Rollins, Inc. v. Warren

653 S.E.2d 794, 288 Ga. App. 184, 2007 Fulton County D. Rep. 3394, 2007 Ga. App. LEXIS 1165
CourtCourt of Appeals of Georgia
DecidedNovember 1, 2007
DocketA07A1004
StatusPublished
Cited by13 cases

This text of 653 S.E.2d 794 (Rollins, Inc. v. Warren) is published on Counsel Stack Legal Research, covering Court of Appeals of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rollins, Inc. v. Warren, 653 S.E.2d 794, 288 Ga. App. 184, 2007 Fulton County D. Rep. 3394, 2007 Ga. App. LEXIS 1165 (Ga. Ct. App. 2007).

Opinion

Bernes, Judge.

Appellees Ernest W. Warren and Dolores G. Warren brought the instant class action against appellants Rollins, Inc. and Orkin Exterminating Company, Inc. (collectively, “Orkin”) alleging that Orkin failed to provide termite reinspections that it had contractually promised to its customers. According to the Warrens, Orkin fraudulently induced them to enter a renewable contract for subterranean termite treatment services, failed to fulfill its contractual obligation to properly reinspect and retreat their home for termites, and concealed this lack of proper reinspection and retreatment through a pattern of forgery and fraud. The Warrens further allege that Orkin failed to properly reinspect the property of other Orkin customers throughout Georgia and engaged in a pattern of fraud and forgery in order to cover up this failure. The trial court subsequently granted the Warrens’ motion for class certification. Alleging multiple errors by the trial court, Orkin now appeals. As explained below, we conclude that the trial court abused its discretion in concluding that common issues of law and fact predominate over the individual issues *185 that would need to be resolved before each class member could recover against Orkin for improper termite reinspections. Therefore, we reverse. 1

The record reflects that Orkin is a pest control company that provides services to customers throughout Georgia. As part of these services, Orkin commonly enters into subterranean termite contracts with Georgia consumers under which Orkin promises to treat the consumers’ property for subterranean termites in return for an initial fee. Under their terms, the termite contracts are renewable on a yearly basis in return for an annual payment. According to the class action complaint, Orkin customers are led to believe from the language of the termite contracts, from a written “Guarantee” incorporated into each contract, and from print and broadcast advertising that if they renew their contracts, Orkin will annually reinspect their property and ensure protection from termites. The complaint alleges that Orkin instead has a pattern and practice of collecting renewal fees for annual reinspections that were never performed or were worthless. The complaint further alleges that Orkin has attempted to conceal its failure to provide adequate and proper annual reinspections through a pattern and practice of forging reinspection records. Finally, the complaint alleges that Orkin has attempted to sidestep its contractual obligations by invoking disclaimers that are purposefully confusing and deceptive and that are intentionally made to appear inconspicuous in the termite contracts.

In light of these allegations, the Warrens brought the instant action against Orkin individually and on behalf of all similarly situated Orkin customers in Georgia. They sought compensatory and treble damages, as well as injunctive and declaratory relief. Based on their allegation that Orkin had failed to provide adequate and proper annual reinspections to its Georgia customers, the Warrens asserted monetary damages claims for breach of contract; breach of the implied covenant of good faith and fair dealing; unjust enrichment/money had and received; professional negligence; fraud; and violation of the Georgia Racketeer Influenced and Corrupt Organizations Act, OCGA § 16-14-1 et seq. They also sought an injunction to prevent Orkin from further disseminating print and broadcast advertisements that allegedly violate the Georgia Uniform Deceptive Trade Practices Act, *186 OCGA § 10-1-370 et seq. Finally, the Warrens requested “other declaratory and injunctive relief,” including a declaration that the disclaimers in Orkin’s termite contracts that restrict or eliminate Orkin’s duty to repair property reinfested with termites are unenforceable or voidable, and an injunction compelling Orkin to provide a complete and proper reinspection to each of its Georgia customers.

The Warrens thereafter moved for class certification on their claims. In their motion, the Warrens stated that they were not seeking class certification of their claims for property damage caused by termite reinfestations; rather, they sought certification under OCGA§ 9-11-23 (b) (3) (“Rule 23”) “only for damages in the amount of the reinspection/renewal fees paid by Class Members for services not performed.” The Warrens also sought certification of their claims for declaratory and injunctive relief under Rule 23 (b) (2).

After conducting a hearing, the trial court entered an order granting class certification of the Warrens’ monetary damages claims under Rule 23 (b) (3) and their declaratory and injunctive relief claims under Rule 23 (b) (2). The trial court certified a class, potentially composed of “thousands” of Orkin customers throughout Georgia, defined as follows:

All persons or entities who were induced to and entered into a Standard Termite Contract similar to the Warrens’ Standard Termite Contract, during the Relevant Time Period [from October 16, 1995 to August 18, 2006], who were charged by Orkin for services not rendered; and all persons or entities who paid renewals on Standard Termite Contracts, during the Relevant Time Period, for treatments, inspections, and reinspections, who were charged by Orkin for services not rendered.

Specifically excluded from the class were Orkin “and any person, firm, trust, corporation or other entity affiliated with [Orkin]” and “[m]embers of the judiciary of the State of Georgia.” This appeal followed.

1. Monetary Damages Claims. Orkin contends that the trial court abused its discretion in certifying the monetary damages claims under Rule 23 (b) (3) because individual factual issues predominate over issues common to all class members. We agree.

Before claims can be certified for class adjudication under Rule 23 (b) (3), the plaintiff must show, among other things, “that there are questions of law and fact common to the class members which predominate over any individual questions.” Griffin Indus. v. Green, 280 Ga. App. 858, 859 (635 SE2d 231) (2006).

*187 Common issues of fact and law predominate if they have a direct impact on every class member’s effort to establish liability and on every class member’s entitlement to injunctive and monetary relief. Where, after adjudication of the classwide issues, plaintiffs must still introduce a great deal of individualized proof or argue a number of individualized legal points to establish most or all of the elements of their individual claims, such claims are not suitable for class certification under Rule 23 (b) (3).

(Citation and punctuation omitted.) Klay v. Humana, Inc., 382 F3d 1241, 1255 (II) (B) (11th Cir. 2004). 2

Atrial court’s grant or denial of class certification is subject to an abuse of discretion standard of review. See UNUM Life Ins. Co. of America v.

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Bluebook (online)
653 S.E.2d 794, 288 Ga. App. 184, 2007 Fulton County D. Rep. 3394, 2007 Ga. App. LEXIS 1165, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rollins-inc-v-warren-gactapp-2007.