FORD MOTOR COMPANY, Leif Johnson Ford, Inc. and Fred Capdevielle, Petitioners, v. Barry SHELDON, Matthew Rueter, Margaret Dunayer, John Porter, William Dobbs, James Beasley and B.J. Sanders, individually and on behalf of all others similarly situated, Respondents.
No. 98-0539
Supreme Court of Texas
Argued Feb. 9, 1999. Decided May 11, 2000.
22 S.W.3d 444
Stephen E. McConnico, Ray N. Donley, Tommy Jacks, Sam Johnson, James L. Wright, Austin, Mark G. Einfalt, Houston, for Respondents.
Chief Justice PHILLIPS delivered the opinion of the Court, in which Justice HECHT, Justice ENOCH, Justice OWEN, Justice ABBOTT, Justice HANKINSON, Justice O‘NEILL, and Justice GONZALES joined.
Seven owners of certain types of Ford vehicles, individually and on behalf of all others who bought similar vehicles in Texas, brought this class action against Ford Motor Co., a Ford dealer, and a Ford district manager. The suit prayed for damages for peeling paint, allegedly caused by the lack of spray primer in the paint process, on certain 1984-1993 vehicle models. The trial court certified the class under
I
Barry Sheldon, Matthew Rueter, Margaret Dunayer, John Porter, William Dobbs, James Beasley, and B.J. Sanders (collectively “Purchasers“) filed this consumer class action against Ford Motor Co., Leif Johnson Ford, Inc.(a Ford dealership in Austin), and Fred Capdevielle (Ford‘s district manager in Houston from 1984–1994) (“Ford“), alleging that Ford knowingly used a defective paint process resulting in premature paint peeling on their Ford vehicles. They contend that the cause of this defect was Ford‘s removal of spray primer from the paint process as a cost-saving measure in the early 1980s. Before that time, Ford applied low-build electrocoat to sheet metal and then sprayed a primer before adding the enamel topcoat. Under the new process, which was adopted for F-Series Trucks, Broncos, Bronco IIs, Rangers, and Mustangs, Ford replaced low-build electrocoat with medium- or high-build electrocoat and then applied the topcoat directly to the electrocoat. Purchasers argue that, because electrocoat is not weather-resistant, removing the primer from the paint process caused the paint on many vehicles to delaminate. When exposed to ultraviolet sunlight, the enamel
Based on these allegations, Purchasers brought claims against Ford for violating the Texas Deceptive Trade Practices Act (“DTPA“) and breaching the implied warranty of merchantability. Purchasers alleged that Ford violated
Purchasers also brought breach of contract, common-law fraud and conspiracy to defraud claims. After certification, the trial court granted Ford‘s motion for summary judgment with respect to Purchasers’ breach of contract and common-law fraud claims. The conspiracy claim, which alleges that “Defendant Ford conspired with other dealers to hide this problem from consumers and to prevent consumers from getting their vehicles promptly and properly repaired,” apparently remains pending in the trial court.
Purchasers sought certification of the following class:
All persons who purchased a new 1987-1993 Ford F-Series Truck, 1987-1993 Ford Bronco, 1987-1989 Ford Bronco II, 1987-1992 Ford Ranger or 1987-1989 Ford Mustang in Texas on or after March 8, 1988 which was painted with high build electrocoat or medium build electrocoat and no spray primer and who suffered past and/or future damage as a result of peeling or flaking paint on these vehicles caused by a defective paint process (i.e., high build electrocoat or medium build electrocoat and no spray primer) excluding persons who purchased vehicles pursuant to a fleet account or fleet identification number; and
All persons who purchased a new 1984-1988 Ford F-Series Truck, 1984-1988 Ford Bronco, 1984-1988 Ford Bronco II, 1984-1988 Ford Ranger or 1984-1988 Ford Mustang in Texas prior to March 8, 1988 which was painted with high build electrocoat or medium build electrocoat and no spray primer and who paid Ford or a Ford dealership for a paint repair to their vehicle to repair peeling or flaking paint caused by a defective paint process (i.e., high build electrocoat or medium build electrocoat and no spray primer), excluding persons who purchased vehicles pursuant to a fleet account or fleet identification number.
The trial court certified the class under
The court of appeals modified the certification order. Although the court approved having “a phase of individual trials following the class-wide resolution of the common issues,” 965 S.W.2d at 67-68, it determined that the class definitions in the certification order “violate
Ford filed an interlocutory appeal in this Court under
II
Before reaching the merits of this appeal, we must first consider Purchasers’ contention that this Court lacks jurisdiction. Beginning in 1985, the Legislature provided for interlocutory review of the grant or denial of class certification under
Ford urges jurisdiction under
The constitutional prohibition against special laws was intended to suppress the enactment of “laws for the advancement of personal rather than public interests” and “the reprehensible practice of trading and ‘logrolling.‘” Miller v. El Paso County, 136 Tex. 370, 150 S.W.2d 1000, 1001 (1941). Thus, the purposes underlying Section 56 are “to prevent the granting of special privileges and to secure uniformity of law throughout the state as far as possible.” Maple Run, 931 S.W.2d at 945 (quoting Miller, 150 S.W.2d at 1001). Purchasers argue that
Although we acknowledge that the benefits imparted by
We conclude that there is a reasonable basis for distinguishing class actions involving motor vehicle licensees from other class actions and that
Second,
Purchasers also argue that
Finally, Purchasers claim that
For all these reasons, we conclude that
III
The class action device originated in the equity courts of England as a means to overcome the requirement that “all persons materially interested, either legally or beneficially, in the subject matter of a suit, are to be made parties to it.” DICKERSON, CLASS ACTIONS: THE LAW OF 50 STATES § 1.02[1], at 1-6 (1999) (citation omitted); see also Phillips Petroleum Co. v. Shutts, 472 U.S. 797, 808 (1985); Hansberry v. Lee, 311 U.S. 32, 41 (1940). It was designed as “an exception to the usual rule that litigation is conducted by and on behalf of the individual named parties only.” General Tel. Co. v. Falcon, 457 U.S. 147, 155 (1982) (quoting Califano v. Yamasaki, 442 U.S. 682, 700-01 (1979)). “In a class action, the complained-of wrong is allegedly committed against a class of individuals, and the judgment in the case binds the entire class, not merely named parties.” Vinson v. Texas Commerce Bank-Houston, 880 S.W.2d 820, 823 (Tex.App.—Dallas 1994, no writ).
Although
Even though it is an efficient device, there is no right to litigate a claim as
- the prosecution of separate actions by or against individual members would create a risk of
- inconsistent or varying adjudications with respect to individual members of the class which would establish incompatible standards of conduct for the party opposing the class, or
- adjudications with respect to individual members of the class which would as a practical matter be dispositive of the interests of the other members not parties to the adjudications or substantially impair or impede their ability to protect their interests; or
- the party opposing the class has acted or refused to act on grounds generally applicable to the class, thereby making appropriate final injunctive relief or corresponding declaratory relief with respect to the class as a whole; or
- where the object of the action is the adjudication of claims which do or may affect specific property involved in the action; or
- the court finds that the questions of law or fact common to the members of the class predominate over any questions affecting only individual members, and that a class action is superior to other available methods for the fair and efficient adjudication of the controversy....
In this case, Purchasers sought certification of a class under the fourth class action category.
A
Although not an express requirement, “it is axiomatic that for a class action to be certified a ‘class’ must exist.” Simer v. Rios, 661 F.2d 655, 669 (7th Cir.1981); accord DeBremaecker v. Short, 433 F.2d 733, 734 (5th Cir.1970); Intratex Gas Co. v. Beeson, 22 S.W.3d 398, 403 (Tex.2000); Reserve Life Ins. Co. v. Kirkland, 917 S.W.2d 836, 839 (Tex.App.—Houston [14th Dist.] 1996, no writ). A properly defined class is essential to the maintenance of a class action. See Intratex, 22 S.W.3d at 403. A proper class definition determines who is entitled to notice, who is entitled to relief and what relief can be awarded. Id. In addition, the class definition specifies who will be bound by the judgment. Id.; see also FEDERAL JUDICIAL CENTER, MANUAL FOR COMPLEX LITIGATION 217 (3d ed.1995) (concluding that the notice requirement for (b)(4) class actions mandates greater precision for class definitions brought under (b)(4) than for those brought under other class action categories). Thus, the failure to adequately define a proposed class implicates due process rights. As a distinguished judge has observed:
[W]ithout reasonable specificity the court cannot define the class, cannot determine whether the representation is adequate, and the [defendant] does not know how to defend. And, what may be most significant, an over-broad framing of the class may be so unfair to the absent members as to approach, if not amount to, deprivation of due process.
Johnson v. Georgia Highway Express, Inc., 417 F.2d 1122, 1126 (5th Cir.1969) (Godbold, J., concurring).
For a class to be properly defined, the class members must be clearly ascertainable by reference to objective criteria. See Intratex, 22 S.W.3d at 403. While a class definition need not be so specific “that every potential member can be identified at the commencement of the action,” 7A Charles Alan WRIGHT, ARTHUR
The court of appeals determined that the proposed class certified by the trial court “allow[s] the named plaintiffs to proceed in a class action before showing that a class exists.” 965 S.W.2d at 73. Because a “full trial ... of some issues [would be necessary] before class membership could be ascertained,” the court modified the class definitions from those “who suffered past and/or future damage as a result of peeling or flaking paint on these vehicles caused by a defective paint process” or “who paid Ford or a Ford dealership for a paint repair to their vehicle to repair peeling or flaking paint caused by a defective paint process” to those “who suffered past and/or future damage as a result of peeling or flaking paint on these vehicles who allege the peeling or flaking was caused by a defective paint process” and those “who paid Ford or a Ford dealership for a paint repair to their vehicle to repair peeling or flaking paint who allege the peeling or flaking was caused by a defective paint process” Id. at 73-74.
We agree with the court of appeals that the class defined by the trial court fails to meet Intratex‘s clearly-ascertainable requirement. Including the defect theory as an element of the class definition impermissibly requires a determination of the merits before the court can ensure the existence of a class. See Intratex, 22 S.W.3d at 404 (“[W]hen the class definition is framed as a legal conclusion, the trial court has no way of ascertaining whether a given person is a member of the class until a determination of ultimate liability as to that person is made.“). Moreover, basing the class definition on a determination of the merits creates a fail-safe class because if the defendants prevail at trial and Purchasers are unable to prove their theory, then there was never a class to begin with and certification was inappropriate. Id. Therefore, the proposed members of the unsuccessful class would not be bound by the judgment. Clearly, the trial court abused its discretion in defining the class in this manner. Id.
But Ford contends that the court of appeals’ class definition is also erroneous. That definition limits the class to those persons “who allege” that the peeling was caused by the lack of spray primer.
The use of state of mind in a class definition “serves as a shorthand method of alerting the court and the parties that there might be difficulty in identifying class members.” Simer, 661 F.2d at 670 n. 25. When a class is “so highly diverse and so difficult to identify that it is not adequately defined or nearly ascertainable,” Adashunas v. Negley, 626 F.2d 600, 604 (7th Cir.1980), the class definition will not be sustained. See DeBremaecker, 433 F.2d at 734; see also Charles Alan WRIGHT, ARTHUR R. MILLER & MARY KAY KANE, 7A FEDERAL PRACTICE & PROCEDURE, § 1760, at 123-26 (1986) (“a class defined with reference to the state of mind of its members” renders the class “too amorphous” and will not be allowed to proceed).
We need not go so far as to hold that a class definition may never require the trial court to make a subjective inquiry into the claimants’ thought processes. See Developments in the Law—Class Actions, 89 HARV. L.REV. 1318, 1478 n.128 (1976) (concluding that the use of state of mind in class definitions does not render a class unascertainable when identification is possible otherwise). But here, there are no realistic means for the trial court to determine which class members “allege that the peeling or flaking was caused by a defective paint process.” The trial court would have to inquire individually into each proposed class member‘s state of mind to
B
Having found that neither the trial court‘s definition nor the court of appeals’ modified definition satisfies the clearly ascertainable requirement, we must now determine whether we should attempt to redefine the class, if that can be done, or remand the case for the trial court to decertify the class. In Intratex, we refused to redefine a class, concluding that “the better course [was] to remand the action to the trial court for it to determine if the definitional problems can be eliminated.” See Intratex, 22 S.W.3d at 405. Like the definition in Intratex, the trial court and the court of appeals’ definitions do not lend themselves to appellate redefinition. Therefore, instead of attempting to determine whether the class can or should be redefined, we remand the case to the trial court to decertify the class. We express no opinion about whether, if the Purchasers proposed a different definition, the trial court could certify a class that would meet the requisites of
* * *
Because both the trial court and the court of appeals’ definitions fail to meet the clearly-ascertainable requirement, we reverse the judgment of the court below and remand to the trial court to decertify the class. Our action is without prejudice to a further attempt by Purchasers to seek certification of a class consistent with this opinion.
Justice BAKER filed a dissenting opinion.
Justice BAKER, dissenting.
Ford alleges that this Court has jurisdiction over its petition for review because: (1)
I. SECTION 6.06(g)
Ford alleges that this Court has jurisdiction under
A. SPECIAL LAW
The Texas Constitution prohibits the Legislature from enacting special or local laws when a general law can be made applicable. See
Section 56‘s prohibition of special and local laws was designed to prevent “the granting of special privileges and to secure the uniformity of law throughout the State as far as possible,” and to stop the lawmakers from trading votes for “the advancement of personal rather than public interest.” Miller v. El Paso County, 136 Tex. 370, 150 S.W.2d 1000, 1001 (1941). Despite the constitutional prohibition on special and local laws, courts have recognized that the Legislature can make classifications for legislative purposes. See Maple Run at Austin Mun. Util. Dist. v. Monaghan, 931 S.W.2d 941, 945. But such classification must have a reasonable basis, that is, it must be “based upon a reasonable and substantial difference in kind, situation, or circumstance bearing a proper relation to the [statute‘s] purpose.” Rodriguez v. Gonzales, 148 Tex. 537, 227 S.W.2d 791, 793 (1950). In other words, the defined class must be “substantial” and have “characteristics legitimately distinguishing it from the rest of the State so as to require legislation peculiar thereto.” Miller, 150 S.W.2d at 1002; see also Smith v. Decker, 158 Tex. 416, 312 S.W.2d 632, 636 (1958) (classification must have a foundation in difference of situation).
B. ANALYSIS
Generally, a party challenging a trial court‘s class certification decision is allowed interlocutory review of that decision only to the courts of appeals. See
There is nothing in
Although class certification is a fact-intensive inquiry, the class certification requirements are the same regardless of the underlying subject matter or the parties’ identities. See
In Miller, this Court invalidated a statute analogous to the one at issue here. See Miller, 150 S.W.2d at 1002-03. In Miller, the statute provided an economic development tax only in counties meeting certain population requirements. See Miller, 150 S.W.2d at 1002-03. When the Legislature enacted the statute, the statute applied only to El Paso County. See Miller, 150 S.W.2d at 1002. The Court held that the statute‘s classification not only lacked a reasonable basis material to the statute‘s purpose, but the class of counties it created was not distinct in any substantial manner from any other counties in the State. See Miller, 150 S.W.2d at 1002.
Similarly, in Rodriguez v. Gonzales, this Court struck down an act that set out special procedures for collecting delinquent taxes. See Rodriguez, 227 S.W.2d at 794. The act only applied to parcels of land greater than 1,000 acres that were situated in counties bordering Mexico and whose title emanated from the King of Spain. See Rodriguez, 227 S.W.2d at 794. This Court held that there was nothing special about these estates that warranted different treatment for tax collection purposes. See Rodriguez, 227 S.W.2d at 794 (“There is no substantial difference in the situation or circumstance of border counties relating to suits for delinquent taxes upon which to base the classification.“).
The Court holds that
As the Court concedes, no other jurisdiction has a law like
II. CONFLICTS JURISDICTION
Ford also asserts that, regardless of
A. APPLICABLE LAW
In the absence of a dissent or conflict, an appeal of an interlocutory class certification order is final in the court of appeals. See
Conflicts analysis does not require determining whether the courts of appeals’ decisions were correctly decided, but only determining whether a conflict exists that meets conflicts jurisdiction requirements.
B. ANALYSIS
Ford first asserts that this case conflicts with RSR and Wente on the issue of whether questions of law or fact can be common under
In RSR, the Fifth Court of Appeals decertified a class because common questions did not predominate over individual issues. See RSR, 673 S.W.2d at 933. Residential property owners had sued the owners of a lead smelter, claiming that airborne lead emissions caused personal injury and property damage. See RSR, 673 S.W.2d at 929. The owners alleged a variety of damages and several theories of liability. See RSR, 673 S.W.2d at 932-33. The trial court certified a class that included all property owners living within a two-mile radius from the smelter. See RSR, 673 S.W.2d at 929. The court of appeals reversed, holding that common issues did not predominate because some owners did not suffer any injury, the personal injuries alleged differed for each class member, and because the owners had asserted various theories of liability that could be answered differently among class members. See RSR, 673 S.W.2d at 932-33.
I do not agree with Ford that the alleged conflict between RSR and the court of appeals’ opinion in this case meets the standards for conflicts jurisdiction. First, Ford alleges this case conflicts on whether issues are common to the class under
Conflicts jurisdiction in this Court does not arise if the alleged conflict is between two decisions of the same court of appeals. See
Second, Ford asserts that the court of appeals decision conflicts with three other cases on the issue of whether common issues predominate under
I need not consider Slack to determine whether conflicts jurisdiction exists because the same court of appeals decided Slack and this case. See
In Luna, the Fourth Court of Appeals reversed a class certification because it determined that a class action was not a superior method of resolving the controversy. See Luna, 966 S.W.2d at 642. The court considered only the part of
In Brister, the Fourth Court of Appeals upheld a trial court‘s certification of a class of employees who alleged that they did not receive disability benefits as promised. See Brister, 722 S.W.2d at 767. The class members alleged breach of contract and
I do not find that the alleged conflicts between Brister and this case afford this Court conflicts jurisdiction. Importantly, this case involves property damage claims while Brister involved a cause of action with several elements that focused on individual, not group, determinations. See Brister, 722 S.W.2d at 774. Further, the court in Brister and the court of appeals in this case agree that the test of whether common issues predominate is whether common or individual issues will be the object of litigant‘s efforts rather than the number of common or individual issues. See Brister, 722 S.W.2d at 772; Sheldon, 965 S.W.2d at 72. Ford does not point to any conflict between Brister and this case that meets the standard for conflicts jurisdiction.
Third, Ford alleges that the court of appeals’ opinion conflicts with prior cases holding that liability and damages cannot be tried separately when they are indivisible elements of a single cause of action. See Otis Elevator Co. v. Bedre, 776 S.W.2d 152 (Tex.1989) (per curiam); Eubanks v. Winn, 420 S.W.2d 698 (Tex.1967); Iley v. Hughes, 158 Tex. 362, 311 S.W.2d 648 (1958); Greater Houston Transp. Co. v. Zrubeck, 850 S.W.2d 579 (Tex.App.—Corpus Christi 1993, writ denied). These cases also do not meet the standard necessary to give this Court conflicts jurisdiction.
In Otis Elevator, this Court held in a personal injury case that a court could not remand the issue of one party‘s negligence while refusing to also remand the question of whether another party was contributorily negligent. See Otis Elevator, 776 S.W.2d at 153. Partial remand is only permissible where the issues are severable. See Otis Elevator, 776 S.W.2d at 153. Similarly, in Iley, this Court held that liability and damages issues could not be tried separately in a personal injury case. See Iley, 311 S.W.2d at 651. Likewise, Eubanks expresses Texas courts’ aversion to piecemeal trials. See Eubanks, 420 S.W.2d at 701 (holding that a court could not grant a new trial on liability, allow the defendant to confess liability, and then award damages under the original verdict because that severed contested issues of liability and damages in a personal injury case).
This case differs from Iley, Otis Elevator, and Eubanks in several key aspects. Most importantly, this case is a property damage case but all the cases Ford cites are personal injury cases. Courts and commentators have recognized that special considerations exist when juries consider liability and damages separately in a personal injury case. See Iley, 311 S.W.2d at 650-51; see also 9 CHARLES ALLEN WRIGHT, ARTHUR R. MILLER, FEDERAL PRACTICE AND PROCEDURE § 2390, at 508 (1995). Futhermore, here the court of appeals did not find that the trial court had entirely separated liability and damages because the certification order did not mention bifur-
The Zrubeck case simply does not consider the same issue as this case; therefore, no conflict exists between the two. See Coastal Corp., 979 S.W.2d at 319-20. In Zrubeck, the trial court bifurcated the exemplary damages part of a personal injury case. See Zrubeck, 850 S.W.2d at 581. Eleven jurors found the defendant negligent and awarded actual damages. See Zrubeck, 850 S.W.2d at 584. In the second part of the trial, ten jurors, including the one who voted against liability in the first phase, found exemplary damages. See Zrubeck, 850 S.W.2d at 581. The court of appeals held that the defendant failed to preserve error on that issue. See Zrubeck, 850 S.W.2d at 581. In dicta, the court commented that because this was a “separate” trial, the same ten jurors did not have to agree on liability and damages. See Zrubeck, 850 S.W.2d at 581. No party raised that issue here.
Finally, Ford states that the court of appeals’ decision conflicts with Reserve Life Insurance Co. v. Kirkland on whether a proposed class must be defined so that it is administratively feasible, at the proceeding‘s outset, for the trial court to determine whether a particular individual is a class member. See Reserve Life Ins. Co. v. Kirkland, 917 S.W.2d 836, 840 (Tex. App.—Houston [14th Dist.] 1996, no writ).
In Kirkland, the court defined class members as persons who purchased a major medical policy in Texas from the defendant corporation. See Kirkland, 917 S.W.2d at 840. The corporation argued that the definition was too vague to determine whether an individual was a class member. See Kirkland, 917 S.W.2d at 840. The court of appeals disagreed and held that the class definition did not contain vague terms. See Kirkland, 917 S.W.2d at 840. Rather, class membership could be easily ascertained through company records. See Kirkland, 917 S.W.2d at 840. The court noted in dicta that class definitions in other cases were vague because the definitions contained terms relating to the plaintiff‘s state of mind. See Kirkland, 917 S.W.2d at 840. The Kirkland definition did not contain state-of-mind terms nor was that material to the court‘s holding. See Kirkland, 917 S.W.2d at 840.
Any statements in Kirkland about the plaintiff‘s state of mind were dicta, and conflicts jurisdiction does not arise from statements that were immaterial to the court‘s holding. See Benson v. Jones, 117 Tex. 68, 296 S.W. 865, 867 (1927). Thus, Ford cannot show that the differences between this case and Kirkland satisfy the standard for conflicts jurisdiction.
Because none of the cases Ford cites conflict with the court of appeals’ decision here, I conclude that this Court does not have conflicts jurisdiction over Ford‘s petition for review.
III. CONCLUSION
I would hold that
Notes
A writ of error is allowed from the supreme court for an appeal from an interlocutory order described by
Section 51.014(3) or51.014(6), Civil Practice and Remedies Code , in a civil action involving a licensee. The writ of error shall be given precedence by the supreme court over other writs of error. The right to writ of error appeal is without prejudice to the right of any party to seek relief by application for leave to file petition for writ of mandamus with respect to the order.
