Link v. Mercedes-Benz of North America, Inc.

550 F.2d 860, 23 Fed. R. Serv. 2d 126
CourtCourt of Appeals for the Third Circuit
DecidedFebruary 11, 1977
DocketNo. 75-2195
StatusPublished
Cited by41 cases

This text of 550 F.2d 860 (Link v. Mercedes-Benz of North America, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Link v. Mercedes-Benz of North America, Inc., 550 F.2d 860, 23 Fed. R. Serv. 2d 126 (3d Cir. 1977).

Opinions

OPINION OF THE COURT

WEIS, Circuit Judge.

Whether an antitrust action with potentially 300,000 claimants is manageable as a class action is the question directed to us in this § 1292(b) appeal. We decline to answer on the ground that the matter is one of fact subject to determination by district court. A second query asks whether there may be separate juries utilized during the liability [862]*862and damage phases of a bifurcated trial. In the absence of a definitive order on that subject by the district court, the inquiry is essentially a request for an advisory opinion, which we may not honor.

Plaintiffs Link and Katz owned Mercedes automobiles which were repaired at various times by authorized dealers. Believing the costs to be excessive, plaintiffs filed this suit under the Sherman and Clayton Acts alleging a conspiracy to fix prices. They requested a class action certification and sought injunctive relief as well as treble damages and attorneys’ fees.

The plaintiffs contend that defendant Daimler-Benz A.G., the parent corporation located in West Germany, and an American subsidiary, Mercedes-Benz of North America, conspired with Mercedes dealers in the United States to maintain high prices for nonwarranty repairs. It is alleged that there was an illegal agreement to base repair rates on artificially-maintained prices of parts and flat labor repair times set out in the manufacturer’s manual.

Pursuant to Fed.R.Civ.P. 23(b)(3), the district court certified the plaintiff class, consisting of some 300,000 persons in the United States who had Mercedes cars repaired during the four years in question.1 The court also listed as controlling questions of law under 28 U.S.C. § 1292(b):

A. Whether it is proper to certify a class of approximately 300,000 members where the proof of damages will vary for each member of the class;
B. Whether there can be a bifurcated trial in this case of liability and damages with separate juries for each segment of the case.

A panel of this court allowed the appeal, and two weeks later the district court filed its “Memorandum Opinion” explaining the reasons for its belief that immediate appellate review was indicated.

We have held that a grant or denial of class action certification is not a final order and, hence, not appealable under our general jurisdictional statute, 28 U.S.C. § 1291. Kramer v. Scientific Control Corp., 534 F.2d 1085 (3d Cir. 1976); Hackett v. General Host Corporation, 455 F.2d 618 (3d Cir.) cert. denied, 407 U.S. 925, 92 S.Ct. 2460, 32 L.Ed.2d 812 (1972). However, an interlocutory order of this nature may qualify for accelerated appeal under 28 U.S.C. § 1292(b):

“When a district judge, in making in a civil action an order not otherwise appeal-able under this section, shall be of the opinion that such order involves a controlling question of law as to which there is substantial ground for difference of opinion and that an immediate appeal from the order may materially advance the ultimate termination of the litigation, he shall so state in writing in such order. The Court of Appeals may thereupon, in its discretion, permit an appeal to be taken from such order . . . .”

This Court does not follow a policy of freely accepting an appeal from the grant of a class action certification where such action is grounded in the discretionary power of the district court. We have taken the position that “[t]o qualify for interlocutory review in this circuit, a class certification decision must be attended by special factors which take it outside the ambit of the general rule. Katz v. Carte Blanche Corp., 496 F.2d 747, 756 (3d Cir.), cert. denied, 419 U.S. 885 [95 S.Ct. 152, 42 L.Ed.2d 125] (1974).” Kramer v. Scientific Control Corp., 535 F.2d at 1087; Ungar v. Dunkin’ Donuts of America, Inc., 531 F.2d 1211, 1213 (3d Cir.), cert. denied, 45 U.S.L.W. 3250 (U.S. Oct. 4, 1976).

We recognize that class action determination has significant practical effects on the litigation and an aggrieved party may have a very real interest in securing early appellate review. But the same considerations [863]*863apply to many other types of interlocutory orders and we cannot sanction an erosion of the prohibition against “piecemeal” appellate review. Our constantly increasing caseload2 reinforces the other more philosophical reasons for that policy.

Further, as we noted in Johnson v. Alldredge, 488 F.2d 820 (3d Cir. 1973), cert. denied, 419 U.S. 882, 95 S.Ct. 148, 42 L.Ed.2d 122 (1974), 28 U.S.C. § 1292(b) is not designed for review of factual matters but addresses itself to a “controlling question of law.” In the cases where we have considered and reversed class action certification, there were other overriding legal issues: e. g., Ungar v. Dunkin’ Donuts, supra (“individual coercion” and tying arrangements); Katz v. Carte Blanche, supra (superiority of test case in Truth in Lending context); Kauffman v. Dreyfus Fund, Inc., 434 F.2d 727 (3d Cir. 1970), cert. denied, 401 U.S. 974, 91 S.Ct. 1190, 28 L.Ed.2d 323 (1971) (eligibility of class representative). Because Rule 23(c) provides that the district court’s determination to permit a class action “may be conditional, and may be altered or amended before the decision on the merits,” that determination, in and of itself, does not present a “controlling question of law” to which this court should be hospitable under § 1292(b). If the district court has qualms about determining a class, because it has a serious question whether it is “applying] the correct criteria to the facts of the case,” Katz v. Carte Blanche Corp., 496 F.2d at 756, (a) it should hesitate in determining the class until reasonably assured of the correctness of its ruling and (b) it should not certify for § 1292(b) consideration without stating persuasive reasons why the particular class action question is so unusual as to demand the intervention-of an appellate court. In affording immediate appellate review of “controlling questions of law,” § 1292(b) was not designed to substitute wholesale appellate certainty for trial court uncertainty under circumstances where, as here, the Rule gives broad discretion to the district court to revise its class action determination at any time prior to the decision on the merits.

One other observation is in order. Section 1292(b) is not intended to grant the appellate courts power to give advice on speculative matters. While counsel and the district court might believe it helpful to have the appellate court’s view on proposed alternate courses of action, our jurisdiction extends only to orders of the district court. These orders must be definitive, effective, and in a posture capable of affirmance or reversal.

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Bluebook (online)
550 F.2d 860, 23 Fed. R. Serv. 2d 126, Counsel Stack Legal Research, https://law.counselstack.com/opinion/link-v-mercedes-benz-of-north-america-inc-ca3-1977.