Paulino v. Hardister

306 So. 2d 125
CourtDistrict Court of Appeal of Florida
DecidedJanuary 24, 1975
Docket74-45, 74-57 and 74-65
StatusPublished
Cited by9 cases

This text of 306 So. 2d 125 (Paulino v. Hardister) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Paulino v. Hardister, 306 So. 2d 125 (Fla. Ct. App. 1975).

Opinion

306 So.2d 125 (1974)

James PAULINO and Ruby Paulino et al., Appellants,
v.
Grady HARDISTER et al., Appellees.

Nos. 74-45, 74-57 and 74-65.

District Court of Appeal of Florida, Second District.

December 31, 1974.
As Modified on Denial of Rehearings January 24, 1975.

*126 David A. Maney, of Gordon & Maney, Russell K. Peavyhouse, of Peavyhouse, *127 Giglio & Grant, Dennis G. Diecidue and David H. McClain, Tampa, for appellants.

John P. Griffin, of Griffin, Gillis, Stead & Farfante, Tampa, for appellees.

GRIMES, Judge.

The issue in this case is whether certain persons who were members of a class of defendants in a prior action are bound by an adverse judgment in that action when they were not individually named as defendants and were not served or otherwise formally notified of the proceedings.

On November 3, 1969, appellees filed a complaint for injunctive relief by which they sought to enforce restrictive covenants prohibiting the placing of mobile homes on a permanent basis within the boundaries of Wonderland Acres Subdivision and its First, Second and Third Additions. The property consisted of approximately 280 lots located within a portion of two sections in Hillsborough County. The complaint designated Golfland Developers, Inc., a Florida corporation, and Susan Maramon as named defendants and representatives of the defendant class. The class of defendants were further described as the "legal owners of or parties who have equitable interests in certain lots within" the subdivision and were said to have placed mobile homes on the lots "for the purpose of rental, for sale as residences and for use as residences in direct violation of the restrictive covenants attaching to said lots." The prayer for relief demanded an injunction against continued or future placing of mobile homes in the subdivision. Appellees served no notice, constructive or otherwise, upon any members of the class other than the named defendants who were served with process.

Golfland Developers, Inc. apparently had no interest in the outcome of the controversy and allowed the entry of a default against it. Susan Maramon appeared in her own behalf and defended against the action. Following a trial, the court entered an order dated December 11, 1970, requiring that "all trailers or mobile homes owned by the defendants ... and all trailers located upon lands owned, rented or leased by the defendants located within said subdivision ... are to be removed by the defendants...." Ms. Maramon filed an appeal in this court in which she argued, inter alia: (1) that the lower court erred in not granting the motion to dismiss since appellees did not allege and prove adequate representation of the class by appellant; and (2) that the court erred in granting an injunction against unknown defendants since they received no notice and had no opportunity to defend. The trial court's judgment was affirmed, per curiam, without opinion. Maraman v. Hardister, Fla.App.2d, 1971, 254 So.2d 246. Thereafter, Ms. Maramon sought and was denied certiorari by both the Florida Supreme Court, 262 So.2d 442 and the United States Supreme Court, 409 U.S. 1107, 93 S.Ct. 897, 34 L.Ed.2d 687.

After the United States Supreme Court denied certiorari, appellees served on the appellants herein a notice of hearing and motion for contempt alleging that appellants were bound by, but not in compliance with, the order of December 11, 1970. After a hearing, the lower court entered its "Order Holding Defendants In Contempt" giving appellants thirty days to remove their mobile homes or appear before the court to show cause why sentence should not be pronounced. The instant appeal is from that order.

This case presents a classic confrontation between the principles inherent in an effective class action and those applicable to constitutional due process. On the one hand, the theory of a class action contemplates that only a limited number of persons who are representative of a larger group will actually become named parties to the proceeding. On the other hand, the principle of due process requires that "the judgment in a class action will bind only those members of the class whose interests have been adequately represented by existing *128 parties to the litigation." Sam Fox Publishing Company v. United States, 1961, 366 U.S. 683, 81 S.Ct. 1309, 6 L.Ed.2d 604.

The leading case on this subject is Hansberry v. Lee, 1940, 311 U.S. 32, 61 S.Ct. 115, 85 L.Ed. 22, in which the U.S. Supreme Court stated:

"... [T]here is scope within the framework of the Constitution for holding in appropriate cases that a judgment rendered in a class suit is res judicata as to members of the class who are not formal parties to the suit. [The Constitution] does not compel state courts or legislatures to adopt any particular rule for establishing the conclusiveness of judgments in class suits; ... [T]his court is justified in saying that there has been a failure of due process only in those cases where it cannot be said that the procedure adopted, fairly insures the protection of the interests of absent parties who are to be bound by it."[1]

How can the interest of absent parties be fairly protected? The best way is by insuring that the named members of the class who are before the court adequately represent the interests of the absent members. If the named parties are adequate representatives of the class, then all of the matters decided in the suit should be res judicata because, in theory, it would then make no difference whether the absent members were there or not. The decision on those matters would be the same, and they would have lost nothing. In fact, adequacy of representation has long been a prerequisite of a valid class action in Florida. See Port Royal, Inc. v. Conboy, Fla.App.2d, 1963, 154 So.2d 734.

Consequently, there was implicit in the judgment upholding the claims against the class in the instant case a determination that Susan Maramon was an adequate representative of the other members of the class. Since this issue was decided in favor of the appellees, it would appear to be res judicata except for the fact that the appellants were not privy to the proceedings at which the adequacy of the representation was determined. In other words, if Susan Maramon wasn't an adequate representative of the class, then she was not in a position to adequately represent the class with respect to the determination of whether or not she was an adequate representative. Pursuing this line of reasoning to its ultimate conclusion would mean that judgments entered in class actions would always be subject to collateral attack on the issue of representation. Upon reflection, it seems to this court that the solution to what otherwise might be an unsolvable problem may lie in the matter of notice.

The federal courts have recognized that notice plays an important part in a class action. Rule 23(c)(2) of the Federal Rules of Civil Procedure prescribes that notice of the suit must be given to absent members of the class in certain types of class actions but not in others.

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306 So. 2d 125, Counsel Stack Legal Research, https://law.counselstack.com/opinion/paulino-v-hardister-fladistctapp-1975.