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Skalbania v. Simmons
443 N.E.2d 352
Ind. Ct. App.
1982
Check Treatment

*1 Nelson SKALBANIA and 1977, Inc., Appellants

(Defendants Below), Hockey Association, England

World New Quebec

Whalers, Nordiques, Winnepeg

Jets, Stingers, Cincinnati Edmonton Oil

ers, Bulls, Birmingham Appellants

(Defendants Below),

Indianapolis Racers, Indianapolis Racers

Limited, Hockey Inc., Management World,

Hockey Ltd., Non-Appealing De

fendants, SIMMONS,

Al Keith Marshall and Kelly, Appellees

Michael

(Plaintiffs Below).

No. 2-382A71. Indiana, Appeals

Court of

Second District.

Dec. *2 Columbus, Stone, Jones & H. William A1 Through representatives their Simmons Nelson Loveall, Franklin, appellants (Kelly), (Simmons) Kelly and Michael Racers Indianapolis corporate Skalbania suit the various brought Inc. owning operating the Racer entities They also sued Nelson Skalba- franchise.1 Barnard, Pittenger, L. Gordon William C. Racers, (Skalbania), owner of the nia Barnard, Indianapolis, appel- Sommer & (WHA), Hockey the World Association Ass’n. Hockey lants World competed, Racers league which the Locke, Zoccola, Boyd Reynolds, F. Robert comprised which the constituent teams A1 Weisell, Indianapolis, appellees & during the Racers’ final season. league Kel- Simmons, and Michael Keith Marshall In complaint, plaintiffs ly- request damages from Skalbania and the Racers for (Count II, breach of 16); contract R. at BUCHANAN, Judge. Chief breach warranty (Count III, 17); R. at and negligent operation of the Racer fran- CASE SUMMARY (Count VI, 18-19). chise WHA, R. at Against the Hockey Team Racers Indianapolis teams, Skalbania, its constituent Skalbania, the owner, (Racers), its Nelson Racers, plaintiffs request damages for Association, and its constitu- Hockey World (Count I, common law 15); fraud R. at interlocutory bring teams ent common law fraud and breach of fiduciary a class of certification of appeal from the (Count IV, duty 17-18); R. at tortious in- sea- 1978-79 Racers consisting of plaintiffs terference rights with the of the Racers and holders, the trial arguing son ticket plaintiffs in the services and contracts of granting abused its discretion V, players (Count Racer 18); R. at negli- individual because gent and reckless operation negli- of and over matters common predominate gent failure to disclose facts indicative of class. and reckless (Count VII, Racer franchise 19-20); R. at We affirm. tortious interference with the contractual FACTS relationship between and the Rac- ers upon merger negotiations based This case arose from the collapse of the WHA, were conducted between the Indianapolis professional hockey Racers, and the Hockey League National franchise during the 1978-79 season. At (Count 20); VIII R. at support- and conduct the time the team ceased operation, only 13 ing (Count an award of punitive damages of 40 scheduled games home had been IX, R. at played. For clarity we list these various claims on Plaintiffs are a class persons compris- following scorecard: ing 1978-79 Racers season ticket holders. COUNT DEFENDANTS CLAIM

I All Fraudulent and failure to disclosure poor financial condition of disclose the franchise. II Skalbania Breach of contract. express implied

III Racers and Skalbania Breach of warran- ties. Conspiracy misappropriate IV All and mis- funds; appropriation of season ticket fiduciary duty. breach of (cid:127) V Conspiracy All to interfere with and inter- player with Racer contracts. ference Negligent operation VI Racers and of Racer franchise. purposes opinion, Inc., 1977, Inc., Indianapolis 1. For the of this the term and Hock- Racers, World, ey “Racers” includes the dianapolis In- Ltd. Ltd., Hockey Management, DEPENDANTS COUNT CLAIM franchise; supervise Racer Failure All

VII poor operation of nondisclosure franchise. merger negotia- Negligent conduct of All VIII *3 tions. damages. Punitive All IX a “motion 22,1981 filed plaintiffs also owned the Edmonton Oilers. May Skalbania On class action” the conflict of interest ramifica- propriety Despite the to determine hearing 1981 a ownership, dual the WHA let 26). December tions of such (R. at On (R. to determine that motion the two teams at once. held own was certified. Dur- 353). should be the class at whether of Simmons hearing depositions the ing that merger nego- testified that Plaintiffs also elicit- Evidence published. Kelly and were WHA, Racers, and tiations between that out of established hearing at the ed were harmful Hockey League the National (R. at played only 13 games, promised uncertainty to the Racers because class consists of 270) proposed and that the garding the team’s continued 3,500 sea- (id.), holding about 1,140 persons negotiations engendered de- which those Kelly’s (R. 269). Supporting at son tickets (R. at games. attendance at Racers pressed is his representative as a class appointment 401). tickets at a total season of two purchase Kelly testified that Both and Simmons four bought (Id.). Simmons cost $580. expenditures they want their season 275). $1,160 (R. at tickets for 403, 435). all (R. Kelly at described back court, in the included before Evidence “being ticket holders as in the same season advertis- that Racers’ indicates depositions, having in that far as lost the seat as I’m logo the WHA which featured ing appeared 441). (R. invested.” at dollars that was the the WHA 351) and that (R. at court, hearing, the trial on Following the Racers franchise for the sanctioning body 12, 1982, as a February certified this case WHA, sanctioning (R. 380). The at of Proce- pursuant class action Ind.Rules exist and team to league, permitted dure, Trial Rule 23: the Racers 432). allowing (R. By at operate season, plain- 1978-79 upon the to embark least, league at allege tiffs pos- the Racers ORDER CERTIFYING implicitly asserted CLASS ACTION to com- wherewithal the economic sessed matter, having come before represen- 444). Such (R. at plete the season 4, 1981, court on December hearing purchase to the prior were made tations propriety permitting determine the (R. of the class members tickets season proceed action, this action to as a class opera- continued 384). WHA itself at having and the court heard the evidence league Racers folded tion after the following findings now makes the (R. at question. season completed the entry: 272). (cid:127) plaintiffs, 1. The named A1 Simmons the WHA allege that Plaintiffs also Kelly, and Michael are owners of season players for teams received member Indianapolis tickets for the Racers 1978- compensation inadequate or non-existent hockey season. transfers, (R. 457). player at Such 1,140 2. There were approximately in- began, were after the season commenced dividual season ticket owners and a total play- Racers because detrimental 3,500 approximately pur- season tickets disbanding of a er sales constituted Indianapolis chased for the Racers 1978- (R. team. competitive season, hockey including aforemen- vis-a-vis plaintiffs, joinder conduct tioned Insofar as of all such Skalbania’s concerned, shows the evidence owners of 1978-79 the WHA is season tickets is im- that, acquired practicable. at the time he to other superior damages A has filed A action claim for been 3. fair effi- County Superior with the methods for Marion available S178-1491, controversy Court, be- Cause No. in Indian- adjudication cient Indiana, ticket owners season certain apolis, the 1978-79 individuals tween named defendants. who are owners of season tickets for and the Racers 1978-1979 Mi- plaintiffs A1 Simmons 4. damages This claim hockey season. the class of represent seek to Kelly chael has been filed the individuals on owners in season ticket 1978-79 behalf of and all own- themselves other recover com- against defendants claims ers of tickets for the 1978-1979 pu- interest and plus pensatory damages season. of the cessa- damages result as a nitive 1978-79 Racers. operations tion of This suit seeks an award are typical The claims of plus adequately interest compensate season ticket claims 1978-79 1978-1979 Racer season ticket owners owners, and involve common for their economic loss as a result of *4 any over predominate fact which law operations cessation of of the Indi- individual mem- involving only anapolis Racers on or about December bers. 1978, a substantially prior date to and Mi- A1 Simmons plaintiffs 6. The the scheduled end of the Racers’ 1978- adequately rep- Kelly fairly chael season. The hockey suit also 1978-79 season of all resent the interests seeks an punitive damages. award of owners. ticket being claims are aforementioned litigation known There is no other 7. following individuals made ticket wherein a 1978-79 pending organizations: any from of seeking is owner 1. Nelson Skalbania. of the cessa- a result defendants as these Hockey 2. World Association. 1978-79 Racers. of the operations tion of England 3. New Whalers. AS THEREFORE ORDERED IT IS Quebec Nordiques. 4. FOLLOWS: 5. Winnepeg Jets. as a maintained This case shall be 1. Stingers. A1 6. Cincinnati Simmons plaintiffs, class action of representatives as Kelly, and Michael 7. Edmonton Oilers. season ticket Racer the class 1978-79 Bulls. Birmingham 8. 23(B)(3). Rule owners, Trial pursuant 9. Racers. Indianapolis be action shall Notice this class 2. Limited. 10. Racers Indianapolis each individu- mail to by first-class Inc. Management, 11. Hockey identity and whose member the class al 1977, Inc. Indianapolis 12. Racers ap- from the be can determined address World, LTD. Hockey 13. Indianapolis Rac- records propriate The defendants other defendants. ers or judgment entered as a result of and addresses make such identities are to case, this or not to whether favorable on plaintiffs counsel available plaintiffs’ claim on behalf of the class March, 1982, and day the 1st before holders, of season ticket will include all thereafter, counsel sixty (60) days within members request who do not exclusion out Notice send plaintiffs shall from class. As a season own- class. member of the each er, you are a member of un- the class each member The Notice to 3. you less request Any exclusion. class following form: be shall class request member not who does exclusion Indianapolis Racer Sea- 1978-79 Dear will be represented by attorneys desires, son Ticket Owner: the class. member he If a class his by may appearance through maintained enter an From certain records will any listed counsel. The court exclude you are Indianapolis class, member if he or she re- or more season owner of one as the If quests you your exclusion. want tickets action, claim your If ad- excluded from class season. 1978-1979 County you notify must the Marion incorrectly your or if dress listed Court, No. notify Superior City-County please changed, has address Building, Indianapolis, Indiana regarding your attorneys listed below June, day the 1st 1982. writing by proper address. All represented by 5. the trial court Did abuse its discretion following attorneys who are counsel for by certifying Count IV of the amend- the class: complaint, alleging ed a breach defendants, fiduciary duty by all as a Robert F. Zoccola class action? Riggs Randall R. the trial court Did abuse its discretion

Mark J. Roberts certifying V, VII, VIII Locke, Reynolds, Boyd & Weisell IX, alleging tortious interference Square, One Indiana Suite contracts, Racers player failure Indianapolis, Indiana 46204 prevent (317) 639-5534 franchise, merger wrongful Applegate. Judge s/Charles negotiations, punitive damages, Court, Superior Marion County action? as Room No. 1 (R. Appendix 16-18). Yol. at The defend- DECISION ants obtained of this in- a class two action case in which terlocutory appeal pursuant 4(B)(6) to A.R. designated season ticket holders have been urge that the trial court’s certification representatives similar- all those of the class was error. ly Although expect- situated. it is not to be represent many ed that ISSUES heroically prompt Winston Churchill’s *5 and the present Skalbania the fol- Royal during tribute Air Force lowing issues: Britain, “never so much Battle of ... was 1. Did the trial its court abuse discretion many few,” so by owed to so by certifying Count II of amend- been proper certified trial court as ed complaint, seeking damages representatives pursuant to T.R. against the Racers Skalbania for and 23(B)(3). contract, breach of as a class action? interlocutory appeal requires us Did the 2. trial court its discretion abuse only question proprie consider by certifying Count III of amend- ty of the certification of the plaintiffs’ ed complaint, seeking damages parties agree class. All seem to against the Racers and Skalbania applied standard review to be whether is express implied breach of war- trial abused its discretion in ranties, as a class action? granting sup certification. The authorities Did the 3. trial court its discretion abuse port conclusion. State ex rel. Harris v. by certifying Count VI of amend- Court, (1982) Ind., Scott Circuit 437 N.E.2d ed complaint, claiming damages 952, (“[I]t is well 953 settled that Federal against the Racers and Skalbania vests the judge Rule 23 trial with wide negligent operation in his application discretion of the rule’s franchise, as a class action? guidelines.”); various Bowen v. Sonnen The WHA and join its constitutent teams burg, (1980) Ind.App., 411 390. N.E.2d Skalbania and the Racers in presenting considering When a trial court decision following issues: which the abuse of discretion is standard Did 4. the trial court its applicable, abuse discretion will not the evi reweigh

by certifying I, and VII appeal IV of' dence. “On where the is evidence the amended complaint, seeking conflicting dam- and an abuse of the trial court’s ages from all for common alleged, only defendants we shall consider law judg fraud and failure to most the evidence favorable to the disclose facts the condition all reasonable to be regarding ment and inferences franchise, as a McMahan Construction drawn therefrom. Brothers, Inc., Wegehoft (1976) action? 170 Co. v. to over- plainly requires litigants The rule 354 N.E.2d 278.” Ind.App. Summerlot First, hurdles. all the condi- come several Summerlot, (1980) 408 N.E.2d Ind.App., (A) must be satis- tions under subsection (emphasis added). If the trial fied; further it must be demonstrated supported court’s exercise of discretion is of law or fact questions the common evidence, appel- then it will withstand some individual predominate over Eskew, (1976) review. Human v. late superior to other meth- that a class action N.E.2d 806. Ind.App. our task is to dispute resolution. So ods provides, pertinent part: Trial Rule 23 properly the trial court determine whether (A) Prerequisites to a class action. One ruling as it did exercised its discretion sue or be may or more members a class it and whether upon the evidence before on behalf representative parties sued as may properly be con- that evidence itself of all if: are doing the rule. In so we sidered under (1) joinder the class is so numerous that, court has held supreme aware that our impracticable; of all members is provi- between the similarity because of the (2) sions, of law or fact decided under Federal there are federal cases class; authority for Indi- persuasive common to the Rule 23 are Trial Rule Indiana interpreting ana courts (3) repre- the claims or defenses of the Harris, The federal at 953. supra parties typical sentative of the claims authority a wealth provide courts do class; defenses of the this rule. application representative parties fairly trial court abuse its ISSUE ONE—Did protect the interests adequately II of the certifying discretion in the class. complaint, seeking amended (B) ac- Class actions maintainable. An the Racers action may tion be maintained as a class contract, class action? as a breach (A) are prerequisites if the of subdivision court did not trial CONCLUSION —The satisfied, and in addition: certifying Count II abuse its discretion as a class action. *6 (3) of questions the court finds that us believe Racers would have law or fact common to the members of season that, paid the amounts although predominate any questions the class over read may be plaintiffs tickets individual members, affecting only individual ascertainable, do not seek this ily “plaintiffs superior that a class action is to other Racers’ brief recovery.” (Appellant of type methods for the fair and effi- available Instead, claim that individual 20). at adjudication controversy. cient of individual, consequen upon based in- pertinent findings The matters embarrassment) pre (such as damages tial clude: Furthermore, any dominate. (a) the interest of members of the contract, sought upon based breach individually controlling prosecu- financial precarious their say that actions; separate tion or defense of sea outset of the 1978-79 condition at the

(b) litiga- of any the extent and nature based presents individual son already concerning controversy assumption tion upon plaintiffs’ individual II of against respond commenced or members that Count risk. Plaintiffs class; compen only seeks complaint the amended interest thereon satory damages and (c) desirability undesirability presents case of contract that a mass breach concentrating litigation a claim suitable example of a textbook forum; particular claims in the treatment. class action (d) likely the difficulties to be encoun- alleg- complaint amended II of the management tered in the of a class Count contract was breach of that the Racers’ action. es plaintiffs detrimental the breach Implied Warranty.” in that Rac- (Appellant their season tickets worthless.” at that respond ers’ brief Plaintiffs “rendered] pleading, which was the trial ticket sold that 40 every represented before season when court it II games played determined that Count was would be that it is un- —and proper certification, a candidate for .class controverted that the Racers survived supports the enough play conclusion reached. We fail to long see how it can be said that II asks for Count The trial court had before it evidence more than compensation for the amount showing every plaintiffs’ that member of paid for the previously tickets. We have a purchased Every class had season ticket. held that differences in the amount was for 40 purportedly good ticket covery will not bar class treatment in a case games no ticket to see holder was able which, whole, viewed as a suitable for more than 13. Thus the trial court had an approach. such Boehne v. Camelot Vil- before it evidence of the breach of at least lage Apartments, Ind.App. universally expressed warranty one —that 288 N.E.2d 771. good each. games season tickets for 40

The Racers’ their there argument pre Accordingly, supportive that was evidence discretionary determination that position carious financial in the fall of early upon 1978 bestows them should action. proceed a defense based Count III as a class purchasers’ Summerlot, assumption supra. of risk See not does defeat Assuming class treatment. abuse ISSUE THREE —Did trial court trial argument court finds such an le by certifying VI of its discretion Count meritorious, gally flexibility, it has the un dam- complaint, claiming the amended der Rule to order trials on separate ages the Racers and Skalbania issue, particular as on question dam of the Racers if ages, necessary. Corp., (2d Green v. Wolf franchise, as a class action? Cir.1968) 406 F.2d 291. As said in trial not court did CONCLUSION —The Boehne, supra, “once the court is convinced by certifying abuse discretion Count VI its there plaintiff’s is substantial merit treatment. class action claim, and that the class action device is the The Racers recite evidence favorable to practicable vindicating method of these without position consideration claims, it will procedural not let difficulties supporting the trial exer- evidence court’s way.” stand its Id. 288 N.E.2d Assuming, cise of its discretion. as we deleted). (emphasis Count was properly II purpose interlocutory of this must for certified for class treatment. appeal, negligent operation TWO—Did the trial abuse its ISSUE vests in a cause of ac- franchise by certifying III of the tion, obviously question it common to complaint, seeking damages amended *7 One set of circum- plaintiffs. operative the Racers and Skalbania management stances —the warranties, of express breach and implied under inquiry the sole focus of team —is a class as action? presents example this a count. classic CONCLUSION —The trial did not nucleus fact” operative of “the common its by certifying abuse discretion Count III which touchstone of class certification is a for class action treatment. Dirrim, (1979) Ind.App., analysis. Arnold 426, 436. 398 N.E.2d regarding The Racers’ entire argument this issue is that: “Again questions arise as the trial court abuse its ISSUE FOUR—Did IV, representations I, to what by certifying or warranties were discretion Counts made, seeking what the quality hockey, complaint, constitutes VII of amended damages plaintiff damages what each Cf. from all defendants for common suffered. 26-1-2-313, to dis- Express negligent Ind.Code Section War- law fraud and failure by Affirmation, Promise, Descrip- regarding ranties close the condition facts franchise, and Sample; tion 26-1-2- as a class action? Ind.Code Section counts, the common law court did not As to fraud we trial CONCLUSION —The I, by certifying its abuse matter law com- say cannot that a a IY, for class action treatment. and YII plaint alleging group persons that a has by been the same acts of defend- defrauded join its constituent teams The WHA and maintained as a class action. ants cannot be the in this and suc- allowed such class Indiana has actions of this ceeding issues. Under the umbrella Boehne, to the trial challenges past. supra. issue we resolve the That the suitabil- for class treatment of court’s certification ity of a fraud case class treatment is an IV, I, and VII which portions of Counts essentially inquiry factual entrusted to the fraud, law failure to disclose allege common trial court is by discretion of the indicated Racers, financial poor condition discussing In T.R. commentators. proceeds, and fail- misuse of season ticket actions, 23(B)(3) Harvey Professor states: or prevent ure to correct find, required “The court is condi- of the Racers. The chal- reckless holding may tion of that a class action be IV which lenge portion to that subdivision, that maintained under this fiduciary is dealt alleges duty a breach of predo- common to the class Five, with as Issue infra. affecting indi- minate over in order to All defendants claim this vidual members. It is where fraud, plaintiff prove each member of can predominance exists that economies representa- questioned class must be class-action by be achieved means of the And, tions made to him defendants. view, perpetrated In this a fraud device. claim that individual determinations they persons by the use of similar on numerous necessary will be as to what constitutes may appealing be an misrepresentations upon any representa- reliance reasonable action, may a class and it situation for plaintiff to each member of the tions made need, liability if despite remain so respond by citing class. Plaintiffs authori- found, separate determination of that re- support proposition ties which within suffered individuals fraud, may liance be inferred in actions hand, although the class. On the other regarding presumption even when core, case a fraud having some common group made to a misrepresentations similar as a class for treatment may be unsuited alleging mis- persons. As to the counts material variation action if there was prevent failure to or proceeds, use of kinds negligent operation of the made or in the representations correct franchise, conspiracy, and failure to disclose persons degrees of reliance regarding facts assert addressed.” they whom were certified properly these claims at 349 Indiana Practice Harvey, 2 Wm. each involve a common nucle- because (1970). fact. operative us of cite constituent teams The WHA and its our sole Again emphasize decisions federal trial court plethora to a is to de interlocutory appeal function in rejected. certification was in which class of the trial court’s propriety termine enlightening precedent is Although federal the trial court order. Neither cases under the Indiana analyzing when any ques presented nor we have been our rule, Harris, reiterate that supra, we of the claims regarding tions merits allow us does not standard of review goes not to the presented. analysis Our *8 discretionary determination substitute our claim, any given of the success of likelihood facts court. That the that of the trial whether, time but rather to when it comes non-certifi- may supported of this case to make a determination of the merits as well as certification the class cation of claim, common of law and questions each point. this at solace to defendants of no predominate fact over affect court, is not to our function a trial Unlike T.R. ing plaintiffs. individual support- opposing and the factors Bowen, look at all 23(B)(3); supra.

360 certification, ing class law, but rather to focus accepted Indiana, This rule of in upon there whether are supporting factors Boehne, supra, the supports trial court’s the litany trial court’s action. The of re- certification of the common law fraud ported federal trial court decisions which by providing counts class treatment an reach different results upon facts similar to of inquiry avenue which does not focus change does not the fact that trial upon the individual of receipt of court determination herein was within the upon representations. and reliance As in bounds of the law. Boehne and Vasquez, we confronted least, At very the trial court had allegation with an that defendants made before it supportive evidence of its discre- some identical misrepresentations. Because tionary determination which showed those identical misrepresentations may be advertising team promoting the dur- proven, because if that core of identical ing question the season in featured it misrepresentation proven provide could WHA logo, that the WHA the sanc- was sufficient evidence support recovery, to tioning for the league and that at cannot reverse the trial court’s decision. the time being the season ticket sales were initial Our focus is whether defend- made the was organization WHA in recklessly knowingly ants or made certain which the Racers compete. were to Evi- misrepresentations. Thus, identical under dence shows that season advertising this approach, questions predomi- common and the tickets represented themselves to nate and class was permissible. purchasers season ticket that the tickets 23(B)(3); Arnold, T.R. supra. were good for a full season league of WHA if it is that separate Even determined competition. By inducing purchasers, on members, must be inquiry made of class representations, pay basis of those to flexibility of T.R. 23 games for a full ensnares defeats which were not be, to plaintiffs’ claim that supports evidence an inference of certification was error. ' fraud. In Brennan v. Midwestern United Life In Co., (7th Cir.1971) 999, surance 450 F.2d’ Superior As in Vasquez observed denied, 921, 957, 92 cert. 30 U.S. S.Ct. Court, (1971) 800, Cal.Rptr. 4 Cal.3d L.Ed.2d a decision the United States Boehne, (cited approval 484 P.2d 964 District Court for the Northern District of supra), prove if can the existence was Indiana affirmed. circuit court trial, representations these common an (D) of Rule concluded subsection representa inference would arise that empowers trial court to make individual tions were to each class member and inquiry ap it members of the class and would be the testi unnecessary to elicit mony plaintiff repre proved discovery of each as to whether individual as a class sentations were made to him device: personally. action (D) (3) imposing representative Orders in conduct of actions. In the con- conditions on applies, intervenors; parties duct of to which actions this rule or on may appropriate (4) requiring court make pleadings orders: that the be amended to allegations represen- eliminate therefrom (1) determining proceedings the course of or persons, tation of absent action prescribing prevent repeti- measures to undue proceed accordingly; complication presentation tion or in the of evi- dealing (5) procedural with similar matters. argument; dence or may The orders be combined with an order requiring, protection for the the mem- may under Rule be altered or amended bers of the or otherwise for the fair con- may action, be desirable from time to time. given duct of that notice be in such attorney’s may shall manner court court allow reasonable fees and as the direct or all to some action, any step expenses of the members of reasonable incurred from a fund re- proposed judgment, extent of the or of covered the benefit of a class under this opportunity signify apportion may of members whether and the section such re- representation covery among attorneys. consider the fair ade- different quate, present intervene or de- claims fenses, action; or otherwise to come into the *9 motion, a T.R. 12(B)(6) we that absent denial of summary, “In hold mem- grant notice but rather with a of class certifica- of a class who receive of bers that, under may subject- simply argue of the suit be tion. Plaintiffs pendency alleged their “fiduci- party procedures per- theory, breach of discovery ed to ary duty” virtually under the Federal Rules. Before would be identical mitted member, ordering such a trial each class based as it is discovery, funds for season requested misappropriation paid be assured infor- of must that preparation needed in tickets. actually mation discovery trial and are that devices Again, looking plaintiffs’ prob- not to the used to take unfair of advantage

not Bowen, success, abilities but rath- supra, Moreover, ‘absent’ class members. ade- er to the nature of evidence which so quate given notice must be that such claim, we con- support theory persons fully are informed the dis- by clude trial court did not err possible order and the conse- covery fiduciary this count. Whether a certifying their quences noncompliance with it. relationship exists between case requirements In this both were ob- The the issue us. defendants is not before served.” through relationship evidence which such a Id. at may represen- be will deal with established WHA, Skalbania, by tations made questions regarding misappropriation in and, teams possibly, constituent funds, pre- of season ticket the failure to Perhaps plaintiffs will not be the WHA. vent or reckless of the establish, factually legally, to able facts regard- Racers and failure to disclose fiduciary relationship predomi- exists. The precarious ing position the Racers’ will also however, still, nant question common by focusing be resolved on the conduct of defendants, ques- conduct a common presently postured, the defendants. As tion of fact. how predict appeal cannot these turn concern may claims out. Our is the upon by ease relied defendants resolved, will be by they method should fiduciary duty questions show that necessarily that method will consist of look- indi- not be treatment certified ing again to the conduct of defendants. So does, in flexibility cates that the of T.R. questions regarding factual common the de- fact, such actions. Moscarelli allow legal ques- conduct and common fendants’ Stamm, re- (E.D.N.Y.1968) F.Supp. supports tions as to whether that conduct misrepre- involving common fers cases legal predominate. relief The trial court tried may be separately sentations which properly exercised its discretion in cer- Even from issue of reliance. the individual these counts. tifying insistance correct in their if defendants are trial court abuse its ISSUE FIVE —Did the of re- there are individual IV certifying liance, try ability to those complaint, alleging amended a breach preponderance separately preserves defendants, fiduciary duty as a common issues. class action? separate We in the event such add that trial court acted with- CONCLUSION —The be- individual reliance inquiries regarding certifying in its discretion Count IV ques- necessary, the resolution come class treatment. fact, should, take tion as whether be de- this count should place, or whether argu- Defendants much of their address effi- upon “promoting focus “grave certified should regarding ment this issue doubts Friar judicial (WHA’s economy cient resources.” plaintiff’s theory.” about App. Holding (198.0) Corp., v. VanGuard Although some of their ply brief Econo- 698, 707. Div.2d 434 N.Y.S.2d points persuasive, defendants have di- uni- time, expense, mies of effort a non-existent rected efforts toward similarly persons formity decision goal. appeal are not in this We concerned *10 362

situated are the key to be con- elements The count regarding interference tortious Id. player sidered. The of the with flexibilities rule Racers contracts was not erro- provide the neously trial court certified for class treatment. with the tools it Again, considering without the claim on its procedural needs overcome difficulties. merits, Bowen, supra, we Boehne, observe that it supra; Wolf, supra. Thus we de- alleges, alia: inter cline reverse the of the certification fidu- ciary duty defendants, 2. That the individually claim. concert, conspired in acted and to act ISSUE SIX—Did the trial court abuse its tortiously so as to interfere the V, VII, certifying Counts rights of Racers and their season tick- IX, VIII and alleging tortious interfer- et in the holders services and contracts of contracts, ence with player Racers failure hockey including, players, Racers but prevent negligent way exclusion, not by Gretzky, Wayne franchise, Racers wrongful merger nego- Mio, Eddie and Peter Driscoll. tiations, punitive damages, as a class 3. That this only interference not se- action? verely compromised quality CONCLUSION —The trial court did not err played during the 1978- by certifying V, VII, VIII and IX season, but said also interference for class treatment. jeopardized greatly opera- the continued of, The tion the franchise. challenge to the allegation regarding tortious interference with player 4. That the ultimate disposition contracts is based on Long Strauss players by Island said the defendants was all Inc., Sports, 60 App.Div.2d accomplished benefit of de- 233, in N.Y.S.2d was de- fendants and to the detriment nied to a class of plaintiffs suing plaintiffs, because and that no funds re- the mid-season player. trade of a star ceived for services or contracts respond players, Plaintiffs which funds ulti- Strauss distin- would have guishable from been to the mately this case benefit of the season only because one traded, player was ticket holders. opposed to the disso- lution an entire again team. Defendants (B. 18). at record shows that Rac- raise defenses of “contributory negli- compensation ers received no whatsoever gence and (Racers’ incurred risk” brief at (R. for players the three named above at 25-26) individual questions purportedly 457) and that other WHA teams received removing prevent failure to negligent oper- premium (R. players question. ation of the Racers’ franchise the am- from allegations upon These focus com- bit of treatment. They also assail the fact, Arnold, mon of operative nucleus su- on claim its objection merits. Similar is pra, potentially involving all defendants. made to certification of the claim dam- Thus, allegations regarding before us ages wrongful merger negotiations. “trades” over- Defendants expressly appellate waive upon corporate tones of fraud the Racers view of the certification of the Count IX Given entities. the factual differences be- punitive demand damages.3 case Strauss, tween this where the page interpret 3. Footnote 1 at 37 in WHA’s brief We this to mean event that in the approve states: any forego- class certification of counts, ing challenge defendants waive their that, essentially alleges IX “Count as a result being IX certified Count for class treatment. alleged of the various sins them in do not IX in comment Count Complaint, other counts of the Amended generally, Shelby See Sav- brief. Federal punitive WHA Defendants are liable Doss, ings (1982) Ind.App., & Loan Ass’n. v. damages. light nature, In of its derivative N.E.2d separately IX will not be discussed here —it seems clear that if other claims alleged against inappropriate the WHA are certification, so is Count IX.” of fact that the each without one was claim of operate, team continued to *11 except ticket holder was identical player, we will not reverse the trial star paid the amount for the tickets and the to discretionary court’s determination that of the seats. location Count Y be certified class treatment. only argument identify

The we can involved representations under Count I, however, are pertaining portions They VII are not standardized. are allege prevent many and VII failure to and varied. written which Some include They some are oral. media adver- Racers franchise articles, tisements, newspaper radio talk wrongful merger negotiations, again raises, form, public speech at least one programs, in conclusory somewhat are personal They informal conversations. contributory defenses incurred risk and to sufficiently not of the nature or similar negligence. already as we Insofar create a permit presumption an inference or claim rejected considered and defendants’ the class relied that all members of destroy that these individual defenses com- representations and the same each of the to questions, again mon supra, we not degree. Similarly, again address them. decline consider claims on merits.

to these their connection, In this I believe that reliance Bowen, supra. Boehne my colleagues upon v. Camelot by Ind. Apartments (1st Dist.1972) 154 Village 1982, 15, On November William H. Stone 21, 771 and v. Vasquez 288 N.E.2d App. Jones, to and Tom counsel Joaquin County Superior Court of San petition a leave to filed 796, Cal.Rptr. 94 484 (1971) 4 Cal.3d petition withdraw That appearances. a is Boehne involved misplaced. P.2d 964 the date granted opinion. effective of this to representation made all members single ex rel. Durham Marion Circuit State complaint Vasquez the class. involved a 505; Court, (1959) 240 Ind. 162 N.E.2d were representations alleging the same Ind. Kelly Reynolds, v. Bank of case, In the plaintiff. to each latter App. 358 N.E.2d 146. in representations standardized Having presented addressed issues appliance salesmen memorized review, we conclude the trial court was recited rote by statement which did not abuse its discretion in certifying cases member the class. The two every pursuant case for treatment to Trial clearly from case before dissimilar 23(B)(3). Accordingly, Rule it is us. AFFIRMED. in from majority quoting As noted fraud commentary, Harvey’s Professor SHIELDS, J., concurs. treat- for class action cases are unsuited in the there variation ment if is material SULLIVAN, J., in and dis- part concurs degrees of reliance members kinds or part separate opinion. sents in with hand, to contem- the class. On the other SULLIVAN, Justice, part dissenting individualized mini-trials plate separate and concurring part. is to emasculate respect with reliance opinion I dissent the majority insofar as law fraud action as to the common of the class with affirms certification claim.

spect complaint to Count I of the non, existence, or of sub degree vel fraud. alleges law I otherwise common reliance individual season jective concur. some, any, purchasers respect misrepresentations apparent alleged from record various It hearing questions. for class certification common fact predominates conducted over respect each of the class certification that with I would reverse purposes, Tober v. Charni complaint, plaintiffs’ complaint. I of of the amended counts F.R.D. 74 at 82-85. ta, (M.D.Pa.1973) 58 common Inc. predominance claim to the sole

To the same effect are Gilbert v. Woods

Marketing, Inc. (D.Minn.1978) F.Supp. 749-50;

745 at (N.D.Ill. Seiden v. Nicholson

1976) 686; 69 F.R.D. 681 at Gatzke v. Owen

(N.D.Miss.1975) 414-17; 69 F.R.D. 412 at Seligson Tree, v. Plum (E.D.Pa.1973) Inc. 345;

F.R.D. 343 at Banks v. Travelers In (E.D.Pa.1973)

surance Co. 60 F.R.D. 158 at

162-63. See White v. Corp. (S.D. Deltona

Fla.1975) 562; 66 F.R.D. 560 at Advisory

Committee's Note to Federal Rule of Civil

Procedure 39 F.R.D. 98 at 103.

FORT WAYNE EDUCATION ASSOCIA-

TION, Appellant INC.

(Plaintiff Below), GOETZ, Appellees

Henrietta M. et al.

(Defendants Below).

No. 4-1281A218. Indiana, Appeals

Court

Fourth District.

Dec. 3, 1983.

Rehearing Denied Feb.

Case Details

Case Name: Skalbania v. Simmons
Court Name: Indiana Court of Appeals
Date Published: Dec 30, 1982
Citation: 443 N.E.2d 352
Docket Number: 2-382A71
Court Abbreviation: Ind. Ct. App.
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