Davis v. Jazz Casino Co., LLC

864 So. 2d 880, 2004 WL 76848
CourtLouisiana Court of Appeal
DecidedJanuary 14, 2004
Docket2003-CA-0005
StatusPublished
Cited by25 cases

This text of 864 So. 2d 880 (Davis v. Jazz Casino Co., LLC) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Davis v. Jazz Casino Co., LLC, 864 So. 2d 880, 2004 WL 76848 (La. Ct. App. 2004).

Opinion

864 So.2d 880 (2004)

Kentrisha DAVIS, John Mierl, Phyllis Brown, Carolina Mendoza, Mark Maier, Lois Irick, and Karen Porter
v.
JAZZ CASINO COMPANY, L.L.C.

No. 2003-CA-0005.

Court of Appeal of Louisiana, Fourth Circuit.

January 14, 2004.
Rehearing Denied February 6, 2004.

*884 Peter J. Butler, Peter J. Butler, Jr., Richard G. Passler, Jeffrey C. Vaughan, Breazeale, Sachse & Wilson, L.L.P., New Orleans, LA, for Plaintiffs/Appellees.

Leslie A. Lanusse, William J. Kelly III, Robert E. Couhig, Jr., Louis C. LaCour, Jr., Raymond P. Ward, Adams and Reese LLP, Harry T. Lemmon, New Orleans, LA, for Defendants/Appellants.

(Court composed of Judge JAMES F. McKAY, III, Judge TERRI F. LOVE, Judge EDWIN A. LOMBARD).

TERRI F. LOVE, Judge.

The defendants, Jazz Casino Company, L.L.C., appeal the trial court's judgment, which granted class certification in favor of the plaintiffs. We affirm for the following reasons:

Statement of Facts and Procedural History

Approximately one hundred and forty-eight plaintiffs filed a lawsuit against the Jazz Casino Company, L.L.C. ("JCC"), *885 which alleged that JCC's termination of their employment violated a unilateral contract to employ them for at least four years after April 1, 2001. At the time, JCC sought Chapter 11 bankruptcy protection and a tax reduction from the state to relieve some its financial woes. The class alleges that JCC required that they actively lobby the state legislature in order to secure tax relief on behalf of the casino. The class alleges that JCC guaranteed that if the legislature granted tax relief to the casino, the plaintiffs would be employed for the length of time that the tax relief was in effect. The class argues that JCC made it clear to them via various written communications and meetings; that if the tax relief were not secured from the state, then Harrah's Casino would close and they would lose their jobs.

As part of the lobbying process, the plaintiffs contend that they were required to participate in letter writing campaigns in addition to talking to the legislature and the media about obtaining a reduction in Harrah's tax obligation. The class alleges that the oral and written communications from Harrah's constituted an offer in which their participation in the lobbying and media campaign was an acceptance of the offer, which resulted in the formation of a unilateral contract. In April 2001, the state legislature granted the casino tax relief for a four-year period. This tax relief resulted in a reduction of the casino's tax obligation from $100,000,000.00 to $50,000,000.00 in the first year and $100,000,000.00 to $60,000,000.00 for years two through four. In July 2001, the plaintiffs were terminated. Harrah's Casino asked all of the class members to sign a separation agreement, which only entitled them to receive a week's salary in exchange for relinquishing all rights including their rights to compensation for the four-year tax relief period.

The plaintiffs filed a petition for breach of contract and damages with a jury demand against JCC, which alleged breach of a unilateral contract and claiming that the separation agreement was contra bonos mores or executed under duress and therefore, should be declared null and void. The plaintiffs also filed a motion for certification as a class action, which was granted by the trial court. JCC filed an order of suspensive appeal, which contended that certification of the plaintiffs as a class would cause irreparable injury. The trial court granted the order for suspensive appeal.

Discussion

JCC contends that the trial court erred in certifying the class based on the plaintiffs failure to make a prima facie showing that all of the class certification prerequisites were met.

A class action is nothing more than a procedural device. It confers no substantive rights. The purpose and intent of class action procedure is to adjudicate and obtain res judicata effect on all common issues applicable not only to the class representatives who bring the action, but to all others who are similarly situated, provided they are given adequate notice of the pending class action and do not timely exercise the option of exclusion there from. La. C.C.P. art. 597; Williams v. State, 350 So.2d 131, 137-38 (La.1977).

Louisiana courts have vast discretion to determine whether to certify a class. See Billieson v. City of New Orleans, 98-1232, p. 8 (La.App. 4 Cir. 3/3/99), 729 So.2d 146, 152-53. A trial court must be afforded wide latitude when making factual and policy determinations as to the appropriateness of a class. The decision of the trial court, therefore, should not be reversed absent manifest error. See *886 Adams v. CSX Railroads, 615 So.2d 476 (La.App. 4th Cir.1993).

Louisiana trial courts are afforded broad discretion in determining the class certification issues, and have wide latitude in considerations involving policy matters, and those requiring a preliminary analysis of the facts. Davis v. American Home Products Corp., XXXX-XXXX (La.App. 4 Cir. 3/26/03) 844 So.2d 242, 257.

The purpose and intent of the class action is to "adjudicate and obtain res judicata effect on all common issues applicable not only to the representatives who bring the action, but to all others who are similarly situation." See Ford v. Murphy Oil U.S.A., Inc., 96-2913 p. 4 (La.9/9/97), 703 So.2d 542, 544. The trial court's decision therefore must not be reversed absent manifest error. See Adams v. CSX Railroads, 615 So.2d 476 (La.App. 4th Cir. 1993).

Recently, there has been a tendency to require class certification when the statutory requirements have been met. See Billieson v. City of New Orleans, 98-1232, p. 8 (La.App. 4 Cir. 3/3/99), 729 So.2d 146, 152-53. This places the burden on the party seeking the class certification to demonstrate that all of the necessary elements for the certification exist. Specifically, the plaintiff must show that the class is definable and that it satisfies the requirements of numerosity, commonality, typicality and adequacy of representation. Billieson, 98-1232, p. 8, 729 So.2d at 152. The plaintiff must also demonstrate that the class action procedure is superior to other forms of adjudication.

Louisiana Code of Civil Procedure Articles 591-597 governs the class action procedure. Article 591(A) provides the general rule for certification of a class. One or more members of a class may sue or be sued as representative parties on behalf of all, only if:

(1) The class is so numerous that joinder of all members is impracticable;
(2) There are questions of law or fact common to the class;
(3) The claims or defenses of the representative parties are typical of the claims or defenses of the class;
(4) The representative parties will fairly and adequately protect the interests of the class; and
(5) The class is or may be defined objectively in terms of ascertainable criteria, such that the court may determine the constituency of the class for purposes of the conclusiveness of any judgment that may be rendered in the case.
If all of these criteria are not met, then the class should not be certified.

In its written reasons for judgment, the trial court stated:

This Court has allowed the parties to do extensive discovery regarding class certification issues.

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864 So. 2d 880, 2004 WL 76848, Counsel Stack Legal Research, https://law.counselstack.com/opinion/davis-v-jazz-casino-co-llc-lactapp-2004.