Julie Olden, Richard Hunter, Wilbur Bleau, and All Others Similarly Situated v. Lafarge Corp.Julie Olden, Richard Hunter, Wilbur Bleau, and All Others Similarly Situated v. Lafarge Corp.
OPINION
Julie Olden, Richard Hunter and Wilbur Bleau represent a class of 3,600 persons who owned single family residences in Alpena, Michigan, from April 19, 1996 to the present, and who allege personal and property damage caused by toxic pollutants originating from a cement manufacturing plant belonging to the defendant Lafarge Corporation. They have brought a class action against Lafarge for current and future personal and real property damages, diminution in property value and
I.
In the northeast section of Alpena, Michigan, Lafarge’s cement manufacturing complex, consisting of a limestone rock quarry and a cement manufacturing plant, covers a full square mile. See App. at 368-70, 431. It is the largest cement manufacturing plant in the nation and has been owned and operated by Lafarge since 1987. Id. at 787 (noting that “the Lafarge plant is the largest cement plant in North America”). The plaintiffs allege that throughout Lafarge’s ownership and operation of the plant, it has continuously and systematically disregarded “proper procedure and maintenance of its equipment that would prevent the emission of air contaminants into the surrounding community.” Olden Br. at 6. As a result, Alpena residents submitted numerous complaints to the Michigan Department of Environmental Quality (MDEQ). Id. at 6-7. In 1994, the MDEQ and Lafarge entered into a consent decree, in part, to remedy La-farge’s emission of air contaminants. App. at 301-27. Howеver, Lafarge violated the terms of the decree resulting in the accrual of over $5.4 million in stipulated penalties as of May of 2003. Id. at 219-22. In 2000, the consent decree was amended, requiring Lafarge’s further compliance with statutory air pollution requirements. Id. at 435-62.
The plaintiffs claim that in the process of making cement, the Lafarge plant produces hazardous toxic waste and creates emissions with hazardous by-products. Id. at 12 (Cplt-¶¶ 17-18). The class has alleged that release of the air contaminants from the Lafarge plant interferes with the use and enjoyment of their real and personal property and has caused or will cause diminution in the market value of this property. Id. at 13 (Cpltlfíí 20A, 21). For example, the cement dust emitted by the plant has penetrated into the siding on houses, killed rose bushes and left a white film over houses and vehicles in Alpena. Id. at 280, 282-83. Additionally, hydrochloric acid, a byproduct of the cement manufacturing process, has degraded roofs, piping, concrete and the aluminum windows and doors of some homes. Id. at 289.
In addition to property damage caused by emissions, the plaintiffs claim to have been exposed to numerous carcinogenic, mutagenic, and teratogenic toxic substances. Id. at 6 (Cplt-¶¶ 24-25). Such toxins allegedly cause the plaintiffs and their unborn children an increased risk of cancer, impaired immunological function, birth defects and developmental abnormalities, all of which are potentially life threatening and warrant continued medical monitoring. Id. at 6-7 (Cplt-¶¶ 26-27). Additionally, the plaintiffs claim agony, anxiety, distress, embarrassment, humiliation, mental anguish, suffering and other related nervous conditions, psychological disorders and emotional consequences. Id. at 18 (CplU 47).
On April 19, 1999, the plaintiffs filed suit against Lafarge, alleging that the emissions trespassed on their property (Count II), created a nuisance (Count III) and arose from Lafarge’s negligence or gross
On September 25, 2000, the plaintiffs moved to certify their class action. Appx. at 39. On October 26, 2000, Lafarge filed a combined motion to dismiss under
II.
DISCUSSION
We have jurisdiction over this interlocutory appeal pursuant to
1. Subject Matter Jurisdiction
The plaintiffs argue that thе court’s jurisdiction is proper under the diversity statute, which grants district courts “original jurisdiction of all civil actions where
If only the parties had asked us this questiоn twenty years ago (or any time between 1973-1990), our discussion would be brief because the Supreme Court had made the answer plain.
See Zahn v. Int’l Paper Co.,
The decision in
Zahn
was reaffirmed by the Supreme Court in
Finley v. United States,
In 1990, Congress enacted the Judicial Improvements Act (the Act), a statute clarifying the supplemental jurisdiction of federal courts.
See
(a) Except as provided in subsections (b) and (c) or as expressly provided otherwise by Federal statute, in any civil action of which the district courts have original jurisdiction, the district courts shall have supplemental jurisdiction overall other claims that are so related to claims in the action within such original jurisdiction that they form part of the same ease or controversy under Article III of the United States Constitution. Such supplemental jurisdiction shall include claims that involve the joinder or intervention of additional parties.
(b) In any civil action of which the district courts have original jurisdiction founded solely onsection 1332 of this title, the district courts shall not have supplemental jurisdiction under subsection (a) over claims by plaintiffs against persons made parties under Rule 14, 19, 20, or 24 of the Federal Rules of Civil Procedure, or over claims by persons proposed to be joined as plaintiffs under Rule 19 of such rules, or seeking to intervene as plaintiffs under Rule 24 of such rules, when exercising supplemental jurisdiction over such claims would be inconsistent with the jurisdictional requirements ofsection 1332 .
(c) The district courts may decline to exercise supplemental jurisdiction over a claim under subsection (a) if—
(1) the claim raises a novel or complex issue of State law,
(2) the claim substantially predominates over the claim or claims over which the district court has original jurisdiction,
(3) the district court has dismissed all claims over which it has original jurisdiction, or
(4) in exceptional circumstances, there are other compelling reasons for declining jurisdiction.
In so holding, the Fifth Circuit believed that Congress had not subjectively intended to overrule
Zahn. Id.
at 528. In fact, courts have almost universally noted that the legislative history of
Nonetheless, because it found that the plain language of the statute was unambiguous and because no absurd result would follow from such an interpretation, the Fifth Circuit was unmoved by the legislative history.
See In re Abbott Labs.,
The Seventh Circuit agreed with the Fifth, stating that “although, as
Abbott Laboratories
discussed, some legislative history suggests that the responsible committees did not expect
There has been anything but unanimity, however. The Tenth Circuit, in
Leonhardt v. Western Sugar Co.,
Section 1367(a) specifically addresses “any civil action of which the district courts have original jurisdiction.” (Emphasis added.) It then provides for supplemental jurisdiction over transac-tionally related claims.Section 1332 is what confers original jurisdiction over diversity cases and it expressly requires that the “matter in controversy exceed[ ] the sum or value of $75,000.” While§ 1332 does not expressly refer to class actions, the Supreme Court has noted that periodic congressional amendment of the diversity statute to alter only the amount in controversy evidences congressional agreement with the Court’s holding that “matter in controversy” does “not encompass[] the aggregation of separate and distinct claims.” Snyder,394 U.S. at 339 ,89 S.Ct. 1053 . Thus, Congress in§ 1367(a) expressly excepted claims brought under§ 1332 and its well-understood definition of “matter in controversy.”
Leonhardt,
Until now, this court has yet to speak on the question. Today, we join with the majority of circuits which have considered the question and hold that
Zahn
has been overruled.
1
We note that the majority of courts have been reaching this same conclusion for almost ten years now and Congress has yet to alter or amend
For instance, Judge Tjoflat, in his recent dissent from the denial of rehearing
en banc
in
Allapattah,
considered
Leonhardt’s
alternative interpretation of
Courts such as the Tenth Circuit in
Le-onhardt
have strained to develop an alternative interpretation which they argue proves that the statute is at least ambiguous.
See, e.g., Ortega,
We believe that the
Leonhardt
interpretation fails, in part, for the reasons enunciated in
Gibson
and
Rosmer. See Rosmer,
It is the structure of this statute which makes its meaning unambiguous. The first part of the statute (
Nor are we persuaded by the now fashionable argument that because a number of brilliant minds have found this statute to be ambiguous, it is by definition so.
See, e.g., Leonhardt,
As noted
supra,
some courts have found a basis to consider and ultimately adopt the legislative history of
For this reason, we believe that this exception must be construed narrowly and only applied where a literal application of unambiguous statutory language would have absurd results or “would thwart the obvious purpose of the statute.”
Griffin v. Oceanic Contractors, Inc., 458 U.S.
564, 571,
Because we find that
2. Class certification
As discussed
supra,
the district court conditionally certified a class action under
A class certification order is reviewed for an abuse of discretion.
See Stout v. J.D. Byrider,
In order to certify any
In this case, the district court certified a class under both
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.
[T]he 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. The matters pertinent to the findings include: (A) the interest of members of the class in individually controlling the prosecution or defense of separate actions; (B) the extent and nature of any litigation concerning the controversy already commenced by or against members of the сlass; (C) the desirability or undesirability of concentrating the litigation of the claims in the particular forum; (D) the difficulties likely to be encountered in the management of a class action.
A. Rulé 23(b)(3) certification
The thrust of the defendant’s argument seems to be that common questions do not predominate. According to the defendant, individual issues related to establishing causation will overwhelm the case because toxins: (a) “originated from disparate sources within the one-square mile Lafarge facility and perhaps other industrial sources;” (b) were dispersed to properties in varying concentrations; (c) allegedly caused a variety of personal injuries; and (d) allegedly caused widely varying property damages. Lafarge Br. at 32-33 (emphasis added).
With regard to the first issue, the fact that toxins may have originated from disparate sources within Lafarge’s facility is of little relevance since Lafarge’s liability presumably would not vary depending upon where within its facility toxins originated. With regard to' these “other industrial sources” (presumably the Abiti Price Plant and Fletcher Paper Co.), the defendant does not allege that the toxins from these sources are indistinguishable from the toxins from Lafarge’s plant. 4 Further, the defendant does not allege that these other sources produce significant amount of toxins relative to Lafarge, which admittedly is the nation’s largest cement plant. Appx. at 787. Of course, if it is determined that the defendant does not, on its own, emit enough pollutants to establish liability (either because the plaintiffs cannot establish negligence, causation or “significant harm” in the case of the plaintiffs’ nuisance claim), the defendant will prevail. Moreover, damages can be reduced to reflect the proportion of the class’ injury not caused by the defendant.
With regard to the remaining issues, they may suggest that individual
damage
determinations might be necessary, but the plaintiffs have raised common allegations which would likely allow the court to determine liability (including causation) for the class as a whole. For instance, although some named plaintiffs admittedly describe .a variety of minor personal medical issues (wheezing, “very bad breathing things,” nausea, headaches, etc.) which might require individualized damage determinations, the thrust of the plaintiffs’ personal injury complaint appears to be related to the general increased risk of the class suffering medical problems in the future.
See
Appx. 13-15, 18 (Cplt. at ¶¶ 22-28, 48). Whether the defendant’s negligence caused
some
increased health risk and even whether it tended to cause the сlass minor medical issues can likely be determined for the entire class. Similarly, although some named plaintiffs present a number of minor examples of specific property damage (roof damage, dead rose bushes, damaged window pane, peeling stain on deck, rusting of automobile), these examples seem to be no more than illustrative of the common argument that the class’s properties are regularly covered in cement dust, causing minor property damage and a predictable reduction of property value and enjoyment of the property. Whether the defendant’s negligence generally caused minor property damage and cement dust can likely be determined for
As the district court properly noted, it can bifurcate the issue of liability from the issue of damages, and if liability is found, the issue of damages can be decided by a special master or by another method.
6
The defendant cites to a number of superficially similar cases in which district courts have denied class certification. We believe these cases are distinguishable, however. The defendant, for instance, relies heavily on
Ramik v. Darling International Incorporated,
Similarly, we find
Reilly v. Gould Incorporated,
Further, the court in
Reilly
declined to certify the class because it found that individual issues predominated. In large part, this was because the plaintiffs’ major complaint was lead poisoning. The court noted the existence of evidence in the record suggesting that the plaintiffs may have been exposed to lead, not just through the defendant’s plant or other facilities, but through lead based paint and lead-based gasoline, both of which were in common use during the relevant time period.
See id.
at 604-06. Thus, in order to determine causation in
Reilly,
the fact finder would presumably have had to consider what kind of paint was in each class member’s home and the condition of that paint throughout the relevant period, as well as his or her driving and gasoline usage habits. In the present case, it is possible that other facilities caused some of the pollution, but this does not suggest the same level of individual determination required in
Reilly.
We find the other cases сited by the defendant to be distinguishable for similar reasons. Therefore, we believe that the district court did not abuse its discretion by conditionally certifying a
B.
The defendant argues that
Disputes over whether [an] action is primarily for injunctive ... relief rather than a monetary award neither promote the disposition of the case on the merits nor represent a useful expenditure of energy. Therefore, they should be avoided. If theRule 23(a) prerequisites have bеen met and injunctive or declaratory relief has been requested, the action usually should be allowed to proceed. Those aspects of the case not falling withinRule 23(b)(2) should be treated as incidental. Indeed, quitecommonly they will fall within Rule 23(b)(1) orRule 23(b)(3) and may be heard on a class basis under one of those subdivisions. Even when this is not the case, the action should not be dismissed.
7A Charles Alan Wright, Arthur R. Miller, and Mary Kay Kane,
Federal Practice and Procedure,
2d. § 1775 (emphasis added);
see also 5 Moore’s Federal Practice,
§ 23.41[6][d] (Matthew Bender 3d. ed.). Therefore,
Coleman,
upon which the defendant relies, is distinguishable because in
Coleman
the district court certified the class
only
under 23(b)(2), not also under 23(b)(3).
See
Finally, the defendant argues that the requested injunctive relief would cause the court to become unnecessarily and improperly entangled with the ongoing administrative regulation of the plant. Lafarge Br. at 48. The defendant relies on
Walsh v. Ford Motor Co.,
Finally, the defendant is concerned that we might become excessively entangled with other sources of law because of a second amended consent judgement it entered into with the State of Michigan, on September 28, 2000. Appx. at 435. We do not share the defendant’s concern.
See, e.g., United States v. Philip Morris USA,
III.
CONCLUSION
In sum, we find that the district court did not abuse its discretion in certifying this class and we are confident that the district court will take appropriate measures if, at any time, it appears that the class threatens to become unmanageable. Therefore, for the reasons discussed supra, wе find subject matter jurisdiction to be proper and AFFIRM the district court’s grant of class certification.
Notes
. We acknowledge that there might be a way to decide this case without stepping into the
Zahn
morass. However, we can do so only by way of a different jurisdictional morass. The plaintiffs argue that jurisdiction is proper because we can determine the amount in controversy by examining the expected cost to the defendant of complying with the injunction which the plaintiffs seek. Unfortunately, there is a circuit split as to whether a court may determine the amount in controversy from the perspective of either party (the "either viewpoint rule”) or whether a court may only consider the plaintiff's viewpoint.
See, e.g., In re: Ford Motor Co./Citibank,
. Judge Tjoflat argues that "[tjhere is nothing in the text of the statute, however, which indicates that the [exclusions] mentioned in
Even if we were required to rely on
expressio unius,
we do not read the cases cited by Judge Tjoflat as suggesting that
expressio uni-us
should not be applied to contradict legislative history, but instead that it should only be applied where its application is natural and the inference drawn, a fair one.
See Barnhart v. Peabody Coal Co.,
. Of course it is somewhat paradoxical that a court could find that the literal application of an
unambiguous
statute would produce a re-suit demonstrably at odds with the intent of its drafters given that the best evidence of the intent of the drafters is supposed to be the
. It appears that these "other sources” are defendants in another class action in front of the same district court judge. Therefore, if issues of potential confusion do arise, they should be immediately apparent to the distriсt court, mitigating any concern the defendant might have.
. The defendant argues that the plaintiffs' nuisance cause of action requires individualized proof because one must show "significant harm” resulting in an interference with the use of and enjoyment of property. However, if the class can show that their properties were frequently covered by cement dust, this would likely be enough to establish "significant harm.” See,
e.g., Adams v. Cleveland Cliffs Iron Co.,
. The defendant is concerned that bifurcation "may deprive [it] of its Seventh Amendment right to a jury trial.” Lafarge Br. at 44. Indeed it might.
See, e.g., In re Rhone-Poulenc Rorer, Inc.,
. A number of courts have treated requests for medical monitoring as a form of damage relief.
See, e.g., Zinser v. Accufix Research Inst., Inc.,
. It appears that, at least at the time
Walsh
was decided, no court had ever ordered a recall of an allegedly defective vehicle.
See Chin v. Chrysler Corp.,
.
Walsh
is further distinguishable for the reasons discussed in
Rodriguez v. Carlson,
. The defendant did argue that the existence of the consent judgment suggested that the district court should abstain from hearing the case under the doctrine of Younger. Appx. at 360-63. The district court, however, declined to abstain and the issue has not been raised on appeal.