Slaven v. BP America, Inc.

190 F.R.D. 649, 2000 U.S. Dist. LEXIS 3177, 2000 WL 186464
CourtDistrict Court, C.D. California
DecidedFebruary 7, 2000
DocketNo. CV 90-722 RJK
StatusPublished
Cited by49 cases

This text of 190 F.R.D. 649 (Slaven v. BP America, Inc.) is published on Counsel Stack Legal Research, covering District Court, C.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Slaven v. BP America, Inc., 190 F.R.D. 649, 2000 U.S. Dist. LEXIS 3177, 2000 WL 186464 (C.D. Cal. 2000).

Opinion

ORDER PARTIALLY DECERTIFYING THE CLASS ACTION

KELLEHER, District Judge.

Defendants filed a joint motion to decertify the class of plaintiffs. Plaintiffs opposed the motion. The Court considered the papers and the record in this case, and heard extended oral argument on September 27,1999. The Court now grants in part Defendants’ motion to decertify the Plaintiff class.

INTRODUCTION

On February 7, 1990, the ship American Trader carried oil loaded from the Trans-Alaska pipeline from Alaska to California. Approximately one and one-half miles off the coast of Huntington Beach, the American Trader allegedly ran over its anchor, opening a hole in the hull of the ship. At least 200,000 gallons of crude oil spilled out into the Pacific Ocean and onto nearby beaches. Within days, numerous plaintiffs filed suit against an array of parties, including oil companies, shipping companies and the Aaskan Pipeline operators. The ensuing litigation has consumed this Court’s attention ever since.1

Shortly after plaintiffs began to file suit against these defendants, the owner of the American Trader, American Trading Transportation Company, Inc. (“ATTRANSCO”), filed a Verified Complaint for Exoneration from or Limitation of Liability. See Verified Complaint (May 22, 1990). Plaintiffs moved to dismiss the Limitation Act Complaint in early 1991; the Court took the matter under submission while the Ninth Circuit determined whether the Trans-Alaska Pipeline Authorization Act (“TAPAA”), 43 U.S.C.A. § 1651 et seq. (West 1986), had repealed the Limitation Act. See Holifield v. BP America, Inc., 786 F.Supp. 840, 852 (C.D.Cal. 1991). In September 1991, the Ninth Circuit ruled that “TAPAA implicitly repealed the Limitation Act with regard to the transportation of trans-Alaska oil.” In re Glacier Bay, 944 F.2d 577, 583 (9th Cir.1991).

Early in the case, Plaintiffs moved for class certification, which this Court granted conditionally on May 25, 1994. The Court defined the class to consist of:

All persons and entities owning, leasing, or having an interest in real and/or personal property or having an ownership interest in commercial enterprises or working within or about the area or areas affected by the rupture of the hull of the American Trader on February 7, 1990, and the resulting oil spill and clean-up effort, who have suffered or will suffer economic dam[651]*651age as a result of the spill and/or the ensuing clean-up effort.

Order Conditionally Certifying a Plaintiff Class 2 (May 25,1994).

The class excluded tort claimants seeking damages for personal injuries, defendants, government agencies, and other political bodies. See id.

As part of the conditional certification Order, the Court required the parties to print notices of the pending action in newspapers and other prominent locations. The parties tabulated responses to these notices, and categorized the general nature of the respondents’ claims. Approximately 180 potential claimants responded to the notices. Based upon the responses received, Defendants moved to decertify the class on the ground that Plaintiffs’ legal and factual claims were not sufficiently common to warrant class treatment under Fed.R.Civ.P. 23. This Court denied Defendants’ motion for decerti-fication by Minute Order on April 26, 1995.

Since 1995, the parties have been occupied with settlement negotiations and substantive matters (and appeals therefrom) peripheral to the class certification issue. Now, four years later, Defendants have filed this Joint Motion to Decertify the Class.

STANDARD

A party seeking class certification bears the burden of demonstrating that the proposed class satisfies the four elements of Rule 23(a), as well as the elements of at least one provision of Rule 23(b). See Valentino v. Carter-Wallace, Inc., 97 F.3d 1227, 1234 (9th Cir.1996); O’Connor v. Boeing North Am., Inc., 184 F.R.D. 311, 318 (C.D.Cal.1998) (Collins, J.). It follows, therefore, that a party seeking decertification of a class should bear the burden of demonstrating that the elements of Rule 23 have not been established. Defendants’ burden in urging decertification is relatively heavy, since “doubts regarding the propriety of class certification should be resolved in favor of certification.” Groover v. Michelin North Am., Inc., 187 F.R.D. 662, 670 (M.D.Ala.1999) (citing 4 Newberg on Class Actions § 7540 (3d ed.1992)).

A district court’s decision to decertify a class is committed to its sound discretion. Cf. American Timber & Trading Co. v. First Nat’l Bank of Oregon, 690 F.2d 781, 790 (9th Cir.1982) (“district court did not abuse its discretion in refusing to decertify subclass IV”); 5 Moore’s Federal Practice § 23.04 (Matthew Bender 3d ed.1999). In general, á court’s main concern is to determine “whether the class action device is a fair and efficient method of litigating the particular controversy.” Haley v. Medtronic, Inc., 169 F.R.D. 643, 647 (C.D.Cal.1996) (Rea, J.). In making that determination, a district court must undertake a “ ‘rigorous analysis’ into whether the prerequisites of Rule 23 are met.” Valentino, 97 F.3d at 1233, citing In re American Medical Systems, 75 F.3d 1069 (6th Cir.1996). Rigorous analysis requires a court to do more than offer brief and conelusory statements establishing the Rule 23 prerequisites. See Valentino, 97 F.3d at 1234-35. In effect, this Court must offer written reasons supporting its decision to maintain class certification, or, alternatively, to decertify the action.

DISCUSSION

Before engaging in the analysis of Rule 23’s requirements, the Court first addresses several threshold arguments raised by the parties.

A. Defendants’ Motion to Decertify the Class is not an impermissible motion to reconsider in violation of C.D. Local Rule 7.16.

This motion represents Defendants’ second attempt to decertify the class conditionally certified by this Court on May 25, 1994. Plaintiffs have therefore castigated the motion as a thinly-disguised motion to reconsider. See C.D. Local Rule 7.16 (party may not bring motion to reconsider without emergence of new facts or law).

Plaintiffs fail to recognize, however, that this Court’s usual reluctance to entertain motions for reconsideration simply does not apply in the class certification context. First, the governing law has changed since 1994, when the Court last entertained a motion pertaining to class certification. The Ninth [652]*652Circuit now requires a Court to undertake “rigorous analysis” in reaching class certification decisions. See Valentino, 97 F.3d at 1233. This Court conditionally certified the Slaven class without such analysis (and before Valentino was handed down). Consequently, both the Court and the parties will benefit from the instant motion to reconsider.

Second, even if Defendants had

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190 F.R.D. 649, 2000 U.S. Dist. LEXIS 3177, 2000 WL 186464, Counsel Stack Legal Research, https://law.counselstack.com/opinion/slaven-v-bp-america-inc-cacd-2000.