The trial court here ordered class-wide discovery and class-wide sanctions long before it certified the class. In two separate appeals, the court of appeals upheld the discovery and sanctions but then reversed certification, rendering the class-wide discovery superfluous and the class-wide sanctions incongruous. We cоnditionally grant the writ and order the trial court to vacate its orders in light of the decertification.
See In re Allstate County Mut. Ins. Co.,
Three plaintiffs 1 brought individual and class claims against several SCI entities 2 for violating fedеral and state disclosure requirements applicable to funeral providers. See 16 C.F.R. § 453.3(f); 22 Tex. Admin. Code § 203.8(d). In connection with thosе claims, the plaintiffs sought broad discovery including every SCI contract for funeral services in Texas between 1998 and 2004 (reрortedly 200,000), and documents concerning every item SCI purchased to provide those services (reportedly 2.5 million).
Aftеr granting a series of motions to compel based on asserted gaps in SCI’s production, the trial court entered а sanctions order that deemed SCI had breached the class members’ contracts due to inadequate disclosures, and barred SCI from contesting their method of calculating damages. After the court of appeals denied mandаmus relief,
One year later, the court of appeals reversеd the trial court’s certification order, finding no private cause of action under either the federal or state funeral disclosure rules, and barring the plaintiffs’ damage claims as their contracts were not illegal.
SCI Tex. Funeral Servs., Inc. v. Hijar,
In
In re Alford Chemvlet-Geo,
we rejected a blanket rule that all class-wide discovery should be abated until after certification.
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The discovery orders here do not comply with this rule. SCI’s primary objeсtion to both discovery and certification was that private parties have no standing to assert violations of thе funeral disclosure rules. This question of law did not require production of several hundred thousand contracts and millions of invoices. While the plaintiffs could have made a strong case for discovery related to the size of the class аnd representative samples of how SCI did business (necessary to establish numerosity, typicality, and so on), these issues did not justify thе burden and expense of producing every plaintiffs’ contract and every SCI invoice — discovery perhaps necessary to prove the ultimate issues but not tailored to the certification question before the court. We hоld the trial court abused its discretion by compelling discovery that was not narrowly tailored to the relevant dispute.
Id.
at 180;
see also In re Graco Children’s Prods., Inc.,
In an alternate holding, the court of appeals denied mandamus relief based on laches. SCI filed its mandamus petitiоn a little less than six months after the trial court’s final sanctions order. SCI explained the delay by establishing that it took three months to get the reporter’s record of the numerous discovery hearings, and the remaining time to brief both the discovery аnd the certification appeals so they could be filed together (although in separate proceеdings). This can hardly be faulted, given the related nature of the two proceedings and the incongruous results produced whеn the court of appeals decided them separately. As a matter of law, these explanations were sufficient to establish that SCI had not “slumber[ed] on [its] rights.”
Rivercenter Assocs. v. Rivera,
As to the trial court’s sanctions, this order was not necessarily wrong just becausе the discovery orders were; a party’s recalcitrance is not entirely justified by winning on the merits on appeal. But a just sanctions order (1) “must be directed ... toward remedying the prejudice caused the innocent party,” and (2) “should fit the crime.”
TransAmerican Natural Gas Carp. v. Powell,
Accordingly, without hearing oral argument, see Tex.R.App. P. 52.8(c), we conditionally grant the writ of mandamus and direct the trial court to vacate its deemed factual findings and discovery orders in light of the court of аppeals’ decertification. We are confident that the trial court will comply and our writ will only issue if it does not.
