Pruitt v. Allied Chemical Corp.Pruitt v. Allied Chemical Corp.
MEMORANDUM
Twenty-nine named plaintiffs, all of whom are engaged in various facets of the commercial seafood industry in and about the Chesapeake Bay, filed this suit as a class action against the defendant, Allied Chemical Corporation (“Allied”). Plaintiffs allege, on behalf of themselves and all others similarly situated, that Allied, acting through its agent Life Science Products, Inc., discharged toxic effluents associated with the manufacture of Repone, resulting in the pollution of the James River, the Chesapeake Bay, their tributaries, and adjacent waterways. Plaintiffs seek both in-junctive relief and monetary damages for each member of the proposed class for losses sustained in trades and businesses which together comprise the commercial seafood industry in Virginia and Maryland.
The jurisdiction of this Court is invoked under
This matter comes before the Court on plaintiffs’ renewed and amended motion for class certification under
Plaintiffs seek the certification of the following class:
All persons (other than the named plaintiffs and intervenor-plaintiffs in Adams v. Life Science Products Co., Civil Action No. 76-0031-R, U.S. District Court, Eastern District of Virginia)1 who are residents of the Commonwealth of Virginia or the State of Maryland and whose livelihood or income is derived from, or dependent upon, the catching, taking, buying, selling, processing, packing, packaging, or distributing of seafood from the Chesapeake Bay, the James River, their tributaries, and adjacent water areas.
For the reasons which follow, the Court deems it inappropriate to certify the proposed class as a single class. Rather, the Court must divide the proposed class into distinct subclasses for certification so as to facilitate a manageable and fair adjudication of the plaintiffs’ claims.
As a threshold matter, the Court concludes that a determination of class certification must be made without consideration of defendant’s motion to dismiss the claim. Defendant’s motion to dismiss requires an inquiry into the merits of the proposed class action, an inquiry which could potentially reduce the size of the class to more manageable numbers. As inviting as such a determination might be, the Court has no authority to conduct a preliminary inquiry into the merits of this suit in order to determine whether it may proceed as a class action, Eisen v. Carlisle & Jacquelin,
RULE 23(a)
The prerequisites to a class action are set forth in
(a) Prerequisites to a Class Action. One or more members of a class may sue or be sued as representative parties on behalf of all only if (1) the class is so numerous that joinder of all members is impracticable, (2) there are questions of law or fact common to the class, (3) the claims or defenses of the representative parties are typical of the claims or defenses of the*105 class, and (4) the representative parties will fairly and adequately protect the interests of the class.
Addressing the four requirements seriatim, the Court concludes as follows:
Numerosity
The proposed class members approximate 30,000 persons, according to the plaintiffs’ own estimate.
Commonality
Plaintiffs’ complaint alleges that all the members of the proposed class have been damaged by the impact of Kepone pollution on the Chesapeake Bay and James River seafood industry. The named plaintiffs contend that the alleged wrongful acts and omissions of defendant Allied, the asserted impact of Kepone pollution upon Chesapeake Bay seafood and the market therefor, and the measures necessary to ameliorate present pollution and to prevent future pollution, are questions of law and fact common to all members of the class. Defendant concedes that the questions of whether the manufacturer of Kepone, Life Science Products, Inc., is liable to plaintiffs for its acts and omissions respecting Kepone discharges, and, if so, whether Allied is vicariously liable for those acts or omissions, are questions common to all members of the proposed class.
These common issues are alone enough to satisfy the
Typicality
The occupations of the named plaintiffs include fishermen, crabbers, oystermen, charter boat operators, marina owners, and seafood salesmen. All of the named plaintiffs are residents of either Virginia or Maryland, whose livelihoods depend, in whole or in substantial part, upon the seafood in the Chesapeake Bay and adjacent water areas. After consideration of the pleadings and discovery materials filed therewith, the Court is satisfied that named plaintiffs’ contentions that defendant is responsible for polluting the waters and harming the supply and marketability of seafood in the Chesapeake Bay area are typical of the claims of the proposed class members.
The requirement that the named plaintiffs in the instant case fairly and adequately represent the interests of the proposed class members has given the Court more concern than the other three 23(a) prerequisites. Defendant contends that several of the representative parties lack substantial or provable damages and therefore may not vigorously prosecute the suit on behalf of the entire class. The Court is nevertheless satisfied that the representative parties’ damages are sufficient to ensure vigorous and adequate representation of the interests of the class. More importantly, however, the Court takes judicial notice of the fact that the presence of both Virginia and Maryland watermen on the same side of a dispute may constitute a rare occurrence indeed. Watermen, and particularly oystermen, from the two states involved here have been engaged in a commercial and territorial dispute, oftentimes violent in nature, for many years.
The Court concurs with Judge Fullam’s reasoning in Philadelphia Electric Co. v. Anaconda American Brass Co.,
RULE 23(b)
Assuming, arguendo, that the representative parties could adequately and fairly protect the proposed class’ interests, thereby satisfying
RULE 23(b)(1)
As heretofore noted,
Should the class members seek individual judgments on such predominantly monetary claims, there is no recognizable danger of Allied being required to follow inconsistent or incompatible courses of conduct within the meaning of (b)(1)(A). See LaMar v. H & B Novelty & Loan Co.,
The Court likewise finds a
The Court is satisfied that individual adjudications of the type of claims asserted in plaintiffs’ complaint would not substantially impair the proposed class members’ ability to protect their interests. Without confronting the merits of plaintiffs’ equitable prayers in the instant complaint, it suffices to say that a general request for “any equitable relief” in the alternative to extremely high monetary damages does not pose the risk of prejudicial judgments which constitutes a qualification for
The Court also gives little weight to plaintiffs’ contention that the expense and complexity of multiple trials merit subdivision (b)(1)(B) treatment. Plaintiffs misconstrue the type of protection offered by
RULE 23(b)(2)
Plaintiffs also seek, in the alternative, to proceed on behalf of their proposed class under subsection (b)(2) of
The Advisory Committee Note to the 1966 amendments to the Federal Rules of Civil Procedure suggests the reach of subdivision (b)(2):
This subdivision is intended to reach situations where a party has taken action or refused to take action with respect to a class, and final relief of an injunctive nature or of a corresponding declaratory nature, settling the legality of the behavior with respect to the class as a whole, is appropriate. Declaratory relief “corresponds” to injunctive relief when as a practical matter it affords injunctive relief or serves as a basis for later injunc-tive relief. The subdivision does not extend to cases in which the appropriate final relief relates exclusively or predominantly to money damages.
Advisory Comm. Note,
Plaintiffs, while conceding that money damages predominate, invite the Court to adopt the approach of Professors Wright and Miller to subsection (b)(2) and certify the present suit as a (b)(2) class action simply because injunctive relief is requested. See 7A Wright & Miller, Federal Practice and Procedure: Civil § 1775 at 12 (1972). Professors Wright and Miller suggest that disputes over whether an action is primarily for injunctive relief or declaratory relief rather than a monetary award are counterproductive and that a suit should be allowed to proceed under (b)(2) as long as injunctive or declaratory relief has been requested. In light of the case precedent in this circuit and the clear legislative intent behind subsection (b)(2), and in light of the fact that preposterous monetary damages are sought with no specific equitable relief mentioned, the Court will decline to apply the learned professors’ suggestion in the instant case.
RULE 23(b)(3)
Plaintiffs seek, in the alternative to attaining 23(b)(1) or (b)(2) class certification, to maintain this suit as a class action under 23(b)(3). Subsection (b)(3) sanctions class certification where the subdivision (a) prerequisites are satisfied, and:
[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.
Maintenance of a (b)(3) class action entails the cost of mandatory notice to the class members of the nature of the suit and of their option to exclude themselves from the class, a cost which is not incurred in a (b)(1) or (b)(2) class action and which apparently persuaded plaintiffs to request (b)(3) class certification only as a last resort. For the reasons heretofore stated, the Court has found this action ill-suited for (b)(1) or (b)(2) class action treatment. Plaintiffs’ suit may proceed as a class action, therefore, only if the Court finds that plaintiffs have satisfied the requirements of subsection (b)(3).
Predominance
The first requirement for bringing a subsection (b)(3) class action is that the Court finds that questions of law and fact common to the class as a whole predominate over questions affecting only subgroups or individuals within the class. The parties are in apparent agreement that the
Initially, plaintiffs have asserted several causes of action against Allied, including trespass, nuisance, negligence, and statutory violations. Allied contends that no single cause of action may be asserted by the class as a whole or by any easily defined subgroup of the class. For example, Allied points out that a cause of action for trespass requires a showing of some property interest in the property trespassed upon — a showing which may be met by the lessees of oysterbeds, but certainly not by packagers and processors of seafood. A cause of action for a private nuisance requires the same kind of showing of a property interest to establish an interference with the use and enjoyment of that property. Plaintiffs’ negligence claims entail a showing of foreseeability and proximate causation which may vary across the class. Allied may be held to have foreseen damage to fishermen by its discharge of pollutants into the James River, but may not be held responsible for anticipating harm to those plaintiffs whose livelihoods are further removed from the direct harvesting of the marine life, such as packagers and restauranteurs. Similarly, Allied argues that a showing of proximate cause would necessarily involve varying degrees of direct harm from the pollution depending upon the plaintiffs’ locations along the affected waterways, see Boring v. Medusa Portland Cement Co.,
Secondly, just as causation and liability questions may vary among the class members, so may the defenses to the various causes of action. For example, Allied’s proposed defense of intervening causes, more particularly of Governor Godwin’s closure of certain sections of the James River and Chesapeake Bay, will apply only to those plaintiffs located in the areas affected by the respective intervening cause.
Thirdly, any defense of a plaintiff’s failure to mitigate damages will have to be determined on an individual basis. The plaintiffs’ damages will also require individual showings of losses which Allied argues will reduce a class action to a series of innumerable mini-trials. When viewed in . this light, Allied argues, plaintiffs’ proposed class action resembles the “mass accident” which the Advisory Committee’s Note and this Court in Causey v. Pan American World Airways, Inc., supra, suggested should rarely be accorded class action treatment due to the likelihood that significant questions of liability, defenses thereto, and damages would be present which would affect the individual class members in different ways.
Defendant Allied contends that these questions affecting only varying subgroups of the proposed class predominate over the questions common to all class members. The Court concurs. The Court finds the instant case analogous in many ways to the class action proposed in Windham v. American Brands, Inc.,
The Fourth Circuit noted that a showing of an anti-trust violation would not establish the defendants’ liability for any of the plaintiff class’ damages, which would require additionally a showing of direct injury to each plaintiff and damages sustained therefrom. Id. at 65, 66. Similarly, a showing by the watermen of Allied’s pollution of the James River and Chesapeake Bay would not establish that Allied is liable to the plaintiffs as a result of that pollution. As in Windham, the issues relevant to liability, i. e., injury and damages, may vary from class member to class member as detailed above.
A finding that common questions of law or fact do not predominate over the questions affecting only individuals within the class does not, however, end the Court’s inquiry. Subsection (c)(4) of
When appropriate (A) an action may be brought or maintained as a class action with respect to particular issues, or (B) a class may be divided into subclasses and each subclass treated as a class, and the provisions of this rule shall then be construed and applied accordingly.
Having found that the individual questions of foreseeability of harm and impact of pollution, of intervening cause defenses, and of choices of applicable law predominate over questions common to the entire class, the Court must determine whether the proposed class may be subdivided under (c)(4) so that well-defined subclasses may present common questions concerning Allied’s liability for the subclasses’ damages. The Court has concluded that six distinguishable subclasses within plaintiffs’ proposed class merit separate class action treatment due to the predominance of com
The first subclass consists of all proposed class members directly involved with the harvesting of seafood from the James River, Chesapeake Bay and adjacent waterways. This group would include commercial fishermen, crabbers, clammers, shell-fishermen, oyster tongers, lessees of oyster beds, and employees of same, all of whom earn their livelihood by catching seafood and selling their catches to the commercial seafood industry. This subclass shares common questions of Allied’s foreseeability of harm and the impact on business from the pollution and publicity surrounding it, as all its members are directly involved in the catching and selling of seafood from the affected waterways. The applicability or nonapplicability of admiralty jurisdiction as well as of maritime or non-maritime tort law should be uniform throughout the entire subclass. Because of the additional problems regarding choice of state law, Maryland or Virginia, in addition to the Court’s aforementioned skepticism concerning the adequacy of representation of the Maryland plaintiffs’ interest by the named plaintiffs, the Court deems it prudent to exclude all plaintiffs who reside in Maryland from this and all other subclasses. Finally, because of the potential intervening cause defense based on Governor Godwin’s closures of parts of the James River and Chesapeake Bay, the Court will further halve this subclass of fishermen into classes comprised of those affected by the closure orders and those unaffected by them.
Another distinguishable subclass of plaintiffs consists of businessmen whose livelihoods are more indirectly involved with the catching of seafood. This group would consist of boat owners, captains and crewmen, tackle owners and bait owners, marina owners and operators, and employees of the same, all of whom earn part or all of their livelihood by offering their services or equipment, for sale or hire, to persons who attempt to catch seafood in the affected waters. As with the subclasses of fishermen, this group should be further divided according to the applicability or nonapplica-bility of Allied’s defense involving the closure of parts of the James River and Chesapeake Bay. When divided as such, these two subclasses would present common questions regarding causation and impact, foreseeability of harm, and applicable law, which would predominate over any questions of fact or law affecting only particular members of the subclasses.
Another group which the Court has found distinguishable from other class members consists of businessmen in the seafood industry who purchase seafood caught in the waters affected by the pollution and who process, prepare or otherwise distribute the seafood to the public or to others in the commercial seafood industry. The class members represented in this subclass would be seafood wholesalers and retailers, seafood processors and packagers, distributors, and restauranteurs, and the employees of same, whose livelihoods are based in whole or in part on the purchase for resale to the public or for distribution of seafood from the affected waterways. Because these seafood dealers and restauranteurs may have been variously affected by the closure of the James River and Chesapeake Bay to fishermen from whom seafood is purchased, this group will also be divided into two subclasses of those affected and those unaffected by the closure orders. Again, questions of the foreseeability of harm to these businessmen situated further along in the chain of commercial seafood marketing, as well as the questions of applicable law and causation, should be uniform throughout these two subclasses.
The Court acknowledges that the lines of demarcation between these six subclasses are not as clear as the Court may have indicated. The pleadings and discovery taken on the matter of class certification have revealed that many members of the latter two subclasses of dealers and distributors were also involved directly in the catching of the seafood, and therefore would qualify for representation in one of the two subclasses of fishermen. Similarly, many members of the two subclasses of fishermen were also participants in the dis
The subclasses as delineated above present, individually, common issues of recovery for any damage sustained from Allied’s discharge of pollution into the James River. While there still exist several questions affecting only individuals within the subclasses, the Court is of the view that the questions common to the members of each subclass predominate over the questions that divide them. Subsection (b)(3) of
When broken down into these subclasses and when liability issues are severed from the damages determinations, this “mass accident” is properly maintainable as a class action. This Court in Causey v. Pan American World Airways, Inc., supra at 397, held that mass accident cases should not be accorded class action treatment unless (1) the class action is limited to the issue of liability, (2) the class members support the action, and (3) the choice of law problems are minimized by the accident affecting plaintiffs in the same jurisdiction. By excluding the Maryland proposed class members and by bifurcating liability and damages questions, the Court has, hopefully, ensured satisfaction of these requirements.
Superiority
In addition to finding that common questions of law and fact predominate within a proposed class,
Subsection (b)(3) of
(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 class; (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.
Allied contends initially that the existence of the Adams action
Allied argues in addition that the multiplicity of legal theories and individual fact patterns presented by the proposed class renders a class action unmanageable. Allied persuasively argues that the variety of claims brought by the class will make a class action particularly burdensome here due to plaintiffs’ request for a jury trial. The Court acknowledges that manageability of these actions, even when brought separately by the six subclasses, is the greatest obstacle for plaintiffs to overcome in attaining class certification, an obstacle made even more pronounced by their jury request. A finding that common questions of law and fact predominate over questions affecting individuals does not necessarily compel a finding that a class action involving those issues would be manageable or even practical in light of the finite capacities of juries to absorb complex legal and factual issues. Cf. Gneiting Taggares,
Finally, Allied contends that the damages aspect of this action, whether handled in conjunction with or separately from the liability aspect, does not lend itself to class action treatment. This argument also addresses the manageability consideration of subsection (b)(3), a consideration that is not required under subsections (b)(1) or (b)(2) class actions. Allied argues that class members will have to prove damages individually in innumerable damages mini-trials which will prove unreasonably burdensome to the Court and to the parties. Plaintiffs suggest a type of “fluid recovery” procedure whereby the Court or jury would determine the total or aggregate damages sustained by the plaintiff class, after which individual class members would submit their respective claims for participation in that fund. See Dickinson v. Burnham,
The fact that the adjudication of a class action or of a series of class actions would be burdensome for the Court and jury does not preclude (b)(3) class certification, however, unless the problems of manageability in a class action are found to be greater than, or the same as, those found in other available methods of adjudicating the proposed class’ claims. It is not enough simply to conclude that a class action or class actions would be difficult to control or conduct, else the Court’s decision concerning class certification would be an easy one indeed. Instead,
Allied suggests that more manageable alternatives are available, including individual actions, Rule 20 joinder, Rule 24 intervention with the Adams suit, Rule 42 consolidation for purposes of discovery, and lastly, the “test case” approach as developed under Katz v. Carte Blanche Corp.,
Assuming that Allied’s liability to plaintiffs can be adjudicated on a classwide basis for each subclass, the judicial system will be spared the time and expense involved with duplicative individual actions in which thousands of plaintiffs would have to litigate common questions of liability in separate actions. Understandably, if the Court were to deny class certification, many of the proposed class would more than likely neglect to file individual actions, a result which would obviously conserve judicial resources, but would do little to enhance justice. The superiority determination required by
The Court sees no advantage to be gained in relegating the proposed class members to separate actions employing joinder of parties under
The alternative of intervention with the Adams suit under
The test case approach suggested by Allied has an initial, but ultimately superficial, appeal to the Court. In a test case, as suggested in Katz v. Carte Blanche Corp., supra, an individual plaintiff litigates the substantive legal issues for the benefit of the entire class. If he secures the prior consent of the class members, a favorable judgment will have a binding effect on the defendant as against the class members through application of principles of collateral estoppel. Galloway v. American Brands, Inc.,
The Court, however, questions the availability of a test case in the instant action. Initially, the economies presented by this method are illusory to the extent that a court will have to undertake the same inquiry as this Court has made here to determine what legal issues may be litigated and what class or classes of plaintiffs may avail itself or themselves of a favorable judgment. Cf. Jimenez v. Weinberg,
The Court thus finds that plaintiffs have satisfied
Although Allied has emphasized the potential disparity among class or subclass members in the assertion of negligence and property-related causes of action, many claims will have more uniform application. Causes of action based on strict liability for Allied’s allegedly dangerous and unreasonable discharge of the toxic effluents, on conspiracy to commit intentional tortious conduct, on violations of the Rivers and Harbors Act of 1899,
If the Court’s opinion is correct that Allied’s liability to each subclass for pollution of Virginia waters may be litigated on a subclass-wide basis, and should plaintiffs prevail, only the resolution of class members’ damage claims would remain. Of course, should Allied prevail on the question of liability, damages determinations are unnecessary. Even if Allied is adjudged liable for class damages, the Court is not as persuaded as was the district court in Wind-ham that certification will swamp the Court with a deluge of damage mini-trials. See Windham, supra at 67. This Court shares the experience of Judge Frankel that:
[tjhere is reason to believe that civilized litigants and attorneys find ways to settle individual claims where the questions of general application go agáinst defendants. But, of course, that hope or possibility may not be realized. In the rare cases where this is so, it is more fitting that the work of adjudication be done than that the multiplicity of claimants be blocked at the threshold by denial of the class-action procedure designed to give them an effective day in court.
Shelter Realty Corp. v. Allied Maintenance Corp.,
It is also conceivable that the number of claimants will be reduced in the event the Court employs
The damages phase of the trial, if any be appropriate, may be referred to a Special Master appointed to conduct hearings on the class members’ damages.
There still remain some judicial housekeeping matters regarding the certification of the six subclasses of plaintiffs. As noted
The Court’s certification order, which in any event is tentative, will be further conditioned on (1) a showing of each subclass’ satisfaction of
An appropriate order shall issue.
Notes
. The Adams suit is a nonclass action brought against Allied and others by James River watermen who earn their livelihoods from harvesting seafood from the James River and selling their catches to the seafood industry. Liability is asserted under negligence and intentional tort theories, as well as under violations of various Virginia and federal water and pollution control laws. The defendants in Adams are alleged to be responsible for the same Rep-one pollution as is the subject of this suit. The Adams plaintiffs seek both compensatory and punitive damages for the damage to their businesses.
. In response to an inquiry by the Court, plaintiffs’ counsel, by letter dated November 14, 1978, listed the approximate number of persons in each occupation purportedly represented in this action:
Maryland Commercial Fishermen, Crabbers, etc. 19,316
Virginia Commercial Fishermen, Crabbers, etc. 6,484
Maryland Seafood Wholesalers-Retailers, etc. 221
Virginia Seafood Wholesalers-Retailers, etc. 197
Maryland Restauranteurs, etc. 191
Virginia Restauranteurs, etc. 37
Maryland Seafood Processors, 168
Virginia Seafood Processors, etc.
Maryland Seafood Distributors, etc. 347
Virginia Seafood Distributors, etc. Yet to be determined
Maryland Boat Owners, etc. 226
Virginia Boat Owners, etc. 77
Maryland Tackle (Shop) Owners, etc. 82
Virginia Tackle (Shop) Owners, etc. 178
Maryland Marina Owners, etc. 194
Virginia Marina Owners, etc. 147
. The so-called “Oyster War” between Virginia and Maryland watermen has reportedly been a fact of life in the Potomac River and.Chesapeake Bay areas since 1785. The frequent outbreaks of violence in this century have received extensive media coverage in Virginia. See, e. g., Richmond Times-Dispatch, December 20, 1956, February 22, 1957, April 10, 1959; Richmond News-Leader, December 23, 1954, January 25, 1955, December 10, 1956, March 6, 1957, April 15, 1959.
. See n.2, supra. Of the nearly 30,000 proposed class members, well over 20,000 are Maryland residents.
. In the memorandum in support of their motion for class certification, plaintiffs suggest various incompatible equitable remedies which might be sought by the various class members. The remedies mentioned include an injunction against defendant Allied enjoining any present or future discharge of Kepone effluents, a mandatory injunction requiring Allied to remove Kepone from the affected waterways, and a decree apportioning the damages sought in this action among the plaintiffs and proposed class members in the event they cannot be fully compensated by defendant for their alleged injuries. Plaintiffs argue that incompatibility could result should Allied be required to mitigate the pollution damage for one set of plaintiffs to the detriment of another set.
. The Advisory Committee Note following the 1966 amendments to
A “mass accident” resulting in injuries to numerous persons is ordinarily not appropriate for a class action because of the likelihood that significant questions, not only of damages but of liability and defenses to liability, would be present, affecting the individuals in different ways. In these circumstances an action conducted nominally as a class action would degenerate in practice into multiple lawsuits separately tried. .
Advisory Comm. Note,
. See n.1, supra.
. It is unclear whether, under Gasoline Products Co. v. Champlin Refining Co.,