 (2013) (trial court must perform a rigorous analysis resolving factual disputes and consider what will have to be proved at trial; certification requires proof that matters can be presented by common proof)
- Stammco, L.L.C. v. United Tel. Co., 125 Ohio St.3d 91 (2010) (class certification improper when class members cannot be identified without more than reasonable effort)
- Felix v. Ganley Chevrolet, Inc., 145 Ohio St.3d 329 (2015) (for OCSPA class actions, plaintiffs must show proof of actual damages by common evidence at certification; liability alone is insufficient)