TERRI F. LOVE, Judge.
This appeal arises from the allegedly unconstitutional and unlawful condemnation of properties severely damaged by Hurricane Katrina located in St. Bernard Parish. The plaintiffs allege that a class action lawsuit is the proper procedural vehicle to seek recompense. The trial court found that variables between the plaintiffs precluded the usage of the class action procedure and denied their motion to certify the class. We find that a class action lawsuit is an inappropriate procedural device for these plaintiffs because commonality, typicality, adequacy, ascertainable class definition, predominance, and superiority do not exist, as required by La. C.C.P. art. 591. Therefore, we affirm.
The St. Bernard Parish Government ("SBPG") created a plan to address an ongoing problem with properties that were severely damaged by Hurricane Katrina, but remained in a state of disrepair years later. SBPG's plan was allegedly utilized to condemn, and in some instances, demolish the property of approximately 10,000 property owners.
On February 26, 2009, sixteen plaintiffs, with the usage of joinder,
Thereafter, the Plaintiffs filed a Motion for Class Action Certification seeking to have their claims proceed as a class action, pursuant to La. C.C.P. art. 591. The proposed class definition included:
The Plaintiffs' Fourteenth Amended and Supplemental Petition categorized the Plaintiffs into three sub-groups: 1) "Demolished Property," 2) "Damaged Property," and 3) "Harassed." Seventy-three Plaintiffs were named. BBEC filed a Motion for Partial Summary Judgment Denying Class Certification based upon the premise that the commonality, predominance, superiority, adequacy, and typicality requirements for class certification could not be met. ACC then filed a Motion to Adopt BBEC's Motion for Partial Summary Judgment Denying Class Certification. URG, Houston, and Scottsdale also filed Motions for Partial Summary Judgment seeking the denial of class certification. The Plaintiffs subsequently dismissed their claims against ACC without prejudice.
Following a hearing and post-hearing written memoranda, the trial court denied the Plaintiffs' Motion for Class Action Certification.
The Plaintiffs allege that the trial court erred "in failing to certify the class of plaintiffs in this matter under La. Code Civ. P. art. 591(B)(3) and 591(B)(1)(a)", in "failing to properly apply the law relative to class certification to the facts established," and "in granting SBP's exception of no cause of action as to the plaintiffs' claims for emotional distress."
"The standard of review for certification of class actions is bifurcated." Watters v. Dep't of Soc. Servs., 05-0324, 05-0325, 05-0326, p. 6 (La.App. 4 Cir. 4/19/06), 929 So.2d 267, 273. "The factual findings are reviewed under the manifest error/clearly wrong standard; the trial court's discretionary judgment on whether to certify the class or not is reviewed by the abuse of discretion standard." Id. Therefore, our applicable standard of review is whether the trial court abused its discretion in denying the Plaintiffs' Motion for Class Action Certification and whether the trial court's findings in regards to the requirements of class certification were manifestly erroneous. Id.
"In reviewing factual findings, the reviewing court should not set aside the factual findings of the trial court absent manifest error or unless those findings are clearly wrong." Marshall ex rel. minor children v. Air Liquide-Big Three, Inc., 08-0668, p. 5 (La.App. 4 Cir. 12/17/08), 2 So.3d 541, 546. "The issue to be resolved by a reviewing court is not whether the trier of fact was right or wrong, but whether the factfinder's conclusion was reasonable." Id. "However, if a court of appeal determines that the trial court committed a reversible error of law or manifest error of fact, the court of appeal must ascertain the facts de novo from the record and render a judgment on the merits." Id.
"[A] class action is nothing more than a procedural device; it confers no substantive rights." Id., 08-0668, p. 6, 2 So.3d at 546. "A class action ... permits a representative with typical claims to sue or defend on behalf of, and stand in judgment for, a class of similarly situated persons when the question is one of common interest to persons so numerous as to make it impracticable to bring them all before the court." Brooks v. Union Pac. R. Co., 08-2035, pp. 9-10 (La. 5/22/09), 13 So.3d 546, 554. "The purpose and intent of class action procedure is to adjudicate and obtain res judicata effect on all common issues applicable not only to persons who bring the action, but to all others who are `similarly situated.'" Id., 08-2035, p. 10, 13 So.3d at 554, quoting Ford v. Murphy Oil U.S.A., Inc., 96-2913, p. 4 (La.9/9/97), 703 So.2d 542, 544.
"Whether a class action meets the requirements imposed by law involves a `rigorous analysis.'" Dupree v. Lafayette Ins. Co., 09-2602, p. 6 (La. 11/30/10), 51 So.3d 673, 679, quoting Brooks, 08-2035, p. 10, 13 So.3d at 554. When conducting this analysis, the trial court "`must evaluate, quantify and weigh [the relevant factors] to determine to what extent the class action would in each instance promote or detract from the goals of effectuating substantive
Price v. Martin, 11-0853, p. 7 (La. 12/6/11), 79 So.3d 960, 967.
In order to qualify for class certification, the party seeking certification must prove that:
La. C.C.P. art. 591(A). If all of the requirements of La. C.C.P. art. 591(A) are met, then one of the following must also be proven:
La. C.C.P. art. 591(B).
Mr. Estopinal, the lead named class representative, gutted and cleaned out the residential property he owned at the time Hurricane Katrina struck. Mr. Estopinal did not recall receiving any letters from the SBPG regarding the condemnation/demolition of his house. However, he did receive letters from the SBPG about his failure to keep the lawn cut. Mr. Estopinal filed an appeal of the demolition, but he could not remember why, as he claimed he was unaware his property was going to be demolished. He attended the appeal hearing, but does not remember being present. Mr. Estopinal allegedly discovered that his house was marked for demolition when his daughter telephoned him about a bulldozer engaged in the demolition process in the front yard in January 2009.
Glenn Dixon gutted a portion of his residential property and repaired the roof, but made no other repairs. A few months after Hurricane Katrina, Mr. Dixon allegedly learned from a former neighbor that his property was marked with a demolition placard. Mr. Dixon received a building permit, but did not proceed with repairs. Then Mr. Dixon appealed the demolition of his property, received a notice of the appeal hearing in the mail, and his appeal was granted, based on the caveat that he remediate the property. After receiving notice that his property was again slated for demolition, Mr. Dixon filed a second appeal in November 2008, and attended the second appeal hearing.
Ellen Dupriest, owned her residential property when Hurricane Katrina struck the region. Her property was allegedly gutted and sterilized. When Ms. Dupriest applied for a building permit in the summer of 2007, she was aware that homes were being demolished. However, she believed, through hearsay, that only houses remaining ungutted were being demolished. Ms. Dupriest stated that she was never aware that her property was slated for demolition and denied receiving any letters from the SBPG regarding same. Although a FEMA trailer was located on Ms. Dupriest's property from 2006-2008, and she claimed that someone visited the property "frequently," Ms. Dupriest was allegedly unaware that the exterior of the property was posted with a placard stating that it was subject to demolition. Ms. Dupriest stated that her family did not remove demolition placards from the exterior of her property. Ms. Dupriest did not appeal the condemnation/forced demolition.
Jeffrey Benedic, a member of Real Investments, L.L.C. ("RIL"), testified that RIL purchased property in April 2008. Mr. Benedic was unaware if the previous owners participated in the administrative process. The previous owner appealed the condemnation/demolition of the property. Mr. Benedic stated that the property was posted with yellow placards with a red "X," which was indicative of impending
The first prerequisite for sustaining a class action is that "[t]he class is so numerous that joinder of all members is impracticable." La. C.C.P. art. 591(A)(1). "No set number of plaintiffs is required in order to fulfill this requirement." Davis v. Jazz Casino Co., 03-0005, p. 7 (La.App. 4 Cir. 1/14/04), 864 So.2d 880, 888. The Plaintiffs allege in accordance with information provided by BBEC that approximately 8,298 properties were demolished. The trial court found that the numerosity requirement was "met" and this finding was uncontested on appeal. Therefore, the trial court did not commit manifest error in finding that the numerosity requirement was proven pursuant to La. C.C.P. art. 591(A)(1).
Next, the Plaintiffs must show that "[t]here are questions of law or fact common to the class." La. C.C.P. art. 591(A)(2). "A common question is one which when answered as to one class member is answered as to all." Smith ex rel. Upchurch v. McGuire Funeral Home, Inc., 46,326, pp. 9-10 (La.App. 2 Cir. 6/1/11), 70 So.3d 873, 881. "The mere existence of common questions, however, will not satisfy the commonality requirement." Price, 11-0853, p. 10, 79 So.3d at 969. "To satisfy the commonality requirement, there must exist `as to the totality of the issues a common nucleus of operative facts....'" Id., quoting Dupree, 09-2602, p. 11, 51 So.3d at 682.
Id., 11-0853, p. 10, 79 So.3d at 969, quoting Wal-Mart Stores, Inc. v. Dukes, ___ U.S. ___, ___, 131 S.Ct. 2541, 2551, 180 L.Ed.2d 374 (2011). "However, in order to meet the common cause requirement, each member of the class must be able to prove individual causation based on the same set of operative facts and law that would be used by any other class member to prove causation." Brooks, 08-2035, p. 17, 13 So.3d at 559. When addressing commonality, the United States Supreme Court stated in Wal-Mart, that:
___ U.S. ___, 131 S.Ct. 2541, 2552, 180 L.Ed.2d 374.
The Plaintiffs allege that the Defendants "involuntarily and unconstitutionally took" their "property and/or property rights without just compensation following Hurricane Katrina" and that SBPG "and its contractors committed trespasses in bad faith during the execution of all involuntary condemnations and demolitions." Additionally,
The proposed class definition includes three classes of Plaintiffs: 1) those whose property was demolished, 2) those whose property was damaged, and 3) those who instituted legal proceedings to prevent the demolition of their property. Some Plaintiffs owned the subject property when Hurricane Katrina struck, while others purchased unremediated property after Hurricane Katrina.
Determining if a single plaintiff's property was lawfully condemned and/or demolished depends upon a myriad of different factors, which includes, but is not limited to, whether he/she: 1) received a letter from SBPG, 2) appealed the condemnation, 3) attended the appeal hearing, 4) instituted legal action to prevent the SBPG from demolishing the property, 5) previously requested that the SBPG demolish the property, 6) knew the property was going to be demolished and failed to participate in the administrative process, and 7) knew that the previous property owner requested that the SBPG demolish the property. Also, each plaintiff's alleged damages occurred on a different date and for varying reasons, depending on the Plaintiffs' answers to the questions listed above. Accordingly, each plaintiff will have to prove a differing set of facts and circumstances in order to prove damages allegedly caused by one or more of the Defendants, which requires evidence solely relating to each member of the proposed class. Likewise, each plaintiff must present separate and differing evidence for each of the individual Defendants, depending on the alleged liability of each defendant, if any, to each of the Plaintiffs.
Like the United States Supreme Court in Wal-Mart, we find that the Plaintiffs seek a singular remedy from thousands of decisions allegedly made by the Defendants that are unique to each plaintiff. Therefore, we do not find that the trial court committed manifest error in finding that "there is an absence of common questions of fact and law to adjudicate the claims of the various members or to assign or apportion responsibility on each defendant in each of the myriad of factual situations encompassed by the definition to certify the class." The proposed class does not meet the La. C.C.P. art. 951(A)(2) requirement of commonality.
"Typicality for class action certification is satisfied if the claims of the class representatives arise out of the same event, practice, or course of conduct that gives rise to the claims of other class members and those claims are based on the same legal theory." Watters, 05-0324, 05-0325, 05-0326, p. 16, 929 So.2d at 279.
The trial court stated:
The claims of the four class representatives do not arise out of the same event. As we discussed regarding commonality, the Plaintiffs were in different phases of the administrative process, if at all, all of the decisions regarding their respective properties were made at different times, and their claims involved varying degrees and types of damages. As for the same practice or course of conduct, the Plaintiffs contend that SBPG's plan for dealing with blighted property caused their damages. However, BBEC and URG were not involved in the administrative process of determining which properties to condemn and/or demolish in the same capacity as the SBPG. The record evidence supports the trial court's factual findings in regards to the lack of typicality of the Plaintiffs' claims. Therefore, we do not find that the trial court committed manifest error in finding that the typicality requirement, pursuant to La. C.C.P. art. 591(A)(3), was not met.
"The fourth prerequisite to class certification is that the representative parties must fairly and adequately protect the interests of the class." Husband v. Tenet HealthSystems Mem'l Med. Ctr., Inc., 08-1527, p. 11 (La.App. 4 Cir. 8/12/09), 16 So.3d 1220, 1230. "The representatives' claims must be a cross section of, or typical of, the claims of the other class members." Watters, 05-0324, 05-0325, 05-0326, p. 16, 929 So.2d at 279. "Class representatives can adequately represent absent class members, even though claims by a particular class representative with regard to the exact damages claimed may not be typical, as long as the class of damages asserted by each representative is." Husband, 081527, p. 11, 16 So.3d at 1230. This Court enumerated factors that may be relevant to determining adequacy in Davis as follows:
03-0005, pp. 8-9, 864 So.2d at 888, quoting Kent A. Lambert, Certification of Class Actions in Louisiana, 58 La. L.Rev. 1085 (1998).
A review of the class representatives, reveals that three participated in the administrative process by filing an appeal. Three class representatives owned their residential property when Hurricane Katrina struck. One class representative purchased the property after the demolition placard was placed on the exterior of the property. The property of all four of the class representatives was demolished.
However, a review of the named Plaintiffs' depositions depicts a widely varied set of plaintiffs. Some of the Plaintiffs filled out forms requesting that the SBPG demolish their property, only to later attempt and rescind the request. Other Plaintiffs' properties were not demolished, but allegedly pipes or other items outside of the structures were damaged. Still, more Plaintiffs' properties were not demolished or damaged because they utilized legal action to prevent the demolition of their properties. While some of the Plaintiffs appealed the demolitions and appeared at the appeal hearings, others either did not attend the appeal hearings or failed to participate in the administrative appeal process. Furthermore, Michael Truax, Sr., an expert appraiser, stated that "mass appraisal techniques ... would not likely result in the fair and accurate determination of damages."
Given the trial court's reasoning and our review of the variables among the class representatives and the other deposed Plaintiffs, as summarized above, we do not find that the trial court committed manifest error in finding that the adequacy requirement, pursuant to La. C.C.P. art. 591(4), was not met because "[t]he representative parties" would not "fairly and adequately protect the interests of the class."
"The last requirement of La. C.C.P. art. 591 is that the class be defined objectively in terms of ascertainable criteria to allow the court to determine the constituency of the class for purposes of the conclusiveness of any judgment." Smith, 46,326, p. 14, 70 So.3d at 883. "The class definition requirement ensures that the class is not amorphous, indeterminate, or vague so that any potential class member can readily determine if he or she is a member of the class." Id. "This prerequisite shall not be satisfied if it is necessary for the court to inquire into the merits of each potential class member's cause of action to determine whether an individual falls within the defined class." La. C.C.P. art. 591(A)(5). "Definability of the class by objective criteria is essential given the res judicata effect of the class action procedure." Davis, 03-0005, p. 14, 864 So.2d at 891.
The Plaintiffs sought to define the class as follows:
While the proposed class definition provides a method for determining which individuals are members of the defined class, the trial court would still be required to "inquire into the merits of each potential class member's cause of action to determine whether an individual falls within the defined class" because determining whether each plaintiff's property or property rights were unconstitutionally/illegally damaged or taken depends on individual facts and circumstances. La. C.C.P. art. 591(A)(5). As the trial court stated:
Accordingly, we find that the Plaintiffs failed to prove that the class could be objectively defined in compliance with La. C.C.P. art. 591(A)(5).
Because we found that the trial court did not commit manifest error in finding that the requirements for maintaining a class action pursuant to La. C.C.P. 591(A) were not met, we are not required to address whether the Plaintiffs met their burden of proof as to La. C.C.P. art. 591(B). See La. C.C.P. art. 591(B). However, we address these requirements out of an abundance of caution.
"[P]laintiffs were required to prove, pursuant to La. C.C.P. art. 591(B)(3), that common questions of law or fact predominate over any individual issues and that the class action procedure is superior to any other." Price, 11-0853, pp. 21-22, 79 So.3d at 975. The Plaintiffs contend that the requirements of La. C.C.P. art. 591(B)(3) were met. La. C.C.P. art. 591(B)(3) provides:
"An inquiry into predominance tests `whether the proposed classes are sufficiently cohesive to warrant adjudication by representation.'" Brooks, 08-2035, p. 19, 13 So.3d at 560, quoting Amchem Products, Inc. v. Windsor, 521 U.S. 591, 117 S.Ct. 2231, 2249, 138 L.Ed.2d 689 (1997). "The predominance requirement is more demanding than the commonality requirement and, as such, mandates caution, especially where `individual stakes are high and disparities among class members great.'" Brooks, 08-2035, p. 19, 13 So.3d at 560, quoting Amchem, 521 U.S. 591, 117 S.Ct. at 2250, 138 L.Ed.2d 689. "The predominance requirement `entails identifying the substantive issues that will control the outcome, assessing which issues will predominate, and then determining whether the issues are common to the class,' a process that ultimately `prevents the class from degenerating into a series of individual trials.'" Brooks, 08-2035, p. 19, 13 So.3d at 560, quoting O'Sullivan v. Countrywide Home Loans, Inc., 319 F.3d 732, 738 (5th Cir.2003).
We found that the trial court did not commit manifest error in finding that the commonality requirement for sustaining a class action was not proven. As stated above, whether each plaintiff was deprived of property rights, unconstitutionally or illegally, will depend upon an individual analysis of each case. Hence, the Defendants' liability to each plaintiff cannot be established with evidence common to all class members. Accordingly, we find that the Plaintiffs have failed to demonstrate predominance. See Dupree, 09-2602, p. 41, 51 So.3d at 699.
"When a common character of rights exists, a class action is superior to other available adjudicatory methods in effectuating substantive law, and promoting judicial efficiency and individual fairness." Husband, 08-1527, p. 17, 16 So.3d at 1233. "If the superiority of a class action is disputed, the trial court must inquire into the aspects of the case and decide whether some other procedural device would better serve these goals." Id. "The basic goal or aim of any procedural device is `to implement the substantive law, and to implement that law in a manner which will provide maximum fairness to all parties with a minimum expenditure of judicial effort.'" Dupree, 09-2602, p. 41, 51 So.3d at 700, quoting Stevens v. Bd. of Trustees of Police Pension Fund of City of Shreveport, 309 So.2d 144, 151 (La.1975). "If each class member has to prove causation separately, this would defeat the purpose of a class action." Brooks, 08-2035, p. 21, 13 So.3d at 561. "This is difficult when multiple defendants and causes are involved." Id.
The trial court found that the following variables prevented class action certification:
Similar to our discussion on predominance, we find that the superiority requirement is not met. The myriad of factual issues, damage issues, and liability issues specific to each plaintiff, as well as each defendant, precludes the utilization of a class action as a proper procedural device. As stated by the Louisiana Supreme Court, "it is clear that each member of the proposed class will necessarily have to offer different facts to establish liability and damages." Alexander v. Norfolk S. Corp., 11-2793, p. 3 (La.3/9/12), 82 So.3d 1234, 1236. "Certification under these facts would create precisely the situation we cautioned against in Brooks, i.e., the class would degenerate into a series of individual trials." Id. As such, we find that the trial court did not abuse its vast discretion by denying the Plaintiffs' Motion for Class Action Certification based on the findings that the Plaintiffs' proposed class definition failed to comply with La. C.C.P. art. 591 and affirm.
For the above-mentioned reasons, we find that the trial court did not abuse its vast discretion in denying the Plaintiffs' Motion for Class Action Certification based on the findings that the proposed class failed to satisfy the requirements of La. C.C.P. art. 591. While numerosity was present, the Plaintiffs did not satisfy their evidentiary burden of proving that the characteristics of commonality, typicality, adequacy, ascertainable class definition, predominance, and superiority were present and required the certification of a class action. Accordingly, we affirm.