Pyles v. Johnson

758 N.E.2d 1182, 143 Ohio App. 3d 720
CourtOhio Court of Appeals
DecidedJune 4, 2001
DocketCase No. 00CA15.
StatusPublished
Cited by12 cases

This text of 758 N.E.2d 1182 (Pyles v. Johnson) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pyles v. Johnson, 758 N.E.2d 1182, 143 Ohio App. 3d 720 (Ohio Ct. App. 2001).

Opinion

Harsha, Judge.

Loan Central, Inc. and The Associates 1 appeal the Gallia County Common Pleas Court’s judgment granting the appellees’ motion for class certification. Their sole assignment of error is:

“The trial court abused its discretion in granting plaintiffs/appellees’ motion for class certification.”

Because we find that the grant of class certification was proper, we affirm the trial court’s order.

Woodrow and Julia Pyles, Ralph and Lereda Davis, Granville 2 and Emma Edmonds, Troy and Nancy Stewart, and Glenn and Dora Adkins filed an amended complaint against Robert and Linda Johnson (“the Johnsons”), 3 Jack and Linda Claxton (“the Claxtons”), The Associates, and Loan Central, Inc. The Johnsons were the owners of Ohio Valley Memorial Gardens (“OVMG”), a *729 cemetery, which is now owned by the Claxtons. While the Johnsons owned OVMG, they entered into contracts with the appellees for the sale of caskets, mausoleum space, crypts, memorials, and similar goods and services. 4 Some of the appellees paid cash for their purchases while others entered into installment contracts. The Johnsons sold the installment contracts to The Associates and Loan Central, Inc. for less than face value.

In their amended complaint, the appellees allege that the Johnsons violated the Retail Installment Sales Act (“RISA”), violated the Consumer Sales Practices Act (“CSPA”), breached the contracts, breached their fiduciary duty, and made fraudulent misrepresentations. The appellees do not allege that Loan Central, Inc. or The Associates committed any of these acts but seek to hold them liable based on a contract provision which reads:

“NOTICE: ANY HOLDER OF THIS CONSUMER CREDIT CONTRACT IS SUBJECT TO ALL CLAIMS AND DEFENSES WHICH THE DEBTOR COULD ASSERT AGAINST THE SELLER OF GOODS OR SERVICES OBTAINED PURSUANT HERETO OR WITH THE PROCEEDS HEREOF. RECOVERY HEREUNDER BY THE DEBTOR SHALL NOT EXCEED AMOUNTS PAID BY THE DEBTOR HEREUNDER.”

The appellees acknowledge that each financial institution may be held liable only for the contracts it purchased.

The appellees moved to certify this case as a class action, and the parties agreed to waive a hearing and submit the case to the court on their memoranda. The court found that the appellees satisfied the requirements of Civ.R. 23(A) and (B)(3) and certified the class. Loan Central, Inc. and The Associates timely appealed this entry.

The parties acknowledge that trial courts have broad discretion in determining whether to certify a case as a class action. Marks v. C.P. Chem. Co. (1987), 31 Ohio St.3d 200, 31 OBR 398, 509 N.E.2d 1249, syllabus. Therefore, unless we find an abuse of that discretion, we must affirm the trial court’s decision. Id. An abuse of discretion is more than a mere error of judgment; normally it implies an attitude on the part of the trial court that is unreasonable, arbitrary, or unconscionable. Ojalvo v. Bd. of Trustees of Ohio State Univ. (1984), 12 Ohio St.3d 230, 232, 12 OBR 313, 314-315, 466 N.E.2d 875, 876-877. A trial court which routinely handles case-management problems is in the best position to analyze the difficulties which can be anticipated in litigation of class actions. Marks at 201, 31 OBR at 398-399, 509 N.E.2d at 1251-1252.

*730 In Warner v. Waste Mgt., Inc. (1988), 36 Ohio St.3d 91, 521 N.E.2d 1091, the Supreme Court of Ohio established clear standards for reviewing a lower court’s class action certification decision. A trial court must make seven affirmative findings before a case may be certified as a class action. Two of these prerequisites are implicitly required by Civ.R. 23, while five others are explicitly set forth in the rule. Id. at paragraph one of the syllabus. The failure of a trial court to find, by a preponderance of the evidence, that all seven Civ.R. 23 requirements have been met will result in the denial of class certification. Id. at 94, 521 N.E.2d at 1094-1095.

The first implicit prerequisite is the existence of an unambiguous and identifiable class. Id. at paragraph two of the syllabus. For example, classes such as “all poor people” are too amorphous to permit identification with a reasonable effort. The second implicit prerequisite is that the class representatives must be members of that unambiguous and identifiable class. 36 Ohio St.3d at 96, 521 N.E.2d at 1095-1096.

Four of the explicit prerequisites are set forth in Civ.R. 23(A). A member of a class may sue as a representative party on behalf of all class members only if (1) the class is so numerous that joinder of all members is impracticable, (2) there are questions of law or fact common to the class, (3) the claims of the representative parties are typical of the claims of the class, and (4) the representative parties will fairly and adequately protect the interests of the class. These four requirements are often referred to as “numerosity,” “commonality,” “typicality,” and “adequacy of representation,” respectively.

The final explicit prerequisite is set forth in Civ.R. 23(B), which requires a finding that the proposed action falls within one of its three applicable subsections. This case most closely fits within subsection (3) of the rule, which specifies that the trial court find that “the questions of law or fact common to the members of the class predominate over any questions affecting only individual members, and that a class action is superior to other available methods for the fair and efficient adjudication of the controversy.” Civ.R. 23(B)(3). In order to make these two findings, the rule offers four pertinent matters for the trial court to consider: (a) the interest of members of the class in individually controlling the prosecution of separate actions, (b) the extent and nature of any litigation concerning the controversy already commenced by members of the class, (c) the desirability or undesirability of concentrating the litigation of the claims in the particular forum, and (d) the difficulties likely to be encountered in the management of a class action. Civ.R. 23(B)(3).

The trial court found that the appellees satisfied these prerequisites and certification was appropriate. The court found that an unambiguous and identifi *731 able class consisting of those who purchased cemetery plots and crypts existed; that there were at least one hundred fifty cases, so joinder was impracticable; that the allegations of fraud and a common business pattern are common questions of law and fact; that the class representatives allege fraud and a common business practice that is typical of the remaining claims; and that the representative parties would fairly and adequately protect the class members.

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Cite This Page — Counsel Stack

Bluebook (online)
758 N.E.2d 1182, 143 Ohio App. 3d 720, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pyles-v-johnson-ohioctapp-2001.