Berman v. Narragansett Racing Ass'n

48 F.R.D. 333, 13 Fed. R. Serv. 2d 642, 1969 U.S. Dist. LEXIS 13616
CourtDistrict Court, D. Rhode Island
DecidedOctober 31, 1969
DocketCiv. A. Nos. 3913, 3914
StatusPublished
Cited by44 cases

This text of 48 F.R.D. 333 (Berman v. Narragansett Racing Ass'n) is published on Counsel Stack Legal Research, covering District Court, D. Rhode Island primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Berman v. Narragansett Racing Ass'n, 48 F.R.D. 333, 13 Fed. R. Serv. 2d 642, 1969 U.S. Dist. LEXIS 13616 (D.R.I. 1969).

Opinion

OPINION

PETTINE, District Judge.

This is a class action commenced by the plaintiffs in March of 1968. The relevant facts are set out in the previous decision of this court, Berman v. Narragansett Racing Ass’n, Inc., 293 F.Supp. 1258 (D.R.I. 1968) and clarified in the decision of the First Circuit in this case. Berman et al. v. Narragansett Racing Ass’n, Inc., et al., 414 F.2d 311 (1st Cir. 1969). The defendants moved to dismiss this action on four separate grounds and to strike certain allegations in the complaint on April 29, 1968. After a hearing on the motion, the court dismissed the action on jurisdictional grounds on October 24, 1968. The First Circuit reversed on July 31, 1969, and the case is now here on several questions yet to be resolved.

Defendants’ motions to dismiss on the three remaining grounds are still to be resolved, as well as defendants’ motions to strike. Moreover, plaintiffs have asked the court to issue notice and to grant temporary restraining relief. Defendants argue that plaintiffs’ request for an order of notice is premature and that plaintiffs’ request for injunctive relief must be denied as a matter of law.

MOTIONS TO DISMISS

The defendants have withdrawn that portion of their motions to dismiss which seeks dismissal . for failure of plaintiffs to join an indispensable party. That ground is therefore disposed of and will not be discussed.

The defendants have moved to dismiss for failure to state a claim upon which relief can be granted. However, as the First Circuit has made clear “* * * the gravamen of the complaint is that for over three decades the defendants had failed to pay to the plaintiff pursewinners certain monies alleged to be theirs under annual purse agreements, and that this fact had been fraudulently concealed from them by the defendants.” The First Circuit decision suggests, and this Court now holds, that a valid claim for breach of contract has been stated by plaintiffs.

The defendants argue that the decision of the First Circuit does not foreclose this Court from now considering the issue of the maintainability of this class action. The defendants argue further that the record is presently in[336]*336sufficient to determine the maintainability of this class action. While the Court agrees that the issue of maintainability is still technically open to it, at least as regards grounds of maintainability other than those discussed by the New Hampshire court and by the First Circuit, the Court is persuaded by the decision of the First Circuit that this is indeed a maintainable class action. No further evidence is needed to reach this holding. The Court will discuss the maintainability and definitional facets of this class action in more detail when it reaches the questions of class action administration.

MOTION TO STRIKE

Plaintiffs have agreed to strike that portion of paragraph 9 beginning on the second line with the words “One David Alexander” and ending on the tenth line with the words “ ‘the race tracks.’ ” Otherwise, the Court is of the opinion that the defendants’ motions to strike are incorrect and that the complaint well pleads a claim for breach of contract.

PRELIMINARY INJUNCTION

Plaintiffs have requested that an order of this court issue requiring the defendants to show cause why the court should not set aside in a separate fund monies of the defendants, should damages ultimately be recovered. Defendants argue that this request should be denied as a matter of law. The issuance of equity relief is a matter of discretion. In this case, the court’s discretion is informed that the plaintiffs really are seeking to have set aside in advance of judgment certain of the defendants’ assets as a protection against possible insolvency by the defendants. However, plaintiffs have failed to show and have not requested to be allowed to show any insolvency on the part of defendants. In these circumstances, moreover, it is none too difficult for the court to state that there is indeed an adequate remedy at law, namely, the plaintiff’s claim for damages for breach of contract. The court, moreover, notices that plaintiffs have seen fit to attach property of the defendants equal in value to the damages here claimed. The request for preliminary restraining and sequestration relief is denied without prejudice to renewal should plaintiffs wish to request a hearing on the question of protecting their possible recovery from possible insolvency on defendants’ part.

ADMINISTRATION OF THE CLASS ACTION

For a class action to be maintained, there must be satisfaction of all the elements of section (a) of Rule 23 and of at least one of the three (b) sections of Rule 23. Moreover, the current practice is to determine maintainability of the class and to identify and structure the class at the earliest pragmatically wise moment. See Rule 23(c) (1). No sensible argument can seriously be made that that moment is not now upon us in this class action. The court’s awareness of the nature of this action, the extensive passing of time since this action has been commenced, the steady and detailed motion practice regarding this case, and the fact of and substance of the decision of the First Circuit all suggest that now is the moment. Contrary to defendants’ contentions, there is no need for a preliminary evidentiary hearing to determine maintainability.

Fed.R.Civ.P. 23(a) states in pertinent part:

“One or more members of a class may sue * * * as representative parties on behalf of all only if (1) the class is so numerous that joinder of all members is impracticable, (2) there are questions of law or fact common to the class, (3) the claims or defenses of the representative parties are typical of the claims or defenses of the class, and (4) the representative parties will fairly and adequately protect the interests of the class.”

[337]*337In the instant case it is clear that the class includes at least 5,000 members and cannot be pursued in any practical sense by joinder devices. Clearly, moreover, the predominating question of both fact and law in this suit is the common one of whether the defendants’ consensual arrangement with the plaintiffs includes a promise to pay 44.7% of the track’s shares of the breakage money. Indeed, save the problem of distribution, hereinafter to be discussed, commonness of law and fact abounds. The particular claims of the three class plaintiffs are certainly typical of the class. Indeed, in the light of the decision of the Circuit Court it can almost be said that the claims of all the class members are identical on the issue of contractual liability. Finally, no serious argument can now be made that the plaintiffs’ representation will be unfair or inadequate. The decision of the First Circuit is a bar to any other conclusion and its holding regarding the problem of antagonism is well taken. In sum, the requisites of Rule 23(a) are met.

Turning to the problem of characterization of the class, it must be concluded, in light of the decision of the First Circuit, that this is a (b) (1) class action under either subsection (A) or subsection (B) thereof.

Fed.R.Civ.P. 23(b) (1) (A) (B) states in pertinent part:

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Bluebook (online)
48 F.R.D. 333, 13 Fed. R. Serv. 2d 642, 1969 U.S. Dist. LEXIS 13616, Counsel Stack Legal Research, https://law.counselstack.com/opinion/berman-v-narragansett-racing-assn-rid-1969.