Coleman v. Block

100 F.R.D. 705, 37 Fed. R. Serv. 2d 699
District Court, D. North Dakota·Decided October 28, 1983·No. Civ. No. A1-83-47·Published·Cited by 14 cases

Opinion

MEMORANDUM AND ORDER

VAN SICKLE, District Judge.

The plaintiffs in this action have moved for leave to file an amended class action complaint. The amended complaint would expand the scope of the class from a state[706]*706wide class to a national class, with the exception of those states where state-wide class action motions are pending or have been certified. According to counsel, statewide class actions have been requested or certified in the States of Georgia, Florida, Alabama, Kansas, Minnesota and Mississippi.

I have already found that the state-wide class action qualifies under Rule 23 of the Federal Rules of Civil Procedure. 562 F.Supp. 1353, 1356-59. I find that the same rationale applies to an expanded national class. Thus, the remaining issue is whether expansion of the class is appropriate in this particular litigation.

As was stated by the United States Supreme Court in Califano v. Yamasaki, 442 U.S. 682, 702, 99 S.Ct. 2545, 2558, 61 L.Ed.2d 176 (1979),

Nothing in Rule 23, however, limits the geographic scope of a class action that is brought in conformity with that Rule. Since the class here was certified in accordance with Rule 23(b)(2), the limitations on class size associated with Rule 23(b)(3) actions do not apply directly. Nor is a nationwide class inconsistent with principles of equity jurisprudence, since the scope of injunctive relief is dictated by the extent of the violation established, not by the geographic extent of the plaintiff class.

The Yamasaki Court went on to state that “a federal court when asked to certify a nationwide class should take care to ensure that nationwide relief is indeed appropriate in the case before it, and that certification of such a class would not improperly interfere with the litigation of similar issues in other judicial districts.” Id.

The violations of statutory or constitutional rights that are alleged by the North Dakota class action are based on regulations and practices that entail a national scope. The pre-hearing cut-off of necessary family living and farm operating expenses after FmHA decides on acceleration or liquidation is required by national regulations. The FmHA appeal procedure is also set forth in national regulations. Lastly, the Secretary of Agriculture’s interpretation of 7 U.S.C. § 1981a (1976) creates a national FmHA policy as to the manner in which the deferral relief provisions are implemented.

Yamasaki also involved legal issues of a national scope. In that case the Supreme Court found that a national class was “peculiarly appropriate”:

The issues involved are common to the class as a whole. They turn on questions of law applicable in the same manner to each member of the class. The ultimate question is whether a prerecoupment hearing is to be held, and each individual claim has little monetary value. It is unlikely that the differences in the factual background of each claim will affect the outcome of the legal issue. And the class-action device saves the resources of both the courts and the parties by permitting an issue potentially affecting every social security beneficiary to be litigated in an economical fashion under Rule 23.

Yamasaki, 442 U.S. at 701, 99 S.Ct. at 2557.

There can be little doubt that the issues raised in the Coleman case fall precisely under the Supreme Court’s Yamasaki rationale. Thus, a national class action is an appropriate method for resolving these issues.

Since the expansion of the class is appropriate for resolving the type of legal questions raised in Coleman, I must now consider whether expansion is appropriate in this particular litigation. Defendants argue that 1) the motion should be dismissed pursuant to Local Rule 5 because the supporting brief was not filed within the five-day time period; 2) the motion is unduly delayed; 3) granting the motion would unduly prejudice the Defendants; and 4) the Plaintiffs have not satisfactorily explained the undue delay in making the motion.

Rule 15(a) of the Rules of Civil Procedure declares that leave to amend “shall be freely given when justice so requires.” Both parties agree that the applicable standard for applying this rule has been set forth in [707]*707Foman v. Davis, 371 U.S. 178, 182, 83 S.Ct. 227, 230, 9 L.Ed.2d 222 (1962):

In the absence of any apparent or declared reason — such as undue delay, bad faith or dilatory motive on the part of the movant, repeated failure to cure deficiencies by amendments previously allowed, undue prejudice to the opposing party by virtue of allowance of the amendment, futility of amendment, etc. — the leave sought should, as the rules require, be “freely given.” Of course, the grant or denial of an opportunity to amend is within the discretion of the district court

This suit was filed on behalf of the North Dakota class on March 11, 1983. The preliminary injunction for the North Dakota class was fully briefed by the end of March and was argued on April 7, 1983. The preliminary injunction order was issued on May 5, 1983. A three-day trial of the merits and to determine appropriate permanent injunctive relief, if any began on September 20, 1983. Both parties are presently preparing post-trial briefs. Upon submission of these briefs, the Court was prepared to rule on the permanent injunction.

Although it would have been preferable for the Plaintiffs to make their request for expansion to national class status well before the trial on the merits, our primary concern now is whether the granting of the motion would create “undue prejudice to the opposing party.” I have already mentioned to counsel that should the class be expanded another trial on the merits would have to be held. Moreover, each side would be allowed further discovery. Thus, any potential prejudice to the Defendants resulting from the granting of the Plaintiffs’ motion is severely lessened if not eradicated.

In any event, the final consideration as to the granting of a national class action must be whether expansion of the class will enhance judicial economy and efficiency. Of course, the greatest advantage to a national class action in this case is the resolution of the legal issues on a national scale. See Yamasaki, 442 U.S. at 701, 99 S.Ct. at 2557. The plaintiffs have repeatedly asserted, and the defense has not denied, that the Department of Agriculture’s policy is to accept a trial court’s order as to the plaintiffs in that particular case, and to continue to apply its own interpretation of the law in all areas where it has not been specifically challenged. This policy, while perhaps proper as a tactical decision, invites numerous lawsuits, all of which must be funded by persons who are suffering financial hardship, else they would not bring the action.

Thus, I must balance the slight inefficiency that would result from expanding the state-wide class action at this time against the overall efficiency of resolving the issues on a national scale.

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Coleman v. Block, 100 F.R.D. 705, 37 Fed. R. Serv. 2d 699 (D.N.D. 1983).

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Dwight Coleman, Lester Crowsheart, Sharon Crowsheart, Russel Folmer, Anna Mae Folmer, George Hatfield, June Hatfield, Donna McCabe Diane McCabe on Behalf of Themselves and Others Similarly Situated, Gary A. Barrett, Rosemary K. Barrett, Richard L. Harmon, Betty J. Harmon, Larry L. Robertson, Nancy K. Robertson, Ross Wade, Maureen Wade, Bart H. Dye v. Mike Espy, Secretary of Agriculture, Charles W. Shuman, Administrator of the Farmers Home Administration, Ralph W. Leet, State Director of the Farmers Home Administration, Harold T. Aasmundstad, District Director of the Farmers Home Administration of North Dakota, Glen W. Binegar, as District Director of the Farmers Home Administration of North Dakota, Allen G. Drege, as District Director of the Farmers Home Administration of North Dakota, Dennis W. Larson, as District Director of the Farmers Home Administration of North Dakota, Odell O. Ottmar, as District Director of the Farmers Home Administration of North Dakota, Joseph J. Schneider, as District Director of the Farmers Home Administration of North Dakota, Samuel Delvo, as County Supervisor of the Farmers Home Administration in North Dakota, Lorace Hakanson, as County Supervisor of the Farmers Home Administration in North Dakota, Larry Leier, as County Supervisor of the Farmers Home Administration in North Dakota, Charles Schaefer, as County Supervisor of the Farmers Home Administration in North Dakota, James Well, as County Supervisor of the Farmers Home Administration in North Dakota, Ralph W. Leet, State Director of the Farmers Home Administration, Dwight Coleman, Lester Crowsheart, Sharon Crowsheart, Russel Folmer, Anna Mae Folmer, George Hatfield, June Hatfield, Donna McCabe Diane McCabe on Behalf of Themselves and Others Similarly Situated, Gary A. Barrett, Rosemary K. Barrett, Richard L. Harmon, Betty J. Harmon, Larry L. Robertson, Nancy K. Robertson, Ross Wade, Maureen Wade, Carl Saine, Judie Saine v. Mike Espy, Secretary of Agriculture, Charles W. Shuman, Administrator of the Farmers Home Administration, Ralph W. Leet, State Director of the Farmers Home Administration, Harold T. Aasmundstad, District Director of the Farmers Home Administration of North Dakota, Glen W. Binegar, as District Director of the Farmers Home Administration of North Dakota, Allen G. Drege, as District Director of the Farmers Home Administration of North Dakota, Dennis W. Larson, as District Director of the Farmers Home Administration of North Dakota, Odell O. Ottmar, as District Director of the Farmers Home Administration of North Dakota, Joseph J. Schneider, as District Director of the Farmers Home Administration of North Dakota, Samuel Delvo, as County Supervisor of the Farmers Home Administration in North Dakota, Lorace Hakanson, as County Supervisor of the Farmers Home Administration in North Dakota, Larry Leier, as County Supervisor of the Farmers Home Administration in North Dakota, Charles Schaefer, as County Supervisor of the Farmers Home Administration in North Dakota, James Well, as County Supervisor of the Farmers Home Administration in North Dakota, Dwight Coleman, Lester Crowsheart, Sharon Crowsheart, Russel Folmer, Anna Mae Folmer, George Hatfield, June Hatfield, Donna McCabe Diane McCabe on Behalf of Themselves and Others Similarly Situated, Gary A. Barrett, Rosemary K. Barrett, Richard L. Harmon, Betty J. Harmon, Larry L. Robertson, Nancy K. Robertson, Ross Wade, Maureen Wade, Leonard Doran, Audrey A. Doran v. Mike Espy, Secretary of Agriculture, Charles W. Shuman, Administrator of the Farmers Home Administration, Ralph W. Leet, State Director of the Farmers Home Administration, Harold T. Aasmundstad, District Director of the Farmers Home Administration of North Dakota, Glen W. Binegar, as District Director of the Farmers Home Administration of North Dakota, Allen G. Drege, as District Director of the Farmers Home Administration of North Dakota, Dennis W. Larson, as District Director of the Farmers Home Administration of North Dakota, Odell O. Ottmar, as District Director of the Farmers Home Administration of North Dakota, Joseph J. Schneider, as District Director of the Farmers Home Administration of North Dakota, Samuel Delvo, as County Supervisor of the Farmers Home Administration in North Dakota, Lorace Hakanson, as County Supervisor of the Farmers Home Administration in North Dakota, Larry Leier, as County Supervisor of the Farmers Home Administration in North Dakota, Charles Schaefer, as County Supervisor of the Farmers Home Administration in North Dakota, James Well, as County Supervisor of the Farmers Home Administration of North Dakota
986 F.2d 1184 (Eighth Circuit, 1993)
Coleman v. Espy
986 F.2d 1184 (Eighth Circuit, 1993)
Hartman v. Lyng
884 F.2d 1103 (Eighth Circuit, 1989)
Michael F. Hartman, Dwight Coleman, Lester Crowsheart, Sharon Crowsheart, Russell Folmer, Anna Mae Folmer, George Hatfield, June Hatfield, Donna McCabe Diane McCabe on Behalf of Themselves and Others Similarly Situated Gary A. Barrett, Rosemary K. Barrett, Richard L. Harmon, Betty J. Harmon, Larry L. Robertson, Nancy K. Robertson, Ross Wade and Maureen Wade v. Richard E. Lyng, Secretary of Agriculture, Charles W. Shuman, Administrator of the Farmers Home Administration, Ralph W. Leet, State Director of the Farmers Home Administration, Harold T. Aasmundstad, Glen W. Binegar, Allen G. Drege, Dennis W. Larson, Odell O. Ottmar and Joseph J. Schneider, as District Directors of the Farmers Home Administration of North Dakota, and Samuel Delvo, Lorace Hakanson, Larry Leier, Charles Schaefer and James Well, as County Supervisors of the Farmers Home Administration in North Dakota, Michael F. Hartman, Dwight Coleman, Lester Crowsheart, Sharon Crowsheart, Russell Folmer, Anna Mae Folmer, George Hatfield, June Hatfield, Donna McCabe Diane McCabe on Behalf of Themselves and Others Similarly Situated Gary A. Barrett, Rosemary K. Barrett, Richard L. Harmon, Betty J. Harmon, Larry L. Robertson, Nancy K. Robertson, Ross Wade and Maureen Wade v. Richard E. Lyng, Secretary of Agriculture, Charles W. Shuman, Administrator of the Farmers Home Administration, Ralph W. Leet, State Director of the Farmers Home Administration, Harold T. Aasmundstad, Glen W. Binegar, Allen G. Drege, Dennis W. Larson, Odell O. Ottmar and Joseph J. Schneider, as District Directors of the Farmers Home Administration of North Dakota, and Samuel Delvo, Lorace Hakanson, Larry Leier, Charles Schaefer and James Well, as County Supervisors of the Farmers Home Administration in North Dakota
884 F.2d 1103 (Eighth Circuit, 1989)
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864 F.2d 604 (Eighth Circuit, 1989)
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