Hollaway v. Gaylord Chemical Corp.

730 So. 2d 952, 1998 WL 918272
CourtLouisiana Court of Appeal
DecidedMarch 12, 1999
Docket98 CA 0828
StatusPublished
Cited by1 cases

This text of 730 So. 2d 952 (Hollaway v. Gaylord Chemical Corp.) 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
Hollaway v. Gaylord Chemical Corp., 730 So. 2d 952, 1998 WL 918272 (La. Ct. App. 1999).

Opinion

730 So.2d 952 (1998)

Sharon HOLLAWAY, et al.
v.
GAYLORD CHEMICAL CORP., Gaylord Container Corp. and ABC Insurance Company.

No. 98 CA 0828.

Court of Appeal of Louisiana, First Circuit.

December 28, 1998.
As Corrected March 12, 1999.

*953 Stephen B. Murray, New Orleans, Ronnie G. Penton, Bogalusa, Gerald E. Meunier, New Orleans, James S. Farmer, Bogalusa, Reginald J. Laurent, Slidell, for Plaintiffs-Appellees The Plaintiffs Liaison Committee.

Richard F. Knight, E.B. Dittmer, II, Charles M. Hughes, Jr., Paul S. Hughes, Bogalusa, Thomas O. Kuhns, Daniel K. Frey, Chicago, IL, for Defendant—Appellant Gaylord Chemical Corp.

Robert E. Barkley, Jr., Thomas Schwab, Nicholas D. Doucet, New Orleans, William V. Johnson, Frank P. Nowicki, Chicago, IL, for Defendant—Appellant Union Tank Car Co.

*954 Lawrence E. Abbott, Sarah E. Iiams, Monique M. Weiner, New Orleans, for Defendant —Appellant Illinois Central Railroad Co.

F. Frank Fontenot, James K. Irvin, Timothy T. Roniger, New Orleans, for Defendant —Appellant The Kansas City Southern Railway Co.

Leonard L. Kilgore, III, Sandra L. Edwards, Esteban Herrera, Jr., Melissa M. Cresson, Baton Rouge, John E. Wade, T. Michael Cronin, Jackson, MS, for Defendant —Appellant Vicksburg Chemical Co.

Leonard L. Kilgore, III, Sandra L. Edwards, Esteban Herrera, Jr., Melissa M. Cresson, Baton Rouge, Allen T. Malone, Memphis, TN, for Defendant—Appellant Cedar Chemical Corp.

Charles E. Sutton, Jr., Metairie, for Defendant —Appellant Gaylord Container Corp.

Celeste Darmstadter Elliott, Ralph S. Hubbard, III, New Orleans, for Defendant— Appellant Travelers Casualty and Surety Co.

Glenn G. Goodier, New Orleans, for Defendants —Appellants Transportation Ins. Co. and CNA Ins. Companies.

Gary M. Zwain, Kelly Cambre Bogart, Metairie, for Defendant—Appellant Federal Ins. Co.

Michael G. Durand, Lafayette, for Defendant —Appellant Royal Indemnity Co.

Stephan Michael Cooper, George B. Hall, Jr., Jay Russell Sever, New Orleans, for Defendant—Appellant Agricultural Ins. Co.

W. Arthur Abercrombie, Jr., William Shelby McKenzie, Baton Rouge, for Defendants —Appellants Agricultural Ins. Co., Federal Ins. Co., Travelers Casualty & Surety Co., and Royal Indemnity Co.

Before: LeBLANC, FOGG, and PARRO, JJ.

FOGG, J.

By this appeal, defendants in this class action challenge the trial court's determination of the geographical and temporal boundaries of the class and the trial court's refusal to certify a mandatory no-opt-out class for punitive damages.

FACTS AND PROCEDURAL HISTORY

Plaintiffs brought this action on behalf of persons and entities allegedly injured as a result of the explosion of a railroad tank car on October 23, 1995 in Bogalusa, Louisiana. The tank car was owned by Union Tank Car Company and leased to Gaylord Chemical Corporation, on whose premises the explosion occurred. The tank car contained a shipment of nitrogen tetroxide manufactured by Vicksburg Chemical Company and loaded aboard the tank car in Vicksburg, Mississippi. The Kansas City Southern Railway Company moved the car from Vicksburg to Jackson, Mississippi, where it was turned over to the Illinois Central Railroad, which moved it to Gaylord's plant in Bogalusa, Louisiana, approximately two weeks before the explosion. The companies named above, among others, were named as defendants.

The trial court initially certified a class on July 15, 1996. A group of plaintiffs challenged that certification in an application for supervisory review filed in this court. On March 27, 1997, this court reversed the trial court's certification order and remanded the case for an evidentiary hearing on the qualifications of class counsel, adequacy of class representatives, and the establishment of the geographic boundaries of the class. Cotton v. Gaylord Container, 96-1958, 96-2029, 96-2049 (La.App. 1 Cir. 3/27/97); 691 So.2d 760, writs denied, 97-0800, 97-0830 (La.4/8/97); 693 So.2d 147.

On November 10, 1997, the trial court entered judgment that certified a class, the geographical boundaries of which extended north of Bogalusa into three Mississippi counties: Walthall, Marion, and Pike. The trial court designated the entire month of October 1995 as the temporal boundary of the class. The trial court also declined to certify a mandatory no-opt-out class for punitive damages. Additionally, the trial court approved certain attorneys as members of the Plaintiffs' Liaison Committee ("PLC") and approved certain plaintiffs as class representatives.

Defendants moved for a suspensive appeal from that judgment. Defendants also filed a writ application from the class certification *955 judgment, seeking discretionary review of the judgment in the event the appeal was denied. The trial court denied defendants' motion for suspensive appeal; defendants sought review of that judgment by another writ application filed with this court. On March 20, 1998, this court denied the earlier writ application seeking review of the class certification, finding that review was appropriate by appeal:

[Defendants] have met their burden of proving irreparable injury resulting from the class certification, thereby entitling them to a suspensive appeal of the interlocutory judgment under La.Code Civ. P. Art.2083(A). See Carr v. GAF, Inc., et al., 97-2325 (La.11/14/97); 702 So.2d 1384. [Defendants] should be allowed to suspensively appeal the trial court's decision.

That same day, this court also granted defendants' writ application seeking review of the trial court's denial of their motion for a suspensive appeal and ordered the trial court to grant that motion.

Plaintiffs filed a writ application in the Louisiana Supreme Court, seeking review of this court's March 20, 1998 decision ordering the trial court to grant defendants a suspensive appeal. Plaintiffs averred that the trial court's class certification ruling should be reviewed by writ application, not by appeal. On April 1, 1998, the supreme court granted plaintiffs' writ application only to the extent of ordering that this court consider defendants' appeal on an expedited basis. In re: Chemical Release at Bogalusa, 98-0809 (La.4/1/98); 717 So.2d 222.

ISSUES

On appeal, defendants assert the trial court manifestly erred in setting the geographical boundaries of the class beyond the outer limits set by the scientific evidence and in setting the temporal scope beyond the limits revealed by the factual evidence. They also contend the trial court erred in refusing to provide for a mandatory no-opt-out class for punitive damages.

GEOGRAPHIC AND TEMPORAL BOUNDARIES

In the case of Boudreaux v. State, Dept. of Transp. and Development, 96-0137 (La.App. 1 Cir. 2/14/97); 690 So.2d 114, we discussed fully the standard of review that applies in class actions. Therein, we stated that the factual findings upon which a class action certification is based are subject on appeal to the manifest error (clearly wrong) standard. After the trial court makes its determinations of fact, it exercises its discretion to certify the class or not. This discretionary judgment must be reviewed on appeal by the abuse of discretion standard. Boudreaux, 690 So.2d at 119.

We recognize that the establishment of geographic boundaries of a class must be based on evidence in the record. Livingston Parish Police Jury v. Acadiana Shipyards, 598 So.2d 1177 (La.App. 1 Cir.), writs denied, 605 So.2d 1122 (La.1992).

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Related

Gaylord Container Corporation v. CNA Ins. Companies
807 So. 2d 864 (Louisiana Court of Appeal, 2001)

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730 So. 2d 952, 1998 WL 918272, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hollaway-v-gaylord-chemical-corp-lactapp-1999.