Lee v. Chrysler Corp., Unpublished Decision (11-18-2002)
Lee v. Chrysler Corp., Unpublished Decision (11-18-2002)
Opinion of the Court
OPINION
{¶ 1} Plaintiffs-appellants Homer Lee and Lucy Ann Mercer appeal from the February 15, 2002, Judgment Entry of the Stark County Court of Common Pleas denying their Motion for Class Certification.{¶ 3} Thereafter, on August 6, 2001, appellants filed a complaint against appellees Chrysler Corporation and DaimlerChrysler Corporation in the Stark County Court of Common Pleas. Appellants, in their complaint, alleged that they had been sold lemon automobiles that had been bought back by appellee Chrysler and then resold to appellees and that appellee Chrysler had failed to provide them with disclosure notices as required under Ohio law. Appellants specifically stated in their complaint, as follows:
{¶ 4} "8. At all relevant times, R.C.
{¶ 5} "9. Prior to September 15, 1999, that disclosure had to substantially contain the following language:
{¶ 6} "IMPORTANT: THIS VEHICLE WAS RETURNED TO THE MANUFACTURER BECAUSE IT DID NOT CONFORM TO THE MANUFACTURER'S EXPRESS WARRANTY AND THE NONCONFORMITY WAS NOT CURED WITHIN A REASONABLE AMOUNT OF TIME AS PROVIDED BY OHIO LAW.
{¶ 7} "10. Similarly, R.C.
{¶ 8} "11. Moreover, Chrysler must maintain and comply with all procedures needed to strictly prevent the sale or lease in Ohio of any buyback lemon reacquired because of a nonconformity of a nature likely to cause death or a serious bodily injury, if driven.
{¶ 9} "12. Effective September 15, 1999, the General Assembly amended R.C.
{¶ 10} Appellants, in their complaint, maintained that appellees had failed to comply with their duties under R.C.
{¶ 11} In their complaint, appellants sought to represent a putative class and subclass. Pursuant to the complaint, the class was defined as:
{¶ 12} ". . . all consumers (as defined in R.C. Sec.
{¶ 13} In conjunction with their complaint, appellants also filed, on August 6, 2001, a Motion for Class Certification asking the trial court to certify the same class and subclass as set forth in their complaint. The motion used the same language to describe the class and subclass as was used in the complaint, but the motion did not specifically say that this class and subclass were the ones mentioned in the complaint.
{¶ 14} Thereafter, on September 6, 2001, appellees filed a "State Court Notice of Removal" indicating that they had removed the case to the United States District Court, Northern District of Ohio, Akron Division, based on diversity of citizenship. As memorialized in an order filed on December 24, 2001, the federal court remanded the case to the trial court stating, in part, as follows:
{¶ 15} "Because DaimlerChrysler has not shown by a preponderance of the evidence that the amount in controversy is over $75,000 for either plaintiff or for both plaintiffs taken together, and because certification of the proposed class and subclass (an issue that will ultimately be resolved by the state court judge) is, at best, remote, Plaintiff's Motion for Remand (ECF No. 14) is hereby granted.
{¶ 16} Subsequently, a First Amended Complaint was filed by appellants on January 22, 2002. Appellants, in their amended complaint, dropped the allegations of a subclass. In addition, appellants modified the class definition to the following:
{¶ 17} ". . . The class is composed of all consumers (as defined in R.C. Sec.
{¶ 18} In response, appellees, on February 1, 2002, filed a motion requesting leave to file an answer to appellants' amended complaint. Pursuant to a Journal Entry filed on February 4, 2002, the trial court granted appellees until February 19, 2002, to file an answer.
{¶ 19} As memorialized in a Judgment Entry filed on February 15, 2002, the trial court denied appellants' Motion for Class Certification. The trial court, in its entry, specifically held, in part, as follows:
{¶ 20} "Plaintiffs move the Court to certify a plaintiff class composed of all consumers (as defined in R.C. Sec.
{¶ 21} "The Plaintiffs have filed their Motion for Class Certification based upon the above, however, Plaintiffs both purchased their vehicles prior to the enactment of the amended version of R.C. Sec.
{¶ 22} "Civ.R. 23(A) provides:
{¶ 23} "(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.
{¶ 24} "Because the Plaintiff's claims do present questions of fact that are common to the class and the Plaintiff's claims are not typical of the claims of the class which they seek to certify, as required by Civ.R. 23(A), the Court denies Plaintiffs' Motion for Class Certification."
{¶ 25} It is from the trial court's February 15, 2002, Judgment Entry1 that appellants now appeal, raising the following assignments of error:
{¶ 26} "I. THE TRIAL COURT USED THE WRONG LEGAL STANDARD AND MISAPPLIED THE CORRECT LEGAL STANDARDS TO UNCONTROVERTED FACTS IN DENYING CLASS CERTIFICATION BASED UPON A MISREADING OF THE PROPOSED DEFINITION AND A RESULTING LACK OF TYPICALITY.
{¶ 27} "II. THE TRIAL COURT ERRED AS A MATTER OF LAW IN DENYING CERTIFICATION DUE TO ASSERTED DEFECTS IN A PROPOSED DEFINITION, WHERE THAT DEFINITION WAS MOOT DUE TO AN AMENDMENT BY RIGHT UNDER RULE 15(A) BEFORE THE TRIAL COURT'S RULING, WHERE THE TRIAL COURT FAILED TO ANALYZE THE SUBSTITUTED DEFINITION UNDER THE STANDARDS REQUIRED BY HAMILTON V. OHIO SAVINGS BANK (1998), 82 OHIO St.3d 67.
{¶ 28} "III. A TRIAL COURT ERRS AS A MATTER OF LAW, VIOLATES DUE PROCESS, AND ABUSES ITS DISCRETION WHEN IT DENIES CLASS CERTIFICATION FOR ASSERTED DEFECTS IN A PROPOSED CLASS DEFINITION WITHOUT FIRST AFFORDING MOVANTS AN OPPORTUNITY TO CURE THE PLEADING DEFECT."
{¶ 29} For purposes of brevity, we shall address appellants' assignments of error out of sequence.
{¶ 31} A trial court has broad discretion in determining whether a class action may be maintained. Planned Parenthood Ass'n of Cincinnati,Inc. v. Project Jericho (1990),
{¶ 32} However, the trial court's discretion in deciding whether to certify a class action is bounded by, and must be exercised within the framework of Civ.R. 23. Hamilton v. Ohio Sav. Bank,
{¶ 33} "(1) An identifiable class must exist and the definition of the class must be unambiguous;
{¶ 34} "(2) The named representatives must be members of the class;
{¶ 35} "(3) The class must be so numerous that joinder of all the members is impracticable;
{¶ 36} "(4) There must be questions of law or fact common to the class;
{¶ 37} "(5) The claims or defenses of the representative parties must be typical of the claims or defenses of the class;
{¶ 38} "(6) The representative parties must fairly and adequately protect the interests of the class; and
{¶ 39} "(7) One of the three Civ.R. 23(B) requirements must be met. Id. at 71, citing Civ.R. 23(A) and (B). "[T]he [trial] court must find, by a preponderance of the evidence, that all the Rule 23 requirements are met." Warner v. Waste Mgt., Inc. (1988),
{¶ 40} As is stated above, the trial court, in its February 15, 2002, Judgment Entry, denied appellants' Motion for Class Certification on two grounds. First, the trial court found that appellants, who had purchased their vehicles in February of 1999 and May of 1998, which was prior to the enactment of the amended version of R.C.
{¶ 41} However, in so ruling, it is apparent that the trial court did not consider the class definition contained in appellants' First Amended Complaint. As is stated above, appellants, on January 22, 2002, filed their First Amended Complaint. In such complaint, appellants asked the trial court to "[c]ertify the plaintiff class as defined, . . ." Appellants' complaint was filed in accordance with Civ.R. 15(A), which states, in part, as follows:
{¶ 42} "A party may amend his pleading once as a matter of course at any time before a responsive pleading is served or, if the pleading is one to which no responsive pleading is permitted and the action has not been placed upon the trial calendar, he may so amend it at any time within twenty-eight days after it is served." An amended complaint "substitutes for or replaces the original pleading." Steiner v. Steiner
(1993),
{¶ 43} As is stated above, appellants, in their original complaint, defined the purported class as:
{¶ 44} "all consumers (as defined in R.C. Sec.
{¶ 45} ". . . The class is composed of all consumers (as defined in R.C. Sec.
{¶ 46} However, in so holding, we note that the trial court's failure was the result of appellants' inadvertence. Specifically, appellants, when they filed their First Amended Complaint, never filed a new Motion for Class Certification containing the proposed class definition set forth in the same. The First Amended Complaint contains a prayer for certification of a different class, but no separate motion was filed. Had appellants filed a new Motion for Class Certification, the trial court clearly would have been put on notice that the First Amended Complaint contained a different class definition than contained in the original complaint. The trial court then would have been able to determine whether the class definition set forth in the First Amended Complaint met the requirements for certification.
{¶ 47} Appellants' second assignment of error is, therefore, sustained.
{¶ 49} "The phrase `R.C. Sec.
{¶ 50} In conjunction with their first assignment, appellants, in their third assignment of error, argue that the trial court abused its discretion when it denied their Motion for Class Certification "for asserted defects in a proposed class definition without first affording movants an opportunity to cure the pleading defect."
{¶ 51} Based on our disposition of appellants' second assignment of error, appellants' first and third assignment of error are moot.
{¶ 52} Accordingly, the judgment of the Stark County Court of Common Pleas is reversed and this matter is remanded to the trial court for further proceedings.
By Edwards, J.
Hoffman, P.J. and Farmer, J. concur
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