Payne v. Goodyear Tire & Rubber Co.

216 F.R.D. 21, 2003 U.S. Dist. LEXIS 10972, 2003 WL 21496393
CourtDistrict Court, D. Massachusetts
DecidedJune 2, 2003
DocketNo. C.A. 01-10118-NG
StatusPublished
Cited by41 cases

This text of 216 F.R.D. 21 (Payne v. Goodyear Tire & Rubber Co.) is published on Counsel Stack Legal Research, covering District Court, D. Massachusetts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Payne v. Goodyear Tire & Rubber Co., 216 F.R.D. 21, 2003 U.S. Dist. LEXIS 10972, 2003 WL 21496393 (D. Mass. 2003).

Opinion

MEMORANDUM AND ORDER RE: MOTION FOR CLASS CERTIFICATION

GERTNER, District Judge.

I. INTRODUCTION

Plaintiffs bring this lawsuit on behalf of owners of homes in New England heated by radiant floor heating systems created and marketed by a now-defunct company called Heatway that include defendant Goodyear’s “Entran II” rubber hose. The complaint alleges that the hose is defective as designed — resulting in oxidation, hardening, cracks, and eventually leaks that cause property damage — and that Goodyear failed to adequately warn customers of known risks associated with its use.

The named plaintiffs have moved for certification of a plaintiff class consisting of:

all persons, corporations, trusts, associations, partnerships, and/or entities who presently own, or have owned, real property or improvements located in Massachusetts, New Hampshire, Maine, Vermont, Connecticut, and Rhode Island, in which hose known as “Entran II,” manufactured and sold by Defendant Goodyear Tire & Rubber Company (“Goodyear”), was or is used as a conduit for fluid for hydronic heating.

While Goodyear formally contests each and every one of the Fed.R.Civ.P. 23 criteria for class certification, the parties’ essential dispute over this motion boils down to an assessment of whether differences in governing law among the New England states and/or individualized issues of causation and damages make a class action unworkable and inappropriate. Based on the limited record at this point in the litigation, however, Goodyear’s arguments appear to be little more than hypothetical “straw men.” Notably, moreover, courts already have certified single state-class actions on the same facts in Colorado and New Mexico. As explained [24]*24more fully below, the Plaintiffs’ Motion for Class Certification [document # 65] is therefore ALLOWED provisionally pursuant to Fed.R.Civ.P. 23(c)(1).

II. FACTUAL ALLEGATIONS

A decision on class certification does not involve an examination of the merits of the underlying dispute, but rather serves the limited purpose of determining whether a class action is the most appropriate mode of adjudication. See Eisen v. Carlisle & Jacquelin, 417 U.S. 156, 177, 94 S.Ct. 2140, 40 L.Ed.2d 732 (1974). For purposes of this motion, the plaintiffs’ allegations are therefore treated as true.

In 1989, Goodyear and Heatway consummated a joint venture in which Goodyear would design and produce specialized rubber hose (which it called “Entran II”) for use in Heatway’s radiant floor heating systems.1 Heatway specifically required “top quality hose” which would “last indefinitely,” would resist hydrocarbons and other chemicals, would be pressure rated to 100 to 200 PSI continuous service, and would be able to resist temperatures up to 300 degrees Fahrenheit and continuous service at 200 degrees Fahrenheit.

Despite a commitment to Heatway that it would fashion a custom product to those specifications, Goodyear elected to use an “off the shelf’ rubber tubing for the interior liner of Entran II which previously had been used in truck water heater hoses. Internal memoranda reflect that some Goodyear employees expressed concern whether the hose selected could withstand years of exposure to heat and oxygen. Nevertheless, Goodyear began producing Entran II for Heatway at significant profit; for every dollar of Entran II hose that Heatway sold, it paid Goodyear 60 cents. Despite internal concerns and lack of test data, Goodyear assured Heatway that its product had been tested and was suitable for use in radiant heating systems.

Several years later, Heatway began receiving customer complaints about leaks. When Goodyear refused to support Heatway’s inquiry into the problem, Heatway retained Dr. C.M. Roland, a chemist at the Naval Research Laboratory in Washington, D.C., who has to date performed more than 600 hours of tests on Entran II hose. Among other things, he found that wall thickness began to degrade at every tested temperature after just 9 weeks and that hardening occurred under a variety of conditions. He also concluded that these effects were predictable and known by Goodyear at the time it designed Entran II, and that a variety of superior materials were available that Goodyear could have used. Goodyear’s own early test results support Dr. Roland’s findings.

After refusing to cooperate with Heatway in addressing leak complaints, Goodyear sued Heatway over a trade debt relating to nonpayment for shipments of new-generation Entran III hose. Heatway counterclaimed that Goodyear sold Entran II hose in a non-merchantable condition. Goodyear successfully defended, asserting that any problems with the hose resulted from improper design, installation, operation, and/or maintenance. Goodyear also waged a public campaign, posting on its website a “protocol” for “proper” installation, operation, and maintenance of Entran II heating systems, and blaming Heatway for failing to alert customers to that information. Heatway eventually filed for bankruptcy protection.

Subsequent expert analysis has shown that even in what Goodyear purports to be an “ideal” environment, the hose fails. In contrast, other types of hose in radiant heating systems throughout the country have not exhibited Entran II-type defects. Goodyear provided no warnings of these problems and concealed its knowledge of defects. Plaintiffs allege that leaking Entran II systems have caused property damage and that the mere fact' of having an Entran II system in a house tends to diminish the market value of the property and make it less attractive to prospective buyers.

III. LEGAL ANALYSIS

In order prevail on a motion for class certification, plaintiffs must show that the [25]*25case meets all four requirements of Fed. R.Civ.P. 23(a) and fits into one of the categories enumerated in Fed.R.Civ.P. 23(b). See Mack v. Suffolk County, 191 F.R.D. 16, 22 (D.Mass.2000) (Gertner, J.). Doubts should be resolved in favor of certification, particularly in early stages of the litigation. See Esplin v. Hirschi 402 F.2d 94, 99 (10th Cir.1968) (“if there is to be an error made, let it be in favor and not against maintenance of the class action, for it is always subject to modification should later developments during the course of the trial so require”).

A. Rule 23(a) Threshold Criteria

To meet the threshold requirements of Rule 23(a), plaintiffs must establish that the proposed class has the following qualities:

(1) numerosity (a class so large that “join-der of all members is impracticable”);
(2) commonality (“question of law or fact common to the class”);
(3) typicality (named parties’ claims or defenses “are typical ... of the class”); and

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Bluebook (online)
216 F.R.D. 21, 2003 U.S. Dist. LEXIS 10972, 2003 WL 21496393, Counsel Stack Legal Research, https://law.counselstack.com/opinion/payne-v-goodyear-tire-rubber-co-mad-2003.