Supportkids, Inc. v. Morris

167 S.W.3d 422, 2005 WL 1150200
Court of Appeals of Texas·Decided July 14, 2005·No. 14-04-00390-CV·Published·Cited by 4 cases

Opinions

MAJORITY OPINION

CHARLES W. SEYMORE, Justice.

In this interlocutory appeal, Support-kids, Inc., formerly Child Support Enforcement, Inc., appeals a judgment in favor of Cynthia Morris on the ground that the trial court abused its discretion in granting class certification. We reverse and remand for proceedings consistent with this opinion.

BACKGROUND

Appellant, Supportkids, is a company whose principal business is the collection of past due child support for custodial parents. Supportkids offers different service packages depending on the amount of child support to be collected and whether there is an arrearage. For its services, Supportkids collects a percentage of the total child support recovered. The percentage differs from contract to contract. In 1999, appellee, Morris, hired Support-kids to enforce and collect past due child support arrearages. Morris signed a contract in which she agreed she would retain sixty-seven percent of any child support collected and Supportkids would retain [425] thirty-three percent as its fee. Support-kids was successful and obtained a withholding order on the non-custodial parent’s wages so the arrearage could be paid.

Approximately six months after Sup-portkids secured the withholding order, Morris demanded that Supportkids cancel her contract so she could collect one hundred percent of the child support without paying a fee to Supportkids. When Sup-portkids declined to cancel the contract, Morris sued Supportkids on the ground that it engaged in the unauthorized practice of law. Morris later sought to certify a class including other individuals who had contracted with Supportkids to collect past due child support. She alleged the class would include all customers of Supportkids for whom Supportkids had hired an attorney to perform legal services.

The trial court granted Morris’s motion for class certification and defined the class as follows:

Those persons (i) who entered into any of the form contracts attached hereto as Exhibit “A” or “Bl” — “B28” with the Defendants [sic] in Texas on or after May 7, 1998, (ii) on whose behalf the Defendants retained an attorney to perform legal services to collect past due child support owed to that person.

Supportkids contends the trial court abused its discretion because the court did not properly apply Rule 42 of the Texas Rules of Civil Procedure to the undisputed facts.

STANDARD OP REVIEW

We review a trial court’s ruling on class certification for abuse of discretion. Southwestern Ref. Co., Inc. v. Bernal, 22 S.W.3d 425, 439 (Tex.2000). A clear failure by the trial court to analyze or apply the law correctly is an abuse of discretion. McDaniel v. Yarbrough, 898 S.W.2d 251, 253 (Tex.1995). Although we review the trial court’s order for abuse of discretion, we do not indulge every presumption in its favor, as compliance with class action requirements must be demonstrated rather than presumed. Henry Schein, Inc. v. Stromboe, 102 S.W.3d 675, 691-92 (Tex.2002). We also must evaluate “the claims, defenses, relevant facts, and applicable substantive law.” Id.

All class actions must satisfy four threshold requirements: (1) the class is so numerous that joinder of all members is impracticable; (2) there are questions of law or fact common to the class; (3) the claims or defenses of the representative parties are typical of the claims or defenses of the class; and (4) the representative parties will fairly and adequately protect the interests of the class. Tex.R. Civ. P. 42(a). Class representatives must also meet at least one of the subdivisions of Rule 42(b). A judgment in favor of class members should decisively settle the entire controversy, and all that should remain is for other members of the class to file proof of their claim. Bernal, 22 S.W.3d at 434. Here, the trial court found the requirements of Rule 42(a) were met and certified the class under all the subdivisions of Rule 42(b).

Typicality and Adequacy of Representation

Supportkids contends the trial court abused its discretion in certifying the class because Morris did not present facts showing she met the prerequisites of typicality and fair and adequate protection of the class. See Tex.R. Civ. P. 42(a). Typicality and adequacy of representation are closely related, for demanding typicality on the part of the representative helps insure her adequacy of representation. See Horton v. Goose Creek Ind. School Dist., 690 F.2d 470, 486 n. 27. (5th Cir.1982). Ordinarily, the presence of even an arguable [426] defense peculiar to the named plaintiff destroys the typicality of the class. Spera v. Fleming, Hovenkamp & Grayson, P.C., 4 S.W.3d 805, 812 (Tex.App.-Houston [14th Dist.] 1999, no pet.).

The named representative in a class action must fairly and adequately protect the interest of the class members. Tex.R. Civ. P. 42(a)(4). This requirement has two components: (1) an absence of antagonism between the class representatives and the class members, and (2) an assurance the representative parties will vigorously prosecute the class claims and defenses. Slack v. Shell Oil Co., 969 S.W.2d 565, 568 (Tex.App.-Austin 1998, no pet.). Adequacy of representation is a question of fact based on the individual circumstances of the case. Forsyth v. Lake LBJ Inv. Corp., 903 S.W.2d 146, 150 (Tex.App.-Austin 1995, writ dism’d w.o.j.). Factors affecting this determination include: (1) adequacy of counsel; (2) potential conflicts of interest between the class members; (3) personal integrity of the plaintiffs; (4) the representative’s familiarity with the litigation, and her belief in the legitimacy of the grievance; (5) whether the class is unmanageable because of geographical limitations; and (6) whether the plaintiffs can afford to finance the class action.

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

Supportkids, Inc. v. Morris, 167 S.W.3d 422, 2005 WL 1150200 (Tex. Ct. App. 2005).

167 S.W.3d 422 (Supportkids, Inc. v. Morris) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Bliss & Glennon Inc. v. Ashley
420 S.W.3d 379 (Court of Appeals of Texas, 2014)
Supportkids, Inc. v. Morris
167 S.W.3d 422 (Court of Appeals of Texas, 2005)