Lead Opinion
Opinion
—Bias Reyes and the Welfare Rights Organization of San Diego, Inc. (Plaintiffs), brought this class action for declaratory and injunctive relief against the San Diego County Board of Supervisors and Department of Social Services (County) to stop the practice of depriving general relief recipients of benefits for failing to comply with work project rules without distinguishing between willful and nonwillful violators and to recover past benefits lost from such illegal terminations. They appeal that portion of the trial court’s order denying its motion for class certification as to retroactive relief. They contend the class for retroactive benefits is ascertainable and meets all proper community of interest requirements necessary for certification, asserting the trial court improperly relied on the County’s potential administrative burdens at the remedy stage of determining class identity and individual claimant entitlements. For the reasons which follow, we conclude the trial court abused its discretion in denying Plaintiffs’ motion for class certification as to retroactive relief. Accordingly, we reverse its order in part.
Factual and Procedural Background
Welfare and Institutions Code
Relying on Jennings v. Jones, supra, 165 Cal.App.3d at pages 1092-1093, Plaintiffs’ lawsuit essentially contends the sanctioning process of the County’s program fails to distinguish between the competent healthy recipients who willfully fail to comply with the underlying requirements of the program and those whose failure is the result of mere negligence, inadvertence, or mental or physical disability. The class action complaint seeks injunctive and declaratory relief, claiming the County’s practice of terminating general relief benefits without distinguishing between willful and nonwillful violations of its work project rules violates substantive due process. The action further asks the court to require the County to provide advance notice of terminations for alleged work project violations so recipients can request continued benefits pending an administrative hearing consistent with the constitutional guarantee of procedural due process. Petitioners also seek a peremptory writ of mandate ordering the County to provide timely and adequate notice of actions to sanction individuals, to provide full discovery of evidence for and during hearings, to cease enforcement of its sanctioning process, to implement regulations requiring County to sanction only
Plaintiffs’ motion for class certification was granted insofar as it sought to certify a class of all individuals who will be sanctioned by the County and deprived of general relief benefits on or after the date of entry of final judgment.
“That really does not suit class certification as far as retroactive benefits are concerned. It seems to me that those parties who still have rights may pursue them, if they wish, certainly, individually. But this is all we’re doing, if we order the class certification, would be to just renotice people that they had a right to assert their individual actions and have administrative hearings on each one. I don’t think that suits the standard of the class litigation. It certainly becomes unmanageable from the county view and I think the Metcalf vs. Edelman case is on point in this matter, which would prohibit the determination of the class.
“Certainly, the county has indicated their willingness to have this order made without prejudice to renewal of a more determinable, manageable class that didn’t require the individual determinations of, really, a mini trial
Governing Law
Class actions serve an important role by establishing a judicial process within which claims of many individuals can be resolved simultaneously, eliminating repetitive litigation and providing claimants with a practical method of securing redress for claims which because of their size do not warrant individual litigation. Consequently, courts and legislatures have developed and transformed this former, limited equity device to a contemporary tool designed to meet the needs of modem society. (Richmond v. Dart Industries, Inc. (1981)
In California, Code of Civil Procedure section 382. authorizes class action suits “when the question is one of a common or general interest, of many persons, or when the parties are numerous, and it is impracticable to bring them all before the cоurt . . . .” (See Richmond v. Dart Industries, Inc., supra,
Whether a class is ascertainable is determined by examining (1) the class definition, (2) the size of the class, and (3) the means available for identifying class members. (Vasquez v. Superior Court, supra, 4 Cal. 3d at pp. 821-822; Miller v. Woods, supra,
The decision whether to certify a class rests within the sound discretion of the trial court (Richmond v. Dart Industries, Inc., supra, 29 Cal.3d at p.470; Schneider v. Vennard, supra, 183 Cal.App.3d at p.1345) and will not be disturbed on appeal if supported by substantial evidence, unless either improper criteria were employed or erroneous legal assumptions were made. (Richmond v. Dart Industries, Inc., supra, 29 Cal.3d at p.470; Schneider v. Vennard, supra,
Plaintiffs’ Contentions and the County’s Response
Plaintiffs contend they have met their burden of establishing not only an ascertainable class, but also a well-defined community of interests among their class members. They assert the trial court erroneously relied on the County’s potential administrative burdens at the postjudgment remedy stage of determining class identity and individual claimant entitlement to relief, when it denied class certification for retroactive benefits. They argue the determination of clаss certification in government benefits cases involves the primary concern of the court’s role in trying the case, not the administrative agency’s duties in providing legally required relief to those who prove they are members of the class. Consequently, because the issues of class member identity and relief entitlement are not determined by the court, they are irrelevant to the class certification decision. Moreover, they contend the County’s remedial concerns here were based upon unsupported assumptions that determinations regarding past benefits would be unduly administratively burdensome.
The County responds certification was properly denied because the validity of its actions as to any specific recipient must be individually factually determined and thus it is possible the challenged sanctioning process may have been invalidly applied to only a few members of the broаdly defined class. (Dale v. Hahn (2d Cir. 1971)
The County also argues manageability is a proper factor for the court to consider in determining class certification, citing the total administrative cost here of processing approximately 7,600 claims (approximately one-half of the 15,200 sanctions imposed during the time involved) would be approximately $257,000 and exhaust six and one-half years of staff time. It claims retroactive relief here would be without substantial benefit to the class members in compаrison to the administrative burden imposed. Citing section 17403, the County explains that because general relief must be repaid by a recipient when one has the means to do so, retroactive payments to rehabilitated individuals would result in simply debts due to the County.
An Ascertainable Class
Mindful in determining whether a class is ascertainable we examine the class definition, the size of the class and the means of identifying class members (Vasquez v. Superior Court, supra, 4 Cal.3d at pp. 821-822; Miller v. Woods, supra, 148 Cal.App.3d at p.873), wе conclude Plaintiffs’ proffered class of “all individuals sanctioned from the County’s general relief program since April 10, 1983,” is sufficiently defined to meet the “ascertainable” standard.
The County concedes the proposed class as defined is not “unduly complex.” It clearly includes all individuals potentially affected by the challenged administrative sanctioning process. (Compare Employment Development Dept. v. Superior Court, supra, 30 Cal.3d at p.260, where the class was defined as “all other women ‘subjected’ to the provisions of [Unemployment Insurance Code] section 1264”; Miller v. Woods, supra,
Preliminarily, it is firmly established a plaintiff is not required at this stage of the proceedings to establish the existence and identity of class members. (Stephens v. Montgomery Ward & Co., supra, 193 Cal.App.3d at p.419; Collins v. Safeway Stores, Inc., supra, 187 Cal.App.3d at p.71; Lazar v. Hertz Corp. (1983)
However, the County essentially argues the class is unmanageable because of the cited administrative cost in identification at the remedial stage. (See, e.g., Simer v. Rios (7th Cir. 1981)
Here, the County has not shown the administrative cost of retroactive relief outweighs appreciable benefits to the class. Preliminarily, we are unpersuaded the County’s selected method of identification and notice is the most practicable and cost-efficient; for, in comparison, how effective and costly would simple notice to all general relief recipients during that period of time be? Moreover, the size of the class in regards to the starting date for payment of retroactive benefits to class members is not established and binding until the trial court grants final relief. Indeed, in order for the County to show the administrative costs are disproportionate to the
In summary, the trial court has considerable flexibility in the management of a class action at the remedial stage. Under these circumstances, the County’s assertion the certification order here if the class should prevail, will require them to incur undue administrative costs both in identifying and notifying class members should be presented to the trial court postjudgment at the remedial stage. (Employment Development Dept. v. Superior Court, supra,
The Class Shares a Well-defined Community of Interest in Questions of Law and Fact
In determining whether the class satisfies the community of interest requirement, we look to whether common questions of law or fact dominate, the сlaims of the class representative are typical of the class and the class representative can adequately represent the class in its entirety. (Richmond v. Dart Industries, Inc., supra, 29, Cal.3d at p.470.) We conclude
This second statutory requirement of a “community of interest” revolves on “whether the common questions are sufficiently pervasive to permit adjudication in a class action rather than in a multiplicity of suits.” (Vasquez v. Superior Court, supra, 4 Cal.3d at p.810; Miller v. Woods, supra, 148 Cal.App.3d at pp. 873-874.) This common question requirement is patently satisfied here by the class claim the County has violated state law by failing to distinguish between willful violations of work rules by competent healthy adults who may be sanctioned and nonwillful violations caused by negligence, inadvertence or mental or physical disability which may not serve as a basis for sanctioning. In other words, the common goal of the entire class is to invalidate this sanctioning process and require the implementation of regulations requiring the County to sanction only healthy, competent individuals who willfully fail to comply with program requirements.
The County challenges this assessment, contending classwide liability cannot be established by the declaratory/injunctive relief phase of this case, because each class member’s right to recover depends on facts peculiar to his/her case. The County explains that in order for a class member to recover, that individual must establish at the remedy phase not only damages, but liability—that he/she was a victim of unlawful conduct, to wit sanctioned for nonwillful conduct. Finally, the County stresses that as to each class member, the separate factual issues of eligibility, nature and willfulness of the violation, and the existence of any defenses must be determined.
Moreover, this community of interest requirement is especially satisfied here, because the trial court would have to redetermine the legality of the County’s sanctioning process in each case individually pursued. For, “[t]he courts will not apply . . . [the principle оf res judicata] to foreclose the relitigation of an issue of law covering a public agency’s ongoing
Finally, we find unpersuasive the County’s assertion that the “common issue” cannot be decided without examining the facts of each individual case. In other words, the County contends that even if all class members share a common interest in whether it had a duty to distinguish between willful and nonwillful violations of the work program, proof of whether it did in fact improperly administer their work project program in its sanctioning process depends entirely on the facts peculiar to each individual case. Rather, whether the County applied an unlawful sanctioning process can be proved by reviewing the County’s regulations, the testimony of the County’s welfare employees as to the standard practices followed in making sanctioning decisions, as well as a sampling of representative cases probative of the County’s practice of sanctioning for nonwillful noncompliance with work program requirements.
The General Appropriateness of Class Certification
As already noted, it is especially appropriate to proceed with a class action to provide effective relief when, as here, a large number of welfare recipients have been allegedly, improperly denied governmental benefits on the basis of an invalid administrative practice. (Employment Development Dept. v. Superior Court, supra, 30 Cal.3d at p.265, and cases there cited.) The true appropriateness of proceeding with a class action here rests solely not in the ascertainability of a class of past welfare recipients under section 17000 et seq. (Adkins v. Leach, (1971)
Disposition
That portion of the order denying class certification as to all individuals who have been sanctioned from the County’s general relief program from April 10, 1983, to the date of entry of final judgment is reversed. In all other respects, the order is affirmed.
Wiener, Acting P. J., concurred.
Notes
All statutory references are to the Welfare and Institutions Code unless otherwise specified.
It is settled that section 17000 imposes a mandatory duty upon the County to support its indigent and disabled. (Mooney v. Pickett, supra,
Such work as a condition of relief is authorized by section 17200 and is designed to assist in the recipient’s rehabilitation and the preservation of his or her self-respect.
This sanctioning process parallels those found in state and federal work incentive programs. (42 U.S.C. § 602(a)(19)(F); § 11308 [AFDC work incentive program, providing a sanction of three months for the first offense and six months for the second offense where a registrant fails without good cause to comply].)
The County asserts in passing that class certification here for purposes of prospective relief was unnecessary, because the complaint sought injunctive and declaratory relief where a final judgment will, as a practical matter, produce the same result as formal classwide certification (LaMadrid v. Hegstrom (D.Ore. 1984)
“It is well settled that class actions are an appropriate procedure in government benefit cases where statutes and policies are likely to have an impact upon a broad class of recipients. Recognized advantages of government benefit class actions include mootness avoidance, the tolling of the statute of limitations, the enhancement of the effectiveness of a final judgment, and the adequacy of satisfaction of the exhaustion of administrative remedies requirement by the named plaintiff on behalf of all class members. (Fns. omitted.)” (4 Newberg on Class Actions (2d ed. 1985) § 23.07, p. 204.) Moreover, class actions for injunctive or declaratory relief serve the additional objectives particularly important in government benefits litigation, including institutional changes, “facilitating enforcement of a favorable judgment, and protecting the interests of affected class members from the burden of bringing individual actions to establish the applicability of a decision for their benefit. (Fns. omitted.)” (Id. at § 23.11, p. 210.)
The County’s program manager, Income Maintenance Bureau, Department of Social Services, stated in her declaration: “To generate a list of plaintiff class members by manually cross-matching existing records would require the following tasks: []J] a) Examine the monthly printouts showing ‘negative actions’ for all Income Maintenance programs (we do not havе a separate printout for General Relief) to identify only those cases which are General Relief cases and which were closed for the reason that a sanction was imposed. This would mean looking at some 2,000 pages of printouts covering the relevant time period, and creating the list, expected to include over 15,000 cases. [$] b) To obtain the addresses corresponding to the sanctioned cases, it would be necessary to call each case up on the computer terminal and then to record the address shown on the master list. []]] c) Finally, to generate mailing labels, it would be necessary to type the entire list (consisting of over 15,000 cases) into our word processing system.”
The validity of this contention is doubtful. First, section 17403 provides the County with a claim against one for whom the County supported with public funds only if the formеr recipient has later acquired property in excess of personal and familial support needs. (County of San Diego v. Muniz (1978)
In a similar vein, the County argues that class certification was properly denied because the challenged process was constitutionally applied as to all those sanctioned for willful conduct. Although we grant the likelihood that many within the presently defined class may have been properly sanctioned for willful conduct, we do not believe such a likelihood precludes class certification for purposes of retroactive relief. Rather, the redefining and winnowing down of the class at the remedial stage where notice to the general class requires sanctioning for nonwillful conduct in order to be eligible for retroactive benefits resolves any perceived inadequacy in the definition of the proposed class and any allegation of lack of commonality of interest as to law and fact.
As the Plaintiffs aptly point out, it is precisely the County’s sanctioning process which precludes the early determination of whether a past relief recipient was sanctioned-for willful or
The trial court relied on Metcalf v. Edelman (N.D.I11. 1974)
“State general assistance funds withheld in accordance with an invalid regulation constitute a debt of the state effective as of the date of application.” (Lowry v. Obledo, supra,
Concurrence Opinion
The court below concluded Metcalf v. Edelman (N.D.I11. 1974)
Existing California authority provides a class action is not inappropriate merely because each class member must, at some point, make an individual
Moreover, where there is but one essential issue to be pursued and each claimant’s entitlement to benefits depends upon the existence of this single issue rather than a separate set of issues or facts applicable to him, the class action may go forward. (Hypolite v. Carleson (1975)
However, where, after the common questions have been determined, eaсh class claimant would still have to litigate a number of substantial questions peculiar to himself in order to recover, there does not exist a necessary community of interest and there is no assurance the class representative would indeed be representative. A class action is therefore improper. (See D'Amico v. Sitmar Cruises, Inc. (1980)
The preceding rules are easy to articulate. However, the difficulty and danger in examining the number of issues at the class certification stage lies in determining at what point the number of substantial issues passes from the permissible number into the impermissible and whether the multiple issues problem will present itself at the liability or remedial stage of the proceedings. While it is certainly possible, and the court is duty bound to detect an unascertainable class at the certification stage, incorrect focusing at that time on the number of substantial issues potentially involved or when they will arise may in doubtful cases serve to prematurely foreclose a legitimate class action which might more properly be limited or eliminated by decertification in later proceedings on the merits.
Unfortunately, existing California authority does not clearly set forth how the lower court is to go about deciding whether existing issues are appropriately considered at the litigation’s merits stage or its remedial stage. As has been observed, the various rules and classifications contained in our case law respecting class actions are not easily reconcilable. (4 Wit-kin, Cal. Procedure (3d ed. 1985) Pleading, § 202, p. 238.)
Whether the multiple issues will arise at the liability or remedial stages depends in large part upon the theory of liability to be advanced by the proposed class. For purposes of the case herein, it is instructive that there is federal authority where, despite potential differences amongst members’ claims, certification has been ordered because the legal theory of liability was “as broad as the class claimed.” (See Donaldson v. Pillsbury Co. (8th Cir. 1977)
Although the county’s ultimate liability to each class member may well depend upon individual factual circumstances, the county’s existing administrative forums do provide a suitable means of protecting individual interests without sacrificing the efficacy of a class proceeding. Thus, contrary to the court’s ruling below, the holding in Metcalf is not an impediment to certification of the proposed class.
A petition for a rehearing was denied December 4, 1987, and appellants’ petition for review by the Supreme Court was denied March 3, 1988.