Brown v. Colegio De Abogados De Puerto Rico

277 F.R.D. 73, 2011 U.S. Dist. LEXIS 35135, 2011 WL 1260114
District Court, D. Puerto Rico·Decided March 30, 2011·No. Civil No. 06-1645 (JP)·Published·Cited by 1 cases

Opinion

ORDER

JOSÉ ANTONIO FUSTÉ, Chief Judge.

Before the Court is José Nieves-Trilla, Eugenio Alemañy-Fernández, Quintín Morales-Ramirez, Carlos Sotomayor-Rodríguez, Ramón Quiñones, José Arsuaga, R.A. De Castro, David Vélez, Judith Torres-Medina, Federico Cedó-AIzamora, Carlos M. Franco, Peter Trías-Grimes (represented by attorney Héctor Meléndez-Cano), Carlos Ríos-Her-nández, Carlos Rivera-Davis, Rubén Vélez-Torres, Pablo Valentín-Torres, and Carlos Pérez-Zavala’s (“Putative Intervenors”) motion (No. 508) requesting intervention as a matter of right, an extension of the opt-out [75]*75period, and decertification of the damages class. For the reasons stated herein, said motion is hereby DENIED.1

I.

INTRODUCTION

On June 27, 2006, Class Plaintiffs filed the instant class action against Colegio de Abo-gados de Puerto Rico (“Colegio”) alleging that Colegio had violated the First Amendment rights of its members. Thereafter, Class Plaintiffs moved to certify two classes, one for declaratory relief and one for damages, and moved for summary judgment arguing that the decision in Romero v. Colegio de Abogados de Puerto Rico, Civil Case No. 94-2503, had preclusive effect in the instant action.

On July 31, 2008, the Court certified both of the requested classes. The damages class, certified under Fed.R.Civ.P. 23(b)(3), consists of all attorneys practicing in the Commonwealth of Puerto Rico local courts from 2002-2006, who were obligated to pay Colegio their yearly annual membership renewal fee in order to practice law in this jurisdiction. The Court then entered summary judgment and Final Judgment for the Class Plaintiffs on September 25, 2008, finding that Colegio’s compulsory life insurance program violated the federal constitution.2 The Court later amended its Judgment to add damages in the amount of $4,156,988.70, plus costs, interest, and attorney’s fees.

Colegio appealed. On July 23, 2010, the First Circuit Court of Appeals issued an opinion in which it affirmed this Court’s finding of liability, that Colegio breached its members federal constitutional rights, and the Court’s decision to grant injunctive relief. The First Circuit also affirmed the classes certified in this case. However, the First Circuit vacated this Court’s Judgment insofar as it determined the amount of damages. The First Circuit ordered the Court to provide class members with notice including their right to opt-out. After the expiration of the notice period, the First Circuit authorized the Court to reinstate the damage award as calculated before but this time excluding damages otherwise attributable to those who opted-out of the class.

After the case was remanded, the parties and the Court began, on September 2, 2010 (No. 168), the process of preparing a notice to be issued to class members with the Court-approved opt-out procedures. Prior to the Class Action Notice establishing the opt-out procedures being issued and as early as October 18, 2010, various petitions were filed with the Court requesting to opt-out of the damages class. Also, prior to the issuance of the Class Action Notice and to the Court approving the procedures for opting-out, Co-legio began issuing communications (Nos. 183 and 188) to class members requesting that they opt-out through a form distributed by Colegio.

As such, Class Plaintiffs filed a motion for a protective order arguing that the communications being disseminated by Colegio were misleading. After considering the arguments, Judge Jaime Pieras, Jr. determined that the communications issued by Colegio were both misleading and aimed at coercing class members into opting-out (No. 202). Judge Pieras also determined that the opt-out forms submitted through the electronic filing system would not be considered valid since class members had not had the opportunity to receive the neutral Class Action Notice with the Court-approved opt-out procedures and since class members could have easily have been misled by Colegio’s communications. Accordingly, Judge Pieras entered a narrowly tailored protective order precluding Colegio from communicating di[76]*76rectly or indirectly with class members without prior leave of Court regarding this litigation or the claims therein until the class notice was provided and the opt-out procedures were completed.

The Class Action Notice in this case was officially mailed on January 26, 2011 to class members utilizing the addresses produced by Colegio. Said notice established a simple Court-approved procedure for opting-out and provided class members with a neutral and accurate account of the proceedings in this case.3 To opt-out, class members had to mail and postmark a letter, on or before February 26, 2011, to the Brown v. Colegio de Aboga-dos Administrator (the “Administrator”) stating “I do not want to be part of the Damages Class in Broum v. Colegio de Abogados de Puerto Rico, CV 06-1645(JP).” Said request had to be signed, and include the name, address and telephone number of the class member. Also, the notice stated that the address listed should be the address to which the notice was mailed so that individual class members could be easily identified.

After the Class Action Notice was sent, Colegio decided to violate the protective order in this case and began disseminating more inaccurate and misleading information to class members. There is no need to go into the misinformation disseminated by Co-legio as said misinformation has been accurately summarized in multiple orders including the Court’s order finding Colegio in civil contempt (Nos. 319, 384, and 398).

Putative Intervenors filed their motion on March 25, 2011. In it, they argue that: (1) they should be allowed to intervene as a matter of right; (2) the opt-out period should be extended or, alternatively, that the Court should permit them to consign with the Court any damages they are entitled to in lieu of requiring Colegio to pay said damages; (3) the damages class should be decer-tified for failure to comply with the adequate representation requirement;4 and (4) attorney Judith Berkan be appointed as counsel for the Putative Intervenors.

II.

INTERVENTION AS A MATTER OF RIGHT

To intervene as a matter of right under Rule 24(a)(2), “a putative intervenor must establish (i) the timeliness of its motion to intervene; (ii) the existence of an interest relating to the property or transaction that forms the basis of the pending action; (iii) a realistic threat that the disposition of the action will impede its ability to protect that interest; and (iv) the lack of adequate representation of its position by any existing party.” R & G Mortgage Corp. v. Federal Home Loan Mortgage Corp., 584 F.3d 1, 7 (1st Cir.2009). Failure to meet any one of these requirements will doom the attempt at intervention. Id. Also, a motion to intervene “must state the grounds for intervention and be accompanied by a pleading that sets out the claim or defense for which intervention is sought.” Fed.R.Civ.P. 24(c) (emphasis added).

A.

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Brown v. Colegio De Abogados De Puerto Rico, 277 F.R.D. 73, 2011 U.S. Dist. LEXIS 35135, 2011 WL 1260114 (prd 2011).

277 F.R.D. 73 (Brown v. Colegio De Abogados De Puerto Rico) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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