Walsh v. National Safety Associates, Inc.

695 A.2d 1095, 44 Conn. Super. Ct. 569, 44 Conn. Supp. 569, 1996 Conn. Super. LEXIS 370
CourtConnecticut Superior Court
DecidedFebruary 9, 1996
DocketFile CV94037054S
StatusPublished
Cited by12 cases

This text of 695 A.2d 1095 (Walsh v. National Safety Associates, Inc.) is published on Counsel Stack Legal Research, covering Connecticut Superior Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Walsh v. National Safety Associates, Inc., 695 A.2d 1095, 44 Conn. Super. Ct. 569, 44 Conn. Supp. 569, 1996 Conn. Super. LEXIS 370 (Colo. Ct. App. 1996).

Opinion

BARNETT, J.

The present case is an action brought under the Connecticut Unfair Trade Practices Act *572 (CUTPA), General Statutes §§ 42-110a through 42-110q, and the contingent transactions statutes, General Statutes §§ 42-144 through 42-150. The court must now decide whether to grant the plaintiffs motion for certification as a class action. The case was removed to and has been returned from the United States District Court for the District of Connecticut. The motion for certification was made initially while the case was in the federal system. At the request of this court the motion was filed again after the case was returned.

The requisites for a class action are set forth in Practice Book § 87. The class must be so numerous that joinder of all members is impracticable. There must be questions of law or fact commonto the class. The claims or defenses of the representative party must be typical of the claims or defenses of the class. And the representative party must be one who will fairly and adequately protect the interests of the class.

In addition to the foregoing requirements, a movant for certification as a class action has to satisfy the provisions of Practice Book § 88. The questions of law or fact common to members of the class must predominate over any questions affecting only individual members and a class action has to be found to be superior to other available methods for the fair and efficient adjudication of the controversy.

Practice Book §§87 and 88 are substantially similar to the language of rule 23 of the Federal Rules of Civil Procedure so that federal decisions provide aid in determining whether the requirements for a Connecticut class action have been proven. Arduini v. Automobile Ins. Co. of Hartford, Connecticut, 23 Conn. App. 585, 589, 583 A.2d 152 (1990). The plaintiffs burden of establishing each requirement has been described as heavy although, if the elements are present, the decision *573 of whether to certify is essentially a discretionary matter. Id., 589-90, citing Califano v. Yamasaki, 442 U.S. 682, 703, 99 S. Ct. 2545, 61 L. Ed. 2d 176 (1979).

I

From the evidence that was produced at the hearing, including reasonable inferences deduced therefrom, the following facts relevant to the issue of certification are found to have been established.

The plaintiff, Robert Walsh, is a lifelong resident of Connecticut. He has been and presently is again a truck driver. While out of work in March, 1991, he became interested in becoming a dealer for the defendant after reading a newspaper advertisement. The defendant, National Safety Associates, Inc. (National), is a corporation that manufacturers air and water treatment devices and markets them throughout the United States and in Canada and Europe. The method of marketing is through a multilevel sales force of independent distributors and dealers. National itself, does not sell its products directly to the general public.

As a result of the newspaper advertisement, the plaintiff went to a specific address in Enfield. The location consisted of several rooms including a room where prospects were greeted, an auditorium for meetings, lectures and training sessions and, between the two, a room with desks, telephones and answering machines. There were many telephones. The plaintiff estimated thirty to forty.

On March 12, 1991, at the Enfield suite, talks were given to the plaintiff and to about seventy to eighty other prospective dealers by David Scott, Chris Fluet and two other speakers. The presentations lasted for at least a couple of hours. All the speakers represented that success as a dealer would be easy to achieve. Scott *574 said that 50 percent of prospective customers would become purchasers of National’s water filters.

Another part of the presentation was the showing of a video entitled “Living The Dream II.” This video was produced by Dreams Unlimited, Inc., for National. At the beginning of the video, the following disclaimer appears: “The incomes represented on this tape are above [National] incomes. There is no guarantee that [a National] distributor will earn any income whatsoever. The income, if any, of each distributor is solely based upon the personal efforts and abilities of the individual participant in the [National] program.” The film then portrays a National convention in Las Vegas, Nevada, where people from various states describe their successes and give the amounts of their very sizeable earnings. Also mentioned in the film is the award given to National for being the top direct sales company by the city of Memphis, Tennessee, and National’s favorable rating by Dunn and Bradstreet. An auspicious future for National’s products is predicted. The “Stairsteps of Opportunity,” a sales hierarchy, is discussed. The video ends with further testimonials from highly successful National distributors.

Another aspect of the presentation was the importance of the “downline.” The downline can be described as an extended sales group. In National’s set-up, a dealer or distributor earns a percentage of the purchases of National’s products that are made by persons he or she has recruited. These persons, in a table of organization, are below the recruiting dealer; hence the nomenclature downline. Conversely, the person who recruits the dealer receives a percentage of the value of the purchases made by the dealer and the dealer’s downline. Such a person is termed the dealer’s “upline.”

The plaintiff signed up as a dealer and paid the $25 application fee on March 12, 1991, after listening to *575 Scott, Fluet and the other speakers. When he signed his application, the plaintiff was aware that in distributing National’s products, Scott and Fluet were independent contractors but he was uncertain as to what that relationship meant. On the reverse side of the plaintiffs application appear printed statements that the dealer’s relationship to National is that of an independent contractor and that the dealer is not authorized to bind National or to incur any obligation on behalf of National. Similar statements concerning the dealer’s sponsor and direct distributor also appear on the reverse side. On the front side of the application, however, there is the following felicitous message: “Congratulations and welcome to National Safety Associates, Inc.! We are proud to have you as a member of our team and wish you the best for your future with our company. Our Home Office Staff stands ready to assist you in a variety of areas should you need it. Our number is (901) 366-9288.”

The application form has the title “[National] Independent Dealer/Distributor application.” In addition to information about the applicant, the form also has spaces for the names, social security numbers and signatures of the plaintiffs sponsor and the direct distributor in whose downline the plaintiff would be.

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

Related

Town of New Hartford v. Connecticut Resources Recovery Authority
970 A.2d 592 (Supreme Court of Connecticut, 2009)
Peruta v. Outback Steakhouse of Florida, Inc.
913 A.2d 1160 (Connecticut Superior Court, 2006)
Rivera v. Veterans Memorial Med. Ctr., No. X03 Cv98 0503569s (Aug. 14, 2001)
2001 Conn. Super. Ct. 11015 (Connecticut Superior Court, 2001)
Gramazio v. Sikorsky Aircraft Corp., No. X01 Cv 00 0160391 S (May 24, 2001)
2001 Conn. Super. Ct. 6804 (Connecticut Superior Court, 2001)
Gramazio v. Sikorsky Aircraft Corp., No. X01cv00-0160391s (May 24, 2001)
2001 Conn. Super. Ct. 7322 (Connecticut Superior Court, 2001)
McNerney v. Carvel, No. Cv 00-579244 (Feb. 23, 2001)
2001 Conn. Super. Ct. 3047 (Connecticut Superior Court, 2001)
Humiston v. Town of Southbury, No. Cv96-0133244s (Sep. 28, 2000)
2000 Conn. Super. Ct. 12076 (Connecticut Superior Court, 2000)
Hastedt v. Remodeling Contrs. Assn., No. X06-Cv99-0156058s (Apr. 3, 2000)
2000 Conn. Super. Ct. 4216 (Connecticut Superior Court, 2000)
Maltagliati v. Wilson, No. Cv 97-0575612 (Oct. 7, 1999)
1999 Conn. Super. Ct. 13641 (Connecticut Superior Court, 1999)
Henry v. Civil Service Commission, No. Cv 98-0411287 (Jan. 4, 1999)
1999 Conn. Super. Ct. 829 (Connecticut Superior Court, 1999)
Hawks v. Light, No. Cv97 034 84 94 (Apr. 6, 1998)
1998 Conn. Super. Ct. 4649 (Connecticut Superior Court, 1998)
Walsh v. National Safety Associates, Inc.
694 A.2d 795 (Supreme Court of Connecticut, 1997)

Cite This Page — Counsel Stack

Bluebook (online)
695 A.2d 1095, 44 Conn. Super. Ct. 569, 44 Conn. Supp. 569, 1996 Conn. Super. LEXIS 370, Counsel Stack Legal Research, https://law.counselstack.com/opinion/walsh-v-national-safety-associates-inc-connsuperct-1996.