Ford Motor Company v. Phillips, Joyce

435 F.3d 785, 2006 WL 217942
CourtCourt of Appeals for the Seventh Circuit
DecidedJanuary 30, 2006
Docket05-8031, 05-8032
StatusPublished
Cited by1 cases

This text of 435 F.3d 785 (Ford Motor Company v. Phillips, Joyce) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ford Motor Company v. Phillips, Joyce, 435 F.3d 785, 2006 WL 217942 (7th Cir. 2006).

Opinion

POSNER, Circuit Judge.

Before us are petitions for leave to appeal under the Class Action Fairness Act of 2005, Pub.L. 109-2, 119 Stat. 4, from orders remanding two class action suits to Illinois state courts. The question the petitions present is whether amending a complaint to add or substitute named plaintiffs (class representatives) “commences” a new suit. Id., § 9. The suits were filed before the effective date of the Class Action Fairness Act but the amendments came after. So if the amendments are deemed to commence new suits, these suits are removable to federal district court; otherwise not. Knudsen v. Liberty Mutual Ins. Co., 411 F.3d 805, 806 (7th Cir.2005); Pritchett v. Office Depot, Inc., 404 F.3d 1232 (10th Cir.2005). No appellate court has yet decided whether adding named plaintiffs to a class action suit “commences” a new suit for purposes of removal under CAFA.

The suits complain about the paint jobs on cars manufactured by the defendants. In the Phillips case, the plaintiffs, after first alleging a class consisting of purchasers of 1988 through 1997 Ford models, amended their complaint to limit the class to the 1989 through 1995 model years. Nevertheless, for reasons that are obscure, the judge without being asked to do so certified a class that included the 1996 models and in response the plaintiffs amended their complaint a second time in order to add to their ranks the owner of a 1996 model. This amendment came after CAFA’s effective date. In the Boxdorfer case, the plaintiffs who were added by amendment after the Act’s effective date were members of the original class; they were added because it was discovered that the claims of the original named plaintiffs might be barred by the statute of limitations.

“A routine amendment to the complaint does not commence a new suit.” Schorsch v. Hewlett-Packard Co., 417 F.3d 748, 749 (7th Cir.2005). But is adding a plaintiff to a class action suit “routine”? We said in Schorsch that “a defendant added after [CAFA’s effective date] could remove because suit against it would have been commenced after the effective date, and tacking a wholly distinct claim for relief onto an old suit likewise might commence a new proceeding.” Id. (emphasis in original). An amendment that merely changed the definition of and hence membership in the class was “routine,” but we noted that the suit remained one between the original parties. No named plaintiffs had been added; the alteration of the class had added just new, unnamed class members. Id. at 750.

*787 Substitution of unnamed class members for named plaintiffs who fall out of the case because of settlement or other reasons is a common and normally an unexceptionable (“routine”) feature of class action litigation both in the federal courts and in the Illinois courts. Gates v. Towery, 430 F.3d 429, 430 (7th Cir.2005); Birmingham Steel Corp. v. TVA, 353 F.3d 1331, 1339 (11th Cir.2003); Toms v. Allied Bond & Collection Agency, Inc., 179 F.3d 103, 106-07 (4th Cir.1999); Wheatley v. Board of Education, 99 Ill.2d 481, 77 Ill.Dec. 115, 459 N.E.2d 1364, 1366-68 (1984); Yu v. International Business Machines Corp., 314 Ill.App.3d 892, 247 Ill.Dec. 841, 732 N.E.2d 1173, 1178-79 (2000); Hess v. I.R.E. Real Estate Income Fund, 255 Ill.App.3d 790, 195 Ill.Dec. 935, 629 N.E.2d 520, 525-27 (1999). But there is a potential complication here: the plaintiff class in Boxdorfer has not been certified, and we do not know whether a motion for certification is pending or has been denied.

Strictly speaking, if no motion to certify has been filed (perhaps if it has been filed but not acted on), the ease is not yet a class action and so a dismissal of the named plaintiffs’ claims should end the case. E.g., Walters v. Edgar, 163 F.3d 430, 432-33 (7th Cir.1998). If the case is later restarted with a new plaintiff, it is a new commencement, a new suit. But the courts, both federal and Illinois, are not so strict. Unless jurisdiction never attached, as in Walters v. Edgar, supra, or the attempt to substitute comes long after the claims of the named plaintiffs were dismissed, as in Lusardi v. Xerox Corp., 975 F.2d 964, 977-78 (3d Cir.1992); see also Sze v. INS, 153 F.3d 1005, 1010 (9th Cir. 1998); Tucker v. Phyfer, 819 F.2d 1030, 1036 (11th Cir.1987), substitution for the named plaintiffs is allowed. Baxter v. Palmigiano, 425 U.S. 308, 310 n. 1, 96 S.Ct. 1551, 47 L.Ed.2d 810 (1976); Gates v. Towery, supra, 430 F.3d at 430; Egan v. Davis, 118 F.3d 1148, 1150 (7th Cir.1997); Rosetti v. Shalala, 12 F.3d 1216, 1232 n. 33 (3d Cir.1993); In re Thornburgh, 869 F.2d 1503, 1508-09 (D.C.Cir.1989); Gotches v. Heckler, 773 F.2d 108, 115 (7th Cir.1985) (concurring opinion); Wheatley v. Board of Education, supra, 77 Ill.Dec. 115, 459 N.E.2d at 1367-68; Yu v. International Business Machines Corp., supra, 247 ill.Dec. 841, 732 N.E.2d at 1179; Hess v. I.R.E. Real Estate Income Fund, supra, 195 Ill.Dec. 935, 629 N.E.2d at 526-27.

The courts thus disregard the jurisdictional void that is created when the named plaintiffs’ claims are dismissed and, shortly afterwards, surrogates step forward to replace the named plaintiffs. See also Schreiber Foods, Inc., v. Beatrice Cheese, Inc., 402 F.3d 1198 (Fed.Cir.2005), and Insituform Technologies, Inc. v. CAT Contracting, Inc., 385 F.3d 1360, 1371-72 (Fed.Cir.2004), discussed in DePuy, Inc. v. Zimmer Holdings, Inc., 384 F.Supp.2d 1237, 1238-40 (N.D.Ill.2005).

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