Mire v. EATELCORP., INC.

927 So. 2d 1113, 2005 WL 3489547
CourtLouisiana Court of Appeal
DecidedDecember 22, 2005
Docket2004 CA 2603
StatusPublished
Cited by5 cases

This text of 927 So. 2d 1113 (Mire v. EATELCORP., INC.) 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
Mire v. EATELCORP., INC., 927 So. 2d 1113, 2005 WL 3489547 (La. Ct. App. 2005).

Opinion

927 So.2d 1113 (2005)

Jeffery W. MIRE, Shane M. O'Quin, and Barbara T. Estes, and a Class of Similarly Situated Individuals
v.
EATELCORP., INC., Primco Personal Communications, L.P. d/b/a Verizon Wireless and Sprint PCS, Inc.

No. 2004 CA 2603.

Court of Appeal of Louisiana, First Circuit.

December 22, 2005.
Writ Denied April 24, 2006.

*1114 Leonard Cardenas, III, Randall Eugene Estes, Baton Rouge, Counsel for Plaintiffs/Appellants Jeffery Mire, et al.

Thomas A. Roberts, Baton Rouge, Counsel for Defendant/Appellee Verizon Wireless.

Glenn M. Farnet, Baton Rouge, Counsel for Defendant/Appellee Eatelcorp, Inc.

Before: CARTER, C.J., DOWNING, and GAIDRY, JJ.

GAIDRY, J.

The plaintiffs-appellants, Jeffery W. Mire and Barbara T. Estes (plaintiffs), appeal the order of the trial court recalling its initial order certifying this action as a class action. We affirm for the reasons set forth below.

FACTUAL BACKGROUND AND PRIOR PROCEEDINGS

The factual and initial procedural history of this action was briefly outlined in this court's earlier opinion in Mire v. Eatelcorp, Inc., 02-1705, pp. 2-3 (La.App. 1st Cir.5/9/03), 849 So.2d 608, 611-12, writ denied, 03-1590 (La.10/3/03), 855 So.2d 317. We supplement that description with the following.

In their original petition filed on September 1, 2000, plaintiffs initially presented a sequence of "general allegations" outlining their cause of action. In summary, plaintiffs alleged that Eatelcorp, Inc. (Eatelcorp) sold personal communications services (PCS) digital cellular telephones for use with Eatelcorp's service plan featuring a month-to-month term. Each telephone sold was programmed by the manufacturer with a random six-digit number known as a "subsidy lock," used to activate the telephone on a particular PCS provider's network. *1115 Plaintiffs alleged that Eatelcorp failed to disclose the existence of the subsidy lock, which prevented any Eatelcorp customer from using his telephone with another PCS provider unless he paid a fee to Eatelcorp to access the subsidy lock code. Plaintiffs made supplemental factual allegations categorized under five different "counts" or theories of recovery: breach of contract, negligent omission of material information, fraud and inducement by omission, unfair trade practices, and conversion.

Following removal of the action to federal court and subsequent remand, Eatelcorp responded to plaintiffs' petition on July 31, 2001 with multiple exceptions, including a declinatory exception of lack of subject matter jurisdiction asserting the primary or exclusive jurisdiction of the Federal Communications Commission (FCC) or the Louisiana Public Service Commission (LPSC) over plaintiffs' claims.[1] On September 10, 2001, the trial court heard Eatelcorp's exceptions and dismissed the declinatory exception of lack of subject matter jurisdiction by order signed September 21, 2001.

On October 11, 2001, Eatelcorp moved to dismiss the class action allegations based upon plaintiffs' failure to move for certification within ninety days of service, pursuant to La. C.C.P. art. 592(A)(1).

On October 16, 2001, plaintiffs filed a motion to certify a class of plaintiffs for a class action. In a supplemental and amended petition filed on the same date, plaintiffs made additional allegations setting forth a cause of action in redhibition. The most pertinent of those allegations are as follows:

II.
Any and all PCS telephones sold by the defendant to all of its subscribers including the plaintiffs were defective and contained a vice or defect which was and is redhibitory, containing a subsidy lock that rendered each telephone useless with any other PCS wireless telephone service provider. . . .
III.
The plaintiffs further show that the subsidy lock in each telephone sold by the defendant was a redhibitory defect because of the limitations it placed on each telephone, and the cost to remove it, that could not have been discovered at the time of sale by a reasonably prudent buyer.
. . . .
V.
The subsidy lock was coded into each telephone by the defendant, and the defendant failed to disclose a removal charge to each buyer and plaintiffs herein, rendering the defendant a "manufacturer" for redhibition purposes and therefore deemed to be in bad faith in selling its product containing a redhibitory defect.

(Emphasis in original.)

The trial court granted plaintiffs' motion to certify the class action, and its order was signed on April 2, 2002. Eatelcorp appealed. In the course of oral argument before this court, plaintiffs' counsel expressly abandoned all theories of recovery except that of redhibition.[2] This court affirmed *1116 the order of class certification on the sole remaining theory of redhibition. We stated that the relevant inquiry on commonality of issues "does not involve the buyer's subjective knowledge or reliance, but rather is an objective inquiry into the deficiency and whether it diminishes the product's value or renders it so inconvenient that the buyer would not have purchased it had he known of the deficiency." Mire, 02-1705 at pp. 5-6, 849 So.2d at 613-14.

Following our earlier decision in this matter, Eatelcorp filed a renewed declinatory exception of lack of subject matter jurisdiction on the grounds that plaintiffs' claims constituted a challenge to the subsidy lock within the primary or exclusive jurisdiction of the FCC. In the course of oral argument on that exception, plaintiffs' counsel acknowledged that plaintiffs were not putting forth the subsidy lock as the redhibitory defect upon which their cause of action for redhibition was based. The trial court accordingly dismissed the renewed declinatory exception of lack of subject matter jurisdiction.

Eatelcorp then moved to decertify the class, on the grounds that redhibition was no longer a viable cause of action based upon plaintiffs' express stipulation. The motion to decertify the class was heard on August 2, 2004, and following argument, the trial court ruled in favor of Eatelcorp, granting its motion. On August 5, 2004, the trial court signed its order recalling and vacating the class certification. Plaintiffs moved for a new trial, but that motion was denied by the trial court by order signed October 7, 2004. Plaintiffs now appeal.

STANDARD OF REVIEW

The standard of appellate review of a trial court's certification of a class action or denial of certification is a two-step analysis. The trial court's factual findings are subject to review under the manifest error standard, and its ultimate decision regarding certification is then reviewed under the abuse of discretion standard. Boyd v. AlliedSignal, Inc., 03-1840, pp. 8-9 (La.App. 1st Cir.12/30/04), 898 So.2d 450, 456, writ denied, 05-0191 (La.4/1/05), 897 So.2d 606. In reviewing a decision to certify a class, wide latitude must be given to the trial court in considerations involving policy matters and factual analysis. Mire, 02-1705 at p. 3, 849 So.2d at 612.

ASSIGNMENTS OF ERROR

We paraphrase plaintiffs' assignments of error:

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