Dekker v. Vivint Solar, Inc.

District Court, N.D. California·Decided March 18, 2022·No. 3:19-cv-07918·Unknown

Opinion

NORTHERN DISTRICT OF CALIFORNIA

GERRIE DEKKER, et al., Plaintiffs, No. C 19-07918 WHA

v.

VIVINT SOLAR, INC., et al., ORDER GRANTING CLASS CERTIFICATION Defendants.

In this unfair business practices suit, plaintiff moves for certification of a class under Rule 23(b)(2). To the extent stated, the motion is GRANTED. Previous orders described the facts herein (Dkt. Nos. 121, 140). In brief, defendant Vivint Solar, Inc., in its various corporate forms, installs solar panels on customers’ roofs and, at least as advertised, sells those customers the low cost, clean energy produced over a twenty- year term pursuant to their “power purchase agreement” (PPA). Plaintiff alleges, however, that Vivint’s contract contains unlawful liquidated-damages clauses, provisions which impose harsh and unlawful penalties onto customers should they seek to dissolve the contract. Early on in our action, a March 2020 order compelled all but two plaintiffs to arbitration. arbitration clause, and Mr. Bautista, who had not agreed to arbitrate, given Vivint had the native Spanish speaker, with virtually no English proficiency, sign an English-form contract after conducting negotiations in Spanish (Dkt. No. 47). Vivint appealed that decision, plaintiffs amended their complaint, and the action continued apace (Dkt. Nos. 62, 63). Vivint, however, dropped the ball on its JAMS fee deadline, a material breach of the arbitration agreements under California’s recently enacted Code of Civil Procedure Section 1281.97. So, an August 14 order vacated the March 24 order as far as it compelled select plaintiffs to arbitrate and invited those plaintiffs back into this forum (Dkt. No. 84). Vivint appealed this decision as well. Our court of appeals decided Vivint’s first appeal on January 25, 2021. The order didn’t answer many questions, merely dismissing the case for lack of jurisdiction and dictating: “We remand to the district court for it to determine if Plaintiffs should be granted leave to amend the complaint” (Dkt. No. 111). Leave to amend was granted (Dkt. No. 121). In June, Vivint moved for judgment on the pleadings, which was granted as to plaintiffs’ Section 17200 claim as to unfairness based on violations of the Translation Act allegedly endured by Mr. Bautista (Dkt. No. 140). Plaintiffs were permitted to amend their pleadings, and an August 11 order granted the motion for leave to amend in part but denied as futile plaintiffs’ Section 17200 unfairness claim as to the Translation Act and further denied leave to include a restitution claim per the CLRA and Section 17200 (Dkt. No. 157). Then, in late October, the other shoe dropped, and our court of appeals ruled on Vivint’s second appeal, finding that whether Vivint’s failure to pay the JAMS filing fees qualifies as a breach of the arbitration agreement fell within the scope of the PPA’s delegation clause. The order compelling those relevant plaintiffs to arbitration was hence reinstated (Dkt. Nos. 177, 178). In November, plaintiff Bautista dropped out of the case when he settled with Vivint. Ms. Dekker became our only named plaintiff. Plaintiff now seeks certification of a Rule 23(b)(2) class defined as follows: All persons in California who entered into Version 1 of the (Mot. 2, specific exclusions omitted). Plaintiff asserts a claim for violations of Civil Code § 1671 for including liquidated damages clauses in the PPA, as well as claims under Section 17200 and the Consumer Legal Remedies Act (CLRA). Both the Section 17200 and CLRA claims are predicated on Vivint’s alleged violation of Section 1671. Plaintiff generally seeks an injunction invalidating the PPA’s liquidated damages provisions (Br. 19). Plaintiff emphasized in both the papers and at the hearing she is not seeking any classwide monetary remedies. Shortly before this class certification motion ripened, Vivint moved for partial summary judgment on three discrete issues related to the injunctive relief plaintiff seeks. Due to those issues comingling with those of class certification, a decision on that motion was held in abeyance until this class certification motion could be heard. That order is filed in tandem with this one. This order follows full briefing and oral argument. Certification under Rule 23(b)(2) is a two-step process. A plaintiff must first show that the four prerequisites of Rule 23(a) are met: (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; and (4) the representative parties will fairly and adequately protect the interests of the class. For a class seeking declaratory or injunctive relief under Rule 23(b)(2), a plaintiff must also establish that “the party opposing the class has acted or refused to act on grounds that apply generally to the class, so that final injunctive relief or corresponding declaratory relief is appropriate respecting the class as a whole.” Rule 23(b)(2) “applies only when a single injunction or declaratory judgment would provide relief to each member of the class.” Wal– Mart Stores, Inc. v. Dukes, 564 U.S. 338, 360 (2011). The plaintiff bears the burden of demonstrating that these requirements are met. Briseno v. ConAgra Foods, Inc., 844 F.3d 1121, 1131 (9th Cir. 2017). The Supreme Court has “cautioned that a court’s class-certification analysis must be Amgen Inc. v. Conn. Ret. Plans & Tr. Funds, 568 U.S. 455, 465–66 (2013) (quoting Wal–Mart, 564 U.S. at 350). However, “[m]erits questions may be considered to the extent — but only to the extent — that they are relevant to determining whether the Rule 23 prerequisites for class certification are satisfied.” Ibid. For the reasons that follow, this order will certify a class, but not pursuant to plaintiff’s proposed definition. Instead, this order certifies a Rule 23(b)(2) class with the following definition: All persons in California currently in privity of contract with Vivint Solar because they are subject to Version 1 of the Residential Solar Power Purchase Agreement. This order proceeds through the Rule 23(a) factors before evaluating Rule 23(b)(2). 1. NUMEROSITY. Under Rule 23(a)(1), a proposed class must be “so numerous that joinder of all members is impracticable.” Vivint does not contest numerosity. Plaintiff asserts the proposed class numbers approximately 825 people (Oct. 21, 2021 Hrg. Tr. 8–9, Plf’s Exh. 11; Burr Tr. 132, Plf’s Exh. 4, Chang Decl. Exh. 3). In its papers, Vivint clarifies that there are actually “1,064 (not 825) version 1 PPA accounts in California with systems installed and granted permission to operate and approximately 284 (not 166) accounts [of those 1,064 total accounts] reflect[] transfer assignment situations” (Burr Decl. ¶¶ 2–3). Regardless, excluding those individuals no longer in privity of contract with Vivint (as this order’s revised class definition does), the number of individuals with active version 1 PPAs still satisfies the numerosity requirement. 2. ADEQUACY. Under Rule 23(a)(4), a proposed class representative is adequate if they “will fairly and adequately protect the interests of the class.” Our court of appeals has explained that a representative meets this standard if they: (1) have no conflicts of interest with other class members, and (2) will prosecute the action vigorously on behalf of the class. Staton v. Boeing Co., 327 F.3d 938, 957 (9th Cir. 2003). Vivint asserts that Ms. Dekker has demonstrated “alarming unfamiliarity” with this litigation, undermining her adequacy as a representative. See Burkhalter Travel Agency v. MacFarms Int’l, Inc., 141 F.R.D. 144, 153–54 (N.D. Cal. 1991) (citation omitted). Ms. Dekker purportedly did not review any of her discovery responses or filings (Opp. 5–7). Looking to Ms. Dekker’s deposition testimony

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