Southwestern Refining Co., Inc. v. Bernal

22 S.W.3d 425, 43 Tex. Sup. Ct. J. 706, 2000 Tex. LEXIS 50, 2000 WL 566745
CourtTexas Supreme Court
DecidedMay 11, 2000
Docket98-0154
StatusPublished
Cited by339 cases

This text of 22 S.W.3d 425 (Southwestern Refining Co., Inc. v. Bernal) is published on Counsel Stack Legal Research, covering Texas Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Southwestern Refining Co., Inc. v. Bernal, 22 S.W.3d 425, 43 Tex. Sup. Ct. J. 706, 2000 Tex. LEXIS 50, 2000 WL 566745 (Tex. 2000).

Opinions

Justice GONZALES

delivered the opinion of the Court,

in which Justice HECHT, Justice OWEN, Justice BAKER, Justice ABBOTT and Justice O’NEILL joined.

The principal issue in this interlocutory appeal is the propriety of certifying a class action of 904 plaintiffs against Southwestern Refining Company for alleged personal injuries arising from a refinery tank fire in Corpus Christi, Texas. The trial court certified the class and directed that the class proceed in three phases: the first to determine general liability and gross negligence; the second to determine punitive damages; and the third to determine causation and actual damages. The court of appeals modified the certification order to require determination of the class representatives’ actual damages before punitive damages may be assessed for the whole class. 960 S.W.2d 293. Southwestern filed this petition for review, contending that this Court has conflicts jurisdiction and that the common issues do not predominate over the individual issues. We agree with both of Southwestern’s contentions. Therefore, we reverse the court of appeals’ judgment and remand this cause to the trial court for further proceedings consistent with this opinion.

I

On January 26, 1994, at about 7:30 a.m., a slop tank at a Southwestern refinery in [429]*429Corpus Christi exploded. Julia Bernal, Mary De La Garza, Anita Barrerra and Josephine Suarez, four Corpus Christi residents, sued Southwestern and four other defendants for extreme fear and mental anguish caused by the sight and sound of the explosion and for personal injuries and property damages caused by toxic exposure. They allege that the explosion and ensuing fire sent a plume of toxic smoke into the air and that soot and ashes from the smoke descended on their homes in the surrounding neighborhoods. Plaintiffs claim that because of the explosion, they suffered respiratory difficulties, skin irritation, eye irritation, headaches, and nausea, and their lawns, foliage, and pets died.

After an additional 900 claimants joined the lawsuit, plaintiffs moved to certify the personal injury claims as a class action consisting of all of the claimants. The trial court granted the motion, certifying the class with nineteen class representatives under Rule 42(b)(4) of the Texas Rules of Civil Procedure. Tex.R. Civ. P. 42(b)(4). And as the plaintiffs requested, the court excluded from the class all claims for property or diminution-in-value damages. The court’s order granting the motion provided for a three-phase trial:

Phase I will address the alleged liability of defendants to the named class representatives on the issues of negligence, strict liability, toxic trespass, nuisance and gross negligence. Phase I will establish whether defendants are hable for the explosion and whether the released materials were capable of causing the harm alleged by the class.
If during Phase I there is a finding of gross negligence, Phase II of the trial will determine the amount to be recovered by the class as punitive damage[s].
Phase III will determine whether the individual class members can show sufficient specific injuries or damages and whether they were proximately caused by the release due to the tank explosion. The amount of punitive damages, awarded in Phase II, if any, will be proportionately reduced by the number of individuals who can not make the requisite showing of actual damages and proximate cause in Phase III, if any.

The order does not indicate whether the trial court envisioned a single jury deciding all three phases, including the 904 individual damage claims.

Southwestern brought an interlocutory appeal seeking to reverse the certification order. It argued that the prerequisites to class certification, most notably the requirement that common issues predominate over individual ones, were not met. It also argued that the trial court erred by splitting the trial into different phases, in which fault and punitive- dámages would be determined before causation and actual damages.

The court of appeals held that the class certification satisfied the class action prerequisites. While it acknowledged that “individual issues may predominate in determination of causation and damages,” it reasoned that the class was maintainable because the modified trial plan called for the individual issues to be litigated separately from the common issues. 960 S.W.2d at 299. The court suggested that these issues would not necessarily overwhelm the jury because “[i]t remains to be seen” whether “the issues of causation and damages may be proven [expeditiously] by the use of models, formulas, and damage brochures.” Id. at 297. In any event, the court suggested, separate juries could be summoned to resolve the individual issues. See id.

However, in response to Southwestern’s arguments, the court of appeals modified the trial plan to require proof of actual damages by the nineteen class representatives before the jury may resolve punitive damages for the entire class. Under the modified trial plan, phase I remained as the trial court originally ordered, phase II would determine proximate cause and actual damages.for the nineteen class representatives, phase III would determine pu[430]*430nitive damages for the entire class, and phase IV would determine proximate cause and actual damages for the remaining 885 class members. Southwestern petitions for review from this decision, arguing that the trial court’s certification order was an abuse of discretion. Southwestern contends that the class action is not maintainable because individual issues will predominate over common questions of law and fact. Southwestern also objects to the class action as being an inferior and unmanageable method of adjudicating the controversy. Moreover, Southwestern argues that liability and damage issues cannot be tried in separate phases and that punitive damages for the entire class cannot be tried until the jury determines actual damages for the entire class. Finally, Southwestern maintains that the class is not so numerous that joinder is impracticable, that class counsel have a conflict of interest because they are also counsel for those members who must decide whether to opt out, and that class notice was deficient.

II

As a preliminary matter, we must determine if we have jurisdiction to consider this interlocutory appeal. Jurisdiction over interlocutory appeals is generally final in the courts of appeals. See Tex. Gov’t Code § 22.225(b) (“Except as provided by Subsection (c) or (d), a judgment of a court of appeals is conclusive on the law and facts, and a writ of error is not allowed from the supreme court, in the following civil cases: ... (3) an appeal from an interlocutory order appointing a receiver or trustee or from other interlocutory appeals that are allowed by law;.... ”). But this Court has jurisdiction over interlocutory appeals when the court of appeals’ decision conflicts with a prior decision of another court of appeals or this Court on a question of law material to the decision of the case. See id. §§ 22.225(c); 22.001(a)(2). As we recently observed, the standard for conflicts jurisdiction is whether the rulings in two cases are “ ‘so far upon the same state of facts that the decision of one case is necessarily conclusive of the decision in the other.’ ” Coastal Corp. v. Garza, 979 S.W.2d 318, 319 (Tex.1998) (quoting Gonzalez v. Avalos, 907 S.W.2d 443, 444 (Tex.1995)). Stating it another way:

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Bluebook (online)
22 S.W.3d 425, 43 Tex. Sup. Ct. J. 706, 2000 Tex. LEXIS 50, 2000 WL 566745, Counsel Stack Legal Research, https://law.counselstack.com/opinion/southwestern-refining-co-inc-v-bernal-tex-2000.