America Online, Inc. v. Williams

958 S.W.2d 268, 1997 WL 719164
CourtCourt of Appeals of Texas
DecidedJanuary 22, 1998
Docket14-97-00451-CV
StatusPublished
Cited by101 cases

This text of 958 S.W.2d 268 (America Online, Inc. v. Williams) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
America Online, Inc. v. Williams, 958 S.W.2d 268, 1997 WL 719164 (Tex. Ct. App. 1998).

Opinion

OPINION

AMIDEI, Justice.

This is an interlocutory appeal from an order certifying a class in a DTPA action against appellant,. America Online, Inc. (AOL), an online computer services provider. See Tex. Crv. Prao. & Rem.Code Ann. § 51.014(3) (Vernon 1997). AOL presents an issue of first impression, contending the trial court abused its discretion by certifying a class during the mandatory abatement period provided by the DTPA when a plaintiff fails to give pre-suit notice to the defendant. We reverse and remand.

On December 1,1996, AOL began offering a flat-fee plan instead of a per-minute rate for its online services. The resulting increased usage exceeded its expectations and resulted in subscribers having difficulty obtaining access to AOL’s network. AOL attempted to resolve customer complaints and on February 4, 1997 executed a negotiated agreement with the attorneys general of 45 states, including Texas, which provided for subscribers to receive refunds or credits (the Assurance of Voluntary Compliance, or AVC). There is also a nationwide class suit against AOL that was filed in Illinois on December 18, 1996 in which a preliminary settlement has been reached. 1

Christy L. Williams and William M. Buss, the named plaintiffs in this action, filed suit on January 24, 1997, alleging AOL violated *271 the DTPA. See Tex. Bus. & Com.Code Ann. §§ 17.041-.063 (Vernon 1987 & Supp.1997). Specifically, appellees sought damages under section 17.50(b)(1). Tex. Bus. & ComlCode Ann. § 17.50(b)(1) (Vernon Supp.1997). AOL filed an answer on February 17, 1997. On February 26, 1997, appellees filed a motion to certify the class. AOL then filed a verified plea in abatement on March 12, 1997. It also filed a motion to dismiss the action pursuant to a forum selection clause in the subscriber agreements. Appellees filed a response to AOL’s plea in abatement on March 18, 1997, contending that pre-suit notice was unnecessary because appellant entered a potential settlement agreement with the Texas Attorney General’s office. Attached was an affidavit from appellees’ attorney, James Pearson, setting forth the facts pertaining to the suit filing, service, and the execution of the AVC. 2 On April 2 and April 3, 1997, appellees filed their First and Second Amended Petitions, adding two additional plaintiffs and additional causes of action. On April 3, 1997, the trial court conducted a certification hearing, during which AOL objected to the court’s consideration of certification during the automatic abatement period. The court announced its decision to order certification and heard AOL’s objections. The trial court executed its order certifying a class of “[a]ll AOL subscribers throughout Texas who were subscribers to AOL on December 1, 1996 or who became subscribers on that date or thereafter until and including April 1, 1997.” After the court certified the class, it then abated the action for the applicable period after “proper DTPA notice.”

Initially, appellees argue that only part of this action is appealable. Appellees recognize that an order granting or denying class certification is appealable. See Tex. Civ. PraC. & Rem.Code Ann. § 51.014(3) (Vernon 1997). Appellees argue that AOL is also attempting to obtain review of an order granting or denying a plea in abatement. An order on a plea in abatement is not an ap-pealable order. See Harper v. Welchem, Inc. 799 S.W.2d 492, 495 (Tex.App.—Houston [14th Dist.] 1990, no writ) (“An order that merely sustains a plea in abatement is interlocutory and not appealable.”). When a plaintiff fails to give a statutory notice that is a prerequisite to filing suit and a defendant’s timely request for an abatement is denied, that defendant is entitled to seek review of the court’s denial by mandamus. Hines v. Hash, 843 S.W.2d 464, 469 (Tex.1992) (construing DTPA notice provision). Alternatively, a defendant may wait to appeal from the final judgment when seeking review of a denial of abatement, but the trial court’s error must be shown to have been harmful to obtain reversal. Id.

Texas courts strictly construe statutes authorizing interlocutory appeals. See Tober v. Turner of Tex., Inc., 668 S.W.2d 831, 835 (Tex.App.—Austin 1984, no writ). In class certification appeals, however, the appellate court has jurisdiction over matters related to certification that are also included in the order. American Express Travel Related Servs. Co. v. Walton, 883 S.W.2d 703, 707 (Tex.App.—Dallas 1994, orig. proceeding) (since the trial court had disposed of issues of class size and notification in its order certifying the class, the appellate court had jurisdiction to review those collateral issues). Section 51.014 allows a party to complain of all matters pertaining to certification of the class decided by the interlocutory order certifying or refusing to certify a class. Id.

*272 In this ease, a proper review of the trial court’s certification order requires us to consider the court’s failure to abate the action until after it certified the class. AOL does not complain that the trial court later abated the action and its appeal is not from the abatement order. Therefore, we conclude we have jurisdiction to review the trial court’s action.

In AOL’s first point of error, it alleges the trial court abused its discretion in certifying a class during the automatic and mandatory DTPA abatement period, thereby depriving it of the opportunity to resolve the claims asserted by the named plaintiffs. See Tex. Bus. & Com.Code Ann. § 17.505(d) (Vernon Supp.1997). AOL argues that the trial court had no authority to proceed during the abatement period. “An abatement is a present suspension of all proceedings in a suit.” Permanente Med. Ass’n of Tex. v. Johnson, 917 S.W.2d 515, 517 (Tex.App.—Waco 1996, orig. proceeding) (granting writ of mandamus when trial court, only partially abated proceedings). “Suspend” means “to interrupt; to cause to cease for a time; to postpone; to stay, delay, or hinder; to discontinue temporarily, but with an expectation or purpose of resumption.” Black’s Law Dictionary 1446 (6th ed. 1979). Abatement precludes the trial court and the parties from going forward on a ease. Martinka v. Commonwealth Land Title Ins. Co., 836 S.W.2d 773, 777 (Tex.App.—Houston [1st Dist.] 1992, writ denied) (title insurer was judicially prevented from defending title during abatement period); Lumbermens Mut. Cas. Co. v. Garza, 111 S.W.2d 198, 199 (Tex.App.—Corpus Christi 1989, orig. proceeding) (discovery requests filed during the period of abatement were a legal nullity).

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Bluebook (online)
958 S.W.2d 268, 1997 WL 719164, Counsel Stack Legal Research, https://law.counselstack.com/opinion/america-online-inc-v-williams-texapp-1998.