Sun Coast Resources, Inc. v. Cooper

967 S.W.2d 525, 1998 Tex. App. LEXIS 2428, 1998 WL 191756
CourtCourt of Appeals of Texas
DecidedApril 23, 1998
Docket01-97-00780-CV
StatusPublished
Cited by74 cases

This text of 967 S.W.2d 525 (Sun Coast Resources, Inc. v. Cooper) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sun Coast Resources, Inc. v. Cooper, 967 S.W.2d 525, 1998 Tex. App. LEXIS 2428, 1998 WL 191756 (Tex. Ct. App. 1998).

Opinion

OPINION ON MOTION FOR REHEARING

SCHNEIDER, Chief Justice.

We deny appellants’ motion for rehearing. However, we withdraw our opinion dated February 26, 1998, and substitute this one in its place.

This is an accelerated appeal from an interlocutory order certifying a class action. 1 See Tex.R. Civ. P. 42. We affirm.

Background Facts

Appellee, John C. Cooper, alleged he had purchased $196 of gasoline in March 1996 at the .D & E Quick Stop in Huntsville, Texas. Two of his pickup trucks were damaged by this fuel and required repairs. Cooper sued appellants 2 for property damage and lost wages. Cooper later moved to certify a class under rule 42(b)(4). The trial court certified a class consisting of “potential claimants, namely those entities that have purchased for their consumption in automobiles certain *529 Defective Gasoline 3 allegedly manufactured or distributed by one or more Defendants. ..

Standard of Review and Burden of Proof

There is no automatic right to maintain a lawsuit as a class action. Weatherly v. Deloitte & Touche, 905 S.W.2d 642, 647 (Tex.App.-Houston [14th Dist.] 1995, writ dism’d w.o.j.). Instead, a trial court may certify a class if the class proponent satisfies the requirements of rule 42(a) and (b). Life Ins. Co. of the Southwest v. Brister, 722 S.W.2d 764, 770 (Tex.App.-Fort Worth 1986, no writ). To be entitled to maintain a lawsuit as a class action, the proponent must meet all four requirements of rule 42(a) and at least one of rule 42(b)’s requirements. 4 Tex.R. Civ. P. 42(a), (b); Reserve Life Ins. Co. v. Kirkland, 917 S.W.2d 836, 839 (Tex.App.-Houston [14th Dist.] 1996, no writ). The proponent has to do more than merely allege rule 42⅛ requirements are fulfilled, and it has to show at least some facts to support certification. However, it is not required to prove a prima facie case or make an extensive evidentiary showing. Weatherly, 905 S.W.2d at 647.

We review for abuse of discretion. General Motors Corp. v. Bloyed, 916 S.W.2d 949, 955 (Tex.1996). There is an abuse of discretion if the record clearly shows that (1) the trial court misapplied the law to the established facts, (2) the material in the record does not reasonably support the findings, or (3) the trial court acted arbitrarily or unreasonably. Weatherly, 905 S.W.2d at 648. We must determine only whether the trial court’s action was so arbitrary as to exceed the bounds of reasonable discretion. Dresser Indus., Inc. v. Snell, 847 S.W.2d 367, 371 (Tex.App.-El Paso 1993, no writ). We view the evidence in the light most favorable to, and indulge every presumption in favor of, the trial court’s action. Kirkland, 917 S.W.2d at 839.

The trial court may alter, amend, or withdraw class certification at any time before final judgment. Tex.R. Civ. P. 42(c)(1). Therefore, when a trial court considers class certification at an early stage of litigation, before supporting facts are fully developed, it should favor certification. Morgan v. Deere Credit, Inc., 889 S.W.2d 360, 365 (Tex.App.-Houston [14th Dist.] 1994, no writ).

Appellants did not request fact findings, and the certification order contained only conclusions of law. In the absence of such findings, we must presume the trial court found every fact necessary to sustain its order, provided the fact is one raised by the pleadings, supported by the evidence, and sustainable on any reasonable theory consistent with applicable law. Employers Cas. Co. v. Texas Ass’n of Sch. Bd. Workers’ Compensation Self-Ins. Fund 886 S.W.2d 470, 473 (Tex.App.-Austin 1994, writ dism’d w.o.j.). 5 For appellants to prevail, the undisputed evidence must negate one or more of the class action’s essential elements. Texas Dep’t of Mental Health & Mental Retardation v. Petty, 778 S.W.2d 156, 161 (Tex.App.-Austin 1989, writ dism’d w.o.j.).

Discussion

In seven points of error, appellants attack each requirement for class certification under rule 42(a) and (b).

*530 A. Numerosity and Class Definition

The trial court found that “the Plaintiff Class appears so numerous that joinder of all its members is impracticable.” The class definition manifestly included those who had settled or been paid without settling. In point of error seven, appellants claim the trial court erred in defining the class broadly enough to include those who had settled or been paid. Appellants’ argument is really two-fold: (1) the class definition improperly included those who had settled or been paid and (2) if these were not included in the definition, the class would not be so numerous as to make joinder impracticable. In point of error one, appellants also argue the class is not so numerous as to make joinder impracticable. See Tex.R. Crv. P. 42(a)(1). We treat points of error 6ne and seven together.

Determining whether numerosity is met is not based on numbers alone. Phillips v. Joint Legislative Comm. on Performance & Expenditure Review, 637 F.2d 1014, 1022 (5th Cir.1981). Although the trial court must find that joinder is impracticable, there is no mechanical rule for determining when class size reaches that threshold. Employers Cas., 886 S.W.2d at 474. The test is whether joinder of all members is impracticable in view of the size of the class and such factors as judicial economy, the nature of the action, geographical locations of class members, and the likelihood that class members would be unable to prosecute individual lawsuits. Weatherly, 905 S.W.2d at 653.

1. Facts

The following facts are viewed in the light most favorable to certification. No one disputes the gasoline was tainted by a tolylulene additive. Teva or IPI sold the tolylulene to HPPL and HPI, which manufactured the tainted gasoline. HPPL and HPI sold the tainted gasoline to Sun Coast, a fuel distribution company, which in turn made 20 sales of the tainted gasoline to retailers and wholesalers in various cities. One of the customers to whom Sun Coast distributed the gasoline was the D & E Quick Stop at which Cooper purchased his gasoline.

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Bluebook (online)
967 S.W.2d 525, 1998 Tex. App. LEXIS 2428, 1998 WL 191756, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sun-coast-resources-inc-v-cooper-texapp-1998.