Mineral Area Osteopathic Hospital, Inc. v. Keane, Inc.

192 F.R.D. 589, 2000 U.S. Dist. LEXIS 7367, 2000 WL 688300
CourtDistrict Court, N.D. Iowa
DecidedMay 25, 2000
DocketNo. C99-50 MJM
StatusPublished

This text of 192 F.R.D. 589 (Mineral Area Osteopathic Hospital, Inc. v. Keane, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mineral Area Osteopathic Hospital, Inc. v. Keane, Inc., 192 F.R.D. 589, 2000 U.S. Dist. LEXIS 7367, 2000 WL 688300 (N.D. Iowa 2000).

Opinion

[590]*590OPINION AND ORDER

MELLOY, District Judge.

This case originated out of an alleged Year 2000 (“Y2K”) defect in software (“MED-NET”) that the plaintiffs in the above captioned case purchased from the defendant in this action, Keane, Inc.1 After the defendant informed the plaintiffs it was canceling the technical support for MEDNET, the plaintiffs filed the present lawsuit alleging the defendant’s refusal to repair said defect was a breach of contract. The plaintiffs now move for class certification.

On July 20, 1999, the Y2K Act, 15 U.S.C. § 6601 et seq., was signed into law. Congress intended the passage of the Y2K Act “to assure that the year 2000 problems described in this section do not unnecessarily disrupt interstate commerce or create unnecessary caseloads in Federal courts and to provide initiatives to help businesses prepare and be in a position to withstand the potentially devastating economic impact of such problems.” 15 U.S.C. § 6601(a)(4). To achieve this goal, the Y2K Act puts in place procedural mechanisms designed to curb “insubstantial” litigation and “encourage private and public parties alike to resolve disputes .... by alternative dispute mechanisms in order to avoid costly and time-consuming litigation____” 15 U.S.C. §§ 6601(b)(3) and (4). For example, with regards to class certification, in addition to meeting the requirements of Federal Rule Civil of Procedure 23, the Y2K Act requires that the class be at least 100 in number. See 15 U.S.C. § 6614(c)(2)(D). In the present action, the plaintiffs’ putative class numbers, at most, 81,2 which is insufficient to meet the class prerequisites of the Y2K Act. Consequently, the initial issue for the Court to address is whether the Y2K Act applies to the plaintiffs’ cause of action, thereby barring class certification.

When interpreting a statute, the court must begin with the plain language of the statute. See Norwest Bank v. Doth, 159 F.3d 328, 333 (8th Cir.1998). If the plain language of the statute is unambiguous, that language is the end of the inquiry “absent clear legislative intent to the contrary.” Id. In other words, “if the intent of Congress can be clearly discerned from the statute’s language, the judicial inquiry must end.” Id. If, however, there is ambiguity in the language of a statute, the court must consider “the purpose, the subject matter and the condition of affairs which led to its enactment.” United States v. S.A., 129 F.3d 995, 998 (8th Cir. 1997), cert. denied, 523 U.S. 1011, 118 S.Ct. 1200, 140 L.Ed.2d 329 (1998); quoting Lambur v. Yates, 148 F.2d 137, 139 (8th Cir.1945). ‘When the meaning of a statute is questionable, it should be given a sensible construction and construed to effectuate the underlying-purposes of the law.” Norwest Bank, 159 F.3d at 333.

With that framework in mind, the Court begins its interpretation of the Y2K Act with its plain language. The Y2K Act is a jurisdictional statute that “applies to any Y2K action brought after January 1, 1999.” 15 U.S.C. § 6603(a).3 By defining “any Y2K action” as “a civil action commenced in any Federal or State court, or an agency board of contract appeal proceeding, in which the plaintiffs alleged harm or injury arises from or is related to an actual or potential Y2K failure, or a claim or defense arises from or is related to an actual or potential Y2K failure,” Congress sets out the scope of the Act. 15 U.S.C. § 6602(1)(A). The scope of the Act, “to any Y2K action,” is restated in multiple sections, including that on class actions. See 15. U.S.C. §§ 6602(1)(A), 6603(a), and 6614(c)(1). The plaintiffs in the present action seek relief in this Court for a computer defect that “concerns the inability of the MEDNET system to recognize and handle dates after December 31,1999 ----common[591]*591ly known as a “Year 2000’ or Y2K’ defect.” (Doe. # 1) As such, the plaintiffs’ Y2K action falls squarely within the plain language of the statute.

The plaintiffs, however, maintain that because the Y2K Act is a jurisdictional statute the class action requirements need only be met if one uses the Act as a jurisdictional vehicle to federal court. Because the plaintiffs have diversity jurisdiction, pursuant to 28 U.S.C. § 1332, they contend the class action requirements of the Y2K Act are inapplicable to this case. The plaintiffs base this contention on the language of § 6614(c)(3)(A) and its legislative history. Section 6614(e)(3)(A) reads:

A United States district court shall dismiss, or, if after removal, strike the class allegations and remand, any Y2K action brought or removed under this subsection as a class action if—

(i) the action is subject to the jurisdiction of the court solely under this subsection; and

(ii) the court determines the action may not proceed as a class action based on a failure to satisfy the conditions of Rule 23 of the Federal Rules of Civil Procedure.

The plaintiffs place great weight on the language “solely under this subsection,” arguing this phrase indicates Congress envisioned other routes of jurisdiction for Y2K actions. The plaintiffs claim the legislative history of this section supports their proposition that Congress intended to expand jurisdiction with this statute rather than limit it. The relevant legislative history reads: “[This section] expands original jurisdiction of U.S. District Courts for Y2K actions where there is minimal diversity, but provides that district courts may abstain from hearing a case if there is a predominant State interest____ or where the amount is minimal, the class is small, or the primary defendants are States or other entities against whom the district court may not order relief.” Sen.Rep. No. 106-10, at 7 (1999).

The plaintiffs are correct that the legislative history of § 6614 indicates that Congress intended to expand jurisdiction for Y2K actions, at least in some cases, when there is minimal diversity. Yet, what the legislative history also indicates is that courts may dismiss those cases with minimal diversity if “the class is small” — defined by the Act as a class with 100 members or less. See Sen. Rep. No. 106-10, at 7 (1999); See also §§ 6614(c)(2)(D) and 6614(c)(3)(A).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

United States v. S.A.
129 F.3d 995 (Eighth Circuit, 1997)
Lambur v. Yates
148 F.2d 137 (Eighth Circuit, 1945)
Johnson v. Circuit City Stores, Inc.
71 F. Supp. 2d 1026 (N.D. California, 1999)
Alphonse v. United States
523 U.S. 1011 (Supreme Court, 1998)

Cite This Page — Counsel Stack

Bluebook (online)
192 F.R.D. 589, 2000 U.S. Dist. LEXIS 7367, 2000 WL 688300, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mineral-area-osteopathic-hospital-inc-v-keane-inc-iand-2000.