Coburn v. 4-R Corp.

77 F.R.D. 43, 24 Fed. R. Serv. 2d 846, 1977 U.S. Dist. LEXIS 12307
CourtDistrict Court, E.D. Kentucky
DecidedDecember 19, 1977
DocketCiv. No. 77-79
StatusPublished
Cited by36 cases

This text of 77 F.R.D. 43 (Coburn v. 4-R Corp.) is published on Counsel Stack Legal Research, covering District Court, E.D. Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Coburn v. 4-R Corp., 77 F.R.D. 43, 24 Fed. R. Serv. 2d 846, 1977 U.S. Dist. LEXIS 12307 (E.D. Ky. 1977).

Opinion

ORDER

CARL B. RUBIN, District Judge.

This matter is before the Court for consideration of certification as a class action.

The litigation herein arises out of a fire at the Beverly Hills Supper Club, South-gate, Kentucky, on May 28, 1977.

The plaintiffs in these actions are either representatives of the estates of persons killed, representatives of next-of-kin of persons killed, or persons themselves injured in such fire. There appears to be a common status of business invitees among those killed or injured with apparently identical actions against the defendants. At this point in the litigation it would seem that a defendant is either liable to all business invitees or he is liable to none.

Rule 23 of the Federal Rules of Civil Procedure imposes specific obligations upon a District Court where class action status is sought. The Court must make a determination “as soon as practicable whether it is to be so. maintained”, Rule 23(c)(1), Fed.R.Civ.P.; See also Senter v. General Motors, 532 F.2d 511 (6th Cir. 1976), cert. denied 429 U.S. 870, 97 S.Ct. 182, 50 L.Ed.2d 150 (1977).

Rule 23(a) permits a member of a class to sue as a representative party of: [1] a class so numerous that joinder of all members is impracticable (Rule 23(a)(1), Fed.R.Civ.P. [Numerosity]; [2] with common questions of law or fact, Rule 23(a)(2), Fed.R.Civ.P. [Commonality]; [3] where the claims of the representatives are typical of the claims of the class, Rule 23(a)(3), Fed.R.Civ.P. [Typicality]; and [4] where such representative party will fairly and adequately protect the interests of the class, Rule 23(a)(4), Fed.R. Civ.P. [Fair Representation]).

If the foregoing are satisfied, there must be in addition the existence of a fact situation described in Rule 23(b)(1), (2) or (3).

For purposes of this discussion the Court will limit its consideration to Subsection (b)(1).

The prosecution of separate actions by . individual members of the class would create a risk of . adjudication . . . which would . substantially impair or impede their [other members of the class] ability to protect their interests .

I

PREREQUISITES TO A CLASS ACTION

“Numerosity” — 23(a)(l)

We deal with a class in excess of 200.1 The United States Court of Appeals for the Sixth Circuit has previously held that a class of 35 was sufficient to meet the numerosity requirement. Afro American Patrolmen’s League v. Duck, 503 F.2d 294 (6th Cir. 1974).

“Commonality” — 23(a)(2)

As business invitees injured or killed on the premises of the invitor, the questions of law as to liability at least would be common to all such persons. It is not apparent at this time that any defendant could assert a defense against only a single invitee.2

All plaintiffs share a common interest in the distribution formula of whatever fund may exist.

“Typicality” — 23(a)(3)

The proposed representative of the class asserts claims that are typical of the class because she is the legal representative of a business invitee killed on the premises. For purposes of the determination of liabili[45]*45ty at least, the claims of the representative are the claims of the class as above noted.

“Adequate Representation” — 23(a)(H)

This Court has previously approved a committee of lead counsel who are experienced in tort litigation, class action litigation and the substantive law of Kentucky. The ability and dedication of lead counsel insure that the class will have representation equal to the best in this area. The class is truly in good hands.

In view of the foregoing the Court finds that each of the prerequisites of Rule 23(a), Fed.R.Civ.P., have been met.

II

CLASS ACTIONS MAINTAINABLE

The requirements of Rule 23(b), Fed.R. Civ.P., present a more difficult problem. The application of class actions to mass tort situations is not uniform. While there is a division among commentators and among the courts that have considered this question, there is no guidance to be found in this circuit. Neither the United States Court of Appeals for the Sixth Circuit, nor any District Court in this circuit has published a consideration of the question.

A holding that this matter is maintainable in accordance with Rule 23(b)(1), Fed.R. Civ.P., finds support in the scholarly reasoning of The Honorable C. Clyde Atkins in the case of Hernandez v. Motor Vessel Skyward, 61 F.R.D. 558, aff’d without published opinion 507 F.2d 1278 (5th Cir. 1975). Of significance to the matter at hand, Judge Atkins dealt with a mass tort situation with a limited common fund exhaustable by some of the prospective claimants.3

To support the view that we deal with a limited fund, probably inadequate to meet all claims of those killed and injured, the Court notes the following: 1. Claims well in excess of $1,500,000,000 have already been asserted in the suits now on file. 2. Judgments in 164 actions for wrongful death alone might reasonably exceed $16,-000,000. Verdicts in excess of $100,000 for wrongful death are not unusual and verdicts in excess of $500,000 are not unknown. Damages for injuries are not calculable at this stage.

3. Defense counsel has advised the Court that assets of defendant 4-R Corporation are of the order of $3,000,000.

4. Five individuals and five employees of the Commonwealth of Kentucky have been sued personally with both the extent of their liability and an ability to respond in damages being unknown.

5. Two public defendants, the Commonwealth of Kentucky and the City of South-gate have been dismissed by reason of sovereign immunity. (See Orders of November 18, 1977 and November 30, 1977)

6. The Union Light, Heat & Power Company is likewise a party defendant with unknown aspects of liability and ability to respond.

There is good reason to believe from the foregoing that total judgments might substantially exceed the ability of defendants to respond. The Court makes no determination of liability of any or all defendants. It cannot be stated with assurance that judgments, if obtained, would be unpaid. But, it likewise cannot be said with assurance that judgments for wrongful death and injuries reasonably foreseeable could be satisfied in toto. In no event, however, should this litigation become an unseemly race to the courtroom door with monetary prizes for a few winners and worthless judgments for the rest.

As a counter to Hernandez, there is authority which holds that mass tort litigation does not lend itself to class action. Indeed, the United States Court of Appeals for the Ninth Circuit has specifically held that paragraphs (b)(1) and (b)(2) of Rule 23

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Bluebook (online)
77 F.R.D. 43, 24 Fed. R. Serv. 2d 846, 1977 U.S. Dist. LEXIS 12307, Counsel Stack Legal Research, https://law.counselstack.com/opinion/coburn-v-4-r-corp-kyed-1977.