Nancy Sher v. Raytheon Company

419 F. App'x 887
CourtCourt of Appeals for the Eleventh Circuit
DecidedMarch 9, 2011
Docket09-15798
StatusUnpublished
Cited by31 cases

This text of 419 F. App'x 887 (Nancy Sher v. Raytheon Company) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nancy Sher v. Raytheon Company, 419 F. App'x 887 (11th Cir. 2011).

Opinion

HILL, Circuit Judge:

In this case alleging environmental contamination, defendant Raytheon Company (Raytheon) appeals from an interlocutory order granting class-action certification under Fed.R.Civ.P. 23(f). The plaintiffs are Nancy Sher, James R. Abel, Carol A. Caleca, Louis Ciocondo, Betty L. Key, (the Plaintiffs). The Plaintiffs purport to represent a class consisting of all owners of real property impacted by the alleged contamination. This appeal pertains to only the grant of class certification by the district court, not the merits of the case.

We hold that the district court erred as matter of law by not sufficiently evaluating and weighing conflicting expert testimony presented by the parties at the class certification stage. 1 See Vega v. T-Mobile USA, Inc., 564 F.3d 1256, 1264 (11th Cir. 2009). We conclude that facts have not been determined sufficient to support certifying a class at this time. Thus, the district court, in its Rule 23 analysis, erred as a matter of law in granting class certification. See Klay v. United Healthgroup, Inc., 376 F.3d 1092, 1096 (11th Cir.2004).

I.

The Plaintiffs allege that Raytheon, through improper disposal and/or storage of hazardous waste at its St. Petersburg, Florida facility, is responsible for the release of toxic waste into the groundwater of the surrounding neighborhoods. The parties presented brief testimony of the Plaintiffs. In all, the district court held a three-day evidentiary hearing on the Plaintiffs’ motion for class certification.

To demonstrate the predominance of common issues under Rule 23(b)(3), the Plaintiffs’ groundwater expert, Dr. Philip Bedient, identified the impacted area as a toxic underground plume stretching approximately one mile long and 1.7 miles *889 wide from the Raytheon facility. 2

In an effort to prove that the claims of the Plaintiffs for compensatory and punitive damages for property injury could be appropriately resolved in a single class action, the Plaintiffs presented the affidavit of their damages expert, Dr. John A. Kilpatrick. He stated that he could develop a hedonic multiple regression model to determine diminution-in-value damages without resorting to an individualized consideration of each of the various properties.

In rebuttal, Raytheon produced its groundwater expert, Dr. James Mercer, challenging Dr. Bedient’s methodology for defining the impacted area, or putative class, as “inconsistent with applicable professional standards.” Dr. Mercer testified also that Dr. Bedient’s area encompassed many properties on which no contamination had been detected at all.

Raytheon introduced its damages expert, Dr. Thomas 0. Jackson. Dr. Jackson’s report stated that the Plaintiffs’ expert’s “proposed method of analysis of property value diminution using mass appraisal/regression modeling would be unacceptable for this purpose, and would not eliminate the need to evaluate each property in the proposed class area on an individual basis.”

In its order granting class certification to Plaintiffs, the district court noted that “[t]he expert reports, of course, differ markedly as to the size of the proposed class area; whether evidence of contamination exists within that area; and whether the alleged diminution in value to the properties in the proposed class area can be determined on a class-wide basis.”

Yet, later in the order granting class certification, the district court stated:

[Raytheon] spent a significant amount of time during the Hearing attempting to prove that Plaintiffs’ experts analyses and opinions are too factually and scientifically deficient to support class certification. As a threshold matter, the Court finds that it is not necessary at this stage of the litigation to declare a proverbial winner in the parties’ war of the battling experts or dueling statistics and chemical concentrations ... This type of determination would require the Court to weigh the evidence presented and engage in a Daubert style critique of the proffered experts qualifications, which would be inappropriate ... At this stage of the litigation, therefore an inquiry into the admissibility of Plaintiffs’ proposed expert testimony as set forth in Daubert would be inappropriate, because such an analysis delves too far into the merits of Plaintiffs’ case.

(Emphasis added). 3 Raytheon appeals the certification of the Plaintiffs’ class under Fed. R. Civ. Proc. 23(f).

II.

We review a district court’s grant of class certification for abuse of discretion. See Vega, 564 F.3d at 1264. In order to exercise the discretion reposing in the district court, the district judge must determine the facts militating in favor of or inappropriate to class treatment. “A district court abuses its discretion if it applies *890 an incorrect legal standard, follows improper procedures in making the determination, or makes findings of fact that are clearly erroneous.” Id.

III.

A district court must conduct a rigorous analysis of the Rule 23 prerequisites before certifying a class. Gen. Tel. Co. v. Falcon, 457 U.S. 147, 102 S.Ct. 2364, 2372, 72 L.Ed.2d 740 (1982). “The burden of proof to establish the propriety of class certification rests with the advocate of the class.” Valley Drug Co. v. Geneva Phams., Inc., 350 F.3d 1181, 1187 (11th Cir.2003).

“Although the trial court should not determine the merits of the plaintiffs’ claim at the class certification stage, the trial court can and should consider the merits of the case to the degree necessary to determine whether the requirements of Rule 23 will be satisfied.” Id. at 1188 n. 15; see Coopers & Lybrand v. Livesay, 437 U.S. 463, 98 S.Ct. 2454, 2458 n. 12, 57 L.Ed.2d 351 (1978) (“[t]he class determination generally involves considerations that are ‘enmeshed in the factual and legal issues comprising the plaintiffs cause of action’ ... ‘The more complex determinations required in Rule 23(b)(3) class actions entail even greater entanglement with the merits.’ ”) (emphasis and citations omitted); see Blades v. Monsanto Co., 400 F.3d 562

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419 F. App'x 887, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nancy-sher-v-raytheon-company-ca11-2011.