Kristina Rapuano et al. v. Trustees of Dartmouth College

2020 DNH 013
District Court, D. New Hampshire·Decided June 18, 2020·No. 18-cv-1070-LM·Published·Cited by 3 cases

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEW HAMPSHIRE

Kristina Rapuano et al.

v. Civil No. 18-cv-1070-LM Opinion No. 2020 DNH 013

Trustees of Dartmouth College

O R D E R

Plaintiffs Kristina Rapuano, Vassiki Chauhan, Sasha Brietzke, Annemarie Brown, Andrea Courtney, Marissa Evans, Jane Doe, Jane Doe 2, and Jane Doe 3 bring this suit on their own behalf and on behalf of a putative class against the Trustees of Dartmouth College (“Dartmouth”). Plaintiffs bring claims under Title IX, 20 U.S.C. § 1681 et seq., and New Hampshire common law, alleging that Dartmouth was aware that three professors in the Psychological and Brain Sciences Department created a sexually hostile education environment for female students and that Dartmouth did not take adequate steps to protect its students or stop the professors’ misconduct. Plaintiffs move for preliminary approval of a comprehensive class action settlement in this matter under Federal Rule of Civil Procedure 23(e). Doc. no. 47. Dartmouth does not oppose the motion. On October 17, 2019, the court held a hearing on plaintiffs’ motion. Plaintiffs subsequently filed supplemental briefing as

allowed by the court. For the following reasons, the court grants plaintiffs’ motion for preliminary approval of the class action settlement.

STANDARD OF REVIEW

I. Preliminary Approval Versus Final Approval Court approval of a class action settlement proceeds in two stages. See Michaud v. Monro Muffler Brake, Inc., No. 2:12-CV- 00353-NT, 2015 WL 1206490, at *8 (D. Me. Mar. 17, 2015); 4 William B. Rubenstein, Newberg on Class Actions § 13.10 (5th ed. 2019). First, the parties present a proposed settlement to the court for “preliminary approval” and ask the court to make a preliminary determination regarding class certification. See Rubenstein, supra, § 13.10. At this preliminary stage, the court must determine whether it “will likely be able to”: (1) certify the class for purposes of judgment on the proposed settlement; and (2) approve the settlement proposal under Rule 23(e)(2). Fed. R. Civ. P. 23(e)(1)(B). If the court is satisfied on both inquiries, the court should “direct notice in a reasonable manner to all class members who would be bound” by the proposed settlement. Fed. R. Civ. P. 23(e)(1)(B). After notice to the class, the court holds a fairness hearing at which class members may appear to support or object to the proposed settlement. See Rubenstein, supra, § 13.10.

Second, the court must decide whether to grant final approval of the proposed settlement. Under Rule 23(e)(2), the court may grant final approval of a class action settlement if it can certify the proposed class, see Amchem Products, Inc. v. Windsor, 521 U.S. 591, 621 (1997), and if it finds that the proposed agreement is “fair, reasonable, and adequate,” Fed. R. Civ. P. 23(e)(2).

Prior to amendment of Rule 23(e) in 2018, the rule did not specify what standard the court should apply at the preliminary approval stage. See In re Payment Card Interchange Fee & Merch. Disc. Antitrust Litig., 330 F.R.D. 11, 28 (E.D.N.Y. 2019). In the absence of explicit direction in the rule, most courts applied a “less stringent” or more “lax” standard at the preliminary approval stage regarding the requirements for class certification and approval of the proposed settlement. See, e.g., Ross v. Lockheed Martin Corp., 267 F. Supp. 3d 174, 191 (D.D.C. 2017); Cotter v. Lyft, Inc., 193 F. Supp. 3d 1030, 1035- 36 (N.D. Cal. 2016).

In 2018, Rule 23(e) was amended to provide a standard governing preliminary approval. As outlined above, Rule 23(e)(1)(B) now provides that, in order to preliminarily approve the settlement, the court must find that it “will likely be able to” certify the class for the purposes of settlement and find that the settlement is fair, reasonable, and adequate. Fed. R.

Civ. P. 23(e)(1)(B). Since the amendment, a growing number of courts have interpreted this “likelihood standard” as “more exacting” than the relaxed standard courts applied prior to the amendment. In re Payment Card Interchange, 330 F.R.D. at 28 n.21; see also In re GSE Bonds Antitrust Litig., __ F. Supp. 3d ___, 2019 WL 5848960, at *1 (S.D.N.Y. Nov. 7, 2019); In re Premera Blue Cross Customer Data Sec. Breach Litig., No. 3:15- MD-2633-SI, 2019 WL 3410382, at *1 (D. Or. July 29, 2019); O’Connor v. Uber Techs., Inc., No. 13-CV-03826-EMC, 2019 WL 1437101, at *4 (N.D. Cal. Mar. 29, 2019); Stoddart v. Express Servs., No. 212CV01054KJMCKD, 2019 WL 414489, at *5 (E.D. Cal. Feb. 1, 2019).

This court agrees that the “likelihood” standard spelled out in Rule 23(e) demands a searching—not a relaxed—inquiry. Indeed, the Advisory Committee Notes to the 2018 amendment state that “The decision to give notice of a proposed settlement to the class is an important event. It should be based on a solid record supporting the conclusion that the proposed settlement will likely earn final approval after notice and an opportunity to object.” See Fed. R. Civ. P. Rule 23(e), Adv. Commt. Notes, 2018 Amdnt. (emphasis added). Further, it makes little practical sense for a district court to conduct a less rigorous inquiry at the preliminary approval stage. As explained by one district court:

If the district court, by taking a quick look rather than a careful one, misses a serious flaw in the settlement, the parties and the court will waste a great deal of money and time notifying class members of the agreement, only to see it rejected in the end, requiring the parties to start over. The same is true if the district court does identify a potentially serious flaw at the preliminary stage but waits until final approval to conclude that it’s fatal. What’s worse, if a court waits until the final approval stage to thoroughly assess the fairness of the agreement, momentum could have a way of slanting the inquiry, in a manner that deprives the class members of the court protection that Rule 23 demands.

Cotter, 193 F. Supp. 3d at 1036. Given these considerations, this court will conduct a careful review at this preliminary stage to ensure that it will likely be able to approve the settlement and certify the class after the final hearing. This determination remains preliminary in the sense that it is subject to any additional information—including further factual development or objections by class members—that may come to light prior to or during the fairness hearing. See id. at 1036- 37; Rubenstein, supra, § 13.18.

II. Settlement Class Certification Versus Litigation Class Certification

To certify either a settlement class or a litigation class, the court must find that the requirements of Federal Rule of Civil Procedure 23 are met. See Amchem, 521 U.S. at 620-21. Rule 23(a) states four threshold certification requirements applicable to all class actions: (1) numerosity; (2)

commonality; (3) typicality; and (4) adequacy. See Fed. R. Civ. P. 23(a); Amchem, 521 U.S. at 613. In addition to Rule 23(a)’s threshold requirements, a party seeking certification must also show that the action falls into one of the categories outlined in Rule 23(b). Amchem, 521 U.S. at 614. Plaintiffs seek to certify under Rule 23(b)(3). To qualify for certification under that rule, the proponents of the action must show that common questions of law or fact “predominate over any questions affecting only individual members” and that class resolution is “superior to other available methods for fairly and efficiently adjudicating the controversy.” Fed. R. Civ. P. 23(b)(3); Amchem, 521 U.S. at 615.

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