Randleman v. Fidelity National Title Insurance
646 F.3d 347
| 6th Cir. | 2011Background
- Randlemans sue Fidelity National Title Insurance Co. for failing to apply a refinance discount when prior title insurance existed within 10 years; Hickmans sue First American Title Insurance Co. for same claim; district court decertified Randlemans’ class and denied Hickmans’ class certification; Fidelitys and First American rates are filed with Ohio Title Insurance Rating Bureau and governed by PR-9/PR-10 discount rules; liability requires examining each transaction to see whether Fidelity/First American had notice of prior policy; discovery showed title insurance not always used in Ohio mortgages; court reviews decertification for abuse of discretion; both district courts affirmed denial of class certification; case affirmations rest on predominance and individualized liability questions rather than common questions of law or fact.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Do common issues predominate to certify a damages class? | Randlemans: common issue of discount entitlement predominates. | Fidelity: liability depends on individualized facts of each file. | No; predominance not shown. |
| Is the Randlemans’ class a valid 'fail-safe' class? | Class defined by entitlement to relief should be permissible. | Fail-safe class is improper. | Not allowed; decertification affirmed on predominate grounds. |
| Do common issues predominate for the Hickmans' class? | Hickmans: similar predominance to Randlemans. | Individualized inquiries predominate. | No; district court did not abuse discretion. |
| Was the district court required to adopt Randlemans’ case-management plan? | Plan would create class-wide resolution. | Plan still requires numerous individual inquiries. | No abuse of discretion; plan not adopted. |
Key Cases Cited
- Beattie v. CenturyTel, Inc., 511 F.3d 554 (6th Cir. 2007) (class-wide liability where predominate issues exist despite individual damages)
- Daffin v. Ford Motor Co., 458 F.3d 549 (6th Cir. 2006) (class certification valid when common issues predominate despite individual ownership proof)
- Benavides v. Chicago Title Ins. Co., 636 F.3d 699 (5th Cir. 2011) (predominance and individualized entitlement considerations in title-insurance claims)
- Reeb v. Ohio Dep't of Rehab. & Corr., 435 F.3d 639 (6th Cir. 2006) (district court's broad discretion in managing class actions; abuse standard)