Farrenholz v. Mad Crab, Unpublished Decision (9-28-2000)
Farrenholz v. Mad Crab, Unpublished Decision (9-28-2000)
Dissenting Opinion
The majority's opinion concedes that no Ohio court has ever certified a class in a food poisoning case. This is not surprising considering the strict threshold requirements which must be met before a class can be certified. Class certification in Ohio is based upon Rule 23 of the Ohio Rules of Civil Procedure. The Ohio Rule is identical to Rule
In determining whether a class action is properly certified, the first step is to ascertain whether the threshold requirements of Civ.R. 23(A) have been met. Once those requirements are established, the trial court must turn to Civ.R. 23(B) to discern whether the purported class comports with the factors specified therein. Accordingly, before a class may be certified as a class action, a trial court must make seven affirmative findings.Warner, supra,
(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 and defenses of the class, and
(4) the representative parties will fairly and adequately protect the interests of the class.
Id. at 97, quoting Civ.R. 23(A).
Finally, the trial court must also find that one of the three Civ.R. 23(B) requirements is met before the class may be certified.Id. at 94, see, also, Hamilton v. Ohio Savings Bank (1998),
Civ.R. 23(B)(3) requires that the questions of law or fact to the members of the class predominate over any questions effecting individual members. As stated in Hamilton, Civ.R. 23(B)(3) provides that an action may be maintained as a class action if, in addition to the prerequisites of subdivision (a), the court finds that the questions of law or fact, 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, efficient adjudication of the controversy. Id. at 79-80.
The matters pertinent to the findings include:
(a) the interest of members of the class and individually in controlling the prosecution of defense of separate actions;
(b) the extent and nature of any litigation concerning the controversy already commenced by or against members of the class;
(c) the desirability or undesirability of concentrating the litigation of the claims in a particular forum;
(d) the difficulties likely encountered in the management of the class action.
In order to satisfy the predominance requirement, the plaintiff-appellee must show that the common question of law and fact represent a significant aspect of the class and are capable of resolution for all members of the class in a single adjudication.Shaver v. Standard Oil Co. (1990),
When the appropriate analysis is conducted in the instant case, it is clear that the plaintiff-appellee has failed to meet the requirements of Civ.R. 23(B)(3) and, as such, class certification should be denied. The plaintiff-appellee in her motion for class certification merely recited the requirements of Civ.R. 23(B) and did not include any analysis whatsoever. The mere assertion that common issues of law or fact predominate does not satisfy the express requirements under the rule. As the court inWaldo v. North American Van Lines, Inc. stated:
[it] is not simply a matter of numbering the questions in the case, labeling them as common or diverse, and then counting them * * *. It involves a sophisticated and necessarily judgmental appraisal of the future course of litigation * * *.
Where the circumstances of each proposed class member need to be analyzed to prove the elements of the claim of defense, then individual issues would predominate and class certification would be inappropriate. Schmidt v. Avco Corp. (1984),
When the required analysis is conducted, it is clear that common issues of law and fact do not predominate in this case. First, assuming that notice can be provided on a national basis and assuming that the symptoms of food poisoning have already manifested themselves on each class member, there remain numerous individualized questions concerning whether any class member can prevail. The court would be forced to analyze each proposed class member's claim that he was in the defendant-appellant's restaurant during the time asserted by the plaintiff. The court would have to review and analyze the issues of proximate cause and pre-existing conditions for each class member. The court would also be faced with numerous other individualized issues regarding whether each class member is entitled to recovery in light of their own course of conduct, and the individualized damages alleged by each class member will need to be proven independently of those of the class as a whole. There also exist several fact questions regarding proximate cause and damages as they relate to the individual plaintifs.
In the case at hand, the plaintiff-appellee has fallen short in meeting her burden of providing a sufficiently sophisticated and necessary appraisal of the future cost of litigation. The extent of the impact on each purported class member and length of time the member suffered the effects of the alleged food poisoning requires an analysis of each individual's circumstances. This is not the type of action where damages may be ascertained by the application of a simple mathematical formula. See Hamilton,
Consequently, the predominance of individualized factual questions renders this case unsuitable for class treatment. Therefore, a class action is neither superior to other forms of adjudication, nor sufficiently definite to be administratively feasible.
I would, therefore, sustain the appellant's third assignment of error and remand this matter to the trial court for further proceedings.
Opinion of the Court
Appellant assigns the following errors for review:
I. THE TRIAL COURT ABUSED ITS DISCRETION IN DENYING DEFENDANT-APPELLANT'S MOTION TO DISQUALIFY COUNSEL FOR PLAINTIFF-APPELLEE.
II. THE TRIAL COURT ABUSED ITS DISCRETION IN GRANTING PLAINTIFF-APPELLEE'S MOTION FOR A GAG ORDER.
III. THE TRIAL COURT ABUSED ITS DISCRETION IN GRANTING PLAINTIFF-APPELLEE'S MOTION FOR CLASS CERTIFICATION.
Appellant's assignments of error lack merit. The judgment of the trial court is affirmed.
A few days after the incident, Farrenholz contacted a family friend who was an attorney in order to obtain his legal services in the matter. On April 17, 1998, the attorney filed a class action complaint with Farrenholz as the named plaintiff. The complaint described the class as being those people who dined at the Mad Crab the week of April 5, 1998, and became ill from food poisoning. The Mad Crab, appellant, denied the proposed class was certifiable under Civ.R. 23.
On August 28, 1998, Farrenholz filed an emergency motion asking that appellant be prohibited from communicating with putative class members about the case or any settlement offer. Farrenholz claimed that the law prohibited appellant from contacting proposed class members, contending that the case should be treated as a class action even before certification.
On September 2, 1998, appellant filed a motion to disqualify Farrenholz's attorney and a brief in opposition to the motion for a gag order. In the motion to disqualify, appellant asserted that the plaintiff's attorney improperly solicited prospective class members in violation of the Ohio Code of Professional Responsibility. In part, appellant claimed letters sent by the attorney on August 11, 1998, violated Disciplinary Rule 2-104 which prohibits a lawyer from giving unsolicited advice to a non-attorney and then accepting employment from that person. The rule also states that an attorney in a class action case can not seek employment from people contacted regarding their joinder in the suit. Appellant further stated that the letter ran afoul of Disciplinary Rule 2-101 because the letter did not state how the attorney became aware of the person's possible legal needs, disclaim any prior contact with the person, or have the words advertisement only in red, 10-point type. On September 16, 1998, the trial court granted Farrenholz's motion in part and ordered appellant to refrain from unilaterally soliciting settlement of possible claims.
On September 18, 1998, Farrenholz filed her motion for class certification. In support of the motion, Farrenholz attached the affidavit of the supervisor of the Food Protection Program of the Cuyahoga County District Board of Health. The supervisor stated that a case control study done by the Health Department because of the outbreak of food poisoning concluded that the it was likely that the origin of the contaminated food was the Mad Crab Restaurant. A copy of the study was included. The report reflected that the Health Department received a number of complaints about people experiencing gastrointestinal illness after dining at the Mad Crab Restaurant on April 10 through April 12, 1998. The Health Department interviewed one hundred sixty-four (164) people. Small round structured viruses (SRSV) were discovered in the systems of many of the people and thought to be the probable causative agent of the outbreak of food poisoning. The report stated that the virus is typically transmitted by way of the fecal-oral route. The report concluded that the contamination of the food at the restaurant was more likely than contamination occurring at the distributor level.
The trial court held a hearing on the motions on November 4, 1998. No transcript or statement of the evidence is before this court. On March 10, 1999, appellant filed a supplemental brief in opposition to the class certification motion. There is no record appellant first obtained leave of court to file the supplemental brief. Appellant stated that counsel for Farrenholz continued to communicate with potential class members. The lawyer sent a letter dated February 16, 1999, stating that the trial judge planned to certify the class and implying that any settlement entered into by the attorney would be in excess of the couple of hundred dollars allegedly offered by appellant in an effort to settle individual claims. Appellant again asserted that the attorney was in violation of the disciplinary rules.
On April 27, 1999, the trial court issued its journal entry and opinion on Farrenholz's motion for class certification and appellant's motion to disqualify counsel. In the opinion, the trial court considered each requirement necessary for class certification under Civ.R. 23 and governing case law. The trial court concluded that the proposed class did meet the requirements necessary for certification on the issue of liability. The trial court bifurcated the certification to allow for the possible development of subclasses for the purpose of the assessment of possible damages. The trial court determined that the conduct of Farrenholz's attorney in communicating with possible class members prior to certification did not require the drastic remedy of disqualification or denial of certification. The trial court determined that the communications were not solicitation because the attorney mistakenly believed he represented the class members. The trial court accepted the attorney as class counsel. The trial court also vacated its previous gag order. Appellant has appealed from this order.
In Baughman v. State Farm Mut. Auto. Ins. Co. (2000),
The class action is an invention of equity. Its purpose is to facilitate adjudication of disputes involving common issues between multiple parties in a single action. Planned Parenthood Assn. ofCincinnati, Inc. v. Project Jericho (1990),
Civ.R. 23 provides in pertinent part:
(A) Prerequisites to a class action. One or more members of a class may sue or be sued as representative parties on behalf of all only if (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.
(B) Class actions maintainable. An action may be maintained as a class action if the prerequisites of subdivision (A) are satisfied, and in addition:
* * *
(3) 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. The matters pertinent to the findings include: (a) the interest of members of the class in individually controlling the prosecution or defense of separate actions; (b) the extent and nature of any litigation concerning the controversy already commenced by or against members of the class; (c) the desirability or undesirability of concentrating the litigation of the claims in the particular forum; (d) the difficulties likely to be encountered in the management of a class action.
In Hamilton, supra, the court once more set forth the seven requirements which must be met in order for a class action to be certified. Those criteria are:
(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;
(7) one of the three Civ.R. 23(B) requirements must be met.
Appellant raises no arguments regarding the second, third, or fourth requirements set forth in Hamilton. Therefore, the adequacy of those factors will not be addressed.
Appellant asserts that there is no evidence that Farrenholz's claim is typical of that of other class members. The class herein is defined as those patrons of the Mad Crab Restaurant who dined at the establishment during April 11 to April 13, 1998, and subsequently became ill from food poisoning. There is evidence Farrenholz ate at the Mad Crab during this time period and suffered from food poisoning as a result. There is no express conflict between Farrenholz's claim and those of other class members. Rather, her claim and those of other proposed class members are the same.
Adequacy of representation encompasses two parts. The first concerns the adequacy of the representative and the second part focuses on the adequacy of counsel. Planned Parenthood, supra. A representative is deemed adequate if his or her interest is not antagonistic to the interests of the other class members. Warner,supra. Although plaintiff argues that Farrenholz's interest is antagonistic to that of other class members, that argument actually centers on the actions of her attorney.
Generally, courts reviewing the requirement regarding the adequacy of counsel look at the attorney's qualifications such as experience in handling the litigation. Here, the heart of appellant's appeal is that Farrenholz's attorney committed ethical breaches which should have led to his disqualification and the denial of certification. Appellant points to the short period of time between when Farrenholz dined at the Mad Crab and the filing of the class action lawsuit as an indication that the attorney's intentions were primarily to secure a large fee for himself. However, the record reflects that Farrenholz and the attorney were acquaintances of long-standing. Farrenholz contacted the attorney after not only she became ill but five other Mad Crab patrons as well. The short period of time between the occurrence and filing of the complaint is hardly determinative of ill-intent on the part of the attorney, especially since he was aware of six people who were affected at the time.
Appellant primarily relies on a letter sent to restaurant patrons and employees in which the attorney stated that the Mad Crab could not contact the person in an effort to settle any claim. Appellant also disputes the claim of Farrenholz's attorney in a letter sent to prospective class members. In the letter, the lawyer wrote that he was the class counsel and that the person did not need to secure private counsel to pursue a claim against the Mad Crab. Appellant states that this letter improperly solicited clients. The attorney sent another letter in which it is implied that the claims against the Mad Crab would be in excess of the couple of hundred dollars supposedly offered to individuals by the restaurant. The attorney again stated that he represented the class members.
Appellant asserts that these letters violated Disciplinary Rule 2-104 which forbids an attorney from giving unsolicited advice to a non-lawyer, that the person should obtain the services of an attorney or, if such advice is given, to accept any employment as a result of that advice. Further, an attorney in a class action is not to seek employment from people whom the attorney has contacted. Appellant contends the attorney also violated Disciplinary Rule 2-101 which permits an attorney to engage in written solicitation by direct mail if the letter discloses how the lawyer discovered the person's name and legal need, disclaims any prior acquaintance or contact with the person, and includes the words advertisement only in red 10-point type. Appellant argues that the attorney in question can represent Farrenholz but is barred from being counsel for anyone to whom he sent a solicitation letter.
In its journal entry, the trial court noted that courts rarely deny class certification because of any alleged unethical conduct by the class counsel. Rather, courts tend to employ corrective measures such as substitution of counsel or remedial notice. The trial court went on to consider the points raised by appellant about possible violations of Disciplinary Rules 2-101 and 2-104.
The trial court has the inherent authority to supervise the attorneys who appear before it, including the power to disqualify counsel in specific cases. Hollis v. Hollis (1997),
In its journal entry, the trial court noted that class certification may be denied due to unethical conduct on the part of the proposed class counsel but that this result is not automatic. In its opinion, the trial court cited to Halverson v. ConvenientFood Mart, Inc. (7th Cir. 1972),
The trial court recognized that language in Hamilton, supra, could give the impression to plaintiff's counsel that the defendant was precluded from communicating with any potential class members from the time the class action suit was filed. The trial court pointed out that in Hamilton the purported class members and the defendant had an on-going business relationship and the defendant had sent essentially misleading letters to the potential class members in an effort to settle their claims. Therefore, the potential for coercion was great under the facts of that case. The instant case is distinguishable. The purported class members do not have an on-going relationship with the defendant. Further, the plaintiff's attorney does not represent the class until the trial court enters an order to that effect.
The trial court found that disqualification of Farrenholz's attorney was not warranted because the attorney's actions were based upon a misinterpretation of Hamilton and did not stem from an improper motive. The second letter sent by the attorney to potential class members also appears to be based on the lawyer's assumption that he represented the class members. The trial court determined that the attorney's behavior stemmed from his misinterpretation of Hamilton and not from a desire for personal gain. The trial court's ruling denying appellant's motion for disqualification did not constitute an abuse of discretion. Further, the trial court may reconsider certification or the disqualification of the attorney as the case proceeds.
It is now well established that a claim will meet the predominance requirement when there exists generalized evidence which proves or disproves an element on a simultaneous, class-wide basis, since such proof obviates the need to examine each class member's individual position. Lockwood Motors, Inc. v. Gen. Motors Corp. (D.Minn. 1995),
162 F.R.D. 569 ,580 .
If predominance exists, then the economies present in a class action suit can be achieved. Id. at 430. The trial court need only engage in a brief analysis of the claims to be litigated and the proof required at trial when resolving the predominance question. Shaver, supra, at 798. [C]ommon questions of law and fact must represent a significant aspect of the class and be capable of resolution for all members of the class in a single adjudication. Id.
A mass tort involving a single catastrophic event is amenable to class certification because similar types of physical harm or property damage is caused. See Valentino v. Carter-Wallace, Inc.
(9th Cir. 1996),
In the instant case, the gravamen of the claims against appellant revolve around whether the food consumed by patrons of the Mad Crab from April 11 to April 13, 1998, caused food poisoning. Farrenholz supported her claim with a report from the Heath Department tracing the outbreak to a certain virus transmitted to people dining at the Mad Crab on the days in question. The common question to be resolved for each of the proposed claimants would be proximate cause. In the absence of a class action case, each would have to prove that the cause of their illness was food poisoning traceable to the Mad Crab. The common question here is causation, which has to be proved on a class-wide basis. Whether damages may differ among the claimants is not a reason to deny class certification. Hamilton, supra. Therefore, the element of predominance under Civ.R. 23(B)(3) has been met in the instant case.
Appellant also argues that no Ohio court has ever certified a class in a food-poisoning case. That this case is one of first impression hardly is a reason to deny certification. Such a stance says little about appellant's confidence in the judicial system to dispense justice. As long as the requirements necessary for certification are present, the fact that no food poisoning case has gone forward in Ohio is inapposite. Farrenholz points out that other jurisdictions have certified cases involving food poisoning. See Brown v. New Orleans Pub. Serv., Inc. (La.App. 1987),
Although common questions predominate, the class actions still must be the superior method to settle the controversy. Factors to consider include damages, the representative's financial ability to pursue a separate suit, and judicial economy and fairness. Shaver,supra. A comparative evaluation of other available procedures is required to determine whether the judicial time and energy involved would be justified.
Appellant points out that it was engaged in settling claims of patrons who claimed to have suffered from food poisoning. Appellant argues that there was no reason to halt the settlement process because the class action suit was filed.
There is some indication in the file that appellant might have been settling the claims for much less than what they were worth. Also, appellant has little, if any, interest in seeking out any patron who may have suffered from the food-inflicted virus while it would be in the plaintiff's interest to discover other class members. Appellant states that the class would be nationwide and that the due process rights of all of the affected patrons would be compromised. Appellant argues Farrenholz could not discover all of the people who dined at the Mad Crab, especially those who paid for their dinners with cash. However, as stated above, it is in Farrenholz's interest to discover as many class members as possible. Notification by way of publication would be sufficient to satisfy any due process concerns.
For the most part, the over one hundred potential claims involved in the instant case would be small. Unlike directly settling with appellant, the interest of the class representative would be to maximize the number of claimants and resolve the issue of causation. Therefore, at this point in the litigation, a class action is the best utilization of judicial resources.
Appellant's first and third assignments of error are overruled.
Appellant's second assignment of error lacks merit.
It is ordered that appellees recover of appellants their costs herein taxed.
The court finds there were reasonable grounds for this appeal.
It is ordered that a special mandate issue out of this court directing the Common Pleas Court to carry this judgment into execution.
A certified copy of this entry shall constitute the mandate pursuant to Rule 27 of the Rules of Appellate Procedure.
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