Stammco, L.L.C. v. United Tel. Co. of Ohio

2010 Ohio 1042, 125 Ohio St. 3d 91
CourtOhio Supreme Court
DecidedMarch 24, 2010
Docket2008-1822
StatusPublished
Cited by31 cases

This text of 2010 Ohio 1042 (Stammco, L.L.C. v. United Tel. Co. of Ohio) is published on Counsel Stack Legal Research, covering Ohio Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stammco, L.L.C. v. United Tel. Co. of Ohio, 2010 Ohio 1042, 125 Ohio St. 3d 91 (Ohio 2010).

Opinions

Lanzinger, J.

{¶ 1} We accepted this discretionary appeal to consider two propositions concerning the definition of a class for purposes of a class action under Civ.R. 23. Appellants, United Telephone Company of Ohio and Sprint Nextel Corporation, ask us to hold that the trial court’s class certification is improper under Civ.R. 23 and that the case cannot be maintained as a class action. Because the class definition does not allow the class members to be readily identified, we reverse the court of appeals’ judgment and remand the case to the trial court so that it may clarify the class definition.

Case Background

{¶ 2} In June 2005, appellees, Stammco, L.L.C., d.b.a. The Pop Shop (“Stammco”), and its owners, Kent and Carrie Stamm, filed a complaint on behalf of themselves and all others similarly situated against United Telephone Company of Ohio, d.b.a. Sprint (“UTO”), and the Sprint Nextel Corporation (“Sprint”), who provided appellees with local and long-distance phone service. The complaint alleged that Stammco and other customers of UTO and Sprint had been damaged by appellants’ negligent acts and billing practices. Specifically, appellees alleged that UTO and Sprint had engaged in the practice of “cramming,” or causing unauthorized charges to be placed on their customers’ telephone bills. Appellees highlighted one incident, in which charges from a third party, Bizopia, appeared on Stammco’s phone bill. Although Bizopia claimed that it had secured from a Stammco employee authorization to charge fees on the bill, Stammco claimed that the employee had explicitly told Bizopia that he did not have the authority to authorize such charges.

{¶ 3} Pursuant to Civ.R. 23, appellees filed a motion for certification of the following class: “All individuals, businesses or other entities in the State of Ohio who are or who were within the past four years, subscribers to local telephone service from United Telephone Company of Ohio d.b.a. Sprint and who were billed for charges on their local telephone bills by Sprint on behalf of third parties without their permission. Excluded from this class are defendants, their affiliates (including parents, subsidiaries, predecessors, successors, and any other entity or its affiliate which has a controlling interest), their current, former, and future employees, officers, directors, partners, members, indemnities, agents, attorneys and employees and their assigns and successors.” The trial court [93]*93granted the motion for class certification, named the Stamms and Stammco class representatives, and designated their counsel as counsel for the class.

{¶ 4} UTO and Sprint appealed the order certifying the class, asserting in part that the trial court failed to carefully apply the requirements for class certification under Civ.R. 23 and that, as a matter of law, no class could ever properly be certified based upon appellees’ claims. After applying the factors in Civ.R. 23(A) and the four factors in Civ.R. 23(B)(3), the court of appeals held that the trial court had not abused its discretion in sustaining the motion to certify the class.

{¶ 5} After initially declining jurisdiction, Stammco, L.L.C. v. United Tel. Co. of Ohio, 120 Ohio St.3d 1488, 2009-Ohio-278, 900 N.E.2d 198, this court granted appellants’ motion to reconsider and accepted discretionary jurisdiction over appellants’ two propositions of law. Stammco, L.L.C. v. United Tel. Co. of Ohio, 121 Ohio St.3d 1430, 2009-Ohio-1296, 903 N.E.2d 327. The first states, “A plaintiff cannot define the class to include only individuals who were actually harmed.” The second states, “A class action cannot be maintained when only some class members have been injured.”

Legal Analysis

{¶ 6} Civ.R. 23 sets forth the requirements for maintaining a class action. We have noted that there are seven requirements for a class action to be maintained under this rule: “(1) an identifiable class must exist and the definition of the class must be unambiguous; (2) the named representatives must be members of the class; (3) the class must be so numerous that joinder of all members is impracticable; (4) there must be questions of law or fact common to the class; (5) the claims or defenses of the representative parties must be typical of the claims or defenses of the class; (6) the representative parties must fairly and adequately protect the interests of the class; and (7) one of the three Civ.R. 23(B) requirements must be met.” Hamilton v. Ohio Sav. Bank (1998), 82 Ohio St.3d 67, 71, 694 N.E.2d 442, citing Civ.R. 23(A) and (B) and Warner v. Waste Mgt., Inc. (1988), 36 Ohio St.3d 91, 521 N.E.2d 1091.

{¶ 7} In the present case, the trial judge and court of appeals determined that the class was proper under Civ.R. 23(B)(3), which provides that a class action may be maintained when “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.” However, we have held that “[a]n identifiable class must exist before certification is permissible. The definition of the class must be unambiguous.” Warner v. Waste Mgt., Inc., 36 Ohio St.3d 91, 521 N.E.2d 1091, paragraph two of the syllabus. “ ‘[T]he requirement that there be a class will not be deemed satisfied unless the description of it is sufficiently definite so that it is administratively feasible for [94]*94the court to determine whether a particular individual is a member.’ 7A Charles Alan Wright, Arthur R. Miller & Mary Kay Kane, Federal Practice and Procedure (2d Ed.1986) 120-121, Section 1760. Thus, the class definition must be precise enough ‘to permit identification within a reasonable effort.’ ” Hamilton v. Ohio Sav. Bank, 82 Ohio St.3d at 71-72, 694 N.E.2d 442, quoting Warner v. Waste Mgt., 36 Ohio St.3d at 96, 521 N.E.2d 1091.

{¶ 8} In Warner, the plaintiffs filed a lawsuit in response to alleged activities in and around a dump site by the defendants, including Waste Management, Inc. The trial court certified a class consisting of people who “lived, worked, resided or owned real property within a five-mile radius of the Waste Management * * * site.” Id. at 93, 521 N.E.2d 1091. We held that a class defined to include all people who had ever worked within five miles of a specific site did not permit identification of its members with a reasonable effort and that the trial court had abused its discretion in certifying a class whose members were not readily identifiable. Id. at 96, 521 N.E.2d 1091.

{¶ 9} On the other hand, in Hamilton, the trial court had denied plaintiffs’ motion seeking certification of a class and subclasses consisting of mortgagors on whose residential loans Ohio Savings Bank calculated interest according to a certain method. Hamilton,

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

Related

Sortino v. Calfee, Halter & Griswold, L.L.P.
2025 Ohio 1949 (Ohio Court of Appeals, 2025)
DeVore v. Ohio Adult Parole Auth.
2023 Ohio 4558 (Ohio Court of Appeals, 2023)
Goree v. Northland Auto Ents. Inc.
2020 Ohio 3457 (Ohio Court of Appeals, 2020)
Midland Funding, L.L.C. v. Colvin
2019 Ohio 5382 (Ohio Court of Appeals, 2019)
Binder v. Cuyahoga Cty.
2019 Ohio 1236 (Ohio Court of Appeals, 2019)
Konarzewski v. Ganley, Inc.
2017 Ohio 4297 (Ohio Court of Appeals, 2017)
Eighmey v. Cleveland
2017 Ohio 2857 (Ohio Court of Appeals, 2017)
Berdysz v. Boyas Excavating, Inc.
2017 Ohio 530 (Ohio Court of Appeals, 2017)
Cantlin v. Smythe Cramer Co.
2016 Ohio 3174 (Ohio Court of Appeals, 2016)
Felix v. Ganley Chevrolet, Inc. (Slip Opinion)
2015 Ohio 3430 (Ohio Supreme Court, 2015)
Barrow v. New Miami
2014 Ohio 5743 (Ohio Court of Appeals, 2014)
State v. Alvarado
2014 Ohio 5374 (Ohio Court of Appeals, 2014)
Gordon v. Erie Islands Resort & Marina
2014 Ohio 4970 (Ohio Court of Appeals, 2014)
Musial Offices, Ltd. v. Cuyahoga Cty.
2014 Ohio 602 (Ohio Court of Appeals, 2014)
Lycan v. Cleveland
2014 Ohio 203 (Ohio Court of Appeals, 2014)
Cullen v. State Farm Mutual Automobile Insurance
2013 Ohio 4733 (Ohio Supreme Court, 2013)
Jacobs v. FirstMerit Corp.
2013 Ohio 4308 (Ohio Court of Appeals, 2013)
Felix v. Ganey Chevrolet, Inc.
2013 Ohio 3523 (Ohio Court of Appeals, 2013)
Stammco, L.L.C. v. United Tel. Co. of Ohio
2013 Ohio 3019 (Ohio Supreme Court, 2013)
State v. Markins
2013 Ohio 602 (Ohio Court of Appeals, 2013)

Cite This Page — Counsel Stack

Bluebook (online)
2010 Ohio 1042, 125 Ohio St. 3d 91, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stammco-llc-v-united-tel-co-of-ohio-ohio-2010.