Davis v. Northside Realty Associates, Inc.

95 F.R.D. 39, 35 Fed. R. Serv. 2d 1266, 1982 U.S. Dist. LEXIS 15286
CourtDistrict Court, N.D. Georgia
DecidedMay 7, 1982
DocketNo. C 80-508 A
StatusPublished
Cited by19 cases

This text of 95 F.R.D. 39 (Davis v. Northside Realty Associates, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Davis v. Northside Realty Associates, Inc., 95 F.R.D. 39, 35 Fed. R. Serv. 2d 1266, 1982 U.S. Dist. LEXIS 15286 (N.D. Ga. 1982).

Opinion

ORDER

VINING, District Judge.

Pending before the court is the plaintiffs’ motion to certify their suit as a class action under Fed.R.Civ.P. 23(b)(3). The plaintiffs, who sold their homes through two of the defendant brokers, contracted to pay a 7% commission on the closing of their respective sales. They now seek to represent all those individuals similarly situated within a circumscribed 19-county area of metropolitan Atlanta.

As set out in paragraph 36 of the amended complaint, the proposed class is defined as follows:

[A]ll persons who have sold residential' real estate (excluding sales of new homes or homes sold on behalf of third parties who contracted with employers to dispose of homes of transferred employees) within the greater Atlanta area during the relevant time period [i.e., March 24, 1976, to the date of certification], and, in connection with the sale of such real estate, paid' commissions or fees of 7% pursuant to contracts wherein one or more of the Defendant brokers was the listing and/or selling broker.

The defendants consist of numerous brokerage firms, their principals, national franchisors,1 multiple listing services, and regional real estate boards. They have all been joined in this private antitrust action because of an alleged conspiracy to set and maintain brokerage commissions above the truly competitive level, in violation of section 1 of the Sherman Act. 15 U.S.C. § 1.

The parties have engaged in preliminary discovery on the class certification question. The initial round of briefs generated an evidentiary hearing on February 11, 1982, where both sides presented additional testimony. After the hearing, supplemental briefs were submitted by both sides in an effort to enhance their respective positions.

While mindful of the directive of Eisen v. Carlisle & Jacquelin, 417 U.S. 156, 94 S.Ct. 2140, 40 L.Ed.2d 732 (1974), not to conduct any inquiry into the merits of the plaintiffs’ cause of action, the court still must look beyond the pleadings in order to [43]*43assess whether the claims, assuming their merit, will satisfy the requirements of Rule 23. Brown v. Cameron-Brown Co., 92 F.R.D. 32 (E.D.Va.1981).

Turning to the express provisions of Rule 23, the court notes that the preliminary requirements of a proposed subsection (b)(3) class are set out as the four criteria of subsection (a), which states:

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) that 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, and (4) representative parties will fairly and adequately protect the interests of the class.

To these criteria there is only passing dispute among the parties.

23(a)(1) — Numerosity

Professor Miller, after a review of several hundred class action opinions, offers this observation: “If the class has more than 40 people in it numerosity is satisfied; if the class has less than 25 people in it, numerosity is lacking.” A. Miller, “An Overview of Federal Class Actions: Past, Present and Future”, monograph, Federal Judicial Center (Dec. 1977).

Estimates of the size of the potential class range from the plaintiffs’ low projection of 15,000 members to the defendants’ upside forecast of 30,000. In either event, the sheer number of the proposed class renders joinder impracticable. This requirement is amply satisfied.

23(a)(2) — Commonality

This subsection requires that there be a common question of either law or fact running throughout the class. Unlike the (b)(3) requirement, a joining of common issues and claims at this stage is not a determination that classwide issues predominate over individual ones. If there is a common issue, irrespective of whether it is dispositive of the case, this requirement is met.

In general, antitrust plaintiffs are found to have satisfied the (a)(2) element by alleging that a conspiracy, or a monopoly, will be treated as a central or single overriding issue. See 7 C. Wright & A. Miller, Federal Practice and Procedure § 1763 (1972). This case is no exception; individual class members have the common obligation of proving the existence and scope of an agreement relating to brokerage fees, and each will be required to show how that agreement constituted an illegal arrangement as defined by the antitrust laws. See In re Sugar Industry Antitrust Litigation, 73 F.R.D. 322 (E.D.Pa.1976). This requirement is satisfied.

23(a)(3) — Typicality

A representative’s claim is typical of the class if it arises from the same event or practice or course of conduct that gives rise to the claims of the absent class members and if their individual claims are based on the same legal or remedial theory. Gonzales v. Cassidy, 574 F.2d 67 (5th Cir. 1973).

In this action, the named plaintiffs allege that the defendants agreed to set and maintain non-competitive fees for their services. Davis and Brodhead, as all others, must rely on the elements of conspiracy, impact, and damage in order to recover under the Clayton Act. A disparity in the actual amount of damage each incurred will not undo the typicality of claims already illustrated.

Since all plaintiffs must establish the same basic elements to prevail and since there are no differences as to the type of relief sought or the theories of liabilities upon which plaintiffs are proceeding, the typicality requirement is met. See In re South Central States Bakery Products, 86 F.R.D. 407 (M.D.La.1980); In re Corrugated Container Antitrust Litigation, 80 F.R.D. 244 (S.D.Tex.1978).

Several courts have required the named plaintiffs to establish their “standing” at this juncture in order to support the typi[44]*44cality element. See La Mar v. H & B Novelty & Loan Co., 489 F.2d 461 (9th Cir. 1963); Brown v. Cameron-Brown Co., 92 F.R.D. at 38-39.

The defendants submit that Davis is not a member of the class he seeks to represent. (No challenge has been issued against Brodhead’s membership in the class.) The defendants concede that Davis “signed a listing agreement to sell his house at a 7 percent commission rate.” In addition to the sum received at closing, Davis received payments from his buyers for the period of time they occupied the house prior to closing. This payment is viewed as an enhancement of the selling price and a concomitant reduction of the commission rate to 6.94252 percent.

The proof as to this point is inconclusive. There is nothing in the record to show Davis added the “rental” payment to the other amount received in calculating his realized profit or loss. The payment is a related transaction but completely independent from the selling price of the house.

23(a)(4) — Representativeness

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Bluebook (online)
95 F.R.D. 39, 35 Fed. R. Serv. 2d 1266, 1982 U.S. Dist. LEXIS 15286, Counsel Stack Legal Research, https://law.counselstack.com/opinion/davis-v-northside-realty-associates-inc-gand-1982.