Werlinger v. Champion Healthcare Corp.

1999 ND 173, 598 N.W.2d 820, 1999 N.D. LEXIS 184, 1999 WL 643178
North Dakota Supreme Court·Decided August 25, 1999·No. Nos. 990027, 990032·Published·Cited by 33 cases

Opinion

NEUMANN, Justice.

[¶ 1] Champion Healthcare Corporation, Paracelsus Healthcare Corporation (collectively “Champion Healthcare”), and Dakota Medical Foundation (“Dakota Medical”) appeal from the district court’s order granting class certification under Rule 23, N.D.R.Civ.P. We remand with instructions.

I

[¶ 2] On November 1, 1996, Sister Colette Werlinger, and others similarly situated (plaintiffs), filed a complaint in district court seeking class action status under Rule 23, N.D.R.Civ.P., to recover unpaid wages, unpaid overtime, liquidated damages, attorneys’ fees, and other costs under state law. The plaintiffs identified three subclasses in the complaint:

Class A: Current employees of Defendant Champion Healthcare’s North Dakota business operations;
Class B: Involuntarily terminated former employees of Defendant Champion Healthcare’s North Dakota business operations; and
Class C: Voluntarily terminated former employees of Defendant Champion Healthcare’s North Dakota business operations.

[¶ 3] On September 3,1997, the plaintiffs filed an amended complaint, again seeking class action status. In the amended complaint, the plaintiffs alleged four separate claims against Champion Healthcare and Dakota Medical. Claim one, asserted on behalf of members and potential members of all three subclasses, involved meal breaks and Champion Healthcare and Dakota Medical’s failure to comply with state law. Specifically, the plaintiffs alleged Champion Healthcare and Dakota Medical imposed a business policy that did not allow for an uninterrupted thirty-minute break for work shifts exceeding five hours, [825]*825when two or more employees were on duty. Claim two, asserted on behalf of members and potential members of Class B, alleged Champion Healthcare and Dakota Medical had failed to pay the full amounts of acquired “Earned Time” to members of Class B. Claim three, asserted on behalf of members and potential members of Class C, alleged Champion Healthcare and Dakota Medical had failed to pay the full amounts of acquired “Earned Time,” to members of Class C. Under claims two and three, the plaintiffs sought interest on unpaid “Earned Time” as allowed by law. Claim four, asserted on behalf of members and potential members of all three classes, alleged Champion Healthcare has committed retaliatory acts against the named plaintiffs. This claim seeks injunctive relief to protect the rights of the named plaintiffs.

[¶ 4] On November 27, 1998, the district court issued a memorandum opinion and order granting class action certification for all plaintiffs seeking wage claims for earned time and meal breaks, but did not grant class action certification for the plaintiffs seeking retaliation claims. The district court divided the class action plaintiffs into three subclasses:

(1) Former and current employees with meal break claims, a group which subsequently may be further defined if demonstrated to the Court that meal break claims properly apply to certain types of hospital employees, but not to others;
(2) Voluntarily terminated employees with earned time claims; and
(3) Involuntarily terminated employees with earned time and liquidated damage claims.

[¶ 5] The sole issue presented on appeal is whether the district court abused its discretion in certifying this case as a class action.

II

[¶ 6] An order certifying a class action is- an appealable order. N.D.R.Civ.P. 23(d)(3); Peterson v. Dougherty Dawkins, Inc., 1998 ND 159, ¶ 9, 583 N.W.2d 626; Holloway v. Blue Cross of North Dakota, 294 N.W.2d 902, 906 (N.D.1980). The district court has broad discretion in deciding whether to certify a class action under Rule 23(b), N.D.R.Civ.P. Peterson, at ¶ 9. The district court’s decision will not be overturned on appeal unless the court abuses its discretion. Id. at ¶ 9. A district court abuses its discretion only if it acts in an unreasonable, arbitrary, or unconscionable manner. Id. at ¶ 9.

[¶ 7] This Court has construed Rule 23, N.D.R.Civ.P., as being very open and receptive toward class actions. Old Broadway Corp. v. Hjelle, 411 N.W.2d 81, 82 (N.D.1987). In reviewing an order granting certification, we are mindful of the policy regarding class actions in this state. Peterson, at ¶ 10.

[¶ 8] In order to -certify a class action under Rule 23, N.D.R.Civ.P., four requirements must be satisfied:

1. The class is so numerous or so constituted that joinder of all members, whether or not otherwise required or permitted, is impracticable;
2. There is a question of law or fact common to the class;
3. A class action should be permitted for the fair and efficient adjudication of the controversy; and
4. The representative parties fairly and adequately will protect the interests of the class.

Peterson, at ¶ 11; Old Broadway, at 83; N.D.R.Civ.P. 23.

[¶ 9] The district court found all four requirements satisfied regarding earned time and meal -break claims. Champion Healthcare and Dakota Medical appeal, attacking the district court’s rulings as to all four requirements. We will review all four requirements for abuse of discretion by the district court.

A. Numerosity

[¶ 10] Champion Healthcare and Dakota Medical argue the district court incorrectly found the plaintiffs satisfied the [826]*826numerosity requirement for class action certification. Specifically, Dakota Medical and Champion Healthcare argue the plaintiffs did not show joinder was impracticable, and did not meet their burden of showing numerosity, or number of prospective class members.

[¶ 11] Regarding its numerosity determination, the district court reasoned:

Plaintiffs believe there are “thousands” of potential class members with similar claims based upon similar facts. Plaintiffs base their estimate upon a confidential list in the companion federal lawsuit wherein Defendants provide names of more than two-thousand, five hundred (2500) former and current hospital employees. Plaintiffs’ exhibits in this action include local newspaper articles from 1996, which reflect the number of hospital employees was, at that time, between approximately one-thousand (1000) and one-thousand, three hundred, fifty (1350).

The district court specifically found the “112 named Plaintiffs, with the likelihood that more Plaintiffs exist within and outside of the region, satisfy the numerosity requirement for class certification.”

[¶ 12] A determination of numerosity must be made “in light of the particular circumstances of the case and generally, unless abuse is shown, the trial court’s decision on this issue is final.” Horst v. Guy, 211 N.W.2d 723, 727 (N.D.1973) (quoting 3 Moore, Federal Practice 23.05, at 3422 (2d ed.1964)). Horst involved forty-eight identifiable members with scattered addresses and the distinct possibility other members existed. Id.

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

Werlinger v. Champion Healthcare Corp., 1999 ND 173, 598 N.W.2d 820, 1999 N.D. LEXIS 184, 1999 WL 643178 (N.D. 1999).

1999 ND 173 (Werlinger v. Champion Healthcare Corp.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Kuntz v. State
2019 ND 46 (North Dakota Supreme Court, 2019)
Schwartzenberger v. McKenzie County Board of County Commissioners
2017 ND 211 (North Dakota Supreme Court, 2017)
Vogel v. Marathon Oil Corporation
2016 ND 104 (North Dakota Supreme Court, 2016)
Black Gold Oil Field Services, LLC v. City of Williston
2016 ND 30 (North Dakota Supreme Court, 2016)
Baker v. Autos, Inc.
2015 ND 57 (North Dakota Supreme Court, 2015)
Sorum v. Dalrymple
2014 ND 233 (North Dakota Supreme Court, 2014)
State v. Leppert
2014 ND 207 (North Dakota Supreme Court, 2014)
Hege v. AEGON USA, LLC
780 F. Supp. 2d 416 (D. South Carolina, 2011)
Great Western Bank v. Willmar Poultry Co.
2010 ND 50 (North Dakota Supreme Court, 2010)
Mann v. NORTH DAKOTA TAX COMMISSIONER
2007 ND 119 (North Dakota Supreme Court, 2007)
North Dakota Human Rights Coalition v. Bertsch
2005 ND 98 (North Dakota Supreme Court, 2005)
State v. Markel
2004 ND 103 (North Dakota Supreme Court, 2004)
Bice v. Petro-Hunt, L.L.C.
2004 ND 113 (North Dakota Supreme Court, 2004)
Saefke v. Stenehjem
2003 ND 202 (North Dakota Supreme Court, 2003)
State v. Homeside Lending, Inc.
2003 VT 17 (Supreme Court of Vermont, 2003)
Howe v. Microsoft Corp.
2003 ND 12 (North Dakota Supreme Court, 2003)
Hilton v. North Dakota Education Ass'n
2002 ND 209 (North Dakota Supreme Court, 2002)
Rose v. United Equitable Insurance Co.
2002 ND 148 (North Dakota Supreme Court, 2002)
Klagues v. Maintenance Engineering
2002 ND 59 (North Dakota Supreme Court, 2002)
Trade 'N Post, L.L.C. v. World Duty Free Americas, Inc.
2001 ND 116 (North Dakota Supreme Court, 2001)