Lloyd v. General Motors Corp.

275 F.R.D. 224, 2011 U.S. Dist. LEXIS 63436, 2011 WL 2433091
CourtDistrict Court, D. Maryland
DecidedJune 16, 2011
DocketCivil No. L-07-2487
StatusPublished
Cited by8 cases

This text of 275 F.R.D. 224 (Lloyd v. General Motors Corp.) is published on Counsel Stack Legal Research, covering District Court, D. Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lloyd v. General Motors Corp., 275 F.R.D. 224, 2011 U.S. Dist. LEXIS 63436, 2011 WL 2433091 (D. Md. 2011).

Opinion

Memorandum

BENSON EVERETT LEGG, District Judge.

Now pending is the Plaintiffs’ Renewed Motion to Certify Class. Docket No. 288. The issues have been fully briefed, and on January 21, 2011 and February 7, 2011, the Court held a hearing. For the reasons stat-

ed herein, the Court will, by separate Order, DENY the Motion.

I. BACKGROUND

This opinion considers the Plaintiffs’ second effort to certify a class. Their first proposed class included all Maryland residents who own Ford Explorers, Mercury Mountaineers, or Ford Windstars for certain model years. Plaintiffs allege that the seats in the class vehicles are defective because they are prone to collapse rearward in moderate speed rear-impact collisions. Then as now, the Plaintiffs sought to recover not for personal injuries, but, rather, money damages in an amount necessary to strengthen the seats.

The Court declined to certify the original class in an opinion dated March 12, 2010 (“Lloyd 1”). That opinion laid out the procedural history of this litigation, the pertinent facts, and the reasons why the proposed class did not satisfy Rule 23. Docket No. 276; 266 F.R.D. 98 (D.Md.2010). These points need not be restated here in detail. In brief, the Court’s reasoning centered on three factors that would have made the class action trial unworkable.

First, the trial would have placed an impossible burden on the jury. Maryland’s risk-utility test calls on the jury to make two determinations. The jury must initially assess the safety performance of the product. Then, the jury must decide whether a feasible, safer alternative design existed. The two steps are required because a product is not defective simply because it poses a risk of injury. Many useful and necessary products pose risks. A product is defective only if the danger presented by the product outweighs its utility. Investigating this balance inevitably leads the jury to focus on whether foreseeable risks of harm posed by the product could have been reduced or avoided by the adoption of a reasonable alternative design by the seller.

Had the Court certified the proposed class, the jury would have been required to apply the risk-utility test to vehicles incorporating 23 different seating configurations. A seat’s ■performance in a crash depends on the inter[227]*227play of the components of the entire seating system. The variables include, inter alia, vehicle weight, seatback rigidity, headrest type, reclining mechanism, and the seat’s anchoring system. The jury would have been confronted with the hopeless task of (i) evaluating the crashworthiness of all 23 systems, and (ii) deciding for each whether a feasible alternative design existed.

Second, the trial would have required the jury to usurp the standard-setting prerogative of the National Highway Transportation Safety Administration (“NHTSA”). The Plaintiffs argued that a vehicle is defective unless its seats have a minimum seatback strength of 20,000 inch-pounds.1 NHTSA, however, requires only 3,300 inch-pounds.2 Moreover, in 1989, NHTSA rejected a request, submitted by Plaintiffs’ experts in this case, to increase the minimum requirement to 56,000 inch-pounds. After studying the issue for nearly 15 years, NHTSA declined, reporting that “improving seating system performance is more complex than simply increasing the strength of the seatback.” 69 Fed.Reg. 67068, 67069 (Nov. 16,2004).

Plaintiffs would have asked a lay jury, unaided by the agency’s expertise, special knowledge, and ability to test, to overrule NHTSA by declaring defective any seatback below the 20,000 inch-pound threshold. Moreover, because the market for new cars is nationwide, a verdict in favor of the class may have effectively imposed a new nationwide 20,000 inch-pound standard for new vehicles.

Third, the Complaint included counts alleging negligent failure to disclose, fraudulent concealment, and deceptive trade practices, three causes of action for which a purchaser’s reliance must be proved. As the Court ruled, such an individualized inquiry is not susceptible of class treatment.

For these and other reasons, the Court declined to certify the proposed class. Plaintiffs’ counsel requested leave to propose a reformulated class. On July 28, 2010, the Plaintiffs filed the Motion now under consideration. They have narrowed the proposed class significantly, naming only Maryland residents who own a model year 1998 to 2001 4-door Ford Explorer or Mercury Mountaineer with sport bucket seats. This, they contend, reduces the analysis from 23 seating configurations to one, and the resulting trial would, therefore, be manageable. Additionally, Plaintiffs have abandoned the negligent failure to disclose, fraudulent concealment, and deceptive trade practices counts of their Complaint, leaving only claims for negligence and strict products liability.

II. DISCUSSION

a. Rule 23 Requirements

A proposed class must meet all of the requirements of Rule 23(a) and fit within one of the subsections of Rule 23(b). As the Court determined in its first opinion, Plaintiffs satisfy all of the requirements of Rule 23(a).3 The motion, therefore, turns on the ability of the proposed class to meet the terms of Rule 23(b)(3), the specific provision on which certification is sought.

Rule 23(b)(3) provides: “The court [must] find[ ] that questions of law or fact common to class members predominate over any questions affecting only individual members, [228]*228and that a class action is superior to other available methods for fairly and efficiently adjudicating the controversy.” The rule also specifies four factors that the court should weigh when evaluating predominance and superiority. They are: (i) the strength of the individual class members’ interest in controlling the prosecution and defense of a separate action, (ii) the extent and nature of existing litigation already begun by or against class members, (iii) the desirability or undesirability of concentrating the litigation in the single forum selected by the class plaintiffs, and (iv) the likely difficulties in managing the class action.

As before, three of the four factors enumerated in the rule favor the Plaintiffs. Individual class members have little interest in prosecuting a separate action. Any individual recovery, which Plaintiffs’ attorneys estimate at a few thousand dollars, would be dwarfed by the cost of bringing the suit. The class action rule was designed to meet such situations by allowing aggrieved plaintiffs to aggregate their claims, thereby making it economical for an attorney to take their case. The class action would not interfere with any existing litigation because there are no other seatback strength cases already begun by class members. Finally, because the proposed class is composed of Maryland residents, concentrating the litigation in this district would be appropriate.

With this in mind, the Court turns to manageability and aspects of predominance and superiority not listed in the Rule. Predominance, which includes manageability, “tests whether proposed classes are sufficiently cohesive to warrant adjudication by representation.” Amchem Products, Inc. v. Windsor, 521 U.S. 591, 623, 117 S.Ct. 2231, 138 L.Ed.2d 689 (1997).

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