DaSilva v. Esmor Correctional Services, Inc.

167 F. App'x 303
CourtCourt of Appeals for the Third Circuit
DecidedJanuary 27, 2006
DocketNos. 03-3095, 03-3096, 03-3348, 03-4435, 05-4007
StatusPublished
Cited by1 cases

This text of 167 F. App'x 303 (DaSilva v. Esmor Correctional Services, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
DaSilva v. Esmor Correctional Services, Inc., 167 F. App'x 303 (3d Cir. 2006).

Opinion

OPINION

AMBRO, Circuit Judge

Three related cases comprise this appeal: the Brown Class Action, Brown, v. Esmor Corr. Servs., Inc., 98 Civ. 1282; the Jama Action, Jama v. INS, 97 Civ. 3093; and the DaSilva Action, DaSilva v. Esmor Corr. Sews., Inc., 96 Civ. 3755. Esmor Correctional Services, Inc. (Esmor) appeals the order of the District Court modifying a class action notice order to extend the deadline for opting out of the Brown class for plaintiffs in the Jama and DaSilva Actions. DaSilva v. Esmor Corr. Serv., Inc., 215 F.R.D. 477 (D.N.J.2003). Plaintiffs in the DaSilva Action appeal a separate order of the District Court denying their motion for reconsideration of the dismissal of their complaint. Additionally, plaintiffs in the Jama Action assert that Esmor’s appeal is frivolous such that the Jama Action counsel are entitled to fees and costs under Fed. Rule App. P. 38. For the reasons below, we affirm the District Court’s decisions to extend the opt-out period and deny reconsideration of the DaSilva Action complaint dismissal, and we hold that Esmor’s appeal was not frivolous.1

I Factual and Procedural History

As we write for the parties, only a brief summary of pertinent facts is necessary. In the mid-1990s the U.S. Immigration and Naturalization Service (INS)2 con[306]*306traeted with Esmor to operate an INS detention center in Elizabeth, New Jersey. The allegedly abusive and inhumane conditions at that facility generated the three lawsuits at issue in this appeal. The three cases were consolidated for discovery purposes.

In March 1999, the District Court signed an order setting notice to the class in the Brown Action. It provided, inter alia, that notice to the class should be mailed May 1, 1999, and requests for exclusion from the class should be postmarked no later than June 1, 1999. Accordingly, notice was sent to 1,172 of the 1,625 potential class members for whom information was available. Nine hundred twenty-two of those notices were returned as undeliverable. The difficulty in locating and communicating with putative class members was due in part to the dispersion of former detainees of the Esmor facility; some detainees were sent to other INS facilities and others were deported to locations where telephone and postal services were unreliable. No requests for exclusion were submitted by the initial June 1, 1999 opt-out deadline.

Over the next three years, while discovery for all three cases progressed, a number of actions relevant to the opt-out period occurred. In July, November, and December 1999, Jama Action counsel sent letters to Brown class counsel identifying individual plaintiffs in the Jama Action who wished to opt out of the Brown class. In November 1999, a conference of counsel for all three actions was held before a Magistrate Judge and resulted in an order modifying the initial class notice order and resetting the last date for opting out of the Brown Class Action for February 7, 2000. That order also required the submission of opt-out forms for the remaining Jama and DaSilva Action plaintiffs at a date to be set in the future. In March 2003, another order was issued by a new Magistrate Judge to whom the case had been transferred, giving effect to the opt-outs of Jama Action plaintiffs identified in the letters from Jama counsel and resetting the opt-out deadline for February 20, 2003, ironically a date that had already passed. Neither order issued by the Magistrate Judges was ever appealed, though both the Brown class and Esmor continued to contend that there had been no valid opt-outs from the Brown class.

Apparently in an effort to resolve the dispute over the effectiveness of the opt-outs, the Jama Action plaintiffs moved in the District Court for an order declaring that the 1999 and 2003 Magistrate Judges’ orders properly implemented the initial class notice order for opt-outs from the Brown class, and effectively set the deadline for the submission of opt-out forms. The District Court granted the motion, holding that requests for exclusion by Jama and DaSilva Action plaintiffs from the Brown class were effective if they were provided to counsel for the Brown class on or before March 20, 2003. “Without limiting the generality of the foregoing,” the Court went on to identify ten individual Jama Action plaintiffs as having validly opted out of the Brown class. It is the extension of the opt-out period from the June 1, 1999 deadline that Esmor appeals.

The deadline for DaSilva Action plaintiffs to opt out was later extended again by the District Court to July 23, 2003; however, no DaSilva Action plaintiff made a request for exclusion by that date. The Court subsequently granted a motion by Esmor to dismiss the DaSilva Action complaint and the DaSilva Action plaintiffs became part of the Brown class. The DaSilva Action plaintiffs moved for rehearing, the District Court denied the motion, and they appeal that ruling.

[307]*307II Discussion3

A. Extension of the opt-out deadline

“We review the District Court’s modification of its own order establishing a deadline for abuse of discretion.” In re Cendant Corp. Prides Litig., 233 F.3d 188, 192 (3d Cir.2000) (citation omitted); see also In re Cendant Corp. Prides Litig., 311 F.3d 298, 300 (3d Cir.2002) (reviewing District Court’s decision regarding late registration in class); accord In re Vitamins Antitrust Class Actions, 327 F.3d 1207, 1209 (D.C.Cir.2003) (reviewing District Court’s order allowing belated opt-out for abuse of discretion). We will not disturb an exercise of discretion “unless there is a definite and firm conviction that the court below committed a clear error of judgment in the conclusion it reached upon a weighing of the relevant factors.” Hanover Potato Prods., Inc. v. Shalala, 989 F.2d 123, 127 (3d Cir.1993) (internal quotation marks and citation omitted).

Esmor argues that, when considering the opt-out deadline, the District Court improperly substituted the applicable “excusable neglect” standard with a more indefinite equitable inquiry. Indeed, courts typically analyze “late claims in class actions under the rubric of whether the claimant has shown ‘excusable neglect.’ ”

In re Orthopedic Bone Screw Products Liab. Litig., 246 F.3d 315, 321 (3d Cir.2001). However, a principle that applies more expansively than the specific test for excusable neglect is that “[i]n class actions, courts have equitable powers to manage the litigation in order to promote judicial economy and fairness to litigants.” De Asencio v. Tyson Foods, Inc., 342 F.3d 301, 313 (3d Cir.2003) (reopening opt-in period for a reasonable period of time to allow additional notice to all eligible plaintiffs). As our Court has observed,

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Bluebook (online)
167 F. App'x 303, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dasilva-v-esmor-correctional-services-inc-ca3-2006.