291 P.3d 1209
Mont.2012Background
- Plaintiffs are landowners and former landowners along Flathead Lake and upper Flathead River who sue MPC and its successor PPL Montana.
- This is the third appeal in the litigation; prior decisions addressed class certification standards and easement interpretations in Mattson I and II.
- The Kerr Dam and its operation regulate Flathead Lake’s level, historically up to 2,893 feet, affecting shoreline properties.
- Landowners claim that keeping the lake at full pool during fall storms causes shoreline erosion and damages under flood easements.
- The district court certified the class as to MPC and initially certified, then decertified, and Landowners renewed certification under Rule 23.
- The Montana Supreme Court held the district court erred and remanded to certify a broad class consistent with the opinion.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Commonality and predominance standards satisfied | Landowners contend common issues predominate over individual cases. | MPC/PPLM argue significant property-by-property differences defeat commonality. | Yes; commonality and predominance satisfied for liability issues. |
| Reasonableness of lake-level operations class-wide | Landowners assert the reasonableness question is central and class-wide. | Defendants argue reasonableness varies by property, requiring individualized trials. | Class-wide reasonableness is appropriate; aggregate balance governs liability. |
| Damages determination avoids precluding class liability | Damages may be individual, but liability can be determined on a class basis. | Liability and damages require per-property analysis. | Liability can be certified class-wide; damages remain individual but do not defeat liability. |
Key Cases Cited
- Wal-Mart Stores, Inc. v. Dukes, 131 S. Ct. 2541 (U.S. 2011) (heightened commonality standard for Rule 23(a)(2))
- Chipman v. N.W. Healthcare Corp., 2012 MT 242 (Mont. 2012) (affirms commonality under stringent standard)
- Mattson II v. Mont. Power Co., 352 P.3d 212 (Mont. 2000s) (adopts Miles guidelines; discusses easement reasonableness and class certification)
- Eisen v. Carlisle & Jacquelin, 417 U.S. 156 (U.S. 1974) (class actions; pleading alone not enough for certification)
- Miles v. Merrill Lynch & Co., 471 F.3d 24 (2d Cir. 2006) (framework for certifying classes with overlapping issues)