Schwartz v. Upper Deck Co.

183 F.R.D. 672, 1999 U.S. Dist. LEXIS 575, 1999 WL 27567
CourtDistrict Court, S.D. California
DecidedJanuary 12, 1999
DocketCiv. No. 96 CV-3408-B (AJB)
StatusPublished
Cited by50 cases

This text of 183 F.R.D. 672 (Schwartz v. Upper Deck Co.) is published on Counsel Stack Legal Research, covering District Court, S.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Schwartz v. Upper Deck Co., 183 F.R.D. 672, 1999 U.S. Dist. LEXIS 575, 1999 WL 27567 (S.D. Cal. 1999).

Opinion

ORDER DENYING MOTION FOR CLASS CERTIFICATION

BREWSTER, Senior District Judge.

I. Introduction

This case asks whether the practice of inserting a “chase” or “insert” card into packages of sports cards constitutes an illegal lottery or gambling. This Court has held that “as long as plaintiffs allege that they purchased packages of Upper Deck trading cards at least partially for the chance of winning a valuable chase card, then they have sufficiently alleged ‘racketeering activity1 for purposes of RICO.” Schwartz v. Upper Deck (I), 956 F.Supp. 1552, 1558 (S.D.Cal.1997). Plaintiffs move to certify this case as a class action.

II. Class Certification Analysis

A. Standard of Law

Fed.R.Civ.P. 23(a) provides four independently required criteria which must be met in order for a class to be certified:

(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 or defenses of the representative parties are typical of the claims or defenses of the class; and
(4) the representative parties will fairly and adequately protect the interests of the class.

A proposed class action must also satisfy one of the subdivisions of Rule 23(b). Rule 23(b)(3) requires 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 superi- or to other available methods for the fair and efficient adjudication of the controversy-

A court need not reach the merits of the action in determining whether a class action, is appropriate. Eisen v. Carlisle and Jacquelin, 417 U.S. 156, 179, 94 S.Ct. 2140, 40 L.Ed.2d 732 (1974). However, a court may consider evidence even if that evidence also relates to the merits. Hanon v. Dataproducts Corp., 976 F.2d 497, 509 (9th Cir.1992). A court should accept the substantive allegations of the complaint as true. Blackie v. Barrack, 524 F.2d 891, 901 n. 17 (9th Cir.1975). Plaintiffs carry the burden of demonstrating satisfaction of the prerequisites to class certification. Mantolete v. Bolger, 767 F.2d 1416, 1424 (9th Cir.1985). Failure to prove any one of Rule 23’s requirements destroys the alleged class action. Rutledge v. Electric Hose & Rubber Co., 511 F.2d 668, 673 (9th Cir.1975). Courts must rigorously assess whether the four prerequisites have been met. General Tel. Co. v. Falcon, 457 U.S. 147, 161, 102 S.Ct. 2364, 72 L.Ed.2d 740 (1982). Conditional certification of an improper class on a speculative possibility that it may later meet the requirements is improper. Blackie, 524 F.2d at 901. A class certification determination is committed to the discretion of the district court. Price v. Lucky Stores, Inc., 501 F.2d 1177, 1179 (9th Cir.1974).

[676]*676B. Class Certification Prerequisites

1. Rule 23(b)(3)

Plaintiffs cannot meet the requirements of Rule 23(b)(3).1 Rule 23(b)(3) states:

An action may be maintained as a class action if ... the court finds 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. The matters pertinent to the findings include: (A) the interest of members of the class in individually controlling the prosecution or defense of separate actions; (B) the extent and nature of any litigation concerning the controversy already commenced by or against members of the class; (C) the desirability or undesirability of concentrating the litigation of the claims in the particular forum; (D) the difficulties likely to be encountered in the management of the class action. Fed.R.Civ.P. Rule 23(b)(3).

These factors are not exhaustive. Wilcox Dev. Co. v. First Interstate Bank of Oregon, 97 F.R.D. 440, 444 (D.Or.1983).

The Court must decide three issues under Rule 23(b)(3): (1) whether facts common to the class, i.e. the purchase of Upper Deck’s sports cards “for the chance of winning a valuable chase card,” predominate over individual determinations of that question, see Schwartz (I), 956 F.Supp. at 1558; (2) whether the Court need apply different state laws and, if so, whether determination of the applicability of separate state law pro-

visions to each class member will predominate over common questions of law, and (3) whether a class action is a superior vehicle for consideration of Plaintiffs’ claims.

a. Factual Determinations

The potential class is restricted to those who bought Defendant’s product for the purpose of finding a chase card.. “Plaintiffs must allege that defendant’s illegal lottery (i.e. the chance of winning a prize) was the reason they paid money to defendants.” Schwartz (I), 956 F.Supp. at 1559. Without such intent, consideration paid equals that received.

Individual purchase may be based on a variety of reasons. See Opp’n, p. 3, n. 1; see also “Exhibit A” of Randall Deel.2 Defendant asserts that “every phase from proof of membership in the class, to liability, and through to damages will be replete with individualized determinations, necessitating mini-trials on each separate issue.” See Opp’n, p. 6-7. Defendant argues that proof will be required to show that each individual purchased Upper Deck cards, within the class period, and that the individual was motivated to do so at least in part to obtain the “chase” or “insert” card. Defendant claims that this determinative process will “consume an inordinate portion of this Court’s resources and time,” citing In re Hotel Telephone Charges, 500 F.2d 86, 88-89 (9th Cir.1974) (denying class certification where individualized issues would take over one hundred years to resolve).3 Defendant also argues that any damages will be highly individualized. Defendant lists eleven separate elements an individual class member would have to show [677]*677in order to ascertain his or her damages.4 See Opp’n, p. 8.

Class membership cannot be determined based on mere purchase of cards within a specified period of time. The Defendant’s conduct in the abstract is not problematic. The cause of action turns on individual, subjective intent. This will be a jury trial.

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

Related

Davids v. Adams
D. Idaho, 2025
Ornelas v. Tapestry, Inc.
N.D. California, 2021
Reyes v. Educational Credit Management Corp.
322 F.R.D. 552 (S.D. California, 2017)
Alfred v. Pepperidge Farm, Inc.
322 F.R.D. 519 (C.D. California, 2017)
Nghiem v. Dick's Sporting Goods, Inc.
318 F.R.D. 375 (C.D. California, 2016)
Santomenno v. Transamerica Life Insurance
316 F.R.D. 295 (C.D. California, 2016)
Bee, Denning, Inc. v. Capital Alliance Group
310 F.R.D. 614 (S.D. California, 2015)
In re NJOY, Inc. Consumer Class Action Litigation
120 F. Supp. 3d 1050 (C.D. California, 2015)
Escalante v. California Physicians' Service
309 F.R.D. 612 (C.D. California, 2015)
Foley v. Buckley's Great Steaks
2015 DNH 078 (D. New Hampshire, 2015)
Allen v. Similasan Corp.
306 F.R.D. 635 (S.D. California, 2015)
Abdeljalil v. General Electric Capital Corp.
306 F.R.D. 303 (S.D. California, 2015)
In re Conagra Foods, Inc.
302 F.R.D. 537 (C.D. California, 2014)
Algarin v. Maybelline, LLC
300 F.R.D. 444 (S.D. California, 2014)
Lyon v. United States Immigration & Customs Enforcement
300 F.R.D. 628 (N.D. California, 2014)
Turcios v. Carma Laboratories, Inc.
296 F.R.D. 638 (C.D. California, 2014)

Cite This Page — Counsel Stack

Bluebook (online)
183 F.R.D. 672, 1999 U.S. Dist. LEXIS 575, 1999 WL 27567, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schwartz-v-upper-deck-co-casd-1999.