Cascade Corp. v. Sprint Communications Co.

845 F. Supp. 2d 328, 2012 WL 628249, 2012 U.S. Dist. LEXIS 19644
CourtDistrict Court, D. Maine
DecidedFebruary 15, 2012
DocketNo. 2:11-cv-125-JAW
StatusPublished
Cited by1 cases

This text of 845 F. Supp. 2d 328 (Cascade Corp. v. Sprint Communications Co.) is published on Counsel Stack Legal Research, covering District Court, D. Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cascade Corp. v. Sprint Communications Co., 845 F. Supp. 2d 328, 2012 WL 628249, 2012 U.S. Dist. LEXIS 19644 (D. Me. 2012).

Opinion

REPORT OF TELEPHONIC CONFERENCE

NANCY TORRESEN, District Judge.

On July 6, 2011, the parties filed a joint motion for certification of a settlement class and for preliminary approval of a class action settlement achieved by the parties. The Court held a telephonic conference with the parties on January 25, 2012, to express concerns and questions, more fully laid out below, that it had with the proposed settlement and proposed notice to the class. The Court requested additional briefing, and the parties requested and received sixty days to provide the Court with their supplemental briefing. Before the Court could file a report of telephonic conference, the parties, on February 13, 2012, filed a stipulation of dismissal.

This case concerns Maine’s part in a nationwide phenomenon in which telecommunications companies bargained with railroads for the right to place fiber optic cables through rights-of-way owned by the railroads. In the 1990s, owners of property underlying these rights-of-way began taking action against what they perceived to be trespass by the telecommunications companies on their property. Whether or not there was a trespass was informed by the grant of rights to the railroads, which often did not include a right to use the right-of-way for non-railroad purposes. In some cases, the right-of-way may have even lapsed through disuse and all rights once owned by the railroad may have reverted to the owners of the fee underlying the right-of-way.

Decades if litigation in numerous jurisdictions involving various railroads and telecommunications companies ensued. The class action format was used to bring together the large numbers of landowners underlying either side of these railroad rights-of-way. An early case, Hinshaw v. AT &T Corp., 1998 WL 1799019 (Ind.Super. Aug. 24, 1998) (unpublished), granted certification to a nationwide class of plaintiffs. However, over the years, the courts handling these cases came to a consensus that the claims involved in this litigation are not susceptible to multidistrict litigation. See e.g. Smith v. Sprint Communications Co. et al., 387 F.3d 612 (7th Cir.2004) (overturning certification of a nationwide class, observing that the settlement “does not provide the ‘structural assurance of fair and adequate representation’ prior to the settlement itself that Rules 23 demands.” (internal citations omitted)), Gipson v. Sprint Comm. Co., 2003 OK CIV APP 89, ¶ 29, 81 P.3d 65 (Ok.App.2003) (denying a nationwide class certification and stating “The Hinshaw opinion ... ignores the difficulties in managing such a class ... ”), Hallaba v. Worldcom Network Services Inc., 196 F.R.D. 630 (N.D.Ok.2000) (denying multidistrict class certification and disagreeing with the Hinshaw decision.)

[330]*330Nevertheless, counsel for both sides, at least within the history of this litigation, continued to try for a multi-district resolution. The litigation underlying this case, which involves property in 46 different jurisdictions, was mediated in Boston in 2007, but the United States District Court for the District of Massachusetts denied final approval of the settlement due to lack of jurisdiction over any of the claims outside of Massachusetts. Kingsborough v. Sprint Communications Co. et al., 673 F.Supp.2d 24, 31 (D.Mass.2009) (“An action for trespass upon land, like an action to recover the title or the possession of the land itself, is a local action, and can only be brought within the state in which the land lies ... ”). Most recently, on August 8, 2011 the U.S. Judicial Panel on Multidistrict Litigation denied the parties’ request for centralization of the dispute. In re: Telecommunications Providers’ Fiber Optic Cable Installation Litigation, 802 F.Supp.2d 1364, 1365 (Jud.Pan. Mult.Lit.2011) (“The same factors that warranted denial of the initial motion for centralization in 2002, the absence of common factual issues, the advanced stage of the proceedings and the existence of a settlement agreement — apply with greater weight now.”)

When this Court was presented with the parties’ request for preliminary approval of the Maine portion of their settlement, the Court reviewed the history of this litigation and of other similar cases in an attempt to get a handle on the issues, which were presented in only the broadest of strokes by the parties in their request for certification and preliminary approval. The Court observed in its research that, despite the apparent validity of most of the plaintiffs’ claims in such cases, plaintiffs were usually thwarted in their efforts to obtain certification of a litigation class. See e.g. Isaacs v. Sprint Corp. et al, 261 F.3d 679, 682 (7th Cir.2001) (reversing certification of a nationwide litigation class in this litigation, stating, “this is hardly a case in which class action treatment is obviously appropriate. Quite the contrary, it seems decidedly inappropriate,” and citing the diversity of individual interests and laws applying to the proposed class), Neidhardt v. TCI Midcontinent LLC, 2011 WL 1527030 (D.N.D. April 20, 2011) (denying certification of a litigation class due to lack of typicality), Kirkman v. North Carolina Railroad Co. et al., 220 F.R.D. 49 (M.D.N.C.2004) (denying certification of a litigation class due to lack of commonality, typicality and superiority), Johnson v. Kansas City Southern et al., 224 F.R.D. 382 (S.D.Miss.2004) (denying certification of a litigation class because of a lack of predominance — specifically that the identification of qualifying class members and of the strength of their claims would have required individualized review of thousands of title documents), Nudell v. Burlington Northern and Santa Fe Railway Co., 2002 WL 1543725 (D.N.D. July 11, 2002) (denying certification of a multi-district litigation class due to lack of predominance and typicality), Ostler v. Level 3 Communications, Inc., 2002 WL 31040337 (S.D.Ind. Aug. 27, 2002) (denying certification to a statewide litigation class due to lack of predominance and superiority).1

[331]*331The settlement proposed in this case would require landowners along a 41-mile stretch of railroad through York and Cumberland counties to provide perpetual telecommunications easements to Sprint in exchange for up to $1.38 per linear foot of easement. The $1.38 amount comprises payment not only for the easement to be provided going forward, but also damages for any trespass that had occurred between 1988 when the cable was laid and the present day. A complicated scheme involving proof of ownership throughout the entire claim period and pro-rating the $1.38 per foot amount among past and present landowners is proposed. The parties do not identify where the railroad right-of-way lies, nor do they identify the current landowners whose properties will be affected by the proposed easement.

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Bluebook (online)
845 F. Supp. 2d 328, 2012 WL 628249, 2012 U.S. Dist. LEXIS 19644, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cascade-corp-v-sprint-communications-co-med-2012.