Floyd v. Philadelphia

8 Pa. D. & C.3d 371, 1978 Pa. Dist. & Cnty. Dec. LEXIS 207
CourtPennsylvania Court of Common Pleas, Philadelphia County
DecidedApril 24, 1978
DocketNo. 1; nos. 446 and 2157
StatusPublished

This text of 8 Pa. D. & C.3d 371 (Floyd v. Philadelphia) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Philadelphia County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Floyd v. Philadelphia, 8 Pa. D. & C.3d 371, 1978 Pa. Dist. & Cnty. Dec. LEXIS 207 (Pa. Super. Ct. 1978).

Opinion

SMITH, J.,

— These are class actions instituted under the Pa.R.C.P. 1701-1716, which became effective September 1, 1977. The event generating the litigation occurred September 30, 1977, a leak of chlorine gas from a water treatment facility of defendant, City of Philadelphia. Plaintiffs in each action, alleging themselves to have suffered injury by inhalation of the escaping gas, brought these actions on behalf of all persons so injured.

The actions have not yet been certified by the court as class actions pursuant to Pa.R.C.P. 1710. [372]*372Pleadings are closed, a motion for certification under Pa.R.C.P. 1707(a) has been filed, and discovery with respect to class action issues is proceeding pursuant to Pa.R.C.P. 1707(b). Nevertheless, the actions unquestionably are presently class actions since Pa.R.C.P. 1701(a) provides that any action so denominating itself is a class action until certification is refused by the court, or, if accorded, is later revoked.

Presently sought by parties on each side, plaintiffs and one (Diamond Shamrock Co.) of a number of additional defendants, are two non-communication orders. Rules to show cause have been issued, and opportunity provided for full argument, oral and written, on these requests. Plaintiffs’ request is for a broad prohibition on any communications between named parties or their counsel and unnamed members of the asserted class. Plaintiffs’ frankly stated purpose is “preventing imminent settlements in this case,” and from copies of correspondence with claimants initiated by the defendant city, as exhibited to the court at argument, it clearly appears the city is engaging in ongoing negotiations to settle with uncounselled claimants, potential class members.

Plaintiffs’ request goes beyond simple restraint on initiation of proposals to settle; it would require the city (a) to hold in a separate file and process no further any releases already received, (b) issue no checks in payment of the settlements embodied in such releases, (c) stop payment on any checks already issued but not yet paid. Plaintiffs express two concerns relative to compromise settlements (1) their fairness with uncounselled and perhaps unsophisticated claimants, (2) erosion or destruction of numerosity of the class, potentially threatening [373]*373certification of the class character of the action pursuant to Pa.R.C.P. 1710.

The non-communication order sought by additional defendant, Diamond Shamrock Company, would forbid any communication by a named party or counsel with any class member unnamed in the action, except with approval by the court of the specific.communication and its addressees secured by prior motion and order. As proposed, specific prohibitions would be communications designed to solicit (a) legal representation of unnamed members, (b) fees and expenses or agreements to pay the same, (c) elections to opt out of the action pursuant to Pa.R.C.P. 1711(a), and (d) communications misrepresenting various aspects of the action itself and of orders of the court therein, which might convey adverse reflections on any party, any counsel, the court, or the administration of justice. Specifically excluded from the proposed prohibition would be (e) communications between attorney and client, or a prospective client who has taken the initiative to consult with or propose to employ an attorney, (f) communications in regular course of business or performance of duties of a public office or agency not offending the prohibition of (a) or (d) supra, and (g) communications protected by constitutional right, except to require within five days of the same, filing with the court of a copy thereof, if in writing, and an accurate and substantially complete summary thereof, if oral.

The orders sought by plaintiffs will be denied, and that sought by additional defendant granted as herein modified. In view of the dearth of Pennsylvania or other state authority bearing on the questions involved in grant or denial of the orders here [374]*374sought, the reasoning this court has found persuasive in reaching the conclusions here announced is predominantly that of United States courts, whose experience with class actions dwarfs that of state courts. Thus, it is said that the court has the inherent equitable power to supervise communications with class members: Vernon J. Rochler & Co., Inc. v. Minneapolis Shareholders Co., 425 F. Supp. 145 (D.C. Minn. 1977). Under what circumstances, the question remains, should this inherent power be exercised? Courts which have considered the point are in agreement that a total ban on communications with unnamed class members proposing compromise settlements of their claims would offend constitutional prohibitions: American Finance Systems v. Harlow, 65 F.R.D. 572, 575 (D.C. Md. 1974); Weight Watchers of Philadelphia v. Weight Watchers International, 455 F. 2d 770 (C.A. 2d 1972). The Fourteenth Amendment of the U.S. Constitution, forbidding state deprivation of property without due process of law, is directly applicable to judicial proceedings of the state: State v. Hedgebeth, 228 N.C. 259, 45 S.E. 2d 563 (1947), cert. dismissed, 334 U.S. 806, 68 S.Ct. 1185, 92 L.Ed. 1139 (1948); 16A C.J.S. 743, §611. The right to recover damages for personal injuries caused by the negligence of another is a property right within the protection of the Fourteenth Amendment: U.S.C.A. Title, Amend. 14, n. 480, and cases cited.

Further, settlement of claims is a course long favored by the law: Williams v. First National Bank of Paulo Valley, 216 U.S. 582, 595, 30 S.Ct. 441, 54 L.Ed. 625 (1910). Not only that, it is also a course which, by tending to reduce the volume of litigation, promotes that one of the objectives of the class [375]*375action device, perhaps as well as the device itself. Hence, the Court of Appeals for the 2nd Circuit in Weight Watchers of Philadelphia, etc., supra, reasoned that an outright ban on all settlement negotiations “was in conflict. . . with elementary considerations of common sense.”

Pre-certification negotiations for settlement in fact occurred, and reached the point of agreement for which the court’s approval was asked, in Philadelphia Electric Co. v. Anaconda American Brass, 42 F.R.D. 324 (D.C. E.D. Pa.). The court did not question the right to settle as such, indeed, made suggestions for implementation of the settlement, but because of viewing them as attempting to compromise the claims of the class and because of the difficulties of giving notice to its not yet determined members, held approval of these settlements in abeyance pending determination of the class action questions.

Destruction of the numerosity of class members by individual settlements such as to threaten eventual favorable certification of the class action was considered insufficient ground for court interference with settlement negotiations in Weight Watchers of Philadelphia, supra, and Vernon J. Rochler, Inc. v. Minn. Shareholders, Inc., supra. The Minnesota District Court freely conceded that destruction of numerosity undoubtedly affected the rights of non-settling plaintiffs, but not improperly, so as to violate Fed. R.C.P. 23(e), violation of which occurred only when the settlements impinged on the substance of plaintiffs’ own complaint. This untoward result, the court said, was not at all threatened by defendant’s effort to diminish the population of the class.

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Related

Williams v. First Nat. Bank of Pauls Valley
216 U.S. 582 (Supreme Court, 1910)
Hedgebeth v. North Carolina
334 U.S. 806 (Supreme Court, 1948)
Moscarelli v. Stamm
288 F. Supp. 453 (E.D. New York, 1968)
State v. . Hedgebeth
45 S.E.2d 563 (Supreme Court of North Carolina, 1947)
Philadelphia Electric Co. v. Anaconda American Brass Co.
42 F.R.D. 324 (E.D. Pennsylvania, 1967)
American Finance System Inc. v. Harlow
65 F.R.D. 572 (D. Maryland, 1974)
Nesenoff v. Muten
67 F.R.D. 500 (E.D. New York, 1974)

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Bluebook (online)
8 Pa. D. & C.3d 371, 1978 Pa. Dist. & Cnty. Dec. LEXIS 207, Counsel Stack Legal Research, https://law.counselstack.com/opinion/floyd-v-philadelphia-pactcomplphilad-1978.