Donald ROTUNDA, Appellant, v. MARRIOTT INTERNATIONAL, INC., Appellee.
No. 14-CV-618
District of Columbia Court of Appeals.
Decided Sept. 3, 2015.
123 A.3d 980
Argued June 24, 2015.
Finally, appellant argues that the judge failed to make a finding of bad faith based on clear and convincing evidence, a finding she asserts is necessary under Pioneer Inv. Servs. Co. and related cases. The test under our decisions, however, is whether the party seeking to excuse a default “acted in good faith,” Admasu, 108 A.3d at 362 (quoting Pioneer Inv. Servs. Co., 507 U.S. at 395, 113 S.Ct. 1489), a determination to be made objectively in light of the circumstances, including the party‘s knowledge of the obligations neglected. See, e.g., 1618 Twenty-First St. Tenants’ Ass‘n v. Phillips Collection, 829 A.2d 201, 205 (D.C. 2003) (citation omitted) (“[g]ood faith is not a purely subjective notion involving the proverbial actor with a pure heart and empty head” but includes some objective, “reasonable basis“); Pierola v. Moschonas, 687 A.2d 942, 949 (D.C.1997) (when a debtor disputes a claim “in good faith,” the “good faith requirement is concerned not so much with the subjective moral character of the debtor but rather the requirement of consideration” and whether “there is an objective reasonable basis for the debtor‘s disputing his obligation to pay“); Hemmati v. United States, 564 A.2d 739, 745 (D.C.1989) (a “bona fide belief” which is akin to a good faith belief must be founded in some “reasonable basis“). Thus, for example, whether appellant acted “wanton[ly]” or “deliberate[ly],” “for an improper motive,” in delaying her compensation requests (Brief of Appellant at 9) are distinctly secondary inquiries, if relevant at all.
Besides appellant‘s repeated late-filing of compensation requests, she disregarded court deadlines even more important in nature. Judge Wolf found that her tardy filing of guardianship reports had resulted in delinquency notices twelve times in this case, despite a warning he had issued that she faced possible removal from the appointment as a result. Appellant‘s insistence that her conscientious service to her wards gave rise to these delays rings hollow in light of
III.
For these reasons, the trial judge did not abuse his discretion in granting appellant $2,603.00 in compensation, but in otherwise denying her fee request.
Affirmed.
Holly Drumheller Butler, Baltimore, MD, and Bruce V. Spiva, Washington, DC, with whom Rhett P. Martin and Charles P. Scheeler, Baltimore, MD, were on the brief, for appellee.
Karl A. Racine, Attorney General for the District of Columbia, Todd S. Kim, Solicitor General, Loren L. AliKhan, Deputy Solicitor General, Bennett Rushkoff, Chief, Public Advocacy Section, and Nich-
Before THOMPSON and BECKWITH, Associate Judges, and FARRELL, Senior Judge.
FARRELL, Senior Judge:
Appellant Donald Rotunda brought this suit for damages under
I. Background
Rotunda sued appellee Marriott International, Inc. under the CPPA for alleged deception in quoting prices for rooms at its Russian hotels in U.S. dollars, when payment at checkout was required to be in Russian rubles at an internal exchange rate invariably more favorable to the hotel than that day‘s Central Bank exchange rate. The suit was brought on behalf of Rotunda personally and all those members of “the general public,”
The case came before Judge Weisberg on Marriott‘s motion to dismiss the representative action because Rotunda had expressly declined to seek class certification and compliance with the procedures of Rules 23 and 23-I. The judge recognized that the same issue had been decided by Judge Bartnoff in an earlier unrelated case, Margolis v. U-Haul Int‘l, Inc., 2007 CA 5245, 2009 WL 5788369, 2009 D.C.Super. LEXIS 8 (D.C.Super.Ct. Dec. 17, 2009), and he dismissed largely on the strength of Judge Bartnoff‘s reasoning and dismissal there. Specifically, he agreed with her “that a CPPA claim for money damages brought by an individual on behalf of himself and other similarly situated members of the general public is in essence a class action, whether pled as such or not, and must satisfy the requirements of Rule 23” (emphasis by Judge Weisberg). The fact that the D.C. Council, in year 2000 amendments to the CPPA, “intended to permit representative claims for money damages” did not, in Judge Weisberg‘s view,
answer the question of whether the Council intended to exempt such claims from the requirements of Rule 23. The legislative history is silent on the point, but the Council is presumed to legislate with knowledge of the applicable Civil Rules, and there is no reason to assume the Council did not expect and intend the Rule 23 procedural requirements to apply to a CPPA claim for money damages brought by an individual on his own behalf and on behalf of similarly situated members of the general public, particularly where those requirements are rooted in due process considerations.
Rotunda now challenges the dismissal, which presents an issue of law that we decide de novo.2
II. Jurisdiction
We consider first whether Rotunda has standing to bring this appeal, an issue that arises because, after Judge Weisberg dismissed his representative claim, Rotunda settled his individual claim with Marriott. The settlement, approved by the trial court in a Consent Order and Final Judgment, was expressly conditioned on Rotunda‘s ability to appeal the dismissal of the representative claim, but at oral argument this court posed the question—not raised by Marriott—of whether, by settling, Rotunda had forfeited the standing required by our decisions. See Grayson v. AT & T Corp., 15 A.3d 219 (D.C.2011) (en banc). Specifically, we asked whether Rotunda was like the plaintiff/appellant Breakman in Grayson, who “rest[ed] his claim entirely ‘on the legal rights or interests of third parties,‘” and so could not “demonstrate the requisite [personal] injury-in-fact for standing in our courts.” Id. at 246-47 (citation omitted). We directed supplemental briefing on the issue.
The parties agree that the question here is not strictly one of standing but of mootness,3 since, unlike Breakman, Rotunda concededly alleged concrete injury to himself in the complaint and up to the dismissal and settlement. See, by contrast, Grayson, 15 A.3d at 247 (“Because [Breakman] failed to allege the requisite injury-in-fact, ... the trial court properly dismissed [his] claim for want of subject matter jurisdiction.“).
Standing and mootness are, of course, related concepts. See United States Parole Comm‘n v. Geraghty, 445 U.S. 388, 397, 100 S.Ct. 1202, 63 L.Ed.2d 479 (1980) (citation omitted) (“[M]ootness [is] the doctrine of standing set in a time frame: The requisite personal interest that must exist at the commencement of the litigation (standing) must continue throughout its existence (mootness).“). This court nevertheless, though in general adhering closely to Article III‘s constitutional requirement of standing, see discussion at pages [987-88], infra, has “not followed strictly federal justiciability requirements” in regard to “the doctrine of mootness.” Grayson, 15 A.3d at 235 n. 38. See Atchison v. District of Columbia, 585 A.2d 150, 153 (D.C.1991) (“this court ... enjoys flexibility in regard to mootness not possessed by the federal courts“). Illustrating that flexibility, in Atchison the emergency legislation under review had since expired, yet the court chose to entertain the appeal because the significance of the issue presented “extends well beyond the rights of the specific parties.” Id. at 154 (quoting Pendleton v. District of Columbia Bd. of Elections & Ethics, 449 A.2d 301, 303 n. 1 (D.C.1982)); see also Hessey v. Burden, 615 A.2d 562, 572 n. 17 (D.C.1992) (exercising similar “discretion” not to dismiss because of the reach of the issue beyond the parties). Even construing Article III constitutional law, we have observed that, while “[l]ack of standing always deprives a court of the power to adjudicate a claim, ... the doctrine of mootness is subject to recognized exceptions that allow a court to proceed to judgment.” Mallof v. District of Columbia Bd. of Elections & Ethics, 1 A.3d 383, 395 n. 54 (D.C.2010).
III. The Merits
As in Grayson, supra, the issue we decide here arises under amendments made in the year 2000 to the CPPA. Among other changes, whereas formerly
However, despite now including “the general public” as a potential plaintiff in representative actions, the 2000 amendments were virtually silent on how broadly-contoured actions for damages are to be regulated or managed. For one thing, the statute says nothing on the critical issue of how absent members of the represented class are to be given notice so as to make their own decisions whether to be bound by the suit. In that regard it differs, for instance, from a law enacted years earlier authorizing the District government to “bring a civil action ... as parens patriae on behalf of any” resident injured by an anti-trust violation, but under which the District must, “at such times, in such manner, and with such content as the court may direct, cause notice to be given by publication” and any “further notice” the court deems necessary to protect the “due process” rights of any affected “person or persons.”
The parties recognize, of course, that
Rotunda, however, argues that the silence of the CPPA on the notice issue and, indeed, on any other procedural matter affecting due process is unremarkable and affords no reason to believe the D.C. Council meant to subject CPPA actions to Rule 23‘s requirements. That is so, he says, because trial judges in such actions have “equitable discretion” or inherent authority “to craft appropriate practical solutions” and “to manage the cases before them” fully in keeping with due process. Brief for Rotunda at 28, 30. But this argument that outside the framework of Rule 23 judges can improvise procedures regulating representative suits encounters significant problems. On the key issue of notice, for example, Rotunda is at odds with the District of Columbia as amicus curiae, which otherwise supports him on the relation of Rule 23 to suits for damages under the CPPA. Rotunda contends that “[n]othing in the [CPPA] prevents members of the general public who decline statutory damages8 from bringing an independent action to prove a claim and recover whatever damages that person as-
At the same time, the District‘s suggested procedure for alleviating these concerns—lukewarmly endorsed by Rotunda at oral argument—highlights the difficulty in assuming that the Council intended a divorce between the CPPA and Rule 23‘s procedures. Non-applicability of Rule 23 would not preclude a court, the District says, from adopting an “opt-in” procedure requiring that “absent ‘class’ members affirmatively opt in to the action in order to be bound.” Brief for the District of Columbia at 17. This improvisation might indeed allay due process concerns, but by effectively turning the CPPA action for damages into what it is not, namely a “collective action,” id., maintained by multiple named plaintiffs rather than the representative suit the CPPA envisions. For this model the District and Rotunda point to suits brought under
Yet another deep uncertainty, in our view, would beset the effort to regulate CPPA actions on behalf of “the general public” outside Rule 23‘s framework. On a par with the rule‘s notice requirements meant to secure “the interest of members of the class in individually controlling the prosecution or defense of separate actions,”
Not only does Rotunda‘s complaint rest on allegations of misrepresentation, but the CPPA itself makes actionable a wide array of false or misleading representations and omissions of material fact. See, e.g.,
In these circumstances, we conclude that decision here should be guided by the approach the court followed in its en banc decision in Grayson, supra. In Grayson, the primary issue was whether the same 2000 amendment to the CPPA allowing one “acting for the interests of ... the general public” to bring suit evinced an intent of the Council “to override or disturb [this court‘s] constitutional ... requirement” that a plaintiff show injury-in-fact. Grayson, 15 A.3d at 245. We recognized, of course, that the requirement of standing—proof of “some threatened or actual injury resulting from ... putatively illegal action,” id. at 224 (citation omitted)—does not bind this court constitutionally, since “we are an Article I Court.” Id. at 233. But as a general rule, “[t]hrough the years our cases consistently have followed the constitutional minimum of standing,” id. at 235, chiefly in recognition “that an adversary system can best adjudicate real, not abstract, conflicts.” Id. at 233 (quoting District of Columbia v. Walters, 319 A.2d 332, 337 n. 13 (D.C.1974)); see also Fraternal Order of Police v. District of Columbia, 113 A.3d 195, 199 (D.C.2015) (“we typically ‘follow[] the principles of standing, justiciability, and mootness’ for prudential reasons” (quoting Atchison)).
Like this court‘s standing requirement, Rule 23 has been a mainstay of Superior Court civil practice for decades,11 the time-tested framework within which suits for damages by class-members “as representative parties,”
Rotunda has furnished us with no unambiguous evidence, in the 2000 amendments or the supporting legislative history, that the Council meant to displace the Rule 23 framework in favor of improvised due process and management devices for a whole sub-set of representative actions. Nor do we agree with the District‘s suggestion that “[i]f the Council intended representative actions for damages on behalf of the general public to be treated like class actions,” the CPPA‘s language recognizing such suits “was completely unnecessary” and “superfluous.” Brief for the District of Columbia at 8.12 Beyond the fact that “the canon against surplusage is not an absolute rule,” Marx v. General Revenue Corp., 568 U.S. 371, 133 S.Ct. 1166, 1177, 185 L.Ed.2d 242 (2013), the Council‘s affirmation of the right to bring representative suits within the framework of Rule 23 would be wholly consistent with what it otherwise did in the 2000 amendments by, among other things, expanding the remedies for proven CPPA violations, particularly in representative suits,
For these reasons, the judgment of the Superior Court is
Affirmed.
