Old Broadway Corp. v. Hjelle

411 N.W.2d 81, 1987 N.D. LEXIS 390
CourtNorth Dakota Supreme Court
DecidedAugust 12, 1987
DocketCiv. 11328
StatusPublished
Cited by13 cases

This text of 411 N.W.2d 81 (Old Broadway Corp. v. Hjelle) is published on Counsel Stack Legal Research, covering North Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Old Broadway Corp. v. Hjelle, 411 N.W.2d 81, 1987 N.D. LEXIS 390 (N.D. 1987).

Opinions

VANDE WALLE, Justice.

This is an appeal from an order denying class-action status to a group of advertisers whose messages appear on highway signs scheduled for removal by the North Dakota State Highway Commissioner. We affirm.

In June of 1985 the North Dakota State Highway Commissioner ordered the removal of a class of highway signs identified as “interim permitted signs.” A group of seven advertisers instituted an action against the Highway Commissioner seeking a writ of mandamus and a peremptory writ of prohibition or, alternatively, a temporary restraining order and preliminary injunction. The advertisers claim that the Highway Commissioner failed to classify and prioritize the signs pursuant to Section IX of the Right of Way Manual of the North Dakota State Highway Department and regulations promulgated under the Federal Highway Beautification Act. The district court issued a temporary restraining order preventing the removal of all interim permitted signs and denied a motion to dismiss brought by the Highway Commissioner.

The plaintiffs subsequently moved to have the case certified as a class action on behalf of all persons advertising on interim permitted signs. The Highway Commissioner resisted the motion and moved that the temporary restraining order be amended to apply only to the specific signs upon which the named plaintiffs advertise. The trial court denied the motion for class certification and amended the temporary restraining order to include only those signs upon which named plaintiffs had advertising messages displayed on November 5, 1985. The effective date of the amended restraining order was delayed for thirty days to allow other advertisers to intervene in the action. Thirty-two additional advertisers intervened as plaintiffs.

The sole issue on appeal is whether the trial court erred in denying the plaintiffs class-action status on behalf of all advertisers whose messages appear on interim permitted signs.

Although this court has concluded that it will interpret Rule 23, N.D.R.Civ.P., the “Uniform Class Actions Rule,” so as to prove an open and receptive attitude toward class actions, and further indicated that it will not hesitate to overrule and reverse determinations denying class-action status in order to accomplish the remedial objectives of the class-action rule [Rogelstad v. Farmers Un. Grain Ter. Ass’n, 226 N.W.2d 370 (N.D.1975)],1 the standard of review is, nevertheless, whether or not the trial court abused its discretion in certifying or refusing to certify actions as class actions. Rogelstad, supra; Saba v. Counties of Barnes, Benson, Etc., 307 N.W.2d 590 (N.D.1981). A trial court abuses its discretion when it acts in an unreasonable, arbitrary, or unconscionable manner. [83]*83Saba, supra; In Interest of F.H., 283 N.W.2d 202 (N.D.1979).2

Particular deference must be paid to the decision of the trial judge in this instance for he has previously presided over a closely related case involving the same signs as are at issue in this case. See Newman Signs, Inc. v. Hjelle, 317 N.W.2d 810 (N.D.1982). Nor are the courts of this State, including this court, unaware of the issues involved in this matter. See, in addition to Newman Signs, supra, Newman Signs, Inc. v. Hjelle, 268 N.W.2d 741 (N.D.1978), appeal dismissed, 440 U.S. 901, 99 S.Ct. 1205, 59 L.Ed.2d 449 (1979). The removal of these signs has been before the Federal courts as well. See Newman Signs, Inc. v. Sinner, 796 F.2d 247 (8th Cir.1986). And the removal and erection of signs by the owner of the signs in question have long been issues before our courts. See Newman v. Hjelle, 133 N.W.2d 549 (N.D.1965). See also Newman Signs, Inc. v. Hjelle, 300 N.W.2d 860 (N.D.1981).

The battle has now shifted to the lessees of the owner of the signs who are the plaintiffs in the current action, but this extensive history of litigation over the removal of signs by the owner of the signs in question was well known to the trial judge and he was the trial judge in several of the actions.

The remedial objectives promoted by Rule 23, North Dakota Rules of Civil Procedure, include:

“... the efficient resolution of the claims or liabilities of many individuals in a single action, the elimination of repetitious litigation and possibly inconsistent adjudications involving common questions, related events, or requests for similar relief, and the establishment of an effective procedure for those whose economic position is such that it is unrealistic to expect them to seek to vindicate their rights in separate lawsuits.” Rogelstad, supra, 226 N.W.2d at 376, quoting Wright & Miller, Federal Practice and Procedure: Civil § 1754.

Under Rule 23(b)(2) the trial court may certify an action as a class action if the following four requirements are satisfied:

1. The class is so numerous or so constituted that joinder of all members, whether or not otherwise required or permitted, is impracticable;

2. There is a question of law or fact common to the class;

3. A class action should be permitted for the fair and efficient adjudication of the controversy; and

4. The representative parties fairly and adequately will protect the interests of the class.

With regard to the third requirement, whether the class action should be permitted for the fair and efficient adjudication of the controversy, Rule 23(c)(1) lists several criteria to be considered by the trial court. While each of these criteria should be considered by the trial court, each need not be satisfied; nor need the trial court discuss in great detail all the criteria in its order. See Holloway v. Blue Cross of North Dakota, 294 N.W.2d 902 (N.D.1980).

The trial court found none of the four requirements under Rule 23(b)(2) to be satisfied and found six of the criteria listed under Rule 23(c)(1) to weigh against class certification. Basically, the following four [84]*84reasons for denying class-action status were given throughout the trial court’s opinion:

I. Joinder of all members is not impracticable.

II. Due to the differences in the advertising contracts with the sign owners, each advertiser may have interests different from the parties bringing the lawsuit.

III. Management of a class with the potential for constant changes in membership would pose unusual difficulties.

IV. Alternative methods of adjudicating the claims of the advertisers, such as requiring intervention, are not impracticable or inefficient.

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Old Broadway Corp. v. Hjelle
411 N.W.2d 81 (North Dakota Supreme Court, 1987)

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Bluebook (online)
411 N.W.2d 81, 1987 N.D. LEXIS 390, Counsel Stack Legal Research, https://law.counselstack.com/opinion/old-broadway-corp-v-hjelle-nd-1987.