Baptist Health v. Hutson

2011 Ark. 210, 382 S.W.3d 662, 2011 Ark. LEXIS 197
CourtSupreme Court of Arkansas
DecidedMay 12, 2011
DocketNo. 10-1150
StatusPublished
Cited by13 cases

This text of 2011 Ark. 210 (Baptist Health v. Hutson) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Baptist Health v. Hutson, 2011 Ark. 210, 382 S.W.3d 662, 2011 Ark. LEXIS 197 (Ark. 2011).

Opinion

KAREN R. BAKER, Justice.

| Appellant Baptist Health (“Baptist”) appeals from the Pulaski County Circuit Court’s order granting appellee Andre Hutson’s class-certification motion. This is the second interlocutory appeal. In the first appeal, we reversed the certification because the circuit court’s conclusion — that the requirements of commonality concerning issues of fact and law, predominance, and superiority were satisfied — was an insufficient analysis of class-action factors. See Baptist Health v. Haynes, 367 Ark. 382, 240 S.W.3d 576 (2006) (Baptist I).1 This court has jurisdiction pursuant to Ark. Sup.Ct. R. l-2(a)(7) (2010) because this is a subsequent appeal following an appeal previously decided by this court. Baptist argues on appeal that the circuit court abused its discretion by approving a class definition that impermissibly requires delving into the merits to identify the class members and by finding |2that Rule 23’s requirements of predominance and superiority had been satisfied. We affirm.

After remand in Baptist I, the complaint was voluntarily dismissed pursuant to Ark. R. Civ. P. 41(a). Upon refiling the class-action complaint, Hutson asserted that she underwent outpatient medical tests at Baptist on March 8, 2004, for which she had contracted to pay Baptist’s “regular rates and terms.” She alleged that she was billed an excessive amount, but she ultimately paid the charges. Baptist assessed her charges for five identified medical services (“IMS”) at rates found in the hospital’s master-charge catalog. She was billed pursuant to neither a governmental medical plan or program, nor a separate contract between Baptist and an insurance provider. Hutson argued that Baptist breached its contractual obligation to assess charges at no more than its regular rates and terms by assessing charges of class members at the master-charge-catalog rate and that a class action was the only feasible method to address the controversy as Baptist had breached its contractual obligation to more than one thousand patients for the IMS.

Baptist admitted that it provided medical services or goods to many patients who were not covered by a government plan or an insurance contract wherein prices for medical services had been negotiated. Baptist also admitted that it charges its patients for services or goods according to prices listed in its charge catalog or charge master. Baptist denied that it charged any of its patients an amount in excess of its regular rates and terms. Finally, Baptist asserted that the amount it accepts in satisfaction of a patient’s obligation to pay is subject to numerous factors, including negotiation of prices before or after the rendition of services, ^discounts, and charity care.

The circuit court conducted a hearing on the motion for class certification on July 6, 2010. By order dated July 26, 2010, the circuit court certified the class to include patients who were charged for one or more of the five IMS at the master-charge rates, who did not receive a discount from the master-charge-catalog rates under a government health program or a private insurance contract, and who either paid the charges or remain legally liable for payment. Baptist timely brings this appeal from the July 26, 2010 order.

I. Standard of Review

Class actions are governed by Rule 23 of the Arkansas Rules of Civil Procedure, which provides that one or more members of a class may sue in a representative capacity only if the class is so numerous that joinder of all members is impracticable and there are questions of law or fact common to the class. Ark. R. Civ. P. 28(a). The claims or defenses of the representative parties must be typical of the claims or defenses of the class, and the representative parties and their counsel must fairly and adequately protect the interests of the class. Id. Am action may be maintained as a class action if the prerequisites of subdivision (a) are satisfied, and the court finds that the questions of law or fact common to the members of the class predominate over any questions affecting only individual members, and that a class action is superior to other available methods for the fair and efficient adjudication of the controversy. Ark. R. Civ. P. 23(b). This court has held that the six requirements for class-action certification are (1) numerosity, (2) commonality, (3) typicality, (4) adequacy, (5) ^predominance, and (6) superiority. See Gen. Motors Corp. v. Bryant, 374 Ark. 38, 285 S.W.3d 634 (2008).

The determination that the class-certification criteria have been satisfied is a matter within the broad discretion of the trial court, and this court will not reverse the trial court’s decision absent an abuse of that discretion. ChartOne, Inc. v. Raglon, 373 Ark. 275, 283 S.W.3d 576 (2008). In reviewing a class-certification order, this court focuses on the evidence in the record to determine whether it supports the trial court’s conclusion regarding certification. Id. Neither the trial court nor this court shall delve into the merits of the underlying claims when deciding whether the Rule 23 requirements have been met. Id. In this regard, “ ‘a trial court may not consider whether the plaintiffs will ultimately prevail, or even whether they have a cause of action.’ ” Bryant, 374 Ark. at 42, 285 S.W.3d at 638 (quoting Carquest of Hot Springs, Inc. v. Gen. Parts, Inc., 367 Ark. 218, 223, 238 S.W.3d 916, 920 (2006)). We view the propriety of a class action as a procedural question. See id.

II. Class Definition

The circuit court defined the class as “[a]ll persons, from January 17, 2003, through the date of certification, who signed admissions forms with [Baptist] and were assessed, and either paid or remain legally liable for, charges for payment on the patient’s account for an [IMS] at the master charge catalog rate.” Baptist argues that the circuit court erred in defining the class to include persons who remain legally liable on their patient accounts as that definition requires the court to delve into the merits of the individual claims. Hutson | ¿responds that the circuit court will be able to determine class membership without resolving the ultimate issue in the case because all of the information can be found in the hospital records of the prospective class members.

We acknowledge at the outset that defining the class is not a specified prerequisite to class certification under Rule 23. In order for a class action to be certified, a class must exist. Ferguson v. Kroger Co., 343 Ark. 627, 632, 37 S.W.3d 590, 593 (2001) (quoting 5 Jeremy C. Moore, Moore’s Federal Practice § 23.2(1) (Matthew Bender 3d ed.1997)). The class must first be susceptible to precise definition to ensure that the class is neither “amorphous,” nor “imprecise.” Id. Concurrently, the class representatives must be members of that class. Id. Before a class can be certified under Rule 23, the class description must be sufficiently definite so that it is administratively feasible for the court to determine whether a particular individual is a member of the proposed class. Id.

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Bluebook (online)
2011 Ark. 210, 382 S.W.3d 662, 2011 Ark. LEXIS 197, Counsel Stack Legal Research, https://law.counselstack.com/opinion/baptist-health-v-hutson-ark-2011.