Lead Opinion
OPINION
Appellant, an automobile manufacturer who unsuccessfully defended a class action lawsuit for breach of express warranty, appeals the Superior Court’s decision to affirm the certification of the class by the trial court, and the amount of damages and litigation costs awarded to the class. Costs included a significant legal fee, entered pursuant to the Magnuson-Moss Warranty Improvement Act (the “MMWA”), 15 U.S.C. § 2310(d)(2). For the reasons that follow, we affirm in part and reverse in part, with reversal being limited to the lower courts’ approval of an enhancement of class counsel’s legal fee by application of a risk multiplier to the amount of the lodestar;
Case History
Appellee Shamell Samuel-Bassett, on behalf of herself and others similarly situated (the “class”), filed this class action lawsuit in January 2001, in the Philadelphia Court of Common Pleas. Bassett alleged that, in October 1999, she purchased a model year 2000 Sephia from appellant Kia Motors America,
According to the complaint, Bassett experienced malfunctioning of her Sephia’s brakes within 17,000 miles of use, which manifested as an inability to stop the vehicle, increased stopping distances, unpredictable and violent brake pedal pressures, brake lockup and vibration, and general interference with control of the vehicle. She attributed these manifestations to a defect in the design of the Sephia’s brake system causing inadequate heat dissipation, premature wear of the brake pads, and warping of the rotors.
The complaint stated four causes of action: breach of express warranty, breach of implied warranty of merchantability, violation of the MMWA, and violation of the Unfair Trade Practices and Consumer Protection Law (“UTPCPL”). Bassett claimed that each member of the class was entitled to compensatory damages for out-of-pocket repair costs, loss of use costs, loss of resale value, funds for permanent repair of the vehicle, treble damages, and costs of litigation, including legal fees. Finally, Bassett requested an injunction compelling KMA to notify all class members of the potential danger for personal injury deriving from the Sephia’s brake defect, and to provide free repair and replacement of the affected brake systems.
In February 2001, counsel for KMA filed a notice to remove the action to the U.S. District Court for the Eastern District of Pennsylvania, invoking that court’s diversity jurisdiction. The parties then filed an amended complaint and answer with the federal court. Bassett’s amended federal court complaint re-stated the allegations in her original state court complaint, and KMA answered denying all allegations and asserting forty-seven boilerplate affirmative defenses. The manufacturer sought dismissal of the amended complaint. In due course, the district court certified the class on all of Bassett’s claims except her UTPCPL claim. See Samuel-Bassett v. Kia Motors Am., Inc.,
All residents of the Commonwealth of Pennsylvania who purchased or leased model year 1995-2001 Kia Sephia automobiles for personal, family or household purposes for a period of six years preceding the filing of the complaint in this action.
Certification Order, 9/17/04, at 1. Following discovery, the parties stipulated that KMA did not begin selling the Sephia in the United States until 1997. Bassett also conceded that the 2001 model Sephia had undergone substantial redesign that corrected the alleged brake defect. Consequently, the class was limited to purchasers of 1997 to 2000 Sephias. Class certification was denied as to the UTPCPL claim, and Bassett was permitted to proceed alone on that count. Bassett was designated class representative and her attorneys were appointed counsel for the class. Subsequently, KMA asked the trial court to certify the September 17, 2004, order granting class certification for interlocutory appeal, but its request was denied in November 2004.
Bassett notified the class of the action against KMA. The parties then filed various motions in limine and proposed findings of fact in anticipation of trial. In addition, KMA filed a motion to bifurcate, which the trial court denied. Tr. Ct. Order, 5/16/05. Subsequently, the parties proceeded to trial.
The trial took place between May 16 and May 27, 2005. At the conclusion of Bassett’s case, KMA moved for compulsory nonsuit, but the court denied the motion. Notes of Testimony (“N.T.”), 5/23/05, Yol. 5, at 55-60. KMA renewed its request for summary relief at the end of its case, moving for a directed
On June 10, 2005, KMA — represented by new counsel — filed a post-trial motion for judgment notwithstanding the verdict or, in the alternative, for a new trial. See Pa.R.C.P. No. 227.1. On September 26, 2005, the trial court held a hearing on KMA’s motion, at the end of which it directed the manufacturer to file an addendum indicating where issues raised in the motion had been preserved; KMA complied. The trial court issued no further order to dispose of the request for post-trial relief within 120 days of filing and, therefore, upon praecipe of the class, the prothonotary entered judgment on the molded jury verdict on October 25, 2005. See Pa.R.C.P. No. 227.4(l)(b). KMA appealed the judgment to the Superior Court and the class filed a cross-appeal.
In October 2007, the Superior Court addressed the parties’ initial cross-appeals, affirming the lower court’s decision with respect to the class action verdict on the basis of the trial court’s Rule 1925(a) opinion. See Samuel-Bassett v. Kia Motors Am., Inc., No. 3048 EDA 2005, at *2-5,
We granted allocatur and consolidated the appeals to address the following issues, as stated by KMA:
1. Whether, in an issue of first impression, the lower courts disregarded class action procedures and fundamental principles of Pennsylvania contract law by presuming that a class action could be pursued based solely on proof of •breach of the named plaintiffs individual express limited warranty contract, as evidence of proof of breach as to all other limited warranty contracts for all the other members of the class?
2. Whether long-standing Supreme Court precedent requires reversal of the judgment improperly entered and affirmed in favor of all class members, in circumstances where the trial court accepted proof of breach of the named plaintiffs express limited warranty contract as proof of breach as to all limited warranty contacts as to all other*395 members of the class, even where the only class-wide evidence was that the defendant had honored its express warranty?
3. Whether, in an issue of first impression, the trial court violated the defendant’s due process rights by entering judgment for the entire range of class members without requiring proof of breach of all of their express limited warranty contracts?
4. Whether as a matter of first impression, an attorneys’ fee award made pursuant to the [MMWA] cannot be entered after entry of judgment where: (i) the MMWA requires that fee awards be entered as “part of the judgment,” and where (ii) Plaintiff voluntarily took judgment on the underlying verdict, and thus disposed of all claims (including the Plaintiffs unresolved claim for attorneys’ fees) before the trial court entered the fee award?
5. Whether under Pa.R.A.P. 1701, a trial court lacks jurisdiction to enter a fee award after judgment has been entered and a notice of appeal has been filed?
6. Whether, as a matter of first impression, the courts of Pennsylvania are required to follow United States Supreme Court precedent regarding the interpretation of federal fee shifting statutes when interpreting the fee shifting provision of the MMWA, and, if so, whether the trial court’s decision to add a $1 million “risk multiplier” bonus to the fee award violates controlling United States Supreme Court precedent?
Samuel-Bassett v. Kia Motors Am., Inc.,
I. Class Certifícation
KMA’s first claim is that the trial court certified the class in error because Bassett failed to prove: that questions of law and fact were common to the class, that the common questions predominated over individual issues, that Bassett’s claims were typical of the class claims, and that Bassett was an adequate class representative.
Class certification presents a mixed question of law and fact. Liss & Marion, P.C. v. Recordex Acquisition Corp.,
For the trial court, the question of whether a class should be certified entails a preliminary inquiry into the allegations of the putative class and its representative, whose purpose is to establish the identities of the parties to the class action. Pa.R.C.P. No. 1707 cmt. (certification process “is designed to decide who shall be the parties to the action and nothing more”). See generally Liss,
Pursuant to Pennsylvania’s civil procedure rules, the trial court may allow a representative to sue on behalf of a class if, the class is numerous (“numerosity”); there are questions of law or fact common to the class (“commonality”); the claims of the representative are typical of the class (“typicality”); the representative will fairly and adequately protect the interests of the class (“adequate representation”); and a class action is a fair and efficient method for adjudicating the parties’ controversy, under criteria set forth in Rule 1708. Pa.R.C.P. No. 1702. Among the Rule 1708 criteria for determining whether the class action is a fair and efficient method of adjudication is “whether [the] common questions of law or fact predominate over any question affecting only individual members” (“predominance”). Pa.R.C.P. No. 1708(a)(1) (also listing six factors in addition to predominance). The class “is in the action until properly excluded” by, e.g., an order of court refusing certification or an order de-certifying the class. Pa.R.C.P. No. 1701(a) & cmt.; Bell,
During certification proceedings, the proponent of the class bears the burden to establish that the Rule 1702 prerequisites were met. Kelly,
Finally, with regard to the adequacy of representation prong, the trial court concluded that, contrary to KMA’s arguments, Bassett did not have a conflict of interest in the maintenance of the class, and that her financial resources and legal representation were adequate. Specifically, the court rejected KMA’s claim that Bassett was an inadequate representative because she had a conflict of interest arising from potential, not-yet-asserted Lemon Law and personal injury claims (resulting from a brake-related accident) that other class members did not share. The court concluded that, instead, Bassett’s personal injury made her “a more zealous advocate on behalf of the class.” Certification Memo., 9/17/04, at 14-16 (citing Janicik, supra).
The trial court further addressed class certification issues in its Pa.R.A.P. 1925(a) opinion. In addition to incorporating by reference its September 2004 certification memorandum, the court stated that the evidence introduced at trial confirmed that a class action was the most appropriate means to present the class’s claims, that class counsel was able to present the issues to the jury fully, and that the jury was able to decide all issues before them “sincerely, productively, appropriately and justly.” According to the court, separate trials on the 9,402 claims of the class members, claiming damages of only $600 each, would have placed a strain on the courts and effectively “seal[ed] shut” the doors to the courtroom in violation of the Pennsylvania Constitution. The effect would have been a windfall for KMA as numerous class members failed to bring their cases to trial. The court concluded that the class had met the Rule 1702 and 1708 prerequisites for class certification, and relied on its September 2004 opinion for analysis of the individual certification issues.
A. Commonality and Predominance
KMA claims that Bassett did not meet either the commonality or the predominance prerequisites for certifying the class, raising the same arguments in support of both claims. According to KMA, the trial court certified the class on a record that contained proof of Bassett’s “anecdotal” experience but no evidence that KMA had breached its express warranty with respect to all class members or that the class members sustained out-of-pocket costs as a result.
KMA states that to prove liability for breach of express warranty, Bassett had to submit evidence for each absent class member. KMA states that Bassett’s evidence of her personal experience, expert testimony and internal documents regarding a defect present in all 1997-2000 Sephias, and warranty brake repair data were not probative to satisfy Bassett’s burden of proof with regard to all the elements of a breach of warranty cause of action for the class. Without specifying whether it is addressing the certification hearing or the trial testimony, KMA attacks Bassett’s evidence as not credible and not probative. Thus, KMA challenges the conclusion of Bassett’s expert witness that the Sephias suffered from a common defect, on the basis that he personally inspected only two vehicles rather than all the vehicles in the class. According to KMA, warranty repair statistics did not cure any deficiencies in the expert’s testimony regarding the existence of a defect and, instead, showed only that “KMA honored its express warranty” by routinely covering brake repairs to Sephia vehicles.
Moreover, KMA argues that reliance, manifestation, notice, and opportunity to cure are elements of proof in a breach of
Bassett responds first with a waiver argument. Bassett claims that KMA waived all certification issues by failing to object on the trial court record and distinguish express warranty issues from implied warranty issues for certification purposes. According to Bassett, KMA contested certification as to all claims, “hoping as a matter of strategy to obtain the same res judicata benefit it now claims for the implied warranty claim.” Our review, however, reveals that KMA raised and preserved issues related to certification of the class with respect to all of Bassett’s claims on behalf of the class. Therefore, KMA’s claims related to the express warranty were not waived, even if they were not addressed separately from implied warranty claims, and regardless of KMA’s strategy.
On the merits, Bassett argues that consumer product warranty claims are recognized as “particularly suitable” for class litigation. Bassett’s Brief at 14 (citing Amchem Prods., Inc. v. Windsor, 521 U.S. 591, 625,
Bassett argues that she proved that each class vehicle manifested the defect by showing that the abnormal degradation of the brake pads and rotors was measurable. KMA’s business records, ie., warranty data and internal memoranda, showed that the defect was measured, tested, and ultimately recognized internally by KMA. Thus, Bassett asserts, warranty data supported the commonality and predominance allegations, regardless of whether the same data also showed that KMA complied with its warranty promises, a fact relevant to KMA’s liability but not a factor for the court to consider for certification purposes.
According to Bassett, KMA did not object to or introduce evidence to rebut Bassett’s commonality evidence. Bassett notes that KMA’s appeal strategy is different from its trial argument: at trial, KMA sought to prove that a common defect did not exist but, on appeal, KMA is claiming that existence of a defect is irrelevant. Bassett emphasizes that, at trial, KMA “recognized” that it was replacing one set of defective brakes with another and, therefore, that warranty repairs did not restore the Sephias to a defect-free condition. But, Bassett adds, on appeal, implicit in the jury’s verdict is a finding that commonality existed so there is no basis to overturn the certification decision.
Next, Bassett responds to KMA’s assertion that evidence of individual reliance is necessary to prove breach of warranty and is not amenable to generalized proof. According to Bassett, reliance is not an element of proof in a warranty action because the written warranty is an affirmation of fact and part of the basis of the bargain. Bassett’s Brief at 29 (citing Liberty Lincoln-Mercury, Inc. v. Ford Motor Co.,
Bassett also rejects KMA’s arguments that each class member was required to provide individual notice of the common defect, opportunity to cure, and to establish failure to repair in order for the class to maintain suit. According to Bassett,
Finally, Bassett responds to KMA’s argument that her evidence of damages at trial was inadequate because individual out-of-pocket costs of repair were not demonstrated. Bassett states that KMA’s current argument on this issue highlights the difference in posture at the time of class certification, when Bassett was asserting that the class action mechanism was appropriate, versus on appeal, when KMA is attacking a completed trial as improper. Bassett emphasizes that her expert’s testimony at trial, and KMA’s records, substantiated the request for per person damages, to which KMA had a full opportunity to object but did not. Furthermore, according to Bassett, the jury’s award was supported by the evidence at trial.
In its reply brief, KMA reemphasizes that the existence of a common defect “is not the answer to the question of whether the class was properly certified” but merely a threshold fact. KMA also states that Bassett’s arguments ignore evidence
Preliminarily, to better focus the dispute, we address the proper scope of our review of the trial court’s decision to certify the class. “Scope of review refers to the confines within which an appellate court must conduct its examination ... [or] to the matters (or “what”) the appellate court is permitted to examine.” Morrison v. Commonwealth,
An appellate court does not second-guess a trial court’s discretionary “preliminary” decision to certify the class by considering subsequent case developments of which the trial court could not have been aware at the time of its decision. Thus, arguments regarding subsequent case developments, such as evidence revealed at the liability phase of trial or the jury’s verdict, cannot prove an abuse of discretion at the certification stage.
For ease of discussion, we will address commonality and predominance together as the parties do, but we emphasize that the Rule 1702(2) commonality requirement and the Rule 1708(a)(1) predominance requirement are distinct prerequisites for class certification, both of which must be established by the class proponent.
To establish the commonality requirement, Bassett had to identify common questions of law and fact — “a common source of liability.” Weismer,
Bassett was not required to prove that the claims of all class members were identical; the existence of distinguishing individual facts is not “fatal” to certification. Buynak v. Dep’t of Transp.,
The “predominance inquiry tests whether proposed classes are sufficiently cohesive to warrant adjudication by representation.” Amchem Prods.,
The findings of fact by the certifying court formed a sufficient basis to conclude that commonality was met, as the class’s claims were based on “a common source of liability” and were susceptible to common proof. Liss,
KMA’s arguments on appeal do not prove an abuse of discretion by the trial court. First, the class here was not required to prove “reliance” in order to recover for
Second, the trial court did not abuse its discretion in concluding that the issue of proximate cause could be proven by common evidence. The court considered KMA’s internal memoranda and expert testimony regarding the brake design defect, in conjunction with warranty claims data, which tended to prove that the brake design defect was the proximate cause of premature wear of brake pads and rotors with respect to the class claims. N.T., 7/15/04, at 88-91, 99-102. On appeal, KMA argues that commonality was not established because evidence of record proved that premature wear could also have other causes, such as environmental conditions, driver habits, or separate defects, id. at 120-23, 148. We reject KMA’s implicit invitation to reweigh the evidence on appeal. Commonwealth v. Treiber,
Third, we also reject KMA’s claims that certification was an abuse of discretion because the record was devoid of evidence that class members provided notice of the defect and an opportunity to cure.
As a final matter, KMA argues that common proof for individual class members of the related issues of defect manifestation and amount of damages, see Briehl v. Gen. Motors Corp.,
At issue are two different considerations: whether the class could demonstrate the impact of the defective brakes on each member and whether the amount of damages for each class member was provable with common evidence. See Behrend, v. Comcast Corp.,
The design defect of which the class complained was susceptible to proof on a class-wide basis, and testimony showed that the inability of the Sephia brake system to exhaust heat manifested as premature wear of brake pads and rotors, accompanied by noise and inability to brake, symptoms of which Sephia owners complained. High warranty claims confirmed the impact of the defect on individual members of the class. The fact that the claims rates were not one hundred percent across all models was not dispositive of the issue of manifestation because, as KMA’s representative testified, only covered claims were included in the calculations of the warranty rate. Uncompensated claims were not. See N.T., 7/15/04, at 91-92, 97-98. KMA offered testimony that the decision whether to replace brake pads and rotors, wear- and-tear items generally not covered under the warranty, was at the discretion of KMA. Moreover, Bassett’s evidence supported the conclusion that, even where KMA replaced brake system components free of charge, the replacement parts were equally defective and required additional repairs, whose replacement at no cost to the Sephia owners would again be subject to KMA’s discretion. Notably, at the preliminary stage of trial, the class was pursuing several types of compensation, including out-of-pocket costs, diminished re-sale value of the vehicle, and retrofit costs. The record following the certification hearing contained sufficient evidence to support
Regarding damage amounts or scope of individual relief, it has been well established that if a “common source of liability has been clearly identified, varying amounts of damages among the plaintiffs will not preclude class certification.” Weismer,
KMA argued in opposition to certification — and renews the argument now, on appeal — that the individual nature of damages proves that the trial court abused its discretion in its finding of commonality and predominance. We disagree. As our previous analysis shows, Bassett and the class adduced sufficient evidence during certification proceedings to show a common source of liability. Any question regarding individual expenditures resulting from varying attempts to repair the defect was not a ground to reject the commonality found on other issues, to defeat the predominance of common issues and, ultimately, to deny certification of the class at the prelim
In his dissent, Mr. Justice Saylor addresses damages and observes that class members had “plainly individualized experience[s] with out-of-pocket expenditures,” which the trial court “glossed over” both at certification proceedings and at trial. Dissenting Op., at 476,
We do not discount the concern of our esteemed colleague. Respectfully, however, in our view, the concern has less power in the context of assessing the trial court’s ruling on the commonality and predominance prerequisites for class certification (especially since claims proceedings that account for different damages among class members are not uncommon in class actions), and more power in the overall context of ensuring that the “class action provides a fair and efficient method for adjudication of the controversy under the criteria set forth in Rule 1708.” Pa.R.C.P. No. 1702(5). Rule 1708 requires a certifying court to consider, among other factors, whether “the size of the class and the difficulties likely to be encountered in the management of the action as a class action.” Pa.R.C.P. No. 1708(a)(2). We agree with Justice Saylor that the approach to the management of individualized damages matters was not addressed by the trial court properly at the outset, following certification of the class. This management misstep developed into an issue raised by KMA
But, we do not view the trial court’s failure to devise a proper damages management plan during class certification proceedings — a failure that itself invited a distinct objection— as sufficient to render an abuse of discretion its determination that “potential differences in individual damage claims based upon individual experiences and costs associated with attempts to repair the vehicle” do not “pose any serious management difficulty.” Tr. Ct. Op., 9/21/04, at 18. The question is rather whether the individual damages issues were especially difficult and burdensome on the trial court so as to factor against class certification. See Pa.R.C.P. No. 1708(a): accord Smilow,
Setting aside KMA’s failure to develop the claim in any meaningful fashion in its brief so as to allow for appellate review — a sufficient basis in itself to reject the argument, Commonwealth v. Walter,
B. Typicality
Concerning typicality, Pa.R.C.P. No. 1702(3), KMA claims that Bassett’s experience was “vastly different” from that of the other class members and required different treatment from other class members at trial. According to KMA, “unrebutted” evidence established that the Sephia’s front brake system underwent continuous redesign between 1997 and 2000, that Bassett’s vehicle was only one of “over thirteen” designs, and, as a result, that her experience was unrepresentative of the class. KMA emphasizes that the model of Bassett’s car, her repair history, and interaction with KMA were unique to her so that any claim of typicality should have been fruitless.
KMA argues that, as with the commonality and predominance prongs, the trial court considered evidence irrelevant to an express warranty claim like Bassett’s, which evidence
Bassett responds that typicality was established. According to Bassett, her position on common issues of law and fact is sufficiently aligned with that of absent class members so that pursuit of her own interests would also advance those of the class. Bassett reiterates that she purchased a model year 2000 Sephia with the same warranty and same front brake defect as the absent class members. She states that the brake components were interchangeable between 1997-2000 Sephias and that she was “ideally suited” to present the class claims regarding the ineffectiveness of the design changes, because her vehicle was the latest model in the class. Bassett emphasizes that proof of her claims necessarily proved each class member’s claims as well.
Rule 1702(3) states that “[o]ne or more members of a class may sue ... as representative parties on behalf of all members in a class action only if[, inter alia,] the claims ... of the representative parties are typical of the claims or defenses of the class.” Pa.R.C.P. No. 1702(3). A challenge to the typicality requirement presumes that commonality has been established. The purpose of the typicality requirement is to ensure that “the class representative’s overall position on the common issues is sufficiently aligned with that of the absent class members to ensure that her pursuit of her own interests will advance those of the proposed class members.” D’Amelio,
Here, the trial court did not abuse its discretion in deciding that Bassett was a typical class member. Bassett and the class asserted the same claims for breach of express warranty, premised on similar facts and KMA conduct. During class certification proceedings, Bassett adduced evidence to support her averments that, like the other class members, she purchased a Sephia vehicle model year 1997-2000 and received the standard purchase contract and written warranty. Because of a design defect that affected the ability of the Sephias’ front braking system to dissipate heat, Bassett’s vehicle, like the other vehicles in the class, experienced premature wear of the brake pads and warping of the rotors. As with the other members of the class, KMA failed to effectively repair Bassett’s vehicle free of charge in accordance with the written express warranty. Bassett’s Complaint, at ¶¶ 15-21; N.T., 7/15/04, at 84-89, 99-106.
During certification proceedings, KMA emphasized testimony that not all 1997-2000 Sephias utilized the same brake pads
KMA’s central position that the trial court’s decision on this point “was contrary to the evidence,” see KMA’s Brief at 25, n. 13, is not borne out by the record. Rather, as we have detailed, the evidence was disputed, creating an issue for the trial court to resolve. Where, as here, the evidentiary record supports the trial court’s credibility determinations, we are bound to accept them. See In re R.J.T.,
C. Adequacy of Representation
Finally, KMA states that it is also challenging the adequacy of Bassett’s representation of the class. Pa.R.C.P. No. 1702(4). Rule 1702(4) states that a representative party may
Here, KMA develops its adequacy of representation argument only as a subset of and in reference to whether Bassett’s interests are typical or aligned with those of the class, and fails to develop any arguments that address the Rule 1709 criteria. See KMA’s Brief at 25. This argument thus sounds more as a challenge to typicality rather than to the adequacy of representation prerequisite for certification. Therefore, any claim of trial court error or abuse of discretion regarding the adequacy of representation prerequisite is waived for failure to develop “in any meaningful fashion capable of review.” Commonwealth v. Walter,
D. Conclusion
For the foregoing reasons, we conclude that the trial court did not abuse its discretion in certifying the class. Kelly,
II. Sufficiency and Weight of Evidence
Intermingled with its issues of class certification, KMA raises questions of whether the evidence was sufficient to support the jury’s finding of liability for breach of express warranty, and of whether the jury’s verdict was against the weight of the evidence. KMA asks that we reverse the
KMA maintains that Bassett’s proof in support of her own claim against KMA was not probative of the other class members’ claims and the trial court erroneously allowed the jury to extrapolate from evidence of Bassett’s claim proof respecting the entire class. KMA again rests its argument on the premise that Bassett did not establish the commonality, typicality, adequacy of representation, and predominance prerequisites for class certification. According to KMA, the class also failed to prove all the elements of a breach of the express warranty claim and the Superior Court “improperly used [evidence of] the [jury-]rejected implied warranty claims to justify a class-wide breach of express warranty cause of action.” KMA’s Brief at 28.
Bassett responds that, at trial, she introduced class-wide common evidence which established that KMA breached its express warranty. According to Bassett, KMA did not object to the admission of the “common” evidence at trial and failed to argue against her offer of generalized proof. Bassett argues that, irrespective of KMA’s argument on appeal, the jury credited her evidence and found KMA liable to the entire class. Bassett also recounts the evidence introduced at trial, specifically addressing the following elements of a breach of warranty: KMA’s warranty or promise, KMA’s failure to meet its promise, causation, notice to KMA and opportunity to cure, and the class members’ damages. Although Bassett articulates her arguments with parallel references to the record from the trial and to the record created during class certification proceedings, she observes that there is “a material difference between pre-trial certification and post-trial reexamination” of a trial and argues that “the question after trial is whether generalized proof was fairly presented and confronted by the parties at trial.” Bassett’s Brief at 33.
In its Rule 1925(a) opinion, the trial court described the evidence introduced at trial and decided that it was sufficient to support the jury’s verdict on Bassett’s breach of express warranty claim. The court recounted that the of-record depo
Finally, the court described KMA’s sale of 1997-2000 Sephias to consumers with identical written warranties, which provided that KMA promised the “new Kia Vehicle [to be] free from defects in material and workmanship.” KMA’s warranty manual also included a maintenance schedule which recommended a first inspection of the brake system at 30,000 miles or 30 months for ordinary driving use, or 15,000 miles or 15 months for instances of severe driving conditions. Witnesses testified that, under ordinary use conditions, the Sephias did
Initially, we agree with Bassett that our examination of the trial court’s pre-trial certification decision is materially different from our examination of issues raised post-trial following the judgment in favor of the class, including issues of evidentiary sufficiency and weight. Accord Behrend,
A. Sufficiency of the Evidence
When reviewing a sufficiency of the evidence claim in a civil case (here, a breach of express warranty action), an appellate court, viewing all the evidence and reasonable inferences therefrom in the light most favorable to the verdict winner, must determine whether the evidence was sufficient to enable the factfinder to find that all the elements of the causes of action were established by a preponderance of the evidence. Elliott-Lewis Corp. v. York-Shipley, Inc.,
To prevail on her breach of express warranty claim in this class action, Bassett had to establish that KMA breached or failed to meet its warranty promise with respect to the members of the class, that the breach was the proximate cause of the harm to the class members, and the amount of the ensuing damages. Price v. Chevrolet Motor Div., 765 A.2d
KMA’s warranty, provided to all the members of the class, states that:
[KMA] warrants that [the] new Kia Vehicle is free from defects in material or workmanship, subject to the following terms and conditions. An Authorized Kia Dealer will make the necessary repairs, using new or remanufactured parts, to correct any problem covered by this limited warranty without charge to you.
The liability of [KMA] under this warranty is limited solely to the repair or replacement of parts defective in Kiasupplied material or workmanship by an Authorized Kia Dealer at its place of business....
E.g., KMA’s 1999 Warranty and Consumer Information Manual at 4, 6; N.T., 5/24/05, Vol. 1, at 67 (warranty manual same for 1997-2000 Sephias).
Further, KMA did not make effective necessary repairs free of charge. KMA’s warranty data, internal KMA documents, and King’s testimony regarding the nature of the brake system defect allowed the jury to conclude that simply replacing the pads and rotors on the 1997-2000 model year Sephias was an ineffective repair, which did not resolve the defective design problem that affected the vehicles. Indeed, only a “field fix” for vehicles already on the market, announced via a January 2002 Technical Service Bulletin, and a redesign of the brake system for new models (re-named the Spectra), successfully offered the necessary repair in late 2001. See KMA Technical Service Bulletin (chassis division), 1/02, Vol. 3 # 8. Testimony from KMA’s corporate designees Donald Pearce and Michelle Cameron
Both Bassett’s expert and KMA executives attributed consumer complaints of noise, vibration, and early brake component wear to the brake system design. Bassett’s expert testified that none of the materials that he reviewed from KMA suggested that the widespread problem with the brakes on the Sephias was caused by individual driver habits such as “a heavy foot on the brake,” or road conditions, dirt, and dust. See N.T., 5/18/05, Vol. 2, at 41^3 (McCurdy deposition); N.T.,
The record also contained evidence that, at least since late 1998 (more than two years before the class action was filed), KMA had notice that the brake system on the Sephias, beginning with the 1997 model, was performing under market expectations in terms of wear and required frequent repair and replacement. According to KMA executives, they became aware of the problem because of an increase in the sale of brake parts and warranty claim activity. KMA sought repeatedly to increase the performance of the brake system but failed until 2001, when a field fix was developed for in-use models concurrently with the re-design of front brake system on the new model in the Sephia line. In the meantime, class members experienced varying treatment in seeking replacement of brake pads and rotors under the warranty. See Tim McCurdy Inter-Office Memorandum to James Lee, 2/03/99; KMC Brake Quality Team Meeting Summary, 2/15/99; N.T., 5/23/05, Vol. 1, at 16-18, 23-24 (Sawyer deposition); N.T., 5/18/05, Vol. 2, at 35 (McCurdy deposition). Finally, Bassett adduced sufficient evidence to prove that the members of the class suffered damages. Donald Pearce and Michelle Cameron testified that KMA dealerships offered some free repairs to promote good will for Sephia owners, as well as the brake coupon program in late 2001. But, according to the KMA witnesses, in general, the replacement of brake pads and rotors was not covered by the written warranty. As a result, KMA owners sustained out-of-pocket repair costs estimated by Bassett’s expert at approximately $1,005 over the life of their Kia Sephia. On cross-examination, the expert stated that he derived the number not from Bassett’s repair history data but by relying on data from KMA, and in particular on the Field Assurance and the Technical Assistance Center Incident reports, regarding the frequency of repairs over the life time of a Sephia. N.T., 5/19/05, Vol. 3, at 19-26 (King testimony); N.T., 5/20/05, Vol. 1, at 23 (King cross-examination); N.T., 5/23/05, Vol. 1, at 23-24 (Sawyer deposition); N.T.,
KMA’s primary defense strategy at trial was to undermine the class assertions that the Sephia brake system was defective and that any defect affected all the members of the class, by referencing the design changes and the fact that it is common to hear complaints regarding noise, vibration, and brake component wear. KMA executive Y.S. Sohn explained that the primary goal of designing brakes was safety and that brake component longevity was simply an issue of merchantability or competitiveness in the automobile market. According to Sohn, there was no stated or established target for brake pad longevity by which to measure a premature wear defect. N.T., 5/24/05, Vol. 6, at 17-34, 45-48 (Bowman testimony); N.T., 5/25/05, Vol. 2, at 10-29 (Sohn deposition).
KMA elicited testimony from Bassett’s expert which confirmed that the rotors on Bassett’s vehicle did not present a safety concern. The expert also agreed that other vehicle or driver-specific causes were possible for the symptoms exhibited by vehicles in the class; but, on re-direct, he concluded that KMA internal memoranda and warranty data persuaded him that they were not the proximate cause of the premature wear of brake system components experienced by the class members. Finally, although KMA asked the expert about whether he based his calculation of out-of-pocket repair costs for the class on Bassett’s experience and challenged the expert’s qualifications in providing an opinion on damages, KMA did not object to the introduction of aggregate damages evidence on due process or other grounds, and did not introduce any evidence to rebut the class expert’s damages testimony. N.T., 5/16/05, Vol. 1, at 44-50 (motions); N.T., 5/19/05, Vol. 3, at 49,
On appeal, KMA no longer presses the “no defect” theory it pursued at trial, and challenges instead whether sufficient evidence was introduced at trial to prove all the elements of a breach of warranty claim with respect to all the class members on the basis that the evidence described only Bassett’s individual experience. Essentially, KMA questions whether Bassett established a breach of express warranty with respect to the entire class. See McElwee,
Contrary to KMA’s claims, the evidence of record was sufficient to establish all the elements of a breach of warranty claim by a preponderance of the evidence. See Mescanti,
B. Weight of the Evidence
Next, KMA essentially contends that the jury’s verdict in favor of the class was against the weight of the
Allegations that a motion for judgment notwithstanding the verdict or a new trial should have been granted because the verdict was against the weight of the evidence are addressed to the discretion of the trial court. Commonwealth v. Cousar,
Witness credibility is an issue “solely for the jury to determine.” Commonwealth v. Hawkins,
Whether the amount of damages awarded to each class member is against the weight of the evidence is a narrower and potentially more difficult question. Bassett’s expert testified that each class member incurred identical costs of approximately $1,005. He calculated these costs based on: (1) a life expectancy for each Kia of 100,000 miles, (2) during which time, brake system components would be replaced approximately every 10,000 miles, half the distance that would have met KMA and industry standards,- (3) at the average cost of replacing brake components in Pennsylvania ($175 for replacing brake pads and resurfacing rotors, and
As Mr. Justice Saylor explains in his dissent, the class never attempted to account for variables in damages resulting from “markedly different experiences of personal expenditure to address Sephia brake problems.” Dissenting Op., at 468, 469-72 & n. 7,
On the other hand, we note that some jurisdictions have permitted the use of aggregate damages calculations in class actions. See, e.g., Scottsdale Mem’l Health Sys., Inc. v. Maricopa County,
The question of whether testimony regarding aggregate damages is probative to calculate the amount of damages in a class action would be an issue of first impression for this Court. In this instance, Bassett’s expert offered such testimony. Once the evidence was offered, KMA had the opportunity to object that it was incompetent to the task or violated KMA’s right to due process (or other rights), to cross-examine the witness on the weakness of his methodology, or rebut the argument with evidence of its own; yet, the testimony of Bassett’s expert went unchallenged in these respects.
Instead, as we read the record and KMA’s brief, KMA proceeded both at trial and on appeal on the theory that Bassett introduced only evidence of her own damages and no evidence of damages to any other member of the class. But, this position misapprehends the record. As described, Bassett’s expert specifically testified to his calculation of estimated damages for each member of the class, which in the aggregate produced the molded verdict.
Justice Saylor has well demonstrated that this testimony was subject to a colorable objection on the ground that it inaccurately or imprecisely captured the amount of damages for individual members of the class. But, at the appropriate time at trial, when any error in this regard could have been addressed or avoided, KMA did not challenge the expert’s method of calculating damages in the aggregate on due process or any other grounds, and thus waived the argument. The dissent articulates a problematic issue regarding the proof and determination of individual damages differently, and certainly more cogently, than KMA did either at trial or on appeal. In light of existing jurisprudence that articulates a reasonable ground upon which to permit certain forms of aggregate damages evidence in class action litigation, and in light of the narrower nature of KMA’s preserved challenge to
III. Molding of the Verdict
Next, KMA claims that the Superior Court erred in affirming the trial court’s judgment of a molded verdict of $5,641,200. KMA makes two related but nonetheless distinct arguments. First, KMA contends that molding of the verdict was improper or in violation of its due process rights because it allowed each member of the class to recover $600, although no evidence of liability and amount of out-of-pocket costs was of record for any member of the class except Bassett. Essentially, the manufacturer re-asserts its prior arguments regarding the certification of the class and the sufficiency of evidence to prove a breach of the express warranty. See Jackson v. Virginia,
AND NOW, this 16th day of May, 2005, upon consideration of the Motion to bifurcate of Defendant, Kia Motor [sic] America, Inc., it is hereby ORDERED that Defendant’s Motion is DENIED. Each class member’s entitlement to recover if plaintiff class prevails, shall be determined at claims proceedings.
Tr. Ct. Order, 5/16/05. According to KMA, in light of the May 16th Order, the trial court molded the verdict “without forewarning” and in violation of KMA’s constitutional due process
Bassett and the class respond that KMA distorts the record. According to Bassett, the evidence was “crystal clear that this ease was tried on a class basis and defended on a class basis.” Bassett’s Brief at 39. She states that the jury entered a verdict for the class and not for Bassett alone, as the jury questionnaire reflected. Question 5 on the jury questionnaire stated:
State the amount of damages if any, sustained by each [c]lass member:
b) For repair expenses, reasonably incurred, as a result of defendant’s- breach of warranty.
Jury Verdict Special Interrogatories, 5/27/05. After the jury awarded $600 per class member, the trial court merely realized the plain intent of the jury by multiplying the per person award by the stipulated number of class members, and arrived at the molded verdict. The trial court then entered judgment pursuant to Rule 1715(d), which required the court to specify who was bound by the judgment.
Bassett emphasizes that KMA waived any claim of error regarding the molding of the verdict by failing to raise a timely objection at trial. According to Bassett, the trial court’s May 16th Order did not relieve KMA of the obligation to object when the trial court molded the verdict.
In its reply brief, KMA asserts that its objection to the molded verdict was timely, because the first appropriate opportunity to object was in its motion for post-trial relief; the
In its Rule 1925(b) statement, KMA raised the molding of the verdict issue in terms similar to those in its appellate brief to this Court. Unfortunately, the trial court addressed the narrower (and somewhat different) issue of whether there was error in its denial of the motion to bifurcate the damages and liability phases of trial. The court concluded that bifurcation was not necessary because the risk of prejudice against the defendant, common, for example, in catastrophic personal injury cases, was not present here. Tr. Ct. Op., 12/29/06, at 39. The Superior Court agreed and affirmed the judgment on the molded verdict. The panel also added that the record contained sufficient evidence to support a verdict of $600 per class member (and indeed of up to $1,005). According to the court, “all class members were entitled to have good brakes on their cars that did not require repeated trips to the dealership for replacement to avoid brake failure.” Super. Ct. Op., 10/24/07, at 3-4. We address each of KMA’s related claims separately.
A. Class Certification Decision and Sufficiency of the Evidence
KMA argues that the molding of the verdict was improper because evidence as to Bassett’s claim was not probative of the claims of other class members and, as a result, the class failed to carry its burden of proof at trial. The car manufacturer essentially incorporates and re-asserts its prior claims of trial court error regarding the sufficiency and weight of the evidence to justify the jury’s verdict as the basis for its due process argument. We have already discussed at length and
B. Effect of May 16th Order
KMA argues that the molding of the verdict was erroneous in light of the May 16th Order. In April 2005, KMA filed a motion to bifurcate, seeking separate trials on common issues from issues that it identified as individual, ie., defect manifestation, notice and opportunity to cure, causation, and damages. According to KMA, its request was for a court order “confirming that issues of fact and law identified by KMA [tjherein [would] be adjudicated in future, class-member-specific proceedings, in the event that [Bassett] prevailed] in the ... common issue trial.” See KMA’s Motion to Bifurcate, 4/25/05, at 14, 19. The trial court denied the motion and stated that “class members’ entitlement to recovery if plaintiff class prevails, shall be determined at class proceedings.” Tr. Ct. Order, 5/16/05. Thereafter, the parties proceeded to trial and Bassett introduced evidence to prove the claims of all the members of the class.
On May 25 and 26, 2005, the trial court conferred in chambers with both parties regarding their requested jury instructions and the jury verdict sheet, and sought to provide prompt resolution to the parties’ objections. The court described its jury instructions and jury questions in terms of amount “sustained by each class member,” inter alia, “for repair expenses as a result of defendant’s breach of warranty.” The trial court asked if there were any objections to the questions on the jury verdict form as explained and KMA’s counsel responded “No, Your Honor.” N.T., 5/25/05, Vol. 7, at 70-73. Both the jury instructions and the verdict form reflected the discussion in chambers. Indeed, after providing a description of the damages requested by the class in its charge to the jury, the court explained: “[b]ecause you’re rendering a verdict for each class member, I will take care of making sure that the Class members recover.” At sidebar, immediately after the damages instruction, the court again asked attorneys for both parties if there were any objections to the charge and
The questions on the verdict sheet, in relevant part and with the jury’s answers, read:
Question No. 1:
Did [KMA] breach its express warranty on the cars purchased by the class?
X Yes_No
Question No. 5:
State the amount of damages if any, sustained by each Class member:
b) For repair expenses, reasonably incurred, as a result of [KMA]’s breach of warranty.
$ 600.00
Jury Verdict Special Interrogatories, 5/27/05; accord N.T., 5/27/05, Verdict, at 3-8.
After the trial court recorded the jury’s answers to the questions on the verdict slip, the court multiplied the $600 damages award by the agreed-upon number of class members — 9,402—and recorded a verdict of $5,641,200 on behalf of the class. After dismissing the jury, the court asked the parties if there was anything further they wished to address at that time. Counsel for KMA answered “No, Your Honor. Thanks to the Court.” The court concluded proceedings. N.T., 5/27/05, Verdict, at 4-8.
On appeal, KMA concedes that it raised an objection to the molding of the verdict premised on the May 16th Order for the first time in its post-trial motion, re-asserted it in its Rule 1925(b) statement, and argues that such an objection afforded the trial court sufficient opportunity to correct its error. In the Rule 1925(b) statement, KMA asserted that Bassett had consented to undertake post-verdict claims proceedings to determine each class member’s entitlement to recover, yet the trial court “sua sponte and in derogation of its own order on bifurcation, transformed this bifurcated class action trial into a
We disagree with KMA that its objection, which it concedes was offered for the first time in a post-trial motion, was timely under the circumstances. Under prevailing Pennsylvania law, a timely objection is required to preserve an issue for appeal. Pa.R.C.P. No. 227.1(b)(1) & n.; Pa.R.A.P. 302; Straub v. Cherne Indus., 583 Pa. 608,
The substance of the trial court’s May 16th Order does not affect this conclusion. This Court’s Straub decision is particularly instructive. In Straub, after the parties rested, the trial court discussed the verdict sheets with the parties and stated that it aimed to explain to the jury that the plaintiffs were forwarding two independent claims, and that the plaintiffs
Here, we have a similar scenario. KMA argues that the molded verdict was incompatible with the May 16th Order, which it poses as the law of the case, and upon which it claims it relied to allegedly forego pursuit of undisclosed defenses to the class claims.
IV. Authority of Trial Court to Enter Counsel Fee Order
Next, KMA argues that the counsel fee award should be vacated because, when the award was issued, the trial court had been deprived of jurisdiction by KMA’s appeal from the judgment on the verdict. According to KMA, Bassett entered judgment pursuant to Rule 227.4(l)(b) on October 25, 2005, while the attorney’s fee petition of June 6, 2005, was still pending. See Pa.R.C.P. No. 227.4(1)(b) (upon party’s praecipe, prothonotary to enter final judgment on jury’s verdict if court does not dispose of all post-trial motions within one hundred twenty days after filing of first post-trial motion). The manufacturer appealed the judgment on October 28, 2005, and the trial court decided the fee petition on January 23, 2006, nearly three months later. According to KMA, the MMWA requires that the counsel “fee award be entered ‘as part of the underlying judgment.” But, here, the trial court issued the fee award months after and, thus, it was not part of the final judgment entered. The manufacturer argues that, pursuant to Rule of Appellate Procedure 1701(a), the trial court no longer had jurisdiction to act on the petition for counsel fees once Bassett entered voluntary judgment on the verdict. Pa.R.A.P. 1701(a) (“Except as otherwise prescribed by these rules, after an appeal is taken ... the trial court ...
Bassett answers that the award of costs was proper. She recognizes that the MMWA is the statute authorizing legal fees here, but argues that matters of trial court jurisdiction and procedure related to the award of attorneys’ fees are governed by Pennsylvania law and rules. According to Bassett, petitions for attorneys’ fees are ancillary to the judgment on the merits and the trial court does not lose jurisdiction to decide them separately after an appeal on the merits is filed. Bassett’s Brief at 49-50 (citing Old Forge Sch. Dist. v. Highmark Inc.,
The trial court agreed with Bassett that the fee petition and award were timely. According to the court, issues regarding attorneys’ fees and costs are collateral or ancillary to the merits and may be addressed by the trial court after an appeal has been filed. Entry of judgment and the appeal therefore did not divest the court of jurisdiction to decide Bassett’s pending fee petition. Tr. Ct. Supp. Op. — Findings of Facts &
Rule 1701 provides that “[e]xcept as otherwise prescribed by these rules, after an appeal is taken ... the trial court ... may no longer proceed further in the matter.” Pa.R.A.P. 1701(a). But, after an appeal is taken, the trial court may take other action “ancillary to the appeal.” Pa. R.A.P. 1701(b)(1). In Pennsylvania, the trial court’s action on a petition for counsel fees has been deemed to be ancillary to the appeal from the judgment on the merits. Miller,
Pursuant to the MMWA, a consumer who prevails on a claim under that statute or on a claim for breach of warranty may recover “as part of the judgment” the reasonably incurred “amount of cost and expenses (including attorneys’ fees based on actual time expended).” 15 U.S.C. § 2310(d)(2).
As here, the statute at issue in Budinich provided that the “judgment” would “include a reasonable attorney fee in favor of the winning party, to be taxed as part of the costs of the action.” Id. at 197,
Like the Colorado statute at issue in Budinich, the MMWA describes the same paradoxical characterization of attorneys’ fees as both a “cost” of litigation and “as part of the judgment.” 15 U.S.C. § 2310(d)(2). In the interpretation of the U.S. Supreme Court, similar statutory language conveyed no legislative intent to modify jurisdictional and procedural rules applicable to determine the finality of an order for purposes of appeal. Following the High Court’s lead, we hold that the trial court’s authority to proceed on the petition for attorneys’ fees “does not turn” on the MMWA’s characterization of those fees. We have no reason to believe that, if faced with this question, the High Court would decide otherwise. Council 13, Am. Fed’n of State, County & Mun. Employees, AFL-CIO v. Rendell,
Similar to the U.S. Supreme Court, we have a strong interest in the preservation of consistency and predictability in the operation of our appellate process. Pennsylvania law is well established that a petition for attorneys’ fees is an ancillary matter, which the trial court retains authority to decide after entry of judgment on the verdict. Here, there is no dispute that the application for attorneys’ fees was timely when filed on June 6, 2005. Accordingly, the trial court was authorized to decide Bassett’s application for attorneys’ fees in January 2006, irrespective of KMA’s appeal on October 28, 2005, from the judgment on the verdict dated October 25, 2005. We must reject KMA’s request for relief from the fee award on this ground.
V. Counsel Fee Enhancement
Finally, KMA argues that the Superior Court erred in affirming the trial court’s application of a “risk multiplier” to the attorneys’ fees award under the MMWA. According to KMA, the U.S. Supreme Court “prohibited” risk multipliers in federal fee shifting cases and, because fees were awarded here pursuant to a federal statute — the MMWA — state courts are bound by that interpretation. KMA’s Brief at 35-36 (citing City of Burlington v. Dague,
Bassett responds that Pennsylvania law, not federal law, controls the award of the fee enhancement in this case for several reasons. First, she claims that the Dague decision was limited to the environmental statutes addressed by the High Court. Second, according to Bassett, calculation of attorneys’ fees is a matter of exclusive state procedure, not of substantive law. Bassett’s Brief at 52 (citing Middlesex County Ethics Comm. v. Garden State Bar Ass’n,
Finally, Bassett emphasizes that Pennsylvania has a strong public policy to fully compensate parties that incur attorneys’ fees where a statute permits fee-shifting. Id. (quoting Solebury Twp. v. Dep’t of Envtl. Prot.,
In its reply brief, KMA briefly reiterates the arguments in its main appellate brief and adds that application of a risk multiplier is in plain conflict with the language of Section 2310 of the MMWA. According to KMA, the Dague decision applies to all federal fee-shifting statutes, including the MMWA.
The trial court agreed with Bassett that class counsel was entitled to an attorneys’ fee award equal to a risk multiplier of 1.375 times the $3 million lodestar, for a total of $4,125 million.
Generally, where the award of attorneys’ fees is authorized by statute, an appellate court reviews the propriety of the amount awarded by the trial court under an abuse of discretion standard. Solebury Twp.,
The authorizing statute here — the MMWA — is a federal statute. “The construction of a federal statute is a matter of federal law.” Council 13,
In relevant part, Section 2310 of the MMWA provides that: If a consumer finally prevails ... he may be allowed by the court to recover as part of the judgment a sum equal to the aggregate amount of cost and expenses (including attorneys’ fees based on actual time expended) determined by the court to have been reasonably incurred by the plaintiff for or in connection with the commencement and prosecution of such action, unless the court in its discretion shall determine that such an award of attorneys’ fees would be inappropriate.
15 U.S.C. § 2310(d)(2) (emphasis added). Here, there is no dispute that the MMWA authorizes an award of attorneys’ fees to prevailing consumers such as Bassett and the class. 15 U.S.C. § 2310(d)(2). The salient question is whether, in view of the authorizing statute, the trial court abused its discretion in factoring the class counsel’s risk into its calculation of the final award of attorneys’ fees.
On its face, Section 2310(d)(2) contains no language authorizing a mandatory contingency multiplier nor does it
Moreover, even assuming arguendo that Section 2310(d)(2) is subject to a construction contrary to its plain terms, U.S. Supreme Court precedent provides additional strong legal support for KMA’s position that the statute does not allow for a contingency multiplier in the present circum
[The Clean Water Act and the Solid Waste Disposal Act] authorize a court to “award costs of litigation (including reasonable attorney ... fees)” to a “prevailing or substantially prevailing party.” This language is similar to that of*459 many other federal fee-shifting statutes, see, e.g., 42 U.S.C. §§ 1988, 2000e-5(k), 7604(d); our case law construing what is a reasonable fee applies uniformly to all of them.
Bassett insists that the MMWA allows for enhancement of the attorneys’ fee award beyond the lodestar by application of a risk multiplier. She claims essentially: (1) that Dague’s holding was limited to the environmental statutes at issue in that case; (2) that the MMWA gives state courts discretion to award contingency multipliers available through state procedural rules; and (3) that Pennsylvania public policy supports the exercise of discretion in the application of a contingency multiplier to promote the pro-consumer purposes of the MMWA.
Bassett’s argument that Dague’s holding must be deemed limited to the environmental statutes “at issue” there, the
Writing for the Dague Court, Justice Antonin Scalia focused on whether a “reasonable” attorneys’ fee award may include a contingency enhancement of the lodestar. The High Court concluded that the lodestar benefits from a “strong presumption” of reasonableness because it generally reflects the merits and difficulties of a case, i.e., the risk of loss. For an attorney who expected a premium over his hourly rates when he or she accepted a contingency fee case, the “lodestar enhancement [would] amount[ ] to double counting” the risk of loss and is unreasonable.
Bassett also insists that we limit the application of Dague to “federal-question [sic] cases pending only before the federal courts under exclusively federal statutes.” Bassett’s Brief at 54. According to Bassett, because the MMWA incorporates state law, it is “subject to state procedural rules and interpretations” and its variations regarding contract laws and counsel fee decisions. But, Bassett’s description of the MMWA is inapt and her attempt to divorce the trial court’s award of attorneys’ fees here from the plain language of Section 2310 and controlling precedent is unavailing.
The MMWA is an act that provides, inter alia, federal standards governing contents of warranties and minimum standards for warranties. See, e.g., 15 U.S.C. §§ 2302, 2304, 2311(c). Failure to comply with the MMWA’s requirements or prohibitions constitutes an unfair method of competition, in violation of 15 U.S.C. § 45. See 15 U.S.C. § 2310(b). The MMWA does not create a cause of action for breach of warranty, but it also does not preempt a breach of warranty claim or, generally, “any right or remedy of any consumer under State law.” See 15 U.S.C. § 2311(b)(1). According to Section 2310(d)(1) of the MMWA, “a consumer who is damaged by the failure of a supplier, warrantor, or service contractor to comply with any obligation under this chapter, or under a written warranty, implied warranty, or service contract, may bring suit for damages and other legal and equitable relief’ in federal or state court, pursuant to appropriate jurisdictional requirements. 15 U.S.C. § 2310(d)(1) (emphasis added); see 15 U.S.C. § 2310(a)(3), (d)(3), (e). Thus, claims for violation of the MMWA and breach of warranty are separate causes of action that may be joined when filing suit in
In the same vein, Bassett argues that the award of attorneys’ fees is traditionally a matter of procedure “exclusively” governed by state law and procedure, specifically Pennsylvania Rule of Civil Procedure 1716.
Bassett also looks to the MMWA’s savings clause and concludes that Congress intended to preserve a consumer/plaintiff s right under state law, which in Pennsylvania — as Bassett would have it — permits a contingency multiplier. Bassett’s Brief at 55, 60-61 (citing 15 U.S.C. § 2311(b)(1) (“Nothing in this chapter shall invalidate or restrict any right or remedy of any consumer under State law or any other Federal law.”)). According to Bassett, the right to a contingency multiplier is vested and embodied in Pennsylvania procedural Rule 1716(5), which states, inter alia, that “[i]n all cases where the court is authorized under applicable law to fix the amount of counsel fees it shall consider, among other things ... whether the receipt of a fee was contingent on success.” Even aside from Dague, we hold that the MMWA’s savings clause is not applicable here and that no general “right” to a contingency multiplier exists in Pennsylvania.
Rule 1716 is a rule of procedure prescribed by this Court that does not purport to create any substantive right to a contingency multiplier in all cases. See Pa. Const. Art. V § 10(c) (“The Supreme Court shall have the power to prescribe general rules ... if such rules are consistent with this Constitution and neither abridge, enlarge nor modify the substantive rights of any litigant.”). Under Pennsylvania law, the contingency multiplier of Rule 1716 cannot be fairly construed as a “right or remedy” that was intended to be preserved under the MMWA’s savings clause so as to undo the express substantive terms of the federal statute.
Finally, we must reject Bassett’s claim that Pennsylvania’s “strong public policy to justly compensate parties who incur attorney fees” and are entitled to attorneys’ fees under fee-shifting provisions justifies an application of the contingency multiplier here. Bassett’s Brief at 55 (citing Solebury Twp.,
Rule 1716’s actual procedural purpose is as follows. With respect to authorized counsel fee awards under legislation, courts must weigh the considerations of Rule 1716 as a matter of procedure. See, e.g., Signora, supra. But, the procedural vehicle does not create the underlying entitlement. Here, the class requested attorneys’ fees under a federal statute — the MMWA. The plain language of the MMWA and the High Court’s clear precedent provide no basis to trigger our procedural rule. Applying Dague to the federal statute at issue here by no means interferes with Congressional intent to preserve distinct state rights or remedies. Accordingly, we reverse the order below to the extent it provides for enhancement of the attorneys’ fee award beyond the amount of the lodestar.
VI. Conclusion
For the foregoing reasons, we affirm in part and reverse in part the decisions of the Superior Court dated October 24, 2007, and February 8, 2008. Our reversal is limited to the lower courts’ decision to permit application of a risk of loss multiplier to enhance the attorneys’ fee award beyond the amount of the lodestar. We remand to the trial court for adjustment of the attorneys’ fees in accordance with this Opinion. Jurisdiction is relinquished.
Notes
. This matter was reassigned to this author.
. The lodestar is "the product of reasonable hours times a reasonable rate.” City of Burlington v. Dague,
. KMA is the American division of parent company Kia Motors Corporation ("KMC”) of Seoul, Korea. KMA is an organization selling products designed and engineered by KMC in Korea. Notes of Testimony ("N.T.”), 5/18/05, Vol. 1, at 81; N.T., 5/23/05, Vol. 1, at 48.
. The Sephia’s brake system was designed as follows; the caliper — a part fixed to the body of the car — forced the brake pads to clamp against the rotor; the rotor was attached to the wheel of the vehicle and rotated along with the wheel. Braking occurred as a result of friction between the surface of the brake pads and the rotor. N.T., 7/15/04, at 147.
. After closing remarks, the parties stipulated that in the event the jury rendered a verdict in favor of the class on the breach of warranty and MMWA claims, Bassett’s individual recovery would be trebled under the UTPCPL up to $10,000, without the necessity for separate proof. The parties also agreed that Bassett would not file a request for legal fees separate from the class. Stipulated Order (UTPCPL Claim), 5/25/05.
. Bassett appealed the decision of the trial court to deny certification of the UTPCPL claim and the Superior Court affirmed. See Super. Ct. Op., 10/24/07, at 5 (citing Debbs v. Chrysler Corp.,
. In their appellate briefs, both KMA and the class address issues 1 and 2 together, and also 4 and 5 together. We will address questions 4 and 5 together because they raise substantially the same issue. However, we will address issues 1 and 2 separately as they raise distinct issues, as will become apparent from our analysis, infra.
. The record will be developed further infra, as necessary to resolve the issues on appeal.
. The trial court denied class certification as to appellee’s fourth count on the ground that reliance was an element of any UTPCPL claim and class-wide evidence was not apt to prove reliance. Certification Memo., 9/17/04, at 10 (citing Weinberg v. Sun Co.,
. The jury found in favor of the class on the breach of express warranty and KMA’s appeal addresses that claim only.
. We also reject Bassett’s additional arguments in the same vein. Thus, in her "Counter-statement of the case,” Bassett asserts three claims that KMA either waived or is judicially estopped from challenging class certification on the merits because: (1) KMA implemented a free brake repair program limited to a subset of the class members and, therefore, admitted the existence of the class; (2) KMA admitted that certification was proper by filing a motion for "temporary" certification of a class in Leger v. Kia Motors America, Inc., No. CV-04-80522, a case pending in the "District Court for the Middle District of Florida; and (3) KMA stipulated to class certification in Santiago v. Kia Motors America, Inc., No. 01 CC 01438,
. Of course, the rules of civil procedure anticipate that evidence available after certification but before a decision on the merits may be considered by the trial court, and consequently by the appellate courts, in deciding whether revocation of the class certification is proper. Pa.R.C.P. No. 1710(d); see Basile v. H & R Block, Inc.,
. The expert stated: "I don't believe that I have been provided with enough ... material to ultimately put my finger on the exact reason why we can’t or they can’t evacuate the heat. What I am confident in saying is that, and within a reasonable degree of engineering certainty, is that this front brake system cannot evacuate the heat properly.” N.T., 7/15/04, at 100.
. Neil Barbalato, a KMA warranty department representative, reported in an affidavit that of 1997 Sephias, 55% had one or more warranty repairs, of 1998 Sephias, 83% had one or more warranty repairs, of 1999 Sephias, 70-71% had one or more warranty repairs, and of 2000 Sephias, 36% had one or more warranty repairs. Bassett’s expert testified that the average claim rate of 61% was ten times higher than that of the Kia Sportage, another KMA vehicle. Notably, the claim rate did not include instances of brake repairs done by Sephia owners or for which Sephia owners paid out of pocket to Kia dealers or to private mechanics. N.T., 7/15/04, at 91-92, 97-98.
. Notably, during certification proceedings, KMA never argued that certification was inappropriate because Bassett and the class had to show "reliance.” Nevertheless, because the class fails to assert waiver on this ground, and the issue is one of law easily resolvable on the existing record, we will pass upon it.
. In arguing that "reliance” is an element of proof in a warranty action, KMA relies primarily on the Superior Court’s decision in Goodman,
. Pursuant to the Pennsylvania Commercial Code, notice of breach is required within “a reasonable time.” 13 Pa.C.S. § 2607(c)(1). The purpose of providing notice is to defeat commercial bad faith and not to deprive the consumer of her remedy. 13 Pa.C.S. § 2607 cmt. 4. The statute, however, does not provide direction as to what constitutes reasonable notice in the context of a class action. Nor does the statute explicitly require the consumer to provide an opportunity to cure before filing suit for breach of warranty. In spite of KMA’s allegations to the contrary, and evident from the caselaw on which KMA relies, the law of this Commonwealth is neither "well-settled” nor self-evident on these issues. KMA’s Brief at 17-18, 21 (citing Beneficial Commercial Corp. v. Brueck, 23 Pa. D. & C.3d 34, 37 (Pa.Com.Pl.1982) ("Brueck"): Perona v. Volkswagen of Am., Inc.,
. Because Bassett and the class did not offer testimony regarding common damages during the class certification proceedings, any references to expert testimony on this topic in KMA’s appellate brief (see KMA’s Brief at 23) necessarily address the expert’s testimony at trial, which, as discussed supra, is irrelevant to prove an abuse of discretion in pre-trial class certification.
. Bassett also asserts that KMA admitted that Bassett’s claims are typical of the class by not challenging the class verdict with respect to the implied warranty claims. But, Bassett cites no legal authority — for there is none — in support of this position. See Basile,
. The record shows that KMA raised sufficiency and weight of the evidence issues in both its post-trial motion and in its Rule 1925(b) statement. See KMA's Supplemental Motion for Post-Trial Relief, 7/15/05, at ¶¶ 5; 2-3; KMA’s Concise Statement of Matters Complained of on Appeal, 12/28/05, at ¶ 2.
. As discussed supra, a plaintiff in a breach of warranty claim is required to prove "reliance” only if there is a disputed issue regarding whether the promise allegedly breached was part of the basis of the bargain or a term of the contract. See, e.g., Goodman,
. In its "Statement of the case,” KMA states that its liability was limited to the repair or replacement of defective parts and characterizes claims of the class members as claims for breach of express warranty "by refusing to replace parts during the warranty period.” KMA's Brief at 6. In response, Bassett disputes at length KMA’s description of the warranty and of the class claims, asserting that KMA's warranty was not merely a "repair or replace warranty” but a "classic warranty.” Bassett’s Brief at 14-21 (citing Nationwide Ins. Co. v. Gen. Motors Corp.,
. McCurdy was KMA’s Director of Technical Operations, in charge of managing technical concerns and investigations, communicating with field technicians and dealers, and reporting to KMC. Sawyer was KMA's Senior Vice-President of Fixed Operations, responsible for all aspects of parts and service, such as consumer affairs, warranty coverage, quality assurance, and service training. Pearce was KMA’s Vice-President of Service, and was responsible for product quality and technical operation support for the field and retail organizations, warranty claim administration, and training activities. Finally, Sohn was KMC’s Manager of Chassis Division from 1996 to 2001, when he was promoted to deputy general manager at KMC. In his role as Manager of the Chassis Division, Sohn was responsible for vehicle parts design, review of parts testing, and design enhancements (including for brakes).
. Cameron was a regional, and then national, Manager of KMA’s Consumer Affairs Department. She was responsible for developing and implementing policies and procedures for handling customer complaints.
. KMA alleges that Bassett’s expert’s testimony was not probative of the damages of each class member because it did "not reflect the proper measure of damages for breach of an express warranty, but, at best, addresses the measure of damages in an implied warranty claim,” which the jury rejected. KMA’s Brief at 23. But, KMA does not develop any law to support this argument and the Pennsylvania Commercial Code draws no distinction between damages for breach of express versus implied warranty. See 13 Pa.C.S. § 2714. KMA’s claim, therefore, fails as stated.
. In its post-trial motion and Rule 1925(b) statement, KMA acknowledged that similar arguments went to the weight of the evidence. KMA’s Supplemental Motion for Post-Trial Relief, 7/15/05, at ¶¶ 5; 2-3; KMA’s Concise Statement of Matters Complained of on Appeal, 12/28/05, at ¶ 2.
. We emphasize the narrow nature of our holding in this regard. Given the limited nature of KMA's preserved challenge, we need not, and therefore do not, express a definitive view on the questions of whether proving damages in the aggregate in a class action is "lawful and proper” in Pennsylvania, and of whether the methodology of Bassett’s expert in estimating individual damages here was sound.
. Bassett postulates that, in addressing claims proceedings in the May 16th Order, the trial court anticipated proceedings related to individual UTPCPL claims, election of remedies, or required affirmations of fact, which were then rendered moot by the evidence introduced at trial. But, the record contains no specific support for Bassett’s assertions and
. As a separate issue, Bassett also argues in a footnote that KMA waived all of its appellate arguments by failing to move for decertification before or after trial. Bassett’s Brief at 48-49 n. 27. In its reply brief, KMA responds that, pursuant to Rule 1710, a party may seek decertification at any stage, including on appeal, "before the final appeal is exhausted.” According to KMA, a party is not required to file for decertification in order to preserve its arguments regarding class certification on appeal. KMA’s Reply Brief at 10-11 & n. 10. Both parties conflate two separate concepts: decertification by the trial court and appellate review of a trial court certification decision. Thus, only the trial court may decertify a class pursuant to Rule 1710(d), which, as a Rule of Civil Procedure, governs practice and procedure in the courts of common pleas. Practice and procedure in the appellate courts is governed by the Rules of Appellate Procedure. Pa.R.A.P. 103. Rule 1710(d) plainly states that a decertification decision is proper only "before a decision on the merits.” Pa.R.C.P. No. 1710(d). But, filing a motion to decertify is optional and failure to move for decertification does not waive a party’s claims of error on appeal regarding the trial court’s initial certification decision. Appellate courts review a trial court decision under an abuse of discretion standard and may order the judgment vacated or reversed, on the basis that certification was erroneous, with the ultimate result that the class is decertified. See, e.g., Debbs,
. In a brief footnote, KMA also states that "claims proceedings” referenced in the May 16th Order amounted to a concession by the trial court that the class was improperly certified. KMA’s Brief at 30 n. 18. KMA cites no legal support for its argument. Indeed, claims proceedings are a recognized, albeit not required, feature of determining damages post-verdict in class actions. See generally Allan Erbsen, From "Predominance” to "Resolvability' A New Approach to Regulating Class Actions, 58 Vand. L.Rev. 995 (2005).
. KMA’s description of the claims proceedings mentioned in the May 16th Order is nebulous and, at times, suggests proceedings very expansive in scope, which would encompass individual trials of each class member’s claims with respect to reliance, manifestation, notice and opportunity to cure, causation, and damages. But, the trial court denied KMA’s motion to bifurcate, which had expressly requested separate trials on these "individual” issues. To interpret the May 16th Order as nonetheless permitting what it expressly denied and to credit KMA’s purported reliance on it in either not asserting defenses or objecting is not tenable.
. KMA cites two cases from our sister states in support of its claim. See KMA’s Brief at 35 (Stenger v. LLC Corp.,
. Section 2310 conditions the award of costs on a consumer’s success on the merits and places the task of awarding costs within the bailiwick of the court. Thus, as a practical matter, where the case is tried to a jury, the proceedings on attorneys' fees (with the court acting as factfinder) necessarily take place after and separately from the trial on the merits to a verdict.
. In reality, even if we were to adopt KMA's interpretation of the MMWA, we would still reject the manufacturer's prayer for relief. If attorneys' fees had to be awarded as part of the judgment, then the October 2005 judgment would have been interlocutory given that the counsel fees matter was still pending. This would require us to vacate the Superior Court’s decision of October 2007 with directions to quash KMA’s appeal. Moreover, because in its second appeal KMA challenged only the attorneys' fees, any other issues would have been waived. See Budinich, supra.
. Bassett adds that the attorneys’ fee question before us is also controlled by 41 P.S. § 503. But, Title 41 relates to maximum interest rates in mortgage transactions and Section 503 is the attorneys' fees provision applicable in disputes between mortgage debtors and lenders. Section 503 is, therefore, inapplicable here.
. The court also included an award of $267,513.00 for costs and expenses of litigation. Tr. Ct. Op., 11/14/07, at 2.
. We are aware that in Skelton,
. Unlike the MMWA, which provides for calculation of reasonable attorney's fees “based on actual time expended," the statutes pursuant to which attorneys' fees were awarded in Dague and Perdue provided simply for the award of a "reasonable” attorney’s fee as part of the costs. In Perdue, the Court clarified its Dague holding and explained that a fee determined by the lodestar method is strongly presumed reasonable but may be enhanced in very "rare" and "exceptional” circumstances, Le., (1) "when the hourly rate employed in the lodestar calculation does not adequately measure the attorney’s true market value, as demonstrated in part during litigation;” (2) "if the attorney’s performance includes an extraordinary outlay of expenses and the litigation is exceptionally protracted;” and (3) in "extraordinary circumstances in which an attorney’s performance involves exceptional delay in the payment of fees.” Perdue, 559 U.S. at-,
. In light of the Supremacy Clause, any reliance by the class on cases that allowed a contingency multiplier based on Pennsylvania law or decisions pre-dating Dague is unavailing. See Solebury Twp.,
. Bassett's arguments were reordered for clarity and ease of discussion.
. Bassett cites three cases in which federal courts yielded to the authority of state courts to regulate the practice of law in those states. See Middlesex County Ethics Comm.,
. Bassett also cites Solebury Township for the proposition that "federal standards that have not been incorporated into state statutes can only be supported to the extent that those standards are consistent with Pennsylvania public policy.” Bassett’s Brief at 55. But, in Solebury Township, this Court addressed the question of whether townships in whose favor formal judgment had not been entered were entitled to counsel fees pursuant to Pennsylvania's Clean Streams Law, which provided that the Environmental Hearing Board "may in its discretion order the payment of costs and attorney’s fees it determines to have been reasonably incurred by such party in proceedings pursuant to this act.” 35 P.S. § 691.307(b). The Board had relied on federal law awarding counsel fees to deny the townships’ application for counsel fees, holding that the townships were not prevailing parties. We vacated the decision and held that the Board’s restrictive application of the narrow federal criteria was not supported by the plain language of the fee-shifting provision of the Pennsylvania statute. Solebury Township is distinguishable because, at issue here is the interpretation of a federal, not a Pennsylvania statute, on which the High Court has final say pursuant to the Supremacy Clause.
. Additionally, any easy dismissal of Dague on the ground that the MMWA operates to protect consumers cannot withstand scrutiny. The dual concerns regarding the economic feasibility of access to courts and attracting adequate representation existed and were addressed by the Supreme Court. The High Court rejected the contingency multiplier as a means to unduly reward attorneys. Dague,
Dissenting Opinion
dissenting.
I agree with the majority’s rationale as it concerns the attorney-fee matters but dissent relative to the class treatment as it was administered by the trial court.
I. Preface
Initially, the majority’s overarching approach to this appeal appears to suggest liberality in favor of class certification. I have no objection, to the degree that this does — as the majority indicates and our rules prescribe — nothing more than indicate who the parties to the action will be. See Majority Opinion, at 396-97,
The difficulty we are seeing in the cases, however, is that many proponents of class treatment believe the judiciary concomitantly should bring about substantive changes in the law favorable to consumer classes. It seems, more often than not, that such innovations are not being presented to our courts as the matters of substantive law they truly represent. Rather, they are being passed off as if they were merely part and parcel of the procedural aspects of class treatment.
My intention is not to advance or criticize any particular position advanced in the legitimate, ongoing policy debate concerning what the substantive law should be in the class setting. It may be that changes are desirable. My point is that substantive modifications require choices among competing social policies, can have deep and wide-reaching social impact, and may implicate defendants’ constitutional rights and entitlements.
Accordingly, and in the first instance, it is essential to recognize substantive accretions for what they are. Moreover, even assuming judicial lawmaking is appropriate to facilitate collectivized litigation, there can be no legitimate dispute that substantive changes are well beyond the contemplation of the class action provisions presently reposited in our Civil Procedural Rules. See Pa.R.C.P. Class Actions, Explanatory Comment 1977 (“Many desirable approaches to class action problems involve substantive rather than procedural solutions.... These are beyond the power of the Procedural Rules.”). Therefore, if such alterations of law are to occur, they must be overtly presented, considered, and sanctioned as matters of substance.
In the present case, the phenomenon of substantive inroads riding the coattails of class action procedure is most vividly illustrated with regard to the damages question. To develop this, in light of the breadth and complexity of the underlying litigation, it is necessary first to lay some supporting groundwork. Upon review of this background, I will discuss how class members were relieved of the obligation to present necessary, fair, and sufficient proofs concerning an unarguably individualized form of damages they sought — and the only form of damages they were awarded — namely, “out of pocket paid repair costs.” N.T., May 26, 2005, Vol. 4, at 51 (jury charge).
II. Background
In assessing the damages question, it is important to understand that there simply was no evidence of class-wide corn
Rather than addressing individualized damages on conventional terms, as required under ordinary substantive law, class
The looseness of the certification decision yielded ongoing controversy about how the certification was to operate and its impact on required substantive proofs.
THE COURT: And [the] verdict will then set the upper limit of what [KMA] has to pay and then people will have to prove that they fit within whatever requirements qualify*470 them to receive that upper limit, and if they had to pay twice or three times as much, it’s because of the defect, they’re out of luck, right?
[CLASS COUNSEL]: That’s correct.
THE COURT: Okay.
N.T., May 16, 2005, Vol. 1, at 60. Such consensus was then memorialized in the pretrial order, referenced by the majority, specifying that “[e]ach class member’s entitlement to recover if plaintiff class prevails, shall be determined at claims proceedings.” Majority Opinion, at 42 (quoting Samuel-Bassett v. KMA Motors of Am., Inc., No. 2199 Jan. Term 2001 (Order of May 16, 2005)).
Despite this prescription for claims proceedings (which, conceptually, should have worked a major alteration in the path of the litigation), Appellees attempted at trial to quantify the out-of-pocket expenses incurred by absent class members via grossly generalized, hypothetical proof. In this regard, Appellees presented an “automotive expert” who indicated— based on assumptions that each class member paid for all relevant brake repairs and drove his vehicle 100,000 miles — all plaintiffs incurred $1,005 in damages. See N.T., May 19, 2005, Vol. 3, at 23-26. Two obvious deficiencies in the testimony were that: the first of the underlying assumptions was directly contrary to the record (not the least because it was well established that KMA already had paid for many of the repairs as warranty items, see supra note 3); and the second was in strong tension with common experience (since it seems highly unlikely that all of a class of 9,400 automobile owners would retain their vehicles for 100,000 miles).
[Defense counsel] is a good guy, a good lawyer but this is a Class action and I think you have heard comments that distort Pennsylvania law with respect to how Class actions are handled. This is not a case of 10,000 individual claimants in which case we would have the burden of bringing in everybody including everybody’s individual damages.
The whole notion of a Class action, why they exit [sic], is because if you can satisfy the court before it gets to the jury trial stage that the issues are common and the complaints of Ms. Samuel-Bassett are shared by all other members of the Class, then the court will certify by a judicial Order the action as a Class action and it may proceed to this trial. Ladies and Gentlemen, this case was certified by the Philadelphia Court of Common Pleas as a Class action. This court was satisfied after a hearing that the complaints that [sic] Ms. Samuel-Bassett were the complaints of the 10,000 members of the Class. But I don’t ask any of you to accept what I tell you; I ask that you listen to the instruction of the court on this issue. Listen to Judge Bernstein’s instruction. I believe he will tell you that proof and evidence that we present as to Ms. Samueh-Bassett should be considered by you as evidence for the entire Class. That’s important. That’s how Class actions work.
N.T., May 26, 2005, Vol. 4, at 113-14 (emphasis added).
Finally, contradicting its pretrial order providing for claims proceedings, the trial court instructed the jurors that there would be no subsequent proceedings to decide anything.
In my view, the irregularities discussed above are manifestations of a core analytical problem, ie., the failure to distinguish between the procedural class action device and substantive legal innovations being employed to facilitate them, including adjustments to the plaintiffs’ burden of proof. It could not be argued seriously that hypothetical testimony from an automotive expert — based upon underlying assumptions that are unsupported by the record, false, counterintuitive, and/or substantially under-representative of the range of actual variables affecting plaintiff costs — could support an out-of-pocket damages verdict in any individual case. Plainly, therefore, the trial court’s decision to permit Appellees to use just this sort of testimony to justify such a verdict for 9,400 people was incongruous with Pennsylvania substantive law governing damages.
In the present case, certification of a 9,400-person class action occurred without the predicate, closely-reasoned justification or any rational plan for the handling of individualized issues.
At one point, during the transient agreement of class counsel and the trial court to subsequent claims proceedings, they appear to have come to some realization of the scale of the distortion created by conflating the common and individualized issues. In the end, however, the latter were unceremoniously blended back into the collectivized treatment, apparently under the force of the driving class-action rubric. The result
I recognize that the record of this case creates the impression that purchasers of Sephias in the relevant time period sustained injury on account of a poor brake design and that the amount of the damages awarded to each individual class member appears to be modest. Thus, there may be a sense that the jury verdict in this case serves a “rough justice” and, as such, should not be disturbed. Result orientation in the law, however, yields its own set of perverse consequences, not the least of which is the silent dilution of the consistency, predictability, and fundamental fairness which are aspirations of the American judicial system. Cf. Erbsen, From “Predominance” to “Resolvability”, 58 Vand. L.Rev. at 1037-39 (discussing the deleterious impact of ad hoc lawmaking in class action proceedings on democratic legitimacy and concluding that “[allowing courts to bend substantive rules to the procedural needs of particular cases is ... inconsistent with the normal process of rulemaking and prone to prioritize the welfare of litigants over broader social welfare with undesirable distributive consequences”).
Finally, Appellees forcefully contend that KMA’s attorneys did not do enough to bring their criticisms to the attention of the trial court, and the majority credits such argument. See Majority Opinion, at 438-40,
In summary, left to my own devices, I would vacate the verdict and overturn the class certification order on its terms. I would also highlight the evaluative process which I believe should be required from the outset to shape the course of broad-scale, aggregate litigation likely to span the better part of a decade. I do not believe justice is served by insulating this verdict in reliance on the discretionary aspect of certification decisions, thus extending a liberality which yields trials where substantive requirements are subject to dilution and non-enforcement without substantive justification.
. One commentator summarized one facet of the tremendous controversy which has arisen over the employment of the class action device as follows:
The academic literature examining this form of litigation has portrayed the class action at times as a savior, bringing about justice in an otherwise flawed system of individual adjudication, and other*467 times as a villain, serving to artificially expand defendant liability and create a specialty practice for entrepreneurial plaintiffs’ lawyers.
Martin H. Redish & Clifford W. Berlow, The Class Action As Political Theory, 85 Wash. U.L.Rev. 753, 754 (2007) (footnotes omitted).
. For the sake of readability, in the text above, I have identified only a few of the many, readily-discernible variables differentiating out-of-pocket expenditures by class members. Here, I note only that there are many others. See, e.g., N.T., May 19, 2005, Vol. 3, at 18 (reflecting the testimony of Appellees' automotive expert that a "field fix” utilized by KMA had redressed the brake issue relative to some Sephia vehicles); compare N.T., May 19, 2005, Vol. 1, at 88 (containing the explanation of Appellees’ expert that the named plaintiff's brake pads wore out at between 3,000 and 5,000 miles), with N.T., May 19, 2005, Vol. 3, at 22 (reflecting the same expert's testimony that other class members experienced brake pad life in the range of 10,000 miles).
. For example, at the certification hearings, counsel for the named plaintiff (later class counsel) explained that, at times, “[t]he individuals had to pay for the repair. In other instances maybe [KMA] did cover it or did under goodwill.” N.T., July 15, 2004, at 22-23; accord N.T., May 26, 2005, Vol. 4, at 57 (reflecting class counsel’s comment in his closing remarks that "KMA did replace many, many defective pads and rotors for some people who owned Kia Sephias”).
There is nothing unusual about the phenomenon that class actions encompass both common and individual questions. See generally Allan Erbsen, From “Predominance" to "Resolvability": A New Approach to Regulating Class Actions, 58 Vand. L.Rev. 995, 998-99 (2005) ("Factual distinctions at various levels of subtlety and materiality usually permeate the legal claims of putative class members, such that their collective claims raise both ‘common’ and ‘individual’ questions relevant to proving liability and damages.” (footnote omitted)). As further developed below, the irregularities in this case pertain to the absence of a management approach which would fairly account for such material differences.
. Notably, from the outset, KMA argued to the court that individualized assessments were required. See, e.g., N.T., July 15, 2004, at 50-51 ("What happened with Ms. Bassett doesn’t provide any information or proof for the remainder of the class. It must be done individually.”).
. It is perhaps in light of the potential for misunderstandings of this kind ensuing from insufficiently reasoned class certification decisions that the federal appellate courts require of the district courts a "rigorous analysis” of the certification criteria. See Wal-Mart Stores, Inc. v. Dukes, - U.S. -, -,
. This order appeared to embody a variant of the traditional strategy for addressing individual issues in class actions, i.e., bifurcation of the damages question. See 3 Newberg on Class Actions § 9:59 (4th ed.2002) ("After identifying common issues that would support class certification, and recognizing generally or specifically that individual issues would remain after common questions have been litigated, the chief judicial management tool for handling individual issues is to sever them for subsequent trial[.]"). Nevertheless, as further developed below, the order did not alleviate the burgeoning incongruities and misunderstandings.
. Both the hypothetical and the responsive testimony also simply ignore many other readily discernable variables impacting out-of-pocket ex
. Certainly, counsel’s comments in this regard were apt as to common issues. However, the remarks were not so qualified, and, as developed above, out-of-pocket damages cannot fairly be regarded as a common question.
. The court stated:
*472 The amount that you award today must compensate the Class completely for all damage that you find has been proven, let me put it that way.
Because there's no second day in court. Just like I said, we can't handle 10,000 individual cases and just like I said maybe the amount in question is too small to warrant a whole blown trial for every individual claim; well, just like we in court want only one case if we can reasonably and justly do it; likewise, the defendant only wants one case against them [sic]. So you damages, your verdict is the only verdict in this claim for both sides. There’s no second day in court. Nobody can come back and say we forgot to bring this up or we discovered something tomorrow. Can't be done. You the jury are the only judges of the facts. After you decide this case, this case is decided.
N.T., May 26, 2005, Vol. 3, at 49-50 (emphasis added).
. Throughout this litigation, Appellees have repeatedly relied upon the federal district court's decision to certify a class action in their favor against KMA. See, e.g., Brief for Appellees at 3-4. Significantly, however, the district court's supporting opinion actually recognized the necessity of individualized damages assessments relative out-of-pocket expenditures from the outset. See Samuel-Bassett v. Kia Motors Am., Inc.,
I note that, in some circumstances, some jurisdictions have accepted the use of statistical, surveying, and sampling techniques to fill this sort of evidentiary void. See generally Laurens Walker, A Model Plan to Resolve Federal Class Action Cases By Jury Trial, 88 Va. L.Rev. 405, 415-20 (2002). Such techniques are not universally and uncritically accepted, however. See generally 2 McLaughlin on Class Actions § 8:7 (6th ed.2010) (collecting cases). Moreover, whatever the merits of these sorts statistical and/or scientific techniques for approximating individualized damages in a class action, nothing of the sort was attempted here. Rather, and again, Appellees' “automotive expert” offered an opinion based on a hypothetical entailing unproven, demonstrably erroneous, and under-inclusive assumptions.
. This point is made by one commentator as follows:
when a plaintiff asks a court to certify her as a representative of absent class members seeking damages, the court may do so only if it has a feasible plan for resolving factual and legal disputes regarding each element and defense applicable to each class member’s claim and for eventually entering judgment for or against each class member. There must either be an opportunity for the parties to litigate individual claims or defenses, or a reason to believe that such an opportunity is not necessary to reach a judgment that accurately values class members' claims. The existence of individualized issues of fact and law unique to the circumstances of particular class members thus does not necessarily preclude certification if the court has a plan for coping with individual factual and legal inquiries. In practice, however, certification will not be possible when there is no manageable way of reaching a final judgment that resolves all factual and legal disputes relevant to each class member’s entitlement to relief under applicable substantive law, and when one or more parties is unwilling to settle voluntarily.
Erbsen, From "Predominance” to "Resolvability”, 58 Vand. L.Rev. at 1049.
Parenthetically, the majority cites Professor Erbsen's substantial work for the proposition that claims proceedings are not required in class
. Professor Erbsen’s article provides the following explanation for why particular care in class action certification and management is required to protect all parties’ rights and interests:
The practical problems with certifying class actions despite dissimilarity among claims arise from the natural human instinct to simplify the inherently complex and to create order out of what appears chaotic. These instincts manifest in class actions in the form of procedural shortcuts to squeeze heterogeneous claims into a homogenous mold and thereby avoid the procedural difficulties that dissimilarity would create.... Likewise, aggregating distinct individual claims into a class obscures differences among class members in ways that engender substantive consequences.
Erbsen, From “Predominance" to “Resolvability”, 58 Vand. L.Rev. at 1009-10.
. Indeed, this baseline reality of this case was reflected in the following impromptu comment by class counsel during the trial proceedings: "I don’t know how, in the context of this Class Action, or in any Class Action, at a trial you could prove the amount of damages actually incurred by everyone.” N.T., May 26, 2005, Vol. 3, at 19.
. Approximations and extrapolations are frequently the basis for class action settlements. See, e.g., City of Detroit v. Grinnell Corp.,
Again, it may well be that, as a matter of social policy, some or all of the techniques and philosophies pertaining to class action settlements should be transported into the trial context. My main point here is that, undisputably, the approval of the class action device as acceptable procedure did not accomplish such a substantive change in Pennsylvania. See supra Part I. Moreover, and again, in any such substantive decision making, separation of powers considerations and the constitutional interests of affected defendants obviously merit careful consideration. See id.
Professor's Erbsen’s overview perspective is again illuminating:
"Ad hoc lawmaking” occurs in class actions when courts attempt to devise substantive and evidentiary shortcuts around management problems that dissimilarity imposes on the resolution of otherwise similar claims. For example, courts will ... bend the rules of evidence and alter burdens of proof so that contested facts can be resolved on a common rather than individualized basis[.] ... Nothing inherent in the class action device distorts substantive or evidentiary rules in this manner, but certification has that practical effect when judges try to manage the dissimilar aspects of class members' claims.
Erbsen, From “Predominance" to “Resolvability”, 58 Vand. L.Rev. at 1012-13.
. Responsively, the majority does say that its opinion is so confined, in relevant part. See Majority Opinion, at 440 n. 27,
