A.J. Bayless Markets, Inc. v. Superior Court

700 P.2d 1385, 145 Ariz. 285, 1985 Ariz. App. LEXIS 512
CourtCourt of Appeals of Arizona
DecidedApril 25, 1985
DocketNo. 2 CA-SA 0207
StatusPublished

This text of 700 P.2d 1385 (A.J. Bayless Markets, Inc. v. Superior Court) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
A.J. Bayless Markets, Inc. v. Superior Court, 700 P.2d 1385, 145 Ariz. 285, 1985 Ariz. App. LEXIS 512 (Ark. Ct. App. 1985).

Opinion

OPINION

HATHAWAY, Presiding Judge.

Petitioner A.J. Bayless Markets, Inc. (Bayless) is the defendant in two consolidated cases filed by the real parties in interest as class actions in the superior court. The amended complaint alleges that Bayless discriminated against its female employees in its promotion and pay practices, and seeks monetary damages as well as injunctive relief. Following certification of the class under Rule 23(b)(3), Rules of Civil Procedure, 16 A.R.S.,1 notice of the action required by Rule 23(c)(2)2 was sent by first class mail to approximately 3,300 individual [286]*286class members at their last known addresses, as determined from Bayless’ employment records. Of those notices, approximately 672 were returned as undeliverable.

Following a three-week trial conducted solely on the issue of liability, the trial court issued lengthy and detailed findings of fact and conclusions of law, holding inter alia that Bayless had indeed violated Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e, et seq. and the Arizona Civil Rights Act, A.R.S. § 41-1481, et seq., that the class was entitled to injunctive relief, and that it was also “presumptively” entitled to back pay. The real parties in interest then filed a motion requesting the court to approve their proposed plan for notifying class members under Rule 23(d)(2)3 of the adjudication of liability, their potential eligibility for additional salary, and the necessity of filing a claim form. Under the plan, which was prepared by professional media consultants, notice would be given by television, radio and newspaper throughout the state, in addition to individual notice by first class mail. As proposed, the television and radio notices would read as follows:

“The following message is for all present and past female employees of A.J. Bay-less grocery stores: If you have worked at an A.J. Bayless grocery store at any time since July 27th, 1979, you may be eligible for money that should have been paid to you but wasn’t. Because of Bay-less’s discriminatory employment practices, an Arizona superior court has ruled that A.J. Bayless discriminated against its female employees ... and ... the judge will now determine how much back pay female employees are entitled to receive, because of Bayless’s discrimination.
However, you must file a claim form before the deadline. Claim forms were mailed to all female employees in the past ten days. If you haven’t received yours, please call 602-792-3836, and the attorneys for the female employees will send you a form.
Again, if you are a female who has worked at an A.J. Bayless grocery store at any time since July 27th, 1979, you may be eligible for additional salary. If you have not received your claim form, please call 602-792-3836.”

The estimated cost of the proposed media notice is approximately $34,000.

Bayless filed an opposition to the motion, requesting the court to reject the proposed plan on the ground that the notice was “unnecessarily negative and would be highly damaging and prejudicial to Defendant’s business interest____” It further requested the court to eliminate the use of mass media from the class notice procedure and order that alternative means of direct notice be utilized. Arguing that the propriety of the form of notice was governed by the “best notice practicable” standard of Rule 23(c)(2), Bayless contended that the proposed media plan did not meet that standard and that alternative follow-up methods of direct notice should be utilized. Specifically, Bayless requested that notice be sent initially by first class mail and that members be given 45 days from the date of mailing in which to file a proof of claim.

During that period, Bayless would utilize alternative methods to attempt to provide direct notice to those class members whose [287]*287original notices had been returned as undeliverable. These would include (1) preparing a form of notice acceptable to the Social Security Administration to be forwarded to the last known business address of the members; (2) mailing notice to the last known address and guaranteeing postage for forwarding to a new address known by the post office; (3) checking current telephone directories; (4) publishing names of missing class members and requesting them or anyone knowing their whereabouts to contact counsel for the class representative; (5) checking other public records; (6) utilizing the services of a private investigator.

At the conclusion of the 45-day period, if the court believed additional notice were needed, it would be published in newspapers of general circulation in the state. Given the size of the class, the number of members not yet notified, the likelihood that some members had moved out of state, and the cost of the media notice, Bayless argued, its alternative notice procedures were the “best notice practicable under the circumstances____” Rule 23(c)(2).

The trial court conducted a two-day hearing and received testimony directed largely toward the efficacy of the proposed media notice. Following the hearing, the court approved the use of the media plan, finding that newspaper advertisements alone would not be sufficient, that the media plan was well-designed to reach the particular class of women in this lawsuit, and that the cost was not unreasonable under the circumstances. This special action followed.

The issue before us is a very narrow one: In a Rule 23(b)(3) class action, where the class is relatively small in size and the members of the class are known to the parties, and where initial notice of the action under Rule 23(c)(2) by first class mail has failed to reach approximately 23% of the class, does the trial court abuse its discretion in ordering that subsequent notice under Rule 23(d)(2) of the adjudication of liability and the necessity of filing proof of claim be given by publication without first attempting to provide actual notice through alternative methods? For the reasons set forth below, we conclude that this question must be answered in the affirmative. We further find special action relief to be appropriate, inasmuch as those who may be injured by the notice procedures ordered by the trial court—class members who do not receive notice—will not have a remedy by way of appeal. We therefore assume jurisdiction and grant relief.

Before this court, Bayless has argued that the trial court violated its due process rights by ordering the utilization of a form of notice whose cost and negative impact on Bayless is totally disproportionate to the benefits, in terms of achieving actual notice to class members, that are likely to result. While we agree that due process rights are implicated here, it is not a violation of Bayless’ rights that gives us cause for concern, nor are we required to pass on the question of the propriety of the proposed media campaign per se. Rather, the rights in issue here are those of the class members who did not receive the original notice of the pending lawsuit sent by first class mail pursuant to Rule 23(c)(2). Their right to notice must be analyzed initially with reference to the nature of the class action.

A judgment in a class action is binding upon all persons whom the court finds to be members of the class. Rule 23(c)(3).

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Bluebook (online)
700 P.2d 1385, 145 Ariz. 285, 1985 Ariz. App. LEXIS 512, Counsel Stack Legal Research, https://law.counselstack.com/opinion/aj-bayless-markets-inc-v-superior-court-arizctapp-1985.