Skalbania v. Simmons

443 N.E.2d 352, 1982 Ind. App. LEXIS 1542
CourtIndiana Court of Appeals
DecidedDecember 30, 1982
Docket2-382A71
StatusPublished
Cited by27 cases

This text of 443 N.E.2d 352 (Skalbania v. Simmons) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Skalbania v. Simmons, 443 N.E.2d 352, 1982 Ind. App. LEXIS 1542 (Ind. Ct. App. 1982).

Opinions

BUCHANAN, Chief Judge.

CASE SUMMARY

The Indianapolis Racers Hockey Team (Racers), its owner, Nelson Skalbania, the World Hockey Association, and its constituent hockey teams bring this interlocutory appeal from the certification of a class of plaintiffs consisting of 1978-79 Racers season ticket holders, arguing that the trial court abused its discretion in granting class certification because individual questions predominate over matters common to the class.

We affirm.

FACTS

This case arose from the collapse of the Indianapolis Racers professional hockey franchise during the 1978-79 season. At the time the team ceased operation, only 13 of 40 scheduled home games had been played.

Plaintiffs are a class of persons comprising 1978-79 Racers season ticket holders.

COUNT DEFENDANTS
I All
II Racers and Skalbania
III Racers and Skalbania
IV All
V All
VI Racers and Skalbania

Through their representatives A1 Simmons (Simmons) and Michael Kelly (Kelly), they brought suit against the various corporate entities owning and operating the Racer franchise.1 They also sued Nelson Skalba-nia (Skalbania), the owner of the Racers, the World Hockey Association (WHA), the league in which the Racers competed, and the constituent teams which comprised that league during the Racers’ final season.

In their complaint, plaintiffs request damages from Skalbania and the Racers for breach of contract (Count II, R. at 16); breach of warranty (Count III, R. at 17); and negligent operation of the Racer franchise (Count VI, R. at 18-19). Against the WHA, its constituent teams, Skalbania, and the Racers, plaintiffs request damages for common law fraud (Count I, R. at 15); common law fraud and breach of fiduciary duty (Count IV, R. at 17-18); tortious interference with the rights of the Racers and plaintiffs in the services and contracts of Racer players (Count V, R. at 18); negligent and reckless operation of and negligent failure to disclose facts indicative of the negligent and reckless operation of the Racer franchise (Count VII, R. at 19-20); tortious interference with the contractual relationship between plaintiffs and the Racers based upon merger negotiations which were conducted between the WHA, the Racers, and the National Hockey League (Count VIII R. at 20); and conduct supporting an award of punitive damages (Count IX, R. at 21).

For clarity we list these various claims on the following scorecard:

CLAIM
Fraudulent disclosure and failure to disclose the poor financial condition of the franchise.
Breach of contract.
Breach of express and implied warranties.
Conspiracy to misappropriate and misappropriation of season ticket funds; breach of fiduciary duty.
Conspiracy to interfere with and inter- • ference with Racer player contracts.
Negligent operation of Racer franchise.
[354]*354COUNT DEPENDANTS
VII All
VIII All
IX All
CLAIM
Failure to supervise Racer franchise; nondisclosure of poor operation of the franchise.
Negligent conduct of merger negotiations.
Punitive damages.

On May 22,1981 plaintiffs filed a “motion to determine the propriety of class action” (R. at 26). On December 4, 1981 a hearing was held upon that motion to determine whether the class should be certified. During that hearing the depositions of Simmons and Kelly were published. Evidence elicited at the hearing established that out of 40 promised games, only 13 were played (R. at 270) and that the proposed class consists of 1,140 persons (id.), holding about 3,500 season tickets (R. at 269). Supporting Kelly’s appointment as a class representative is his purchase of two season tickets at a total cost of $580. (Id.). Simmons bought four tickets for $1,160 (R. at 275).

Evidence before the court, included in the depositions, indicates that Racers’ advertising appeared which featured the WHA logo (R. at 351) and that the WHA was the sanctioning body for the Racers franchise (R. at 380). The WHA, as the sanctioning league, permitted the team to exist and operate (R. at 432). By allowing the Racers to embark upon the 1978-79 season, plaintiffs allege that at the least, the league implicitly asserted that the Racers possessed the economic wherewithal to complete the season (R. at 444). Such representations were made prior to the purchase of season tickets by members of the class (R. at 384). The WHA itself continued operation after the Racers folded and the league completed the season in question. (R. at 272).

Plaintiffs also allege that the WHA and member teams received Racers players for inadequate or non-existent compensation (R. at 457). Such player transfers, which commenced after the season began, were detrimental to the Racers because the player sales constituted the disbanding of a competitive team. (R. at 358).

Insofar as Skalbania’s conduct vis-a-vis the WHA is concerned, the evidence shows that, at the time he acquired the Racers,

Skalbania also owned the Edmonton Oilers. Despite the conflict of interest ramifications of such dual ownership, the WHA let Skalbania own the two teams at once. (R. at 353).

Plaintiffs also testified that merger negotiations between the WHA, the Racers, and the National Hockey League were harmful to the Racers because the uncertainty regarding the team’s continued operation which those negotiations engendered depressed attendance at Racers games. (R. at 401).

Both Simmons and Kelly testified that they want their season ticket expenditures back (R. at 403, 435). Kelly described all season ticket holders as “being in the same seat as I’m in that as far as having lost the dollars that they invested.” (R. at 441).

Following the hearing, the trial court, on February 12, 1982, certified this case as a class action pursuant to Ind.Rules of Procedure, Trial Rule 23:

ORDER CERTIFYING CLASS ACTION

This matter, having come before the court on December 4, 1981, for a hearing to determine the propriety of permitting this action to proceed as a class action, and the court having heard the evidence now makes the following findings and entry:
1. The named plaintiffs, A1 Simmons • and Michael Kelly, are owners of season tickets for the Indianapolis Racers 1978-79 hockey season.
2.

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Bluebook (online)
443 N.E.2d 352, 1982 Ind. App. LEXIS 1542, Counsel Stack Legal Research, https://law.counselstack.com/opinion/skalbania-v-simmons-indctapp-1982.