Rainbow Group, Ltd. and Alan Sager v. Bonnie Wagoner, Morgana Morgan, Debbie Berry, and Debbie Barr Villegas, on Behalf of Themselves and Others Similarly Situated

CourtCourt of Appeals of Texas
DecidedMarch 1, 2007
Docket03-06-00138-CV
StatusPublished

This text of Rainbow Group, Ltd. and Alan Sager v. Bonnie Wagoner, Morgana Morgan, Debbie Berry, and Debbie Barr Villegas, on Behalf of Themselves and Others Similarly Situated (Rainbow Group, Ltd. and Alan Sager v. Bonnie Wagoner, Morgana Morgan, Debbie Berry, and Debbie Barr Villegas, on Behalf of Themselves and Others Similarly Situated) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rainbow Group, Ltd. and Alan Sager v. Bonnie Wagoner, Morgana Morgan, Debbie Berry, and Debbie Barr Villegas, on Behalf of Themselves and Others Similarly Situated, (Tex. Ct. App. 2007).

Opinion

TEXAS COURT OF APPEALS, THIRD DISTRICT, AT AUSTIN




NO. 03-06-00138-CV

Rainbow Group, Ltd. and Alan Sager, Appellants



v.



Bonnie Wagoner, Morgana Morgan, Debbie Berry, and Debbie Barr Villegas,

on Behalf of Themselves and Others Similarly Situated, Appellees



FROM THE DISTRICT COURT OF TRAVIS COUNTY, 53RD JUDICIAL DISTRICT

NO. GN9202221-A, HONORABLE STEPHEN YELENOSKY, JUDGE PRESIDING

O P I N I O N



This accelerated appeal arises from a set of orders entered by the trial court relating to the certification of a class of hairstylists represented by Bonnie Wagoner, Morgana Morgan, Debbie Berry, and Debbie Barr Villegas, appellees, against their former employer, Supercuts, which is owned by Rainbow Group, Ltd. and Alan Sager, appellants. (1) Specifically, Rainbow Group appeals a November 23, 2005 order denying its motion to decertify the class and a December 19, 2005 order granting the hairstylists' motion to amend the class certification. Because the November 23 order is not properly subject to an interlocutory appeal and because Rainbow Group failed to timely file a notice of appeal in relation to the December 19 order, we are compelled to dismiss this appeal for want of jurisdiction. See Tex. R. App. P. 26.1(b).

PROCEDURAL BACKGROUND



The instant appeal is the latest progression in nearly fifteen years of litigation between the hairstylists and Rainbow Group, which began with the hairstylists' complaint that Rainbow Group committed breach of contract by refusing to pay them when they were at work but "off the clock," i.e., not performing haircuts.

In 1993, the plaintiffs sought and obtained certification of a class of hairstylists formerly employed by Rainbow Group to pursue the breach of contract claim for "off the clock" compensation. Following a removal to federal court and a remand to state court, Rainbow Group appealed the certification order. This Court affirmed the original certification, holding that the trial court did not abuse its discretion in determining that the breach of contract claims could be litigated on a classwide basis. Rainbow Group, Ltd. v. Johnson, 990 S.W.2d 351, 356, 361 (Tex. App.--Austin 1999, pet. dism'd w.o.j.) (Rainbow Group I). This opinion, however, predated Southwest Refining Co. v. Bernal, 22 S.W.3d 425 (Tex. 2000), and later cases mandating a rigorous analysis of class certification before a class is certified. (2)

On remand from Rainbow Group I, the trial court ordered that the trial proceedings would be bifurcated to first consider the "liability issues common to the class, if any, and the individual liability issues and the damages if any of those class members who testify live or by deposition," while the "individual liability issues, if any, and the amount of damages, if any, suffered by the non-testifying class members and the amount of attorneys' fees and costs, if any, to which Plaintiffs may be entitled, will be determined in a subsequent proceeding or proceedings." The plaintiffs then filed a second amended petition, which added quantum meruit as an alternative theory of recovery. The original class certification order, however, was not amended to add quantum meruit as a claim certified for classwide adjudication following the filing of the second amended petition.

Following a bench trial in May 2000, the trial court issued a judgment awarding only individual damages on the basis of quantum merit to thirteen hairstylists (which included the four named class representative plaintiffs and nine class members) who appeared and testified at the trial. (3) Although the judgment is silent regarding the breach of contract claims, the parties do not dispute that these thirteen hairstylists did not prevail on their breach of contract claims. (4) The judgment also recites that "the claims of the remaining class members" were severed and assigned a new cause number. (5)

Rainbow Group appealed the damages award, and the thirteen hairstylists cross-appealed the denial of their breach of contract claims and the amount of post-judgment interest. See Rainbow Group, Ltd. v. Johnson, No. 03-00-00559-CV, 2002 Tex. App. LEXIS 6359, at *1 (Tex. App.--Austin Aug. 30, 2002, pet. denied) (Rainbow Group II). In that opinion, this Court discussed the parties' dispute as to whether--in light of the second amended petition adding quantum merit as a claim for relief in the absence of an amendment to the class certification order--the quantum merit claim could be pursued on a classwide basis. Id. at *5-7. Under the circumstances presented, this Court "failed to see the significance" of the dispute because the trial court had not adjudicated any quantum meruit claims on behalf of the class. Id. at *6-7. Rather, the quantum meruit claims of the thirteen testifying hairstylists had been adjudicated on only an individual basis. Id. at *7. Accordingly, this Court did "not decide any issues relating to the alleged quantum meruit class." Id. (emphasis added). (6) Ultimately, this Court reformed the judgment to include post-judgment interest, reversed and remanded as to attorneys' fees, and otherwise affirmed the damages award. Id. at *1-2, *39.

One month after the issuance of Rainbow Group II, in the severed cause, the remaining members of the original class filed a "motion to certify quantum meruit claim as a class action." (7) The motion recognized that the 1993 certification was based on a suit "filed as a breach of contract action" and that the certification had never been amended to include a quantum meruit theory of recovery as alleged in the second amended petition.

Before the motion to certify was heard or ruled on, the hairstylists filed a third amended petition abandoning the breach of contract claims and asserting quantum meruit as the only basis for recovery. (8) Thus, at this point, the only claim for which a class had been certified was effectively nonsuited, and the only remaining claim in the lawsuit had yet to have a class certified or to undergo the "rigorous analysis" required for class certification. See Bernal, 22 S.W.3d at 435. The third amended petition claimed that "Plaintiffs sue on behalf of themselves and a class defined as: All Supercuts hairstylists employed at any time between February 21, 1988 and July 16, 1993 at a 'Supercuts' store operated by Rainbow Group and Alan Sager." (9)

In response, Rainbow Group filed both an opposition to the motion to certify a quantum meruit class and an answer to the third amended petition, which included a plea to the jurisdiction. Rainbow Group argued that the trial court did not retain jurisdiction over the "severed" cause because it was an "empty case"--Rainbow Group asserted that the only claim certified for class treatment was breach of contract and, because this claim was no longer part of the lawsuit, (10) no justiciable cause survived on behalf of the class.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Henry Schein, Inc. v. Stromboe
102 S.W.3d 675 (Texas Supreme Court, 2002)
Southwestern Refining Co., Inc. v. Bernal
22 S.W.3d 425 (Texas Supreme Court, 2000)
J.M. Huber Corp. v. Santa Fe Energy Resources, Inc.
871 S.W.2d 842 (Court of Appeals of Texas, 1994)
City of San Antonio v. Rodriguez
828 S.W.2d 417 (Texas Supreme Court, 1992)
Ford Motor Co. v. Sheldon
113 S.W.3d 839 (Court of Appeals of Texas, 2003)
Lefton v. Griffith
136 S.W.3d 271 (Court of Appeals of Texas, 2004)
Bally Total Fitness Corp. v. Jackson
53 S.W.3d 352 (Texas Supreme Court, 2001)
Webb v. Jorns
488 S.W.2d 407 (Texas Supreme Court, 1972)
Rainbow Group, Ltd. v. Johnson
990 S.W.2d 351 (Court of Appeals of Texas, 1999)
In the Interest of K.A.F.
160 S.W.3d 923 (Texas Supreme Court, 2005)

Cite This Page — Counsel Stack

Bluebook (online)
Rainbow Group, Ltd. and Alan Sager v. Bonnie Wagoner, Morgana Morgan, Debbie Berry, and Debbie Barr Villegas, on Behalf of Themselves and Others Similarly Situated, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rainbow-group-ltd-and-alan-sager-v-bonnie-wagoner-morgana-morgan-texapp-2007.