Castano v. American Tobacco Co.

162 F.R.D. 112, 1995 U.S. Dist. LEXIS 6918, 1995 WL 329942
District Court, E.D. Louisiana·Decided May 15, 1995·No. Civ. A. No. 94-1044·Published·Cited by 3 cases

Opinion

ORDER AND REASONS

JONES, District Judge.

Pending before the Court is defendants’ “Motion for Certification of Class Certification Order of February 17, 1995, and Preemption Ruling in Orders of November 15, 1994, and September 22, 1994, for Interlocutory Review and Stay of Proceedings Pursuant to 28 U.S.C. § 1292(b).” Having reviewed the memoranda of the parties, the record, and the applicable law, the Court GRANTS the motion in part and DENIES the motion in part.

Background

Plaintiffs filed this “Class Action Complaint” and a “First Amended Class Action Complaint” alleging, in essence, that defendants fraudulently failed to inform smokers that nicotine is addictive, despite defendants’ possession of such knowledge. Defendants are various tobacco companies1 and the Tobacco Institute, Inc.

[115]*115Plaintiffs alleged a number of causes of action: fraud and deceit; negligent misrepresentation; intentional infliction of emotional distress; violation of consumer protection statutes under state law; breach of express warranty; breach of implied warranty; strict product liability and redhibition under Louisiana law. Plaintiffs also sought declaratory judgment in a number of related areas.

Following a lengthy hearing and voluminous briefing by the parties on the issue of class certification, this Court conditionally certified a class pursuant to Fed.R.Civ.P. 23(b)(3) and 23(c)(4) only as to the liability issues of fraud, breach of warranty (express or implied), intentional tort, negligence, strict liability and consumer protection and as to the issue of punitive damages. (Order and Reasons, February 17, 1995, R.Doc. 269.) The Court refused to certify this matter as a class for any other purpose. Id.

Defendants now seek this certification of that ruling for interlocutory review pursuant to 28 U.S.C. § 1292(b). Defendants also seek certification for interlocutory appeal of the preemption rulings of September 22 and November 15, 1994,2 and for a stay of these proceedings.

Plaintiffs oppose certification of any issues and/or a stay of this matter.

Law and Application

Section 1292(b) sets forth three criteria, “all of which must be met before the district court may properly certify an interlocutory order to appeal.” Aparicio v. Swan Lake, 643 F.2d 1109, 1110, n. 2 (5th Cir.1981). The district court must certify in wilting that there is a controlling issue of law involved in the order of the court at issue, that there is substantial ground for difference of opinion, and that an immediate appeal from the order may materially advance the ultimate termination of this litigation. Id.3

The legislative history “indicates that [Section 1292(b) ] is to be used only in ‘exceptional situations’ in which allowing an interlocutory appeal would avoid protracted and expensive litigation.” Total Benefit Services, Inc. v. Group Insurance Administration, 1993 WL 98675, *1 (E.D.La.1993) (Livaudais, J.). The Fifth Circuit’s policy against piecemeal appeals is in accord with this legislative history. See Clark-Dietz & Assoc. v. Basic Construction, 702 F.2d 67, 69 (5th Cir.1983); Traffic Scan Network, Inc. v. Winston, 1993 WL 390144, *2 (E.D.La.1993) (Sear, C.J.).

With these policies in mind, the Court examines its class certification ruling against the backdrop of the requirements of Section 1292(b). The Court then addresses certification for interlocutory review of the previous rulings of the Court. Finally, the Court analyzes whether a stay is necessary and proper in this matter.

A. Certification for Interlocutory Review of Class Certification

The first issue is whether the Court’s conditional certification for class purposes of certain issues involves a controlling question of law. In addressing the “controlling question of law” language of § 1292(b), the court in In re Cement Antitrust Litigation (MDL No. 296), 673 F.2d 1020, 1026-27 (9th Cir. 1982), concluded: “[A]ll that must be shown in order for a question to be ‘controlling’ is that resolution of the issue on appeal could materially affect the outcome of the litigation in the district court.” (Citation omitted.)

Having relied on Jenkins v. Raymark Industries, Inc., 782 F.2d 468 (5th Cir.1986) in support of the decision to certify the present class, the Court agrees with Judge Parker, who, after certifying the class for asbestos cases, found that “[i]t should go without saying that the order of certification ... is ... [116]*116the controlling question of law affecting the disposition of 893 claims comprising the class.” Jenkins v. Raymark Industries, Inc., 109 F.R.D. 269, 287 (E.D.Tex.1985), aff'd, 782 F.2d 468 (5th Cir.1986). Similarly, the limited class certification in this matter is a controlling issue of law affecting thousands, if not millions, of cases that could proceed against the defendants in this case. See Affidavit of Wendell Gauthier, R.Doc. 245 (discussing the number of cases waiting to be filed pending the class certification ruling).

The second question is whether there is a substantial ground for difference of opinion as to the class certification. Both parties have cited numerous cases on this issue, not only in their argument as to whether the class should be certified but also as to whether there is a substantial ground for difference of opinion as to the propriety of class certification.

Again, the Court turns to the underlying orders in Jenkins and another case on which the Court relied in reaching its class certification decision, Watson v. Shell Oil Co., 979 F.2d 1014 (5th Cir.1992), reh’g en banc granted, 990 F.2d 805 (5th Cir.1993). In Jenkins Judge Parker found that there was a substantial difference of opinion as to the use of “class action mechanisms in mass exposure to products containing toxic substances over a substantial period of time.” Jenkins, 109 F.R.D. at 287-88. Similarly, Judge Mentz in Shell Oil Co. found that there is “substantial ground for difference of opinion about the propriety of a Rule 23(b)(3) certification of a mass accident class action.” “Order,” C.A. No. 88-1935, Section I, March 21, 1991, p. 1 (E.D.La.).4

In the present case, there are allegations of fraud, strict liability and other causes of action that bear strong resemblance to, although not exactly similar as Jenkins or Shell Oil Co.

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Castano v. American Tobacco Co., 162 F.R.D. 112, 1995 U.S. Dist. LEXIS 6918, 1995 WL 329942 (E.D. La. 1995).

162 F.R.D. 112 (Castano v. American Tobacco Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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