PHYLLIS J. HAMILTON, District Judge.
Before the court is the motion of defendant Taco Bell Corporation ("Taco Bell") for an order decertifying the class, and the motion of the named plaintiffs for an order altering and amending the class certification order. Having read the parties' papers and carefully considered their arguments and the relevant legal authority, the court hereby GRANTS Taco Bell's motion in part and DENIES it in part, and DENIES plaintiffs' motion.
This case was originally filed on December 17, 2002, as a proposed class action, challenging architectural barriers at corporate-owned Taco Bell restaurants in California. The complaint asserted a right to injunctive relief under the Americans With Disabilities Act of 1990 ("ADA"), 42 U.S.C. § 12181, et seq., as well as a state law claim for damages under the Unruh Act, Cal. Civ. Code § 51, et seq.
The original complaint alleged that the named plaintiffs were seeking "to maintain this action as a class action under Rule 23(b)(2) and/or Rule 23(b)(3)." Cplt ¶ 20. The complaint alleged further that "[m]oney damages alone are inadequate," and that "the primary relief sought is injunctive relief." Cplt ¶¶ 4, 25.
On August 4, 2003, plaintiffs amended the complaint to plead an additional state law claim for relief under the California Disabled Persons Act ("CDPA"), Cal. Civ. Code § 54, et seq. In all other respects, the first amended complaint ("FAC") is identical to the original complaint, including that the named plaintiffs are seeking "to maintain this action as a class action under Rule 23(b)(2) and/or Rule 23(b)(3)," and that "the primary relief sought is injunctive relief." FAC ¶¶ 20, 25.
In September 2003, plaintiffs filed a motion seeking certification of a class under Federal Rule of Civil Procedure 23(b)(2). The proposed class consisted of
F.R.D. 604 (N.D. Cal. 2004). The order noted that "[t]he putative class seeks an injunction ordering [d]efendant to adopt policies to ensure access for customers who use wheelchairs and scooters, and to bring all of its facilties into compliance with [the ADA, the Unruh Act, and the DCPA]."
On October 4, 2004, the court appointed a Special Master, who surveyed the approximately 220 restaurants at issue. The results of his surveys are in the court file.
The case was reassigned to the undersigned district judge in April 2008. In June 2011, the court conducted an exemplar trial concerning Restaurant 4518 in San Pablo, California. On October 5, 2011, following the benchmark trial regarding Restaurant 4518, the court issued Findings of Fact and Conclusions of Law ("Findings"), ruling that "plaintiffs have established that classwide injunctive relief is warranted, with regard to maintaining compliance, both as to Taco Bell 4518, and as to all corporate Taco Bell restaurants in California."
Following the Supreme Court's decision in
Federal trial courts have broad discretion to manage the conduct of litigation and to structure trials in a manner that expedites the proceedings while achieving the core purposes of a trial and protecting litigants' rights. Trial courts have "both the duty and the broad authority to exercise control over a class action and to enter appropriate orders governing the conduct of counsel and the parties."
"A district court's order respecting class certification is `inherently tentative' prior to final judgment on the merits."
The court may decertify a class if the requirements for class certification under Federal Rule of Civil Procedure 23 are not met.
A party seeking decertification of a class bears the burden of demonstrating that class certification is no longer proper.
Rule 23(a) has four requirements, all of which must be met — numerosity, commonality, typicality, adequacy of representation. Fed. R. Civ. P. 23(a). A party seeking class certification must also meet one of the three criteria listed in Rule 23(b), which provides that a party may maintain a class action if
Fed. R. Civ. P. 23(b).
In addition, under Rule 23(c)(4), "[w]hen appropriate, an action may be brought or maintained as a class action with respect to particular issues." Fed. R. Civ. P. 23(c)(4)(A). B. The Parties' Motions
Taco Bell seeks decertification of the entire class. First, Taco Bell contends that plaintiffs' monetary claims were improperly certified because, as the Supreme Court clarified in
Taco Bell also asserts that the class does not meet the Rule 23(a) commonality requirement, as re-defined by the Supreme Court in
Plaintiffs seek an order "altering and amending" the class certification order so that the class claims seeking injunctive relief, and the "issue" of liability for "minimum statutory damages" can be certified under Rule 23(b)(2), and the "issue" of the amount of damages to be actually recovered by each class member as to five "Key Barriers" can be certified under Rule 23(b)(3). To this end, plaintiffs propose a redefined class consisting of
The court agrees that the Supreme Court's decision in
With regard to injunctive relief, however, the court agrees with plaintiffs that the class meets the requirements of Rule 23(a). In particular, the court finds, as set forth in the February 23, 2004 class certification order, and also supported by the August 8, 2007 summary judgment order and the October 5, 2011 Findings, that there are sufficient "questions of law or fact common to the class" to warrant certifying a class for injunctive relief. Given the narrow scope of the court's prior ruling regarding entitlement to injunctive relief,
The primary dispute raised by the present motions is whether plaintiffs' state law damages claims can be certified. Plaintiffs' state law claims under the Unruh Act and the CDPA seek individualized relief or an individualized award of money damages. As noted above, certification is not proper under Rule 23(b)(2), because damages must be determined on an individualized basis.
The state law claims also cannot be certified under Rule 23(b)(3) — both because the claims are individualized and unique, and questions of law and fact common to the members of the class do not predominate over questions affecting only individual members, and because a class action would not be superior to other available methods of adjudication, in view of the problems in managing such a class.
Plaintiffs impliedly concede that certification is not proper under either Rule 23(b)(2) or Rule 23(b)(3), and propose instead a "hybrid" certification. Plaintiffs argue that the court should certify "issues" under Rule 23(c)(4) — specifically, that the court should certify the issue of liability under Rule 23(b)(2) and should certify the issue of damages under Rule 23(b)(3).
The court finds, however, that the issue of classwide liability cannot be separately certified under Rule 23(b)(2) through the application of the Rule 23(c)(4) issue-certification procedure. California courts have held that to maintain an action under the CDPA, a plaintiff must establish that he or she was denied equal access to a public facility on a particular occasion.
Similarly the issue of classwide damages cannot be separately certified under Rule 23(b)(3) through the application of Rule 23(c)(4), because damages for California disability claims are inextricably intertwined with individualized liability questions, and it is thus impossible to make an across-the-board conclusion as to the recovery of damages by any class member. An individual class member's claim for damages cannot be adjudicated simply by demonstrating the mere presence of an alleged non-compliant feature.
Put another way, because damages must be based on an individualized determination of liability, common questions of law and fact regarding entitlement to damages do not predominate over questions affecting only individual members. It is not only damages that are individualized, but also liability and causation, because the issue is whether an individual class member has any claim at all.
Plaintiffs contend that the calculation of damages will be a simple matter of adding up the number of times each class member was aggrieved by noncompliant barriers. The court notes, however, that while the class has been found to be sufficiently numerous and ascertainable, plaintiffs have actually made no showing as to how many people are in the class. At one point, plaintiffs estimated (based on statistics regarding the number of people in California who use wheelchairs or scooters) that the class could include as many as 150,000 class members.
At a minimum, however, it appears that more than 1000 class members have contacted plaintiffs' counsel about the case, after having read the "Taco Bell Class Action Website" that is sponsored by class counsel. The website states that "[t]he class is seeking up to $4,000 for each time a class member encountered a barrier at a covered Taco Bell[,]" adding that "a class member may be entitled to collect damages for each time he or she had difficulty parking, had difficulty getting to the counter because of a narrow queue line, had difficulty using the restroom because it was too small or obstructed, or encountered other barriers."
Thus, because of the intersection between liability for separate violations and the damages calculation, there would need to be a finding — for each class member in this potentially huge class — regarding which Taco Bell store or stores he/she visited, how many times he/she visited each store, when the visits occurred, what "Key Barriers" he/she encountered, and what his/her disability was and whether the "Key Barrier" precluded access for him/her at that particular Taco Bell. Based on this, the court finds — even apart from the fact that the liability and damages issues are inextricably intertwined — that certifying a (b)(3) class for the issue of damages would not constitute a superior method for adjudicating the controversy.
It is true that "there is no rule against `hybrid certification' under both Rule 23(b)(2) and 23(b)(3)."
In accordance with the foregoing, Taco Bell's motion is GRANTED in part and DENIED in part. The motion to decertify the claims for injunctive relief is DENIED. The motion to decertify the damages claims is GRANTED. Plaintiffs' motion is DENIED.
With regard to the form of the injunction, it is unclear, with this latest round of briefing, whether plaintiffs are seeking injunctive relief as to all barriers or as to the five "Key Barriers" only. Thus, no later than August 31, 2012, each side shall submit a proposed injunction with respect to the Rule (b)(2) class.
The named plaintiffs are entitled to a trial as to damages under state law. No later than August 31, 2012, the parties shall submit a proposed status statement regarding discovery, if any; scheduling; the length of the proposed trial; and whether the damages claims are to be tried to a jury. Depending on the number of days requested, the court will advise the parties as to available dates.
Any of the unnamed plaintiffs who wish to proceed with damages claims may file a separate lawsuit.