Adequacy FRCP 23(a)(4) “[S]erves to uncover conflicts of interest between named parties and the class they seek to represent.” Amchem Products v. Windsor, 521 U.S. 591 (1997). Standard Fire v. Knowles “[A] plaintiff who files a proposed class action cannot legally bind members of the proposed class before the class is certified. . . . Knowles lacked the authority to concede the amount in controversy issue for the absent class members.” If the stipulation were to stand, “a court might find that Knowles is an inadequate representative due to the artificial cap he purports to impose on the class’ recovery.” No Injury Cases Illustrate Conflict Small percentage of class with problem P seeks to certify a broad class regardless of whether they have experienced the problem The “glue” that binds these groups together is the lowest common denominator lost value claim. But to have lost value claim certified, P must be willing to sacrifice the high value claims that may be available to a more limited group of people. What is the risk? “The rule against claim splitting requires a plaintiff to assert all of its causes of action arising from a common set of facts in one lawsuit. By spreading claims around in multiple lawsuits in other courts or before other judges, parties waste scarce judicial resources and undermine the efficient and comprehensive disposition of cases.” Katz v. Gerardi, 655 F.3d 1212 (10th Cir. 2011). Res Judicata Assessed Later The res judicata effect of the judgment in the class action will not be determined by the court certifying the class. It cannot be assured that abandoned class members’ damages claims are preserved. See, e.g. In re MTBE Products, 209 FRD 323 (SDNY 2002); Thompson v. Am. Tobacco, 189 FRD 544 (D Minn 1999). Moving Towards a Rule Weigh P’s injury theory against the rest of the class. P seeking the lowest common denominator risks waiving potentially high value claims of absent class members. “A class representative’s decision to abandon certain claims may be detrimental to absent class members for whom those claims could be more lucrative or valuable, assuming those class members do not opt out of the class. Abandoning such claims, or claims ‘reasonably expected’ to be raised by class members, could undermine the adequacy of the named plaintiff’s representation of the class.” Citizens Insurance v. Daccach, 217 SW3d 430 (TX 2007) Claim Splitting in Action What happens when an overly broad class for limited damages is certified? Whirlpool case: Diminished value/premium price across multiple washer models Even if the jury found 19 of 20 washing models defective, the jury must find for the defendant, and did find for the defendant at trial. Defense verdict permanently binds the class members who have the 19 defective models from pursuing a defect claim. See John Thomas, Defeating Class Certification in ‘All or Nothing’ Litigation, For the Defense, Nov. 2014, p. 80.
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