University of South Carolina Scholar Commons Faculty Publications Law School Winter 2016 Commonality and the Constitution: Applying WalMart to State Court Cases Joseph Seiner University of South Carolina - Columbia, [email protected] Follow this and additional works at: http://scholarcommons.sc.edu/law_facpub Part of the Law Commons Recommended Citation Joseph A. Seiner, Commonality and the Constitution: A Framework for Federal and State Court Class Actions, 91 Ind. L. J. 455 (2016). This Article is brought to you for free and open access by the Law School at Scholar Commons. It has been accepted for inclusion in Faculty Publications by an authorized administrator of Scholar Commons. For more information, please contact [email protected]. &RPPRQDOLW\DQGWKH&RQVWLWXWLRQ$)UDPHZRUNIRU )HGHUDODQG6WDWH&RXUW&ODVV$FWLRQV -26(3+$6(,1(5 In :DO0DUW6WRUHV,QFY'XNHV, 131 S. Ct. 2541 (2011), the Supreme Court concluded that the allegations of pay discrimination in a case brought by over one million female employees lacked sufficient commonality to warrant class certification under Federal Rule of Civil Procedure 23(a). Though the case was expressly decided under the Federal Rules, some well-known employer groups have begun to advance the argument that :DO0DUW was decided on constitutional grounds. These advocates maintain that the Supreme Court’s decision creates a commonality standard for all class-action plaintiffs—regardless of whether those litigants bring their claims in federal or state court. This Article explores the possible constitutional implications of the :DO0DUW decision. This Article explains the potential due process concerns of commonality in class-action claims and critiques the argument that :DO0DUW creates a constitutional floor for all systemic litigation. This Article further fills a void in the scholarship by establishing a framework for analyzing whether class-action claims satisfy commonality under the Constitution. This Article develops a normatively fair definition of commonality, identifying five core guideposts that should be considered when determining whether a class-action claim complies with due process guarantees. This Article explains the implications of adopting the proposed guideposts, and situates the suggested framework within the context of the existing academic literature. :DO0DUW signals a sea change for how commonality will be analyzed in all class-action cases. This Article helps define what commonality means under the Constitution, and the guideposts identified here will help streamline all future complex litigation. ,1752'8&7,21 ,7+(WAL-MART'(&,6,21 ,,WAL-MART$6$&2167,787,21$/)/225 $58/($1'7+(&2167,787,21 %'8(352&(665$7,26$1'7+,5'3$57<+$50 ,,,&5,7,48,1*7+(WAL-MART&2167,787,21$/$5*80(17 $7+,5'3$57<+$50 %/$&.2)127,&( &7+(&2167,787,21$/',0(16,21 ':+<7+(WAL-MART³&2167,787,21$/$5*80(17´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“Chaos isn’t a pit. Chaos is a ladder.” –/RUG3HW\U%DHOLVK ,1752'8&7,21 7KHUHFDQEHOLWWOHGRXEWWKDWWKH6XSUHPH&RXUW¶VFRQWURYHUVLDOGHFLVLRQLQWal-Mart Stores, Inc. v. DukesFUHDWHGZLGHVSUHDGFKDRVRQWKHVWDQGDUGIRUFRPPRQDOLW\ LQ FODVVDFWLRQ OLWLJDWLRQ 7KRXJK WKLV H[LVWLQJ FKDRV KDV FUHDWHG VXEVWDQWLDO GLIILFXOW\IRUWKHORZHUFRXUWVZKHQDQDO\]LQJV\VWHPLFFODLPVWKHUHLVWKHSRWHQWLDO IRU WKLV FRQIXVLRQ WR KHOS VKDSH D QHZ FRQVWLWXWLRQDO GLPHQVLRQ IRU FRPSOH[ OLWLJDWLRQ7KLV$UWLFOHKHOSVLGHQWLI\WKHGXHSURFHVVJXDUDQWHHVRIFRPPRQDOLW\IRU DOOFODVVDFWLRQFODLPV ,QWal-MartWKH6XSUHPH&RXUWUHIXVHGWRFHUWLI\DSURSRVHGFODVVRIRYHURQH PLOOLRQIHPDOHHPSOR\HHVRIWKHFRPSDQ\7KH&RXUWFRQFOXGHGWKDWWKHDOOHJDWLRQV RI SD\ GLVFULPLQDWLRQ LQ WKH FDVH ODFNHG VXIILFLHQW FRPPRQDOLW\ WR ZDUUDQW FHUWLILFDWLRQXQGHU)HGHUDO5XOHRI&LYLO3URFHGXUHD7KHFDVHZDVH[SUHVVO\ GHFLGHGXQGHUWKH)HGHUDO5XOHVEXWVRPHKDYHUHDGWKHGHFLVLRQDVRQHWKDWFUHDWHV DFRQVWLWXWLRQDOIORRUIRUDOOV\VWHPLFFODLPV7KXVWal-MartFDQEHUHDGDVFUHDWLQJ DFRPPRQDOLW\VWDQGDUGIRUDOOFODVVDFWLRQSODLQWLIIV²UHJDUGOHVVRIZKHWKHUWKRVH OLWLJDQWVEULQJWKHLUFODLPVLQIHGHUDORUVWDWHFRXUW 7KLV $UWLFOH H[SODLQV WKH SRVVLEOH FRQVWLWXWLRQDO LPSOLFDWLRQV RI WKH Wal-Mart GHFLVLRQGHVFULEHVWKHSRVVLEOHGXHSURFHVVFRQFHUQVRIFRPPRQDOLW\LQFODVVDFWLRQ FODLPVDQGFULWLTXHVWKHDUJXPHQWWKDWWal-MartFUHDWHVDFRQVWLWXWLRQDOIORRUIRUDOO V\VWHPLFOLWLJDWLRQ7KLV$UWLFOHIXUWKHUILOOVDYRLGLQWKHVFKRODUVKLSE\HVWDEOLVKLQJ DIUDPHZRUNIRUDQDO\]LQJZKHWKHUDFODVVDFWLRQFODLPVDWLVILHVFRPPRQDOLW\XQGHU WKH&RQVWLWXWLRQ 5XOHSURYLGHVWKHEDVLFIHGHUDOJXLGHOLQHVIRUFRPSOH[OLWLJDWLRQ7KHUXOHKDV VLQFHLWVLQFHSWLRQKDGDFRQVWLWXWLRQDOGLPHQVLRQ7KRXJKWKHUXOHLVSURFHGXUDOLQ Game of Thrones: The Climb+%2WHOHYLVLRQEURDGFDVW0D\ 6&W See infra 3DUWV , ,, GLVFXVVLQJ Wal-Mart GHFLVLRQ DQG H[SODLQLQJ SRVVLEOH FRQVWLWXWLRQDOGLPHQVLRQRIWKHFDVH See infra 3DUWV,,, See infra 3DUWV,,, See infra3DUWV,,,,,VHWWLQJIRUWKWal-MartFRQVWLWXWLRQDODUJXPHQW See infra 3DUWV,,,,, See infra3DUW,9GHYHORSLQJXQLILHGVWDQGDUGIRUFRPPRQDOLW\ See, e.g. &RPPHQWThe Importance of Being Adequate: Due Process Requirements in Class Actions Under Federal Rule 23 8 3$ / 5(9 >KHUHLQDIWHU The Importance of Being Adequate@GLVFXVVLQJGXHSURFHVVVDIHJXDUGVRI5XOH @ COMMONALITY AND THE CONSTITUTION QDWXUHLWZDVFUHDWHGWRDGGUHVVYDULRXVVXEVWDQWLYHGXHSURFHVVFRQFHUQVIRUboth SODLQWLIIV DQG GHIHQGDQWV 5XOH D PDQGDWHV VXIILFLHQW QXPHURVLW\ FRPPRQDOLW\W\SLFDOLW\DQGDGHTXDF\RIUHSUHVHQWDWLRQEHIRUHDFRPSOH[DFWLRQZLOO EHFHUWLILHGWal-MartZDVGHFLGHGRQFRPPRQDOLW\JURXQGVDQGWKHFDVHVLJQDOV DGUDPDWLFVKLIWLQKRZWKLVUHTXLUHPHQWZLOOEHGHILQHG+RZHYHUWal-MartIDLOVWR DGGUHVV DQ\ FRQVWLWXWLRQDO LVVXHV UHODWHG WR WKLV FRPPRQDOLW\ UHTXLUHPHQW 1RQHWKHOHVVWKLVFRQQHFWLRQKDVDOUHDG\EHHQPDGHE\PDQ\DGYRFDWHVLQWKHOHJDO FRPPXQLW\ 7KLVDUJXPHQWLVFRPSHOOLQJDVWal-MartIROORZVDWUHQGRI6XSUHPH&RXUWFDVHV WKDW LQYRNH WKH 'XH 3URFHVV &ODXVH WR SURWHFW D GHIHQGDQW¶V ULJKWV LQ OLWLJDWLRQ LQYROYLQJFRPSOH[DFWLRQVRUKLJKGROODUFODLPVWal-MartZDVQRWWKHILUVWWLPH WKDWWKH&RXUWUDLVHGFRQFHUQVDERXWWKHSRWHQWLDOIRUDFODVVDFWLRQFDVHWRXQIDLUO\ SUHMXGLFHWKHGHIHQGDQWLQGHHGWKHFDVHVGLVFXVVHGEHORZKDYHPRYHGWKHQHHGOH WRZDUGWKHGHIHQGDQWRQFRQVWLWXWLRQDOLVVXHVUHODWHGWRWKH'XH3URFHVV&ODXVHLQ V\VWHPLF FDVHV 7KLV PRYHPHQW LV SDUWLFXODUO\ FOHDU LQ WKH &RXUW¶V KLJKSURILOH GHFLVLRQLQYROYLQJSXQLWLYHGDPDJHUDWLRV²Exxon Shipping Co. v. Baker 7KH Exxon GHFLVLRQ LOOXVWUDWHV KRZ LOOGHILQHG FRPSOH[ FODLPV FDQ OLPLW WKH GHIHQGDQW¶VULJKWWRQRWLFHDQGDQRSSRUWXQLW\WREHKHDUG,QExxon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hilip Morris USA v. WilliamsWKH&RXUWKHOGWKDWWKH'XH3URFHVV &ODXVHRIWKH&RQVWLWXWLRQGRHVQRWSHUPLWWKHLQWURGXFWLRQRIHYLGHQFHRIQRQSDUW\ KDUPIRUSXUSRVHVRISXQLVKLQJWKHGHIHQGDQW7KHVLPLODULWLHVEHWZHHQWal-Mart DQGPhilip MorrisDUHVWULNLQJ%RWKFDVHVUDLVHWKHSRWHQWLDOIRUGHIHQGDQWVWRKDYH WRUHVSRQGWRWKLUGSDUW\KDUPIRUZKLFKWKHUHLVLQDGHTXDWHHYLGHQFHDWWKHWLPHRI WKHOLWLJDWLRQ%RWKFDVHVUDLVHGXHSURFHVVFRQFHUQVIRUWKHGHIHQGDQWZKRPD\EH XQDEOH WR DGHTXDWHO\ UHVSRQG WR WKH DPRUSKRXV DOOHJDWLRQV LQ WKH FDVH $QG ERWK FDVHVLQYROYHWKHTXHVWLRQRISURYLGLQJUHOLHIIRULQGLYLGXDOVZKRDUHQRWSURSHUO\ SDUWLHV WR WKH OLWLJDWLRQ Philip Morris WKHUHIRUH GHPRQVWUDWHV WKH SRWHQWLDO FRQVWLWXWLRQDO LPSOLFDWLRQV RI WKH Wal-Mart GHFLVLRQ 7KRXJK WKHVH LPSOLFDWLRQV See +DQVEHUU\Y/HH86id. See)('5&,93D See infra3DUW,,DGGUHVVLQJDUJXPHQWWKDWWal-MartFUHDWHVDFRQVWLWXWLRQDOIORRU See ([[RQ 6KLSSLQJ &R Y %DNHU 86 3KLOLS 0RUULV 86$ Y :LOOLDPV86 86 See infra3DUW,,GHVFULELQJWKH6XSUHPH&RXUW¶VExxonGHFLVLRQ SeeExxon86 Philip Morris86DW See infra3DUW,,GLVFXVVLQJVLPLODULWLHVEHWZHHQWKH6XSUHPH&RXUWGHFLVLRQV See infra 3DUW,, INDIANA LAW JOURNAL >9RO ZHUH QRW H[SUHVVO\ DUWLFXODWHG E\ WKH Wal-Mart &RXUW WKH\ SHUPHDWH WKH &RXUW¶V UHDVRQLQJ7KHVXEVWDQWLYHGXHSURFHVVLVVXHVUDLVHGE\ExxonDQGPhilip MorrisWKXV SHUYDGHSRVVLEOHFRPPRQDOLW\FRQFHUQVDVZHOO :HOONQRZQHPSOR\HUJURXSVVXFKDVWKH86&KDPEHURI&RPPHUFHDQGWKH (TXDO(PSOR\PHQW $GYLVRU\&RXQFLOKDYHEHJXQWRDGYDQFHWKHDUJXPHQWWKDW Wal-MartZDVGHFLGHGRQFRQVWLWXWLRQDOJURXQGV7KHUHFDQEHOLWWOHGRXEWWKDW FODVVDFWLRQFODLPVKDYHDFRQVWLWXWLRQDOFRPSRQHQWWKDWSURYLGHVGHIHQGDQWVZLWK FHUWDLQGXHSURFHVVJXDUDQWHHV7KHWal-MartGHFLVLRQKRZHYHUGRHVQRWGHILQH ZKDW WKHVH JXDUDQWHHV VKRXOG EH 5DWKHU WKH FDVH ZDV H[SUHVVO\ GHFLGHG XQGHU )HGHUDO5XOHRI&LYLO3URFHGXUHD²DUXOHWKDWWKH&RXUWUHOLHGRQUHSHDWHGO\ WKURXJKRXWLWVGHFLVLRQ1RZKHUHLQWKH&RXUW¶VGHFLVLRQFDQDQ\GLVFXVVLRQRI WKHGXHSURFHVVOLPLWVRIFRPPRQDOLW\EHIRXQG7KXVQRVHULRXVDUJXPHQWFDQ EH PDGH WKDW WKH &RXUW LQWHQGHG WR HVWDEOLVK D FRQVWLWXWLRQDO ERXQGDU\ IRU FRPPRQDOLW\LQWKHFDVH 7KRXJKWal-MartGLGQRWFUHDWHDFRQVWLWXWLRQDOVWDQGDUGIRUFRPPRQDOLW\VXFK DVWDQGDUGPXVWVWLOOH[LVW7KHUHPXVWWKXVEHVRPHQRUPDWLYHVWDQGDUGIRUZKDW FRPPRQDOLW\PHDQVIURPDFRQVWLWXWLRQDOSHUVSHFWLYH:KHUHDV\VWHPLFFODLPODFNV VXIILFLHQW FRPPRQDOLW\ WKH GXH SURFHVV JXDUDQWHHV DUH EUHDFKHG &DUHIXOO\ QDYLJDWLQJWal-MartExxonPhilip Morris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al-MartGHFLVLRQHPSKDVL]LQJ WKH &RXUW¶V YLHZ RI FRPPRQDOLW\ XQGHU WKH )HGHUDO 5XOHV 3DUW ,, GLVFXVVHV WKH DUJXPHQW WKDW Wal-Mart FUHDWHV D FRQVWLWXWLRQDO IORRU IRU FRPPRQDOLW\ LQ DOO FODVVDFWLRQOLWLJDWLRQ3DUW,,,FULWLTXHVWKLVDUJXPHQWDQGH[SODLQVZK\WKHWal-Mart GHFLVLRQVKRXOGEHOLPLWHGWRIHGHUDOFRXUWFODLPVEURXJKWXQGHU5XOH3DUW,9 GHYHORSV D QRUPDWLYHO\ IDLU GHILQLWLRQ RI FRPPRQDOLW\ LGHQWLI\LQJ ILYH FRUH JXLGHSRVWVWKDWVKRXOGEHFRQVLGHUHGZKHQGHWHUPLQLQJZKHWKHUDFODVVDFWLRQFODLP VDWLVILHV WKH 'XH 3URFHVV &ODXVH )LQDOO\ 3DUW 9 H[SODLQV WKH LPSOLFDWLRQV RI DGRSWLQJWKHSURSRVHGJXLGHSRVWVDQGVLWXDWHVWKHSURSRVHGIUDPHZRUN ZLWKLQWKH FRQWH[WRIWKHH[LVWLQJDFDGHPLFOLWHUDWXUH See infra3DUW,,GHVFULELQJGXHSURFHVVFRQFHUQVUDLVHGE\6XSUHPH&RXUWGHFLVLRQV Seegenerally infra 3DUW,, See :DO0DUW6WRUHV,QFY'XNHV6&W See id. See infra3DUW,9HVWDEOLVKLQJDQHZIUDPHZRUNIRUDQDO\]LQJFRPPRQDOLW\XQGHUWKH &RQVWLWXWLRQ @ COMMONALITY AND THE CONSTITUTION ,7+(WAL-MART'(&,6,21 7KH6XSUHPH&RXUW¶VGHFLVLRQLQWal-Mart v. DukesLVZHOOWUDYHOHGJURXQG 7KRXJKVWLOODUHFHQWGHFLVLRQVFKRODUVDQGWKHORZHUFRXUWVKDYHDQDO\]HGWKHFDVH FORVHO\DQGKDYHZLGHO\DSSOLHGLWVUHDVRQLQJ7KLV$UWLFOHGRHVQRWVHHNWRUHYLVLW RUFKDOOHQJHWKHDQDO\VLVRIRWKHUVRQWKLVWRSLF5DWKHULWEXLOGVRQWKHH[LVWLQJERG\ RIVFKRODUVKLSE\LGHQWLI\LQJDFULWLFDODUHDRIWKHGHFLVLRQWKDWKDV\HWWREHIXOO\ LGHQWLILHGWKH'XH3URFHVV&ODXVHRIWKH&RQVWLWXWLRQ7RSXWWKLVDQDO\VLVLQFRQWH[W LWLVKHOSIXOWRUHYLHZWKH&RXUW¶VGHFLVLRQLQWKHFDVH%HFDXVHPXFKKDVDOUHDG\ EHHQZULWWHQLQWKLVDUHDRQO\DEULHIVXPPDU\RIWKHGHFLVLRQLVVHWIRUWKEHORZ ,QWal-MartWKH6XSUHPH&RXUWDGGUHVVHGDFODVVDFWLRQVH[GLVFULPLQDWLRQVXLW EURXJKWXQGHU7LWOH9,,RIWKH&LYLO5LJKWV$FWRIDJDLQVW³WKH1DWLRQ¶VODUJHVW SULYDWH HPSOR\HU´ 7KH PDVVLYH V\VWHPLF ODZVXLW ZDV EURXJKW RQ EHKDOI RI PLOOLRQ FXUUHQW IHPDOH ZRUNHUV RU IRUPHU HPSOR\HHV RI WKH VWRUH DOOHJLQJ GLVFULPLQDWRU\SD\DQGSURPRWLRQSUDFWLFHV7KHSODLQWLIIVLQWKLVFDVHDOOHJHGWKDW WKH GLVFULPLQDWLRQ WKDW WKH\ VXIIHUHG ZDV ³FRPPRQ WR all :DO0DUW¶V IHPDOH HPSOR\HHV´ 7KH DFWLRQ DOOHJHG WKDW D ³VWURQJ DQG XQLIRUP µFRUSRUDWH FXOWXUH¶ SHUPLWV ELDV DJDLQVW ZRPHQ WR LQIHFW SHUKDSV VXEFRQVFLRXVO\ WKH GLVFUHWLRQDU\ GHFLVLRQPDNLQJRIHDFKRQHRI:DO0DUW¶VWKRXVDQGVRIPDQDJHUV´7KHV\VWHPLF DFWLRQ WKXV VRXJKW WR ³PDN>H@ HYHU\ ZRPDQ DW WKH FRPSDQ\ WKH YLFWLP RI RQH FRPPRQGLVFULPLQDWRU\SUDFWLFH´7KHODZVXLWVRXJKWLQMXQFWLYHDQGGHFODUDWRU\ UHOLHIDVZHOODVSXQLWLYHUHOLHIDQGEDFNSD\ 7KHGLVWULFWFRXUWDSSURYHGWKHSURSRVHGFODVVDQGFHUWLILHGLWXQGHU)HGHUDO5XOH RI&LYLO3URFHGXUH7KHPDVVLYHFODVVFRPSULVHGDOOIHPDOHZRUNHUVWKDWKDG EHHQHPSOR\HGE\WKHVWRUHVLQFH'HFHPEHU7KH1LQWK&LUFXLWODUJHO\ 6&W See, e.g. 6FRWW Y )DPLO\ 'ROODU 6WRUHV ,QF )G WK &LU cert. denied6&W0F5H\QROGVY0HUULOO/\QFK3LHUFH)HQQHU6PLWK,QF )GWK&LUcert. denied6&W%ROGHQY:DOVK&RQVWU&R )GWK&LU&DWKHULQH)LVN(UZLQ&KHPHULQVN\The Failing Faith in Class Actions: :DO0DUWY'XNHVand $770RELOLW\Y&RQFHSFLRQ'8.(-&2167/38% 32/¶<63(&,$/,668(%ULDQ50DUWLQRWWLComplex Litigation in New Jersey and Federal Courts: An Overview of the Current State of Affairs and a Glimpse of What Lies Ahead/2<8&+,/-±$QJHOD'0RUULVRQ'XNH-ing Out Pattern or Practice After:DO0DUW: The EEOC as Fist$08/5(9-XGLWK5HVQLN &RPPHQWFairness in Numbers: A Comment on $77Y&RQFHSFLRQ, :DO0DUWY'XNHV, and 7XUQHUY5RJHUV+$59/5(9±-RVKXD$5RVHQWKDO&RPPHQW The Case Against Constitutionalized Commonality Standards for Collective Civil Litigation <$/(/32/¶<5(9 6&W DW Id. Id.DWHPSKDVLVLQRULJLQDO Id. Id. Id. Id. DW Id. INDIANA LAW JOURNAL >9RO DIILUPHGWKHFHUWLILFDWLRQRIWKHSURSRVHGFODVV7KH6XSUHPH&RXUWJUDQWHGUHYLHZ DQG EHJDQ LWV GHFLVLRQ RQ WKH LVVXH E\ QRWLQJ WKDW ³>W@KH FUX[ RI WKLV FDVH LV FRPPRQDOLW\´ 7KH &RXUW QRWHG WKDW WKH )HGHUDO 5XOHV RI &LYLO 3URFHGXUH UHTXLUH²SULRU WR FHUWLILFDWLRQ²WKDWWKHFDXVHRIDFWLRQSUHVHQW³µTXHVWLRQVRIODZRUIDFWcommonWR WKHFODVV¶´%HIRUHDGGUHVVLQJWKHIDFWVRIWKHFDVHWKH&RXUWDWWHPSWHGWRVHWIRUWK VRPHSDUDPHWHUVIRUWKHGHILQLWLRQRIFRPPRQDOLW\7KH&RXUWH[SODLQHGWKDWWKH FRPPRQDOLW\ UHTXLUHPHQW PDQGDWHV WKDW FODVV PHPEHUV VKRZ WKDW WKH\ ³µKDYH VXIIHUHGWKHVDPHLQMXU\¶´7KH&RXUWQRWHGWKDWWKLVJRHVEH\RQGKDYLQJVXIIHUHG D VLPLODU ³YLRODWLRQ RI WKH VDPH SURYLVLRQ RI ODZ´ ,QGHHG SODLQWLIIV PXVW VKRZ VRPH³FRPPRQFRQWHQWLRQ´VXFKDV³WKHDVVHUWLRQRIGLVFULPLQDWRU\ELDVRQWKHSDUW RIWKHVDPHVXSHUYLVRU´ 7KH&RXUWIXUWKHUQRWHGWKDWWKHSODLQWLIIVPXVWGRPRUHWKDQSUHVHQWDFRPPRQ SUREOHP²WKH\ PXVW IXUWKHU GHPRQVWUDWH WKDW WKH LVVXH SUHVHQWHG ³LV FDSDEOH RI FODVVZLGHUHVROXWLRQ´7KLVUHTXLUHVWKDWWKHFODVVPHPEHUVDUHDEOHWRVKRZ³WKDW GHWHUPLQDWLRQRI>WKH@WUXWKRUIDOVLW\>RIWKHTXHVWLRQ@ZLOOUHVROYHDQLVVXHWKDWLV FHQWUDOWRWKHYDOLGLW\RIHDFKRQHRIWKHFODLPVLQRQHVWURNH´7KLVVKRZLQJRI FRPPRQDOLW\FDQUHTXLUHDGHPRQVWUDWLRQRIWKHPHULWVRIWKHSODLQWLII¶VFODLP7KLV LVEHFDXVH³SURRIRIFRPPRQDOLW\QHFHVVDULO\RYHUODSV´ZLWKWKHPHULWVRIWKHFDVH ,QDQRIWHQFLWHGSDUWRIWKH GHFLVLRQWKH&RXUW QRWHGWKDWIRU FRPPRQDOLW\ WR EH VDWLVILHGWKHUH PXVWEH³VRPHJOXH KROGLQJWKHDOOHJHGUHDVRQV´ IRUWKHGHFLVLRQV WRJHWKHUDQGWKHUHPXVWEHWKHDELOLW\WR³SURGXFHDFRPPRQDQVZHUWRWKHFUXFLDO TXHVWLRQ´LQWKHFDVH ,Q WKH PDWWHU EHIRUH LW WKH &RXUW QRWHG WKDW WR VKRZ FRPPRQDOLW\ WKH SODLQWLII ZRXOGKDYHWRGHPRQVWUDWH³VLJQLILFDQWSURRIWKDW:DO0DUWRSHUDWHGXQGHUDJHQHUDO SROLF\RIGLVFULPLQDWLRQ´7KH&RXUWIRXQGWKDWWKLVW\SHRIHYLGHQFHZDV³HQWLUHO\ DEVHQW´ LQ WKLV FDVH 7KH &RXUW FRQFOXGHG WKDW :DO0DUW¶V FRUSRUDWH SROLF\ RI ³DOORZLQJGLVFUHWLRQ´WRLWVVXSHUYLVRUVWRRYHUVHHHPSOR\PHQWLVVXHVZDV³ZRUOGV DZD\´ IURPGHPRQVWUDWLQJD SDWWHUQRUSUDFWLFHRIGLVFULPLQDWLRQ7KHSODLQWLIIV IDLOHG WR DVVHUW DQ\ ³FRPPRQ PRGH RI GLVFUHWLRQ WKDW SHUYDGHV WKH HQWLUH FRPSDQ\´(PSKDVL]LQJWKHFRPSDQ\¶V³VL]HDQGJHRJUDSKLFDOVFRSH´WKH&RXUW Id. Id.DW Id.DW±HPSKDVLVDGGHGTXRWLQJ)('5&,93D Id.DW Id.TXRWLQJ*HQ7HO&RRIWKH6ZY)DOFRQ86 Id. Id. Id. Id. Id.DW± Id.DW Id.HPSKDVLVRPLWWHG Id.DWLQWHUQDOTXRWDWLRQPDUNVRPLWWHG Id. Id.DWHPSKDVLVRPLWWHG Id.DW± @ COMMONALITY AND THE CONSTITUTION IRXQGLW³TXLWHXQEHOLHYDEOHWKDWDOOPDQDJHUVZRXOGH[HUFLVHWKHLUGLVFUHWLRQLQD FRPPRQ ZD\ ZLWKRXW VRPH FRPPRQ GLUHFWLRQ´ 7KH DQHFGRWDO DQG VWDWLVWLFDO HYLGHQFHWKDWWKHSODLQWLIIVDWWHPSWHGWRDVVHUW ³IDOOV ZHOOVKRUW´RIGHPRQVWUDWLQJ DQ\FRPPRQSROLF\RIGLVFULPLQDWLRQ $W WKH HQG RI WKH GD\ WKH &RXUW ZDV XQDEOH WR ILQG VXIILFLHQW FRPPRQDOLW\ WR SHUPLWWKHFODVVDFWLRQWRSURFHHG7KLVFRQFOXVLRQZDVKHDYLO\EDVHGRQWKHSXUH VL]HDQGVFRSHRIWKHFODVV7KH&RXUWIRXQGWKDW³>R@WKHUWKDQWKHEDUHH[LVWHQFHRI GHOHJDWHG GLVFUHWLRQ UHVSRQGHQWV KDYH LGHQWLILHG QR µVSHFLILF HPSOR\PHQW SUDFWLFH¶²PXFKOHVVRQHWKDWWLHVDOOWKHLUPLOOLRQFODLPVWRJHWKHU´7KH&RXUW FRQFOXGHGLWVGLVFXVVLRQRIWKHODFNRIFRPPRQDOLW\LQWKHSXUSRUWHGFODVVE\TXRWLQJ WKHGLVVHQWLQJRSLQLRQRIWKHFRXUWRIDSSHDOVZKLFKQRWHGWKDWWKHFODVVPHPEHUV KHOG D PXOWLWXGH RI GLIIHUHQW MREV DW GLIIHUHQW OHYHOV RI :DO0DUW¶V KLHUDUFK\IRUYDULDEOHOHQJWKVRIWLPHLQVWRUHVVSULQNOHGDFURVV VWDWHVZLWKDNDOHLGRVFRSHRIVXSHUYLVRUVPDOHDQGIHPDOHVXEMHFW WRDYDULHW\RIUHJLRQDOSROLFLHVWKDWDOOGLIIHUHG6RPHWKULYHGZKLOH RWKHUV GLG SRRUO\ 7KH\ KDYH OLWWOH LQ FRPPRQ EXW WKHLU VH[ DQG WKLV ODZVXLW 7KH&RXUWWKXVFRQFOXGHGWKDWWKHUHZDVVLPSO\LQVXIILFLHQWFRPPRQDOLW\LQWKH FDVH WR SHUPLW D V\VWHPLF FODLP WR SURFHHG ,Q UHMHFWLQJ WKH SODLQWLII¶V FODLP WKH &RXUW¶VGHILQLWLRQRIFRPPRQDOLW\ZRXOGKHOSUHGHILQHFODVVDFWLRQVXQGHU5XOH ,,WAL-MART$6$&2167,787,21$/)/225 7KH6XSUHPH&RXUW¶VWal-MartGHFLVLRQZDVH[SUHVVO\GHFLGHGRQWKHEDVLVRI )HGHUDO5XOHRI&LYLO3URFHGXUH7KHGHFLVLRQXQGRXEWHGO\KHOSVGHILQHZKDW FRPPRQDOLW\PHDQVXQGHUWKH)HGHUDO5XOHV+RZHYHUWKHUHLVQRWKLQJLQWKHFDVH WKDWVSHFLILFDOO\VWDWHVWKDWWKHGHFLVLRQZDVLQWHQGHGWRDSSO\DQ\PRUHEURDGO\WKDQ WKLV 1RQHWKHOHVV WKH WHQRU RI WKH GHFLVLRQ LWVHOI FRXOG EH ORJLFDOO\ H[WHQGHG EH\RQGWKHFRQILQHVRIWKHSURFHGXUDOSURYLVLRQVLWGLVFXVVHV,QGHHGLWLVHQWLUHO\ SODXVLEOHWRUHDGWKHGHFLVLRQDVRQHWKDWFUHDWHVDFRQVWLWXWLRQDOIORRUIRUDOOV\VWHPLF FODLPV ,Q WKLV ZD\ Wal-Mart FDQ EH UHDG DV LPSRVLQJ D ULJLG GHILQLWLRQ RI FRPPRQDOLW\ RQ DOO FODVVDFWLRQ SODLQWLIIV²UHJDUGOHVV RI ZKHWKHU WKRVH OLWLJDQWV EULQJWKHLUFODLPVLQIHGHUDORUVWDWHFRXUW Id.DW Id. Id.DW± Id. DWDOWHUDWLRQLQRULJLQDOTXRWLQJ'XNHVY:DO0DUW6WRUHV,QF)G WK&LU.R]LQVNL&-GLVVHQWLQJ 7KH&RXUWDOVRH[WHQVLYHO\DGGUHVVHGWKHSODLQWLII¶VFODLPVIRUEDFNSD\XQGHUWKH )HGHUDO5XOHV 7KH&RXUWH[DPLQHGWKHTXHVWLRQRI³ZKHWKHUFODLPV IRU PRQHWDU\UHOLHI PD\EHFHUWLILHGXQGHU´5XOHEId.7KH&RXUWFRQFOXGHGWKDWVXFKFODLPVFDQQRWEH FHUWLILHG ³DW OHDVW ZKHUH WKH PRQHWDU\ UHOLHI LV QRW LQFLGHQWDO WR WKH LQMXQFWLYH RU GHFODUDWRU\UHOLHI´Id. Wal-Mart6&W Id. INDIANA LAW JOURNAL >9RO 7KHGHIHQVHEDUKDVDOUHDG\ODWFKHGRQWRWKLVSRVVLEOHLQWHUSUHWDWLRQRIWal-Mart 6RPH GHIHQGDQWV KDYH HYHQ UDLVHG WKLV SRVVLEOH GHIHQVH WR FODVVDFWLRQ FODLPV EURXJKWLQVWDWHFRXUW8QIRUWXQDWHO\WKLVDUJXPHQWKDVQRW \HWEHHQDGHTXDWHO\ H[SORUHGE\WKHOLWLJDQWV7KLVLVOLNHO\EHFDXVHWKHWKHRU\LVVWLOOLQLWVLQIDQF\DQG LWLPSOLFDWHVFRPSOH[UXOHVRIFRQVWLWXWLRQDOLQWHUSUHWDWLRQ 7KLV3DUWVHWVIRUWKWKHSRVVLEOHFRQVWLWXWLRQDOLPSOLFDWLRQVRIWal-Mart7KLV $UWLFOH H[SODLQV KRZ WKH 6XSUHPH &RXUW¶V GHFLVLRQ FDQ EH UHDG DV OLPLWLQJ WKRVH V\VWHPLF FODLPV WKDW DUH DOVR EURXJKW LQ VWDWH FRXUW 7KLV $UWLFOH WKXV H[SORUHV ZKHWKHUWal-Mart’s GHILQLWLRQRIFRPPRQDOLW\FDQEHH[WHQGHGEH\RQGWKH)HGHUDO 5XOHV A. Rule 23 and the Constitution 7KH)HGHUDO5XOHVRI&LYLO3URFHGXUHZHUHGHVLJQHGWRPDNHIHGHUDOOLWLJDWLRQ PRUH VWUDLJKWIRUZDUG DQG SUHGLFWDEOH )HGHUDO 5XOH RI &LYLO 3URFHGXUH DFFRPSOLVKHV WKHVH JRDOV LQ WKH FRQWH[W RI FRPSOH[ OLWLJDWLRQ 7KH UXOH KHOSV VWUHDPOLQH V\VWHPLF FODLPV DQG KHOSV EULQJ VRPH SURFHGXUDO JXLGHOLQHV WR FODVVDFWLRQ OLWLJDWLRQ ,W WKXV DOORZV WKH SDUWLHV VRPH OHYHO RI SUHGLFWDELOLW\ LQ FRPSOH[OLWLJDWLRQWKRXJKWKHUXOHKDVREYLRXVO\EHHQDSSOLHGLQYDULRXVZD\VE\ GLIIHUHQWMXULVGLFWLRQV See'XUDQY86%DQN1DW¶O$VV¶Q&DO5SWUG&W$SSvacated 3G&DO/XELQY:DFNHQKXW&RUS1R%//$&QW\ 6XS&W$XJappeal docketed1R%&DO&W$SS2FW-DFREVHQ Y$OOVWDWH,QV&R3G0RQWcert. denied6&W%UDXQ Y:DO0DUW6WRUHV,QF$G3Dpetition for cert. filed86/: 86 0DU 1R See generally 5RVHQWKDO supra QRWH DW GLVFXVVLQJLVVXHRIFRQVWLWXWLRQDOL]LQJFRPPRQDOLW\ Cf. 5RVHQWKDO supra QRWH DUJXLQJ DJDLQVW DGRSWLRQ RI D FRQVWLWXWLRQDO FRPPRQDOLW\VWDQGDUG$OWKRXJKWKH5RVHQWKDOVWXGHQWFRPPHQWEULHIO\WRXFKHGRQVRPHRI WKHVH LVVXHV WKLV $UWLFOH LV WKH ILUVW WR IXOO\ HQJDJH WKLV GHEDWH DQG WR IXOO\ DGGUHVV WKH LPSRUWDQWFRQVWLWXWLRQDOLPSOLFDWLRQVRIWKHWal-MartGHFLVLRQ See, e.g.3LHUFHY3LHUFH)5'''&³$PRQJWKHSXUSRVHVDQG REMHFWLYHVRIWKH)HGHUDO5XOHVRI&LYLO3URFHGXUHDUHWKHHOLPLQDWLRQRIWKHHOHPHQWRIVXUSULVH DQGWKHQDUURZLQJRIWKHLVVXHVIRUWKHWULDO´&DUO7RELDV Public Law Litigation and the Federal Rules of Civil Procedure &251(// / 5(9 ³7KH JRDOV RI VLPSOLFLW\DQGQRQWHFKQLFDODSSURDFKHVWRSURFHGXUHUHVHPEOHWKHLGHDRIWKHµOLEHUDOHWKRV¶ 7KH$GYLVRU\&RPPLWWHH¶VDWWHPSWWRFLUFXPVFULEHWKHQXPEHURIVWHSVLQDODZVXLWDQGWKH SURYLVLRQIRURSHQHQGHGGLVFRYHU\H[HPSOLI\WKHVHREMHFWLYHV´ . See )(' 5 &,9 3see also5\DQ3DWULFN3KDLUResolving the “Choice-of-Law Problem” in Rule 23(b)(3) Nationwide Class Actions8&+,/5(9± GLVFXVVLQJUROHRI5XOHLQFODVVDFWLRQOLWLJDWLRQ See6WHSKHQ5%RXJK$QGUHD*%RXJKConflict of Laws and Multi-State Class Actions: How Variations in State Law Affect the Predominance Requirement of Rule 23(b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ee%UXFH+D\'DYLG5RVHQEHUJ“Sweetheart” and “Blackmail” Settlements in Class Actions: Reality and Remedy 1275( '$0( / 5(9 ³>&@ODVV DFWLRQV DUH ZLWKRXW GRXEW WKH PRVW FRQWURYHUVLDO VXEMHFW LQ WKH FLYLO SURFHVV WRGD\´ Cf. 7RELDV supra QRWH DW QRWLQJ WKDW ³>W@KH )HGHUDO 5XOHV JHQHUDOO\ ZRUNHG ZHOO DQG HQMR\HGDFRUGLDOUHFHSWLRQIRUWKHILUVWWZHQW\ILYH\HDUVDIWHUWKHLUDGRSWLRQ´ See, e.g. )(' 5 &,9 3 E SHUPLWWLQJ FODVV DFWLRQ ZKHUH ³WKH FRXUW ILQGV WKDW D FODVV DFWLRQ LV VXSHULRU WR RWKHU DYDLODEOH PHWKRGV IRU IDLUO\ DQG HIILFLHQWO\ DGMXGLFDWLQJWKHFRQWURYHUV\´7RELDVsupraQRWHDWGLVFXVVLQJKLVWRU\DQGJRDOVRI )HGHUDO5XOHVRI&LYLO3URFHGXUH See *HQ 7HO &R RI WKH 6Z Y )DOFRQ 86 GLVFXVVLQJ V\VWHPLF OLWLJDWLRQ LQ FODVVDFWLRQ FDVH EHIRUH WKH &RXUW .LQGDND -DPDO 6DQGHUV Re-Assembling Osiris: Rule 23, the Black Farmers Case, and Reparations3 (1167 / 5(9±³7KHSURFHGXUDOSXUSRVHRIWKHFODVVDFWLRQLVMXGLFLDOHFRQRP\7KH WKHRU\LVWKDWLIWKHLQWHUHVWVRIWKHDFWLYHDQGDEVHQWSODLQWLIIVDUHDOLJQHGFORVHO\HQRXJKWKHQ VLPSO\UHVROYLQJWKHLQWHUHVWVRIWKHDFWLYHSODLQWLIIVFDQVDYHWLPHHIIRUWDQGH[SHQVHWKXV DOVRUHVROYLQJWKHLVVXHVRI WKH DEVHQWSODLQWLIIV 7KH FORVH DOLJQPHQWRI WKH LQWHUHVWVRI WKH DFWLYHDQGDEVHQWSODLQWLIIVDOVRHQVXUHVGXHSURFHVVDQGIDLUQHVV´IRRWQRWHRPLWWHG See )('5&,93 See6DQGHUVsupraQRWHDW±GLVFXVVLQJSRWHQWLDOEHQHILWVRIFODVVDFWLRQ FODLPV-D\7LGPDUVKSuperiority as Unity1:8/5(9³>7@KHFODVV DFWLRQLVDGHYLFHE\ZKLFKRQHSHUVRQRUDJURXSRISHRSOHDFWVDVWKHUHSUHVHQWDWLYHVRID ODUJHUJURXSRUFODVVZLWKVLPLODUFODLPV>,@QPRGHUQ$PHULFDQODZWKHUHVXOWDFKLHYHG E\ WKH FODVV UHSUHVHQWDWLYHV LV ELQGLQJ RQ WKH PHPEHUV RI WKH FODVV DV ORQJ DV WKH UHSUHVHQWDWLRQLVDGHTXDWHFODVVPHPEHUVORVHWKHDELOLW\WRSURVHFXWHRUGHIHQGWKHFODLPVLQ WKHLURZQULJKW´ See +D\5RVHQEHUJsupraQRWHDW³&ODVVDFWLRQVOLNHRUGLQDU\ODZVXLWV EHWZHHQ LQGLYLGXDOV VHWWOH PRVW RI WKH WLPH <HW XQOLNH RUGLQDU\ DFWLRQV WKH FODVV DFWLRQ IUHTXHQWO\LQYROYHVWKRXVDQGVRUHYHQPLOOLRQVRIFODLPVRIWHQZRUWKELOOLRQVRIGROODUV:LWK VRPXFKDWVWDNHFULWLFVKDYHDUJXHGWKDWWKHFODVVDFWLRQVHWWOHPHQWSURFHVVZLOOLQHYLWDEO\ OHQGLWVHOIWRFRUUXSWLRQDQGDEXVH´ See /DXUD-+LQHVThe Dangerous Allure of the Issue Class Action,1'/- ³7KH FODVV GHYLFH KROGV RXW WKH SURPLVH RI UHVROYLQJ LVVXHV µFRPPRQ¶ WR DOO SODLQWLIIVLQDVLQJOHWULDOSUHYHQWLQJZDVWHIXODQGUHSHWLWLYHOLWLJDWLRQRIVLPLODULVVXHVDQG WKH SRVVLELOLW\ RI LQFRQVLVWHQW UHVXOWV $QG FROOHFWLYH DGMXGLFDWLRQ DOORZV SODLQWLIIV WR SRRO UHVRXUFHVDJDLQVWEHWWHUILQDQFHGGHIHQGDQWV´6DQGHUVsupraQRWHDW±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²VLQFH LWV LQFHSWLRQ²DOVR KDG D FRQVWLWXWLRQDOGLPHQVLRQ5XOHSURYLGHVWKHEDVLFIHGHUDOJXLGHOLQHVIRUFRPSOH[ OLWLJDWLRQ 7KRXJK WKH UXOH LV SURFHGXUDO LQ QDWXUH LW SURWHFWV ERWK SODLQWLIIV DQG GHIHQGDQWV IURP UXQQLQJ DIRXO RI GHHSO\ HPEHGGHG VXEVWDQWLYH GXH SURFHVV FRQFHUQV ,QSDUWLFXODU5XOHDVVXUHVWKDWEDVLFSULQFLSOHVDUHDGKHUHGWRZKHQILOLQJD V\VWHPLFFODLP9ROXPHVKDYHEHHQZULWWHQRQWKHLQWULFDFLHVRIWKLV)HGHUDO5XOHRI &LYLO3URFHGXUH7KH6XSUHPH&RXUWDFDGHPLFVDQGRWKHUVKDYHDOOZHLJKHGLQRQ 863DUROH&RPP¶QY*HUDJKW\86± See In re *HQHUDO0RWRUV&RUS(QJLQH,QWHUFKDQJH/LWLJ)GQ WK&LUQRWLQJWKDWFODVVDFWLRQVDUHSULPDULO\DGHYLFHWRYLQGLFDWHWKHULJKWVRIWKH LQGLYLGXDOFODVVPHPEHUVIn re :RUOG&RP,QF6HF/LWLJ)5'6'1< QRWLQJWKDWWRJHWKHUWKHW\SLFDOLW\DQGFRPPRQDOLW\UHTXLUHPHQWVRI5XOHKHOSWR HQVXUHWKDWPDLQWHQDQFHRIDFODVVDFWLRQLVHFRQRPLFDODQGWKHUXOHIXUWKHUDVVXUHVWKDWWKH LQWHUHVWVRIFODVVPHPEHUVZLOOEHIDLUO\DQGDGHTXDWHO\SURWHFWHGLQWKHLUDEVHQFH&ODUNY 6&HQW%HOO7HO&R)6XSS:'/DQRWLQJWKDWLQGHWHUPLQLQJ ZKHWKHUWRJUDQWFODVVDFWLRQFHUWLILFDWLRQWKHGLVWULFWFRXUWKDVD³VWULQJHQWGXW\´WRSURWHFW LQWHUHVWVRIDEVHQWFODVVPHPEHUV See -DQ 0LFKHOVHQ 1RWH A Class Act: Forces of Increased Awareness, Expanded Remedies, and Procedural Strategy Converge to Combat Hostile Workplace Environments ,1' /5(9³7KHW\SLFDOLW\UHTXLUHPHQWLVLQWHQGHGWRSURWHFWSODLQWLIIVDQG GHIHQGDQWVIURPEHLQJUHSUHVHQWHGE\DSHUVRQZKRVHVWDNHLQWKHDFWLRQLVGLVVLPLODUWRWKHLUV WR LQVXUH WKDW WKH\ ZLOO QRW EH LQYROYHG LQ XQZDUUDQWHG RU XQQHFHVVDU\ DGMXGLFDWLRQ DQG WR SURPRWHWKHMXGLFLDOHFRQRP\WKDWLVWKHFHQWUDOFRQFHSWRIFODVVDFWLRQV´6DUDK6RPHUV7.2 Rule 23 Class Certification Requirements)('35$&0$18$/)25/(*$/$,'$77¶<6 KWWSIHGHUDOSUDFWLFHPDQXDORUJQRGH >SHUPDFF8-56'9'@ QRWLQJ WKDW D 5XOH E$ DFWLRQ LV ³LQWHQGHG WR SURWHFW WKH GHIHQGDQWV IURP LQFRQVLVWHQW DGMXGLFDWLRQV LPSRVLQJ LQFRPSDWLEOH REOLJDWLRQV WKDW PLJKW UHVXOW IURP LQGHSHQGHQW DFWLRQV EURXJKW E\ LQGLYLGXDOSODLQWLIIV´ seealso $OVXSY0RQWJRPHU\:DUG&R)5'1'&DO ³>,@WLVXQGLVSXWHGWKDWVXEGLYLVLRQE$ZDVGUDIWHGWRSURWHFWDGHIHQGDQWZKHUH GLIIHUHQWSDUWLHVZHUHDWWHPSWLQJWRLPSRVHGLIIHUHQWVWDQGDUGVRIFRQGXFWXSRQKLP´ See, e.g. The Importance of Being AdequatesupraQRWHDWGLVFXVVLQJGXH SURFHVVVDIHJXDUGVRI5XOH See generally id. +DQVEHUU\Y/HH86 See, e.g+RZDUG0(ULFKVRQCAFA’s Impact on Class Action Lawyers83$ / 5(9 GLVFXVVLQJ GHYHORSPHQWV LQ FODVVDFWLRQ ODZ 'DYLG 0DUFXV The History of the Modern Class Action, Part I: 6WXUP8QG'UDQJ, 1953–1980:$6+ 8 / 5(9SURYLGLQJKLVWRU\RIFODVVDFWLRQOLWLJDWLRQXQGHUWKH)HGHUDO5XOHVsee also +LQHVsupraQRWHDGGUHVVLQJFODVVDFWLRQOLWLJDWLRQXQGHUWKH)HGHUDO5XOHVDQGWKHUROH RILVVXHFODVVFHUWLILFDWLRQ0HJDQ(%DUULJHU&RPPHQWDue Process Limitations on Rule 23(b)(2) Monetary Remedies: Examining the Source of the Limitation in:DO0DUW6WRUHV,QF @ COMMONALITY AND THE CONSTITUTION KRZWRLQWHUSUHWWKLVUXOH7KLV$UWLFOHGRHVQRWVHHNWRUHYLVLWWKLVRIWH[SORUHGDUHD 1RQHWKHOHVVDEULHIVXPPDU\RIWKHUXOHFDQKHOSJLYHFRQWH[WWRWKHFRQVWLWXWLRQDO TXHVWLRQVDGGUHVVHGKHUH 7R SURFHHG LQ D V\VWHPLF IHGHUDO FODVVDFWLRQ FODLP WKH DFWLRQ PXVW EH ODUJH HQRXJKDQGLQYROYHVLPLODUDOOHJDWLRQVDQGWKHSDUWLHVPXVWEHIDLUO\UHSUHVHQWHG 7KHUXOHVSHFLILFDOO\UHTXLUHVWKDWFRPSOH[OLWLJDWLRQEURXJKWLQIHGHUDOFRXUWVDWLVI\ WKHIROORZLQJIRXUHOHPHQWV WKHFODVVLVVRQXPHURXVWKDWMRLQGHURIDOOPHPEHUVLVLPSUDFWLFDEOH WKHUHDUHTXHVWLRQVRIODZRUIDFWFRPPRQWRWKHFODVV WKHFODLPVRUGHIHQVHVRIWKHUHSUHVHQWDWLYHSDUWLHVDUHW\SLFDORIWKH FODLPVRUGHIHQVHVRIWKHFODVVDQG WKH UHSUHVHQWDWLYH SDUWLHV ZLOO IDLUO\ DQG DGHTXDWHO\ SURWHFW WKH LQWHUHVWVRIWKHFODVV 7KXV 5XOH D PDQGDWHV VXIILFLHQW QXPHURVLW\ FRPPRQDOLW\ W\SLFDOLW\ DQG DGHTXDF\RIUHSUHVHQWDWLRQEHIRUHDFRPSOH[DFWLRQZLOOEHFHUWLILHG,QDGGLWLRQWR VDWLVI\LQJWKHVHUHTXLUHPHQWVDSODLQWLIIPXVWIXUWKHUPHHWRQHRIWKHWKUHHGLIIHUHQW HOHPHQWVRI5XOHE$5XOHEFODVVDFWLRQSURFHHGVZKHUHWKHUHLVDULVN RI³LQFRQVLVWHQWRUYDU\LQJDGMXGLFDWLRQVZLWKUHVSHFWWRLQGLYLGXDOFODVVPHPEHUV´ RUDGMXGLFDWLRQVWKDW³ZRXOGEHGLVSRVLWLYHRIWKHLQWHUHVWVRIWKHRWKHUPHPEHUVQRW SDUWLHV WR WKH LQGLYLGXDO DGMXGLFDWLRQV RU ZRXOG VXEVWDQWLDOO\ LPSDLU RU LPSHGH WKHLULQWHUHVWV´ $QDFWLRQLVW\SLFDOO\EURXJKWXQGHU5XOHEZKHUHLQMXQFWLYHRUGHFODUDWRU\ UHOLHILVWKHSULPDU\UHPHG\EHLQJVRXJKWLQWKHFDVH 7KHUXOHSURYLGHVWKDW³WKH SDUW\RSSRVLQJWKHFODVVKDVDFWHGRUUHIXVHGWRDFWRQJURXQGVWKDWDSSO\JHQHUDOO\ WRWKHFODVV´VXFKWKDWWKLVW\SHRIQRQPRQHWDU\UHOLHI³LVDSSURSULDWHUHVSHFWLQJWKH FODVVDVDZKROH´)LQDOO\V\VWHPLFOLWLJDWLRQEURXJKWXQGHU5XOHERFFXUV ZKHUH ³TXHVWLRQVRIODZRU IDFWFRPPRQ WRFODVV PHPEHUVSUHGRPLQDWHRYHUDQ\ TXHVWLRQVDIIHFWLQJRQO\LQGLYLGXDOPHPEHUV´7KLVSURYLVLRQLVXVHGZKHUH³DFODVV Y'XNHV83$-&2167/DGGUHVVLQJLPSDFWRIUHFHQW6XSUHPH&RXUW FODVVDFWLRQOLWLJDWLRQRQFRPSOH[OLWLJDWLRQILHOG See generally -RKQ & &RIIHH -U 6WHIDQ 3DXORYLF Class Certification: Developments over the Last Five Years 2002–2007 &/$66 $&7,21 /,7,* 5(3 63(&,$/ ,668(GLVFXVVLQJFODVVDFWLRQGHYHORSPHQWVXQGHUWKHFDVHODZ%DUULJHUsupra QRWHDGGUHVVLQJLPSDFWRIWal-MartGHFLVLRQRQFODVVDFWLRQOLWLJDWLRQ )('5&,93 Id.D± Id. Id.Esee also%DUULJHUsupraQRWHDW±GLVFXVVLQJUROHRI5XOHE LQFODVVDFWLRQOLWLJDWLRQ )(' 5 &,9 3 E see also %DUULJHU supra QRWH DW GLVFXVVLQJ UHTXLUHPHQWVRIFODVVDFWLRQUXOHV'DQLHO/XNV1RWHAscertainability in the Third Circuit: Name That Class Member)25'+$0/5(9VDPH See %DUULJHUsupraQRWHDW³5XOHEUHTXLUHVWKDWWKHUHOLHIVRXJKW EHSULPDULO\LQMXQFWLYHDQGEHDSSOLFDEOHWRWKHFODVVDVDZKROH´ )('5&,93E Id.E INDIANA LAW JOURNAL >9RO DFWLRQLVVXSHULRUWRRWKHUDYDLODEOHPHWKRGVIRUIDLUO\DQGHIILFLHQWO\DGMXGLFDWLQJ WKHFRQWURYHUV\´ 7KHUHDUHQXPHURXVGLIIHUHQFHVEHWZHHQWKHYDULRXVSURYLVLRQVRI5XOHE 0RVWQRWDEO\FODLPVEURXJKWSXUVXDQWWR5XOHEDQGEDUHDOORZHGWR SURFHHGDVPDQGDWRU\FODVVDFWLRQVZKLOHFODLPVEURXJKWXQGHU5XOHEPD\ EHEURXJKWDV³RSWRXWFODVVDFWLRQV´5XOHEDQGEDUHRIWHQLQYRNHG WRJHWKHU DQG PDQ\ FODVV DFWLRQV LQYROYH ERWK RI WKHVH SURYLVLRQV %\ FRQWUDVW FDVHV EURXJKW XQGHU 5XOH E DUH IUHTXHQWO\ WKH PRVW GLIILFXOW IRU FRXUWV WR PDQDJH DV WKH\ RIWHQ LQYROYH FODLPV VHHNLQJ VXEVWDQWLDO PRQHWDU\ UHOLHI 7KHVH FDVHVDUHFRQVLGHUHGWREHWKHPRVW³FRQYHQWLRQDO´W\SHRIV\VWHPLFFODLPVZKHUH WKHZKROHFDVHLVFHUWLILHGDVDVLQJOHDFWLRQE\WKHFRXUWZKLFKGRHVQRWFRQVLGHU ³ZKHWKHUWKHUHDUHLVVXHVLQWKHFDVHWKDWFDQQRWEHUHVROYHGFROOHFWLYHO\´ 7KHSURYLVLRQVRI)HGHUDO5XOHVRI&LYLO3URFHGXUHDDQGEKDYHEHHQ QRWRULRXVO\GLIILFXOWIRUWKHFRXUWVWRDSSO\7KLVFRPSOH[LW\VWHPVQRWRQO\IURP WKH LQWULFDF\ RI WKH WHUPV SURYLGHG E\ WKH UXOH EXW DOVR IURP WKH FRQVWLWXWLRQDO GLPHQVLRQ RI WKLV SURYLVLRQ 5XOH GLIIHUV IURP PDQ\ RI WKH RWKHU SURFHGXUDO SURYLVLRQVLQWKDWLWZDVGHVLJQHGWRSURWHFWGXHSURFHVVULJKWV Id.see /XNVsupraQRWHDW±GLVFXVVLQJYDULRXVSURYLVLRQVRI5XOH see also%DUULJHUsupraQRWHDW±VDPH See generally -RVHSK $ 6HLQHU The Issue Class %& / 5(9 GLVFXVVLQJGLIIHUHQWSURYLVLRQVRI5XOHDQGWKHLUUROHLQFODVVDFWLRQOLWLJDWLRQ%DUULJHU supraQRWHDW±VDPH -HQQD*)DUOHLJK1RWHSplitting the Baby: Standardizing Issue Class Certification 9$1'/5(9±GLVFXVVLQJRSWRXWFODVVHVsee also%DUULJHUsupra QRWHDW±VDPH See )DUOHLJK supra QRWH DW GLVFXVVLQJ GLIIHUHQW UHTXLUHPHQWV RI )HGHUDO 5XOH RI &LYLO 3URFHGXUH see also 2UWL] Y )LEUHERDUG &RUS 86 GLVFXVVLQJSURYLVLRQVRI5XOHLQDFODVVDFWLRQFDVH See )DUOHLJK supra QRWH DW ± GLVFXVVLQJ FODLPV EURXJKW XQGHU 5XOH E See6HLQHUsupraQRWHDWFLWLQJ-RQ5RPEHUJHalf a Loaf Is Predominant and Superior to None: Class Certification of Particular Issues Under Rule 23(c)(4)(A) 87$+/5(9 -RQ5RPEHUJHalf a Loaf is Predominant and Superior to None: Class Certification of Particular Issues Under Rule 23(c)(4)(A)8WDK/5HY See generally %UXFH + 1LHOVRQ 1RWH Was the 1966 Advisory Committee Right?: Suggested Revisions of Rule 23 To Allow More Frequent Use of Class Actions in Mass Tort Litigation +$59 - 21 /(*,6 GLVFXVVLQJ GLIIHUHQW FRXUW DSSURDFKHV WR DSSOLFDWLRQRI5XOH See6DPXHO,VVDFKDURIIPreclusion, Due Process, and the Right To Opt Out of Class Actions1275('$0(/5(9GLVFXVVLQJLPSOLFDWLRQRIGXHSURFHVVULJKWVLQ 5XOH6WHYHQ72&RWWUHDX1RWHThe Due Process Right To Opt Out of Class Actions 1<8/5(9GLVFXVVLQJQRWLFHDQGRSWRXWUHTXLUHPHQWVLQ5XOHEFODVV DFWLRQVDVDIIRUGLQJLQGLYLGXDOFODVVPHPEHUVGXHSURFHVVULJKWV6WHSKHQ(0RUULVVH\1RWH State Settlement Class Actions That Release Exclusive Federal Claims: Developing a Framework for Multijurisdictional Management of Shareholder Litigation &2/80 / 5(9 ± GLVFXVVLQJ KLVWRULFDO GHYHORSPHQW RI 5XOH WR LQFOXGH SURFHGXUDOVDIHJXDUGVWRSURWHFWGXHSURFHVVULJKWVSee generallyThe Importance of Being AdequatesupraQRWHGLVFXVVLQJSURFHGXUDOVDIHJXDUGVWKDWDIIRUGGXHSURFHVVWRDEVHQW @ COMMONALITY AND THE CONSTITUTION 7KH FRQVWLWXWLRQDO LPSOLFDWLRQV RI WKH UXOH KDYH EHHQ H[SORUHG E\ QXPHURXV 6XSUHPH&RXUWGHFLVLRQV,QSHUKDSVWKHHDUOLHVWDQGEHVWNQRZQFDVHRQWKLVLVVXH WKH &RXUW DGGUHVVHG WKH GXH SURFHVV LPSOLFDWLRQV RI FODVVDFWLRQ OLWLJDWLRQ LQ Hansberry v. Lee,QHansberryWKH&RXUWKHOGWKDWGXHSURFHVVHQWLWOHVLQGLYLGXDOV WRKDYHWKHLULQWHUHVWVDGHTXDWHO\UHSUHVHQWHGLQFRXUW7KHVHLQWHUHVWVPD\EHPRUH GLIILFXOWWRSUHVHUYHZLWKV\VWHPLFOLWLJDWLRQZKHUHVRPHLQGLYLGXDOVPD\EHERXQG E\DGHFLVLRQWRZKLFKWKH\ZHUHQRWIRUPDOSDUWLHV7KHFRQIOLFWLQJSULQFLSOHVRI KDYLQJRQH¶VGD\LQFRXUWDQGHQFRXUDJLQJFRPSOH[OLWLJDWLRQWKDWFDQVDYHHQRUPRXV MXGLFLDO UHVRXUFHV FDQ FUHDWH GLIILFXOW\ IRU WKH SUHVLGLQJ MXGJH 1RQHWKHOHVV LQ HansberryWKH6XSUHPH&RXUWFRQFOXGHGWKDWWKLVW\SHRIFRPSOH[OLWLJDWLRQFDQVWLOO VDWLVI\ WKH GXH SURFHVV UHTXLUHPHQWV ,Q DQ HORTXHQWO\ ZULWWHQ GHFLVLRQ WKH &RXUW UHDVRQHGWKDW >7@KHUHLVVFRSHZLWKLQWKHIUDPHZRUNRIWKH&RQVWLWXWLRQIRUKROGLQJLQ DSSURSULDWHFDVHVWKDWDMXGJPHQWUHQGHUHGLQDFODVVVXLWLVres judicata DVWR PHPEHUVRI WKHFODVV ZKRDUHQRWIRUPDOSDUWLHVWRWKHVXLW >7@KLV &RXUW LV MXVWLILHG LQ VD\LQJ WKDW WKHUH KDV EHHQ D IDLOXUH RI GXH SURFHVVRQO\LQWKRVHFDVHV ZKHUHLWFDQQRWEHVDLGWKDWWKHSURFHGXUH DGRSWHG IDLUO\ LQVXUHV WKH SURWHFWLRQ RI WKH LQWHUHVWV RI DEVHQW SDUWLHV ZKRDUHWREHERXQGE\LW $FFRUGLQJ WR WKH &RXUW WKHQ WKH NH\ LQ FODVVDFWLRQ OLWLJDWLRQ LV WKDW LW PXVW SURYLGHVXIILFLHQWSURFHGXUHVRDVWR³LQVXUHWKDWWKRVHSUHVHQWDUHRIWKHVDPHFODVV DVWKRVHDEVHQWDQGWKDWWKHOLWLJDWLRQLVVRFRQGXFWHGDVWRLQVXUHWKHIXOODQGIDLU FRQVLGHUDWLRQ RI WKH FRPPRQ LVVXH´ :KHUH FRPSOH[ OLWLJDWLRQ VDWLVILHV WKHVH VWDQGDUGVLWVDWLVILHVWKH&RQVWLWXWLRQ 7KH&RXUWKDVWKXVFORVHO\JXDUGHGWKHULJKWVRIWKRVHWKDWDUHQRWIRUPDOSDUWLHV WRWKHOLWLJDWLRQ$VDJHQHUDOUXOHLQGLYLGXDOVZLOOQRWEHERXQGWRDGHFLVLRQZKHUH WKH\DUHQRWGLUHFWO\LPSOLFDWHGLQWKHVXLW&ODVVDFWLRQVDUHDQH[FHSWLRQWRWKLV JHQHUDOUXOH%XWDVVHHQLQ Hansberry v. LeeDGHTXDWHSURWHFWLRQV PXVWH[LVWWR DOORZIRUWKLVH[FHSWLRQ,QMartin v. WilksWKH&RXUWIXUWKHUH[SDQGHGXSRQ WKHSURWHFWLRQVWKDWPXVWEHDIIRUGHGWRQRQSDUWLHVLQDV\VWHPLFFODLP7KH&RXUW DFNQRZOHGJHGWKDWWKHUHLV³DQH[FHSWLRQWRWKHJHQHUDOUXOHZKHQLQFHUWDLQOLPLWHG FODVVPHPEHUVLQWKHDPHQGHG5XOH 86 See id. See id. See id. 5RVHQWKDO supra QRWH DW ³$W WKH FRUH RI WKH FRQVWLWXWLRQDOL]HG FRPPRQDOLW\FODLPLVDQLPDJLQHGIRUPRIWKHGHIHQGDQW¶VµGD\LQFRXUW¶LGHDO´ Hansberry86DWLWDOLFVLQRULJLQDO Id.DW See id. See generally5REHUW*%RQHRethinking the “Day in Court” Ideal and Nonparty Preclusion1<8/5(9³,QWKH$PHULFDQMXGLFLDOV\VWHPLQGLYLGXDOV DUHUDUHO\SUHFOXGHGIURPOLWLJDWLQJDFODLPRULVVXHVLPSO\EHFDXVHVRPHRQHHOVHKDVDOUHDG\ OLWLJDWHGWKHVDPHPDWWHU´ SeeHansberry86 86 INDIANA LAW JOURNAL >9RO FLUFXPVWDQFHV D SHUVRQ DOWKRXJK QRW D SDUW\ KDV KLV LQWHUHVWV DGHTXDWHO\ UHSUHVHQWHGE\VRPHRQHZLWKWKHVDPHLQWHUHVWVZKRLVDSDUW\>RU@ZKHUHDVSHFLDO UHPHGLDO VFKHPH H[LVWV H[SUHVVO\ IRUHFORVLQJ VXFFHVVLYH OLWLJDWLRQ E\ QRQOLWLJDQWV´ 6LPLODUO\LQOrtiz v. Fibreboard Corp.WKH&RXUWDJDLQDGGUHVVHGWKHWHQVLRQ EHWZHHQWKHGHVLUHWRVWUHDPOLQHPDVVOLWLJDWLRQDQGFRQFHUQVRYHUGXHSURFHVVULJKWV RILQGLYLGXDOV7KH&RXUWHPSKDVL]HGWKDWWKLVWHQVLRQ³LVRQO\PDJQLILHGLIDSSOLHG WR GDPDJHV FODLPV JDWKHUHG LQ D PDQGDWRU\ FODVV´ ,Q WKLV UHJDUG FODVVDFWLRQ FDVHV UHTXLUH QRWLFH DQG DQ RSSRUWXQLW\ WR EH KHDUG DV ZHOO DV DQ RSSRUWXQLW\ WR ³µSDUWLFLSDWHLQWKHOLWLJDWLRQ¶´$V OrtizGHPRQVWUDWHVWKH &RXUWKDV²RYHUWKH GHFDGHV²UHSHDWHGO\SXWVDIHJXDUGVLQSODFHWRHQVXUHWKDW5XOH FRPSOLHVZLWK GXHSURFHVVSULQFLSOHV 0XFK KDV DOVR EHHQ ZULWWHQ RYHU WKH \HDUV LQ WKH DFDGHPLF OLWHUDWXUH RQ WKH TXHVWLRQRIZKHWKHUDQGKRZ5XOHFRPSOLHVZLWKWKH&RQVWLWXWLRQ,QDQHDUO\DQG ZHOONQRZQ DUWLFOH RQ WKH VXEMHFW WKH University of Pennsylvania Law Review GHWDLOHGWKHSURFHGXUDOVDIHJXDUGVQHFHVVDU\IRUWKHFODVVDFWLRQUXOHVWRDGKHUHWR GXH SURFHVV 7KH DXWKRUV DGGUHVVHG WKH ³LQWHUDFWLRQ RI WKH QRWLFH DQG DGHTXDWH UHSUHVHQWDWLRQUHTXLUHPHQWV´RIWKHUXOHDQGH[SODLQHGWKHYDULRXVUHTXLUHPHQWVWKH &RQVWLWXWLRQ LPSRVHV RQ V\VWHPLF FODLPV 7KH DUWLFOH H[SODLQV WKH SRWHQWLDO FRQFHUQRYHUWKH³QDWXUHDQGUHTXLUHPHQWVRIGXHSURFHVVIRUFODVVDFWLRQ>V@´ ,QSDUWLFXODUWKHDUWLFOHDGYRFDWHVIRUVRPHJXDUDQWHHVWKDWWKHSDUWLHVDUHSURSHUO\ DVVXUHGRIWKHLU³GD\LQFRXUW´³$FFHSWLQJDQ\WKLQJOHVVZRXOGYLRODWHWKHUXOH LQWHUSUHWLQJWKHUXOHWRUHTXLUHOHVVZRXOGYLRODWHWKH&RQVWLWXWLRQ´ 6LPLODUO\LQD PXFK PRUHUHFHQWDQDO\VLVRQHFRPPHQWDWRUORRNHGDWWKHGXH SURFHVVOLPLWDWLRQVRIPRQHWDU\UHOLHILQV\VWHPLFOLWLJDWLRQSRVWWal-Mart7KH DXWKRUQRWHGWKH³JURZLQJFLUFXLWVSOLWRQZKHWKHUFODLPVIRUPRQHWDU\UHOLHIDUH HYHUFRQVLVWHQWZLWKFHUWLILFDWLRQXQGHU5XOHE´7KHDUWLFOHGLVFXVVHVKRZ Wal-MartDYRLGHGWKLVTXHVWLRQEXW³UDLVHGVHULRXVGRXEWWKDWWKHUHZHUHDQ\IRUPV RILQFLGHQWDOPRQHWDU\UHOLHIWKDWFRXOGEHFHUWLILHGZLWKRXWYLRODWLQJWKH'XH 3URFHVV&ODXVH´7KHFRQVWLWXWLRQDOGLPHQVLRQVRI5XOHDQGWKH'XH3URFHVV &ODXVHKDYHWKXVSHUYDGHGWKHDFDGHPLFOLWHUDWXUHIRUGHFDGHVVLQFHWKHLQFHSWLRQRI WKHIHGHUDOUXOH,QGHHG:ULJKWDQG0LOOHUVSHFLILFDOO\VHWIRUWKZKDWWKH\SHUFHLYH DV WKH GXH SURFHVV UHTXLUHPHQWV IRU FODVVDFWLRQ FODLPV RXWOLQLQJ WKH GLIIHULQJ DFDGHPLFDQGMXGLFLDORSLQLRQVRQWKLVTXHVWLRQ7KHZHOONQRZQWUHDWLVHWUDFHV Id.DWQFLWDWLRQRPLWWHG 86 . Id.DW Id.DWTXRWLQJ3KLOOLSV3HWUROHXP&RY6KXWWV86 The Importance of Being AdequatesupraQRWH Id.DW Id.DW Id.DW Id. %DUULJHUsupraQRWH Id.DW Id. $$ &+$5/(6 $/$1 :5,*+7 $57+85 5 0,//(5 0$5< .$< .$1( )('(5$/ @ COMMONALITY AND THE CONSTITUTION WKH ³SURSRVLWLRQ WKDW WKH QRWLFH FDOOHG IRU E\ >WKH FODVVDFWLRQ UXOHV@ LQYROYHV GXHSURFHVVFRQVLGHUDWLRQVDQGLVHVVHQWLDOWRJLYHELQGLQJHIIHFWWRDFODVVDFWLRQ MXGJPHQW´ 7KXVFODVVDFWLRQOLWLJDWLRQKDVORQJUDLVHGQXPHURXVFRQVWLWXWLRQDOLVVXHVRYHU WKH\HDUVDQGWKHUHFDQEHOLWWOHGRXEWWKDW5XOHKDVEHHQDVVRFLDWHGZLWKYDULRXV GXH SURFHVV FRQFHUQV VLQFH LWV LQFHSWLRQ 7KHVH FRQFHUQV KDYH EHHQ UDLVHG E\ WKH 6XSUHPH&RXUWDQGLQWKHDFDGHPLFOLWHUDWXUH7KHJRDORIWKLV$UWLFOHLVQRWWR RXWOLQHDOORIWKRVHGLIIHUHQWGXHSURFHVVLVVXHV²ZKLFKKDYHVSDQQHGDOODVSHFWVRI FODVVDFWLRQ OLWLJDWLRQ RYHU WKH ODVW IHZ GHFDGHV²EXW UDWKHU WR KLJKOLJKW WKH FRQVWLWXWLRQDO GLPHQVLRQ RI ZKDW LV RWKHUZLVH D IDLUO\ VWUDLJKWIRUZDUG SURFHGXUDO UXOH -XVW OLNH PDQ\ RI WKH RWKHU FRQVWLWXWLRQDO FRQFHUQV UDLVHG E\ 5XOH FRPPRQDOLW\ SUHVHQWV LWV RZQ VHW RI SUREOHPV :KHUH D V\VWHPLF FODLP ODFNV FRPPRQDOLW\GHIHQGDQWVDUHSRWHQWLDOO\GHSULYHGRIWKHLUGXHSURFHVVULJKWV7KRXJK PXFKRIWKHGXHSURFHVVFRQFHUQVRI5XOHDUHWDUJHWHGDWWKHSODLQWLIIV¶ULJKWVWR WKHLUGD\LQFRXUWWKHVHFRQVWLWXWLRQDOLVVXHVFXWERWKZD\V,QGHHGGHIHQGDQWVDUH JXDUDQWHHG WKH VDPH W\SH RI SURFHVV DV RWKHUV XQGHU WKH &RQVWLWXWLRQ :KHUH GHIHQGDQWV DUH VXEMHFWHG WR PDVVLYH FRPSOH[ FODLPV ZLWK OLWWOH LQ FRPPRQ GXH SURFHVVLVDOVRLPSOLFDWHG6XFKOLWLJDWLRQKDVWKHSRWHQWLDOWRUXQDIRXORIGXHSURFHVV JXDUDQWHHVE\SXQLVKLQJGHIHQGDQWV³ZLWKRXWILUVWSURYLGLQJµDQRSSRUWXQLW\WR SUHVHQWHYHU\DYDLODEOHGHIHQVH¶´ &RPPRQDOLW\LVWKXVRQHPRUHIHUWLOHJURXQGIRUGXHSURFHVVFRQFHUQVXQGHU5XOH ²DOEHLWIURPWKHGHIHQGDQW¶VUDWKHUWKDQWKHSODLQWLII¶VSHUVSHFWLYH7KRXJKWKH SRWHQWLDO FRQVWLWXWLRQDO FRQFHUQV UDLVHG E\ FRPPRQDOLW\ KDYH JRQH ODUJHO\ XQH[SORUHGLQWKHFRXUWVDQGDFDGHPLFOLWHUDWXUHWal-MartVLJQDOVDPDMRUFKDQJH RQWKLVLVVXH7KLVFKDQJHKDVEHHQLQWKHZRUNVLQUHFHQW\HDUVDQGLVKLJKOLJKWHGE\ WKH6XSUHPH&RXUW¶VGHVLUHWRSURWHFWGHIHQGDQWVIURPXQSUHGLFWDEOHKDUPWKDWLVWKH UHVXOWRIXQIDLUOLWLJDWLRQ $V GHWDLOHG LQ WKH VHFWLRQ EHORZ Wal-Mart IROORZV D WUHQG RI 6XSUHPH &RXUW FDVHVWKDWLQYRNHWKH'XH3URFHVV&ODXVHWRSURWHFWDGHIHQGDQW¶VULJKWVWal-Mart LVQRWWKHILUVWWLPHWKDWWKH&RXUWKDVUDLVHGFRQFHUQVDERXWWKHSRWHQWLDOIRUFRPSOH[ OLWLJDWLRQWRXQIDLUO\SUHMXGLFHWKHULJKWVRIWKHGHIHQGDQW,QGHHGUHFHQWFDVHODZ KDVPRYHGWKHFRQVWLWXWLRQDOGLPHQVLRQRIWKH'XH3URFHVV&ODXVHPRUHWRZDUGWKH GHIHQGDQW¶V IDYRU 7KLV PRYHPHQW KDV EHHQ SDUWLFXODUO\ FOHDU LQ WKH &RXUW¶V KLJKSURILOHGHFLVLRQVLQYROYLQJSXQLWLYHGDPDJHUDWLRVDQGWKLUGSDUW\KDUP 35$&7,&($1'352&('85(GHG Id. see also 'HEUD - *URVV &RPPHQW Mandatory Notice and Defendant Class Actions: Resolving the Paradox of Identity Between Plaintiffs and Defendants(025</- GLVFXVVLQJFODVVDFWLRQFDVHVXQGHUWKH)HGHUDO5XOHV See, e.g.+DQVEHUU\Y/HH86The Importance of Being Adequate supraQRWHGLVFXVVLQJGXHSURFHVVVDIHJXDUGVRI5XOH 3KLOLS 0RUULV 86$ Y :LOOLDPV 86 TXRWLQJ /LQGVH\ Y 1RUPHW86 See5RVHQWKDOsupraQRWHDW³,WLVQRVHFUHWWKDWWKHFXUUHQW6XSUHPH&RXUW LVKRVWLOHWRFODVVDFWLRQVDQGRWKHUIRUPVRIJURXSOLWLJDWLRQ´ INDIANA LAW JOURNAL >9RO B. Due Process, Ratios, and Third-Party Harm 7KH6XSUHPH&RXUW¶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hilip MorrisDQG7KLUG3DUW\+DUP )LUVWLQPhilip Morris USA v. Williams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³LQMXU\WRRWKHUSHUVRQVQRWEHIRUHWKHFRXUW´ 6SHFLILFDOO\WKH&RXUWFRQVLGHUHGZKHWKHULWZDVDSSURSULDWHIRUWKHSODLQWLII¶VFRXQVHO WRDGYLVHWKHMXU\WRFRQVLGHUKRZPDQ\RWKHULQGLYLGXDOVOLNHWKHGHFHGHQWWKHUHKDG EHHQ³µLQWKHODVW\HDUVLQWKH6WDWHRI2UHJRQ¶´³µ,Q2UHJRQKRZPDQ\SHRSOH GRZHVHHRXWVLGHGULYLQJKRPHVPRNLQJFLJDUHWWHV">&@LJDUHWWHVDUHJRLQJ WRNLOOWHQ>RIHYHU\KXQGUHG@>$QG@WKHPDUNHWVKDUHRI0DUOERURV>i.e.3KLOLS0RUULV@ LVRQHWKLUG>i.e.RQHRIHYHU\WKUHHNLOOHG@¶´ ,QDGGUHVVLQJWKLVTXHVWLRQWKH&RXUWFRQFOXGHGWKDWWKH'XH3URFHVV&ODXVHRI WKH)RXUWHHQWK$PHQGPHQWGRHVQRWSHUPLWWKHVWDWHVWRSXQLVKGHIHQGDQWVIRULQMXU\ FDXVHGWRQRQSDUWLHV7KLVLVEHFDXVHWKH&RXUWUHDVRQHGWKLVW\SHRISXQLVKPHQW GRHVQRWDOORZDFRPSDQ\WR³GHIHQGDJDLQVWWKHFKDUJHE\VKRZLQJWKDWWKH 86 Id.DW Id.DW± Id.DW Id.DW Id.DW Id.DW Id.TXRWLQJ-RLQW$SSHQGL[DWD3KLOLS0RUULV86$Y:LOOLDPV86 1R:/DWD Id. DOWHUDWLRQVLQRULJLQDOTXRWLQJ-RLQW$SSHQGL[DWD3KLOLS0RUULV86$Y :LOOLDPV861R:/DWD Id.DW @ COMMONALITY AND THE CONSTITUTION RWKHU YLFWLP ZDV QRW HQWLWOHGWRGDPDJHV´ 0RUHRYHUSXQLVKLQJ DGHIHQGDQW IRU WKLUGSDUW\KDUP³ZRXOGDGGDQHDUVWDQGDUGOHVVGLPHQVLRQWRWKHSXQLWLYHGDPDJHV HTXDWLRQ+RZPDQ\VXFKYLFWLPVDUHWKHUH"+RZVHULRXVO\ZHUHWKH\LQMXUHG"8QGHU ZKDWFLUFXPVWDQFHVGLGLQMXU\RFFXU"7KHWULDOZLOOQRWOLNHO\DQVZHUVXFKTXHVWLRQV DVWRQRQSDUW\YLFWLPV´7KXVWKH&RXUWFOHDUO\KHOGWKDWDSODLQWLIIFDQQRWSXQLVK WKHGHIHQGDQWE\LQYRNLQJWKLUGSDUW\KDUP7KH&RXUWGLGKRZHYHUOHDYHWKHGRRU RSHQ WR XVLQJ HYLGHQFH RI QRQSDUW\ KDUP IRU D GLIIHUHQW SXUSRVH²GHPRQVWUDWLQJ UHSUHKHQVLELOLW\ LQ WKH FDVH $V WKH &RXUW IRXQG ³>H@YLGHQFH RI DFWXDO KDUP WR QRQSDUWLHVFDQ KHOSWR VKRZWKDWWKHFRQGXFW WKDW KDUPHG WKHSODLQWLII DOVRSRVHGD VXEVWDQWLDOULVNRIKDUPWRWKHJHQHUDOSXEOLFDQGVRZDVSDUWLFXODUO\UHSUHKHQVLEOH´ $IWHUPhilip MorrisWKHQLWLVFOHDUWKDWWKH'XH3URFHVV&ODXVHRIWKH)RXUWHHQWK $PHQGPHQW GRHV QRW SHUPLW WKH LQWURGXFWLRQ RI HYLGHQFH RI QRQSDUW\ KDUP IRU SXUSRVHV RI SXQLVKPHQW $FFRUGLQJ WR WKH 6XSUHPH &RXUW D FRPSDQ\ ZLOO QRW KDYHWKHRSSRUWXQLW\WRSURSHUO\GHIHQGDJDLQVWWKLVW\SHRIHYLGHQFHZKLFKFRXOG UHVXOW LQ D VXEVWDQWLDO SXQLWLYH DZDUG 7KLUGSDUW\ KDUP²SDUWLFXODUO\ LQ WKLV FDVH²LV DQ DPRUSKRXV FRQFHSW ,W LV IDU WRR VSHFXODWLYH WR UHTXLUH D FRPSDQ\ WR GHIHQGDJDLQVWWKLVW\SHRIQHEXORXVHYLGHQFH6XFKHYLGHQFHFDQRQO\EHXVHGIRU SXUSRVHVRIGHPRQVWUDWLQJUHSUHKHQVLELOLW\ 0DQ\ RI WKH VDPH FRQFHUQV UDLVHG E\ WKH Philip Morris GHFLVLRQ WUDQVFHQG FODVVDFWLRQ OLWLJDWLRQ DQG WKH Wal-Mart FDVH ,Q SDUWLFXODU LOOGHILQHG V\VWHPLF FODLPVFDQIRUFHGHIHQGDQWVWRUHVSRQGWRDOOHJDWLRQVRIZURQJGRLQJE\WKRXVDQGVRI SRWHQWLDOFODVVPHPEHUVIRUZKRPWKHUHLVQRFRPPRQERQG:KHUHDFODVVDFWLRQ FDVHODFNVVXIILFLHQWFRPPRQDOLW\GHIHQGDQWVDUHOHIWVFUDPEOLQJWRGHIHQGDJDLQVW DP\ULDGRIGLIIHUHQWDOOHJDWLRQV$VWKH Wal-MartGHFLVLRQUHIOHFWVWKLVFDQHYHQ LQYROYHDFDVH ZLWKRYHURQH PLOOLRQGLIIHUHQWOLWLJDQWVDOO ZLWKGLIIHULQJLQWHUHVWV DQGFODLPV7KHVHW\SHVRIDFWLRQVVRPHWLPHVFDUU\D³VWDQGDUGOHVVGLPHQVLRQ´ DQGWKHGHIHQGDQWFDQEHOHIWWRGHWHUPLQH³>K@RZPDQ\VXFKYLFWLPVDUHWKHUH"+RZ VHULRXVO\ZHUHWKH\LQMXUHG"8QGHUZKDWFLUFXPVWDQFHVGLGLQMXU\RFFXU"´:KHUH DSURSRVHGFODVVDFWLRQODFNVVXIILFLHQWFRPPRQDOLW\WKHQGHIHQGDQWVFDQEHSXWLQ WKHVDPHPhilip MorrisW\SHSRVLWLRQRIGHIHQGLQJDFDVHZKHUHPDQ\RIWKHOLWLJDQWV DUH QRW SURSHUO\ EHIRUH WKH FRXUW 4XLWH VLPSO\ WKLV UHVXOW UXQV DIRXO RI WKH 'XH 3URFHVV&ODXVHDVLQWHUSUHWHGE\WKH&RXUWLQPhilip Morris &RPPRQDOLW\WKHQLVDPXFKGHHSHUFRQFHSWWKDQVLPSO\WKDWZKLFKLVVHWIRUWK LQWKH)HGHUDO5XOHV$ODFNRIFRPPRQDOLW\LQDV\VWHPLFODZVXLWSXWVWKHGHIHQGDQW LQDQXQWHQDEOHSRVLWLRQDQGFDQVWULSLWRILWVULJKWVWRQRWLFHDQGWKHRSSRUWXQLW\WR EHKHDUG$VLQPhilip MorrisZKHUHDGHIHQGDQWLVIRUFHGWRDGGUHVVDFODVVDFWLRQ ODZVXLWWKDWKDVQRFRPPRQWKUHDGKROGLQJLWWRJHWKHUWKDWGHIHQGDQWLVHVVHQWLDOO\ Id.DW± Id.DW Id.DW Id. Id. Id. Id.DW Id.DW Id.DW Id. INDIANA LAW JOURNAL >9RO EHLQJ UHTXLUHG WR GHIHQG DJDLQVW XQGHILQHG WKLUGSDUW\ KDUP ,QGHHG DW WKH HDUO\ VWDJHVRIWKHFODVVDFWLRQKXQGUHGVRUWKRXVDQGVRIWKHFODLPVPD\QRWKDYHEHHQ FOHDUO\LGHQWLILHGDQGWKHSRWHQWLDOKDUPLQYROYHGLVRIWHQLPSUHFLVHDWEHVW -XVW DV WKH 6XSUHPH &RXUW LQ Philip Morris KDG GXH SURFHVV FRQFHUQV DERXW WKLUGSDUW\KDUPVLPLODUFRQFHUQVSHUYDGHWKHWal-MartGHFLVLRQVSHFLILFDOO\DQG FODVVDFWLRQVPRUHJHQHUDOO\7KH&RXUW¶VGHFLVLRQLQWal-MartUDLVHVPDQ\RIWKHVH GXHSURFHVVFRQFHUQV7KH&RXUW¶VUHDVRQLQJLVLQPDQ\ZD\VGLUHFWO\OLQNHGWRWKH GHIHQGDQW¶VLQDELOLW\WRSURSHUO\UHVSRQGWRDPDVVLYHDPRUSKRXVODZVXLW7KH&RXUW KLJKOLJKWHGWKHPDPPRWKVL]HRIWKHOLWLJDWLRQWKURXJKRXWLWVGHFLVLRQHPSKDVL]LQJ WKH GLIILFXOW\ D GHIHQGDQW FRXOG KDYH UHVSRQGLQJ WR VXFK DOOHJDWLRQV 7KH &RXUW UHSHDWHGO\ QRWHG WKH HQRUPLW\ RI ³:DO0DUW¶V VL]H DQG JHRJUDSKLFDO VFRSH´ UHFRJQL]LQJWKDWWKHFODLPVDJDLQVWWKHGHIHQGDQWLQYROYHGWKRXVDQGVRIVWRUHVDFURVV DOOILIW\VWDWHVZLWKDYDULHW\RIGLIIHUHQWVXSHUYLVRUV7KH&RXUWZDVREYLRXVO\ FRQFHUQHG ZLWKWKHHPSOR\HU¶VDELOLW\WRUHVSRQGWRZKDWLWFRLQHGDV³RQHRIWKH PRVWH[SDQVLYHFODVVDFWLRQVHYHU´ 7KLVLVQRWWRVD\WKDWDOOODUJHFODVVDFWLRQFODLPVIDLOWRSURYLGHGXHSURFHVVWR WKHGHIHQGDQW+RZHYHUDODFNRIFRPPRQDOLW\LQDV\VWHPLFFDVHFDQXQGHUPLQHD FRPSDQ\¶V DELOLW\ WR SURSHUO\ GHIHQG LWVHOI 6\VWHPLF FODLPV PD\ DOVR IRUFH GHIHQGDQWVWRVHWWOHDFDVHWRDYRLGWKHSRVVLELOLW\RIEDQNUXSWLQJWKHFRPSDQ\ $W WKH HQG RI WKH GD\ WKH VLPLODULW\ EHWZHHQ Wal-Mart DQG Philip Morris LV VWULNLQJ%RWKFDVHVUDLVHWKHSRWHQWLDOIRUGHIHQGDQWVWRKDYHWRUHVSRQGWRWKLUGSDUW\ KDUPIRUZKLFKWKHUHLVLQDGHTXDWHHYLGHQFHDWWKHWLPHRIWKHODZVXLW%RWKFDVHV UDLVH GXH SURFHVV FRQFHUQV IRU WKH GHIHQGDQW ZKR PD\ EH XQDEOH WR DGHTXDWHO\ UHVSRQGWRWKHYDJXHDQGYDULHGDOOHJDWLRQVLQWKHFDVH$QGERWKFDVHVLQYROYHWKH TXHVWLRQ RI SURYLGLQJ UHOLHI IRU LQGLYLGXDOV ZKR DUH QRW SURSHUO\ SDUWLHV WR WKH OLWLJDWLRQPhilip MorrisWKXVGHPRQVWUDWHVWKHSRWHQWLDOFRQVWLWXWLRQDOLPSOLFDWLRQV RIWKHWal-MartGHFLVLRQ7KRXJKWKHVHLPSOLFDWLRQVZHUHQRWH[SUHVVO\HQXQFLDWHG E\WKHWal-Mart&RXUWWKH\SHUPHDWHWKH&RXUW¶VUHDVRQLQJ Exxon Shipping Co.DQG3XQLWLYH'DPDJHV5DWLRV -XVW OLNH WKH Philip Morris GHFLVLRQ Exxon Shipping Co. v. Baker UDLVHV FRQVWLWXWLRQDOLVVXHVWKDWDUHGLUHFWO\DQDORJRXVWRWKHWal-MartGHFLVLRQ,QExxon WKH&RXUWDGGUHVVHGWKHDSSURSULDWHUDWLRRISXQLWLYHGDPDJHDZDUGVZLWKUHVSHFWWR FRPSHQVDWRU\GDPDJHV7KHFDVHLQYROYHGWKHLQIDPRXVExxon ValdezVXSHUWDQNHU WKDWVSLOOHGJDOORQVRIRLOLQWR3ULQFH:LOOLDP6RXQGFUHDWLQJXQWROGHQYLURQPHQWDO DQGSK\VLFDOGDPDJHWRWKHDUHD7KHFDSWDLQRIWKHVKLS-RVHSK+D]HOZRRGZDVD UHFRYHULQJDOFRKROLFDQGKDGFRQVXPHG³DWOHDVWILYHGRXEOHYRGNDV´WKHHYHQLQJRI :DO0DUW6WRUHV,QFY'XNHV6&W Id. DW Id. DW See 0F5H\QROGVY0HUULOO/\QFK3LHUFH)HQQHU6PLWK,QF)G WK&LUGLVFXVVLQJSRWHQWLDORIDODUJHFODVVDFWLRQWR³IRUFH>@´DEXVLQHVV³WRVHWWOH´WRDYRLG ULVNLQJ³RQH¶VFRPSDQ\RQDVLQJOHMXU\YHUGLFW´cert. denied6&W ([[RQ6KLSSLQJ&RY%DNHU86± Id.DW @ COMMONALITY AND THE CONSTITUTION WKHGLVDVWHU([[RQVSHQWELOOLRQVRIGROODUVFOHDQLQJXSDIWHUWKLVXQSUHFHGHQWHG VSLOODQGDOVRSOHDGHGJXLOW\WRQXPHURXVIHGHUDOODZV²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³IDLUXSSHUOLPLW LQPDULWLPHFDVHV´DQGYDFDWHGWKHMXGJPHQWZLWKLQVWUXFWLRQVWRWKHORZHUFRXUW WR DGMXVW WKH SXQLWLYH GDPDJH DZDUG DFFRUGLQJO\ 7KH &RXUW DGGUHVVHG WKH FRQVWLWXWLRQDOLPSOLFDWLRQVWKDWZRXOGIORZIURPSHUPLWWLQJDJUHDWHUDZDUGQRWLQJ WKDWWKHUDWLRWKDWLWDSSURYHGOLNHO\UHSUHVHQWHG³WKHFRQVWLWXWLRQDORXWHUOLPLW´ $Q\WKLQJJUHDWHUZRXOGEHH[FHVVLYHDQGZRXOGYLRODWHWKHOLPLWVRIGXHSURFHVV ,QLWVGHFLVLRQWKH&RXUWDOVRUHIHUHQFHGLWVSULRUMXULVSUXGHQFHUHJDUGLQJSXQLWLYH GDPDJHVDQGWKH'XH3URFHVV&ODXVHRIWKH)RXUWHHQWK$PHQGPHQW ,QBMW of North America, Inc. v. Gore WKH &RXUW SURYLGHG JHQHUDO JXLGHOLQHV IRU WKH ORZHU FRXUWVWRIROORZWRDVVXUHWKDWDSXQLWLYHGDPDJHDZDUGFRPSOLHGZLWKGXHSURFHVV SULQFLSOHV 6LPLODUO\ LQ State Farm Mutual Automobile Insurance Co. v. Campbell WKH &RXUW H[SDQGHG RQ WKH DSSOLFDWLRQ RI WKHVH JXLGHSRVWV DQG FRQFOXGHGWKDWDQ\WKLQJJUHDWHUWKDQDVLQJOHGLJLWSXQLWLYHWRDFWXDOGDPDJHUDWLR PD\UHSUHVHQWDQH[FHVVLYHDZDUG³:KHQFRPSHQVDWRU\GDPDJHVDUHVXEVWDQWLDO Id.DW Id.DW Id. Id. Id. Id.DW Id.DW Id. Id. Id. Id.DW Id.DW± Id.DWQ Id.DW Exxon86 86± 86 Id.DWVWDWLQJWKDW³IHZDZDUGVH[FHHGLQJDVLQJOHGLJLWUDWLREHWZHHQSXQLWLYH INDIANA LAW JOURNAL >9RO WKHQ D OHVVHU UDWLR SHUKDSV RQO\ HTXDO WR FRPSHQVDWRU\ GDPDJHV FDQ UHDFK WKH RXWHUPRVWOLPLWRIWKHGXHSURFHVVJXDUDQWHH´ ,QExxonWKHQDVZHOODVLQWKHOLQHRI6XSUHPH&RXUWGHFLVLRQVEHIRUHLWWKH 6XSUHPH &RXUW DUWLFXODWHG WKH GXH SURFHVV VWDQGDUGV DVVRFLDWHG ZLWK VXEMHFWLQJ GHIHQGDQWVWRXQSUHFHGHQWHGKDUPExxonKROGVWKDWDUDWLRRISXQLWLYHWRDFWXDO GDPDJHV OLNHO\ UHSUHVHQWV WKH FRQVWLWXWLRQDO OLPLWV LQ PDULWLPH FDVHV DQG IXUWKHU QRWHV WKDW DQ\WKLQJ JUHDWHU WKDQ D UDWLR LQ DQ\ FDVH ZLOO OLNHO\ SXVK WKH ERXQGDULHVRIGXHSURFHVV,QVLPSOHWHUPVDGHIHQGDQWVKRXOGQRWH[SHFWWREH VXEMHFWHGWRPRUHWKDQWHQWLPHVWKHKDUPWKDWLWFUHDWHVDQGH[SRVLQJDFRPSDQ\WR JUHDWHUGDPDJHVZRXOGYLRODWHWKH&RQVWLWXWLRQ,QExxonGoreDQGState FarmWKH 6XSUHPH&RXUWHQFRXQWHUHGIDFWXDOVFHQDULRVZKHUHODUJHFRPSDQLHVZHUHH[SRVHG LQWKHILUVWLQVWDQFHWRVWDUWOLQJSXQLWLYHDZDUGVPHDQWWRSXQLVKFRPSHQVDWHDQG GHWHUIXWXUHFRQGXFW:KLOHWKH&RXUWQRWHGWKDWSXQLWLYHGDPDJHVGRVWLOOSOD\DYLWDO UROH LQ $PHULFDQ MXULVSUXGHQFH WKH DPRXQW RI WKHVH DZDUGV LV QRQHWKHOHVV FRQVWUDLQHGE\WKH&RQVWLWXWLRQ7KH&RXUWFUHDWHGJHQHUDOJXLGHOLQHVWRDGYLVHWKH ORZHUFRXUWVRQWKHDSSURSULDWHOLPLWVLQWKLVUHJDUG ,Q Exxon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²DQG WKH SODLQWLIIV DUH LOOGHILQHG DQG WKHUH LV QR FRPPRQ QXFOHXV RI IDFWV²WKH FRPSDQ\ LV XQIDLUO\ DQG XQMXVWO\ KDUPHG 7KLV KDUP WDNHV RQ D FRQVWLWXWLRQDOGLPHQVLRQZKHQGHIHQGDQWVDUHVWULSSHGRIWKHLUIDLUQRWLFH$YDJXH DQGDPRUSKRXVV\VWHPLFFODLPEURXJKWE\WHQVRIWKRXVDQGVRILQGLYLGXDOVFDQWKXV URE GHIHQGDQWV RI WKHLU GXH SURFHVV JXDUDQWHHV $ GHIHQGDQW IDFLQJ WKLV W\SH RI OLWLJDWLRQZLOORIWHQKDYHOLWWOHFKRLFHRWKHUWKDQWRLQIRUPDOO\UHVROYHWKHGLVSXWH -XVWDVLQExxonWKHQFODVVDFWLRQFODLPVFDUU\DFRQVWLWXWLRQDOGLPHQVLRQWKDW WKUHDWHQVWRVXEMHFWWKHGHIHQGDQWWRXQIDLUKDUPExxonDQGWKHOLQHRIFDVHVEHIRUH LW UHSUHVHQW WKH 6XSUHPH &RXUW¶V GHVLUH WR SXW OLPLWV RQ WKH GDPDJHV WR ZKLFK D GHIHQGDQWFDQEHVXEMHFWHG:KHUHDSXQLWLYHGDPDJHDZDUGLVGLVSURSRUWLRQDWHLW YLRODWHV GXH SURFHVV JXDUDQWHHV &ODVVDFWLRQ FDVHV SUHVHQW WKH VDPH FRQFHUQV :KHUHDFODLPODFNVFRPPRQDOLW\GHIHQGDQWVZLOOEHXQDEOHWRSURSHUO\GLVSXWHWKH DOOHJDWLRQV6\VWHPLFOLWLJDWLRQZLWKQRFRPPRQERQGIRUFHVDGHIHQGDQWWREDWWOH DQGFRPSHQVDWRU\GDPDJHVWRDVLJQLILFDQWGHJUHHZLOOVDWLVI\GXHSURFHVV´ Id.DW7KH&RXUWIXUWKHUSURYLGHGWKDW³>V@LQJOHGLJLWPXOWLSOLHUVDUHPRUHOLNHO\ WRFRPSRUWZLWKGXHSURFHVV´Id SeeExxon86DW± Seeid. Seeid.DWid.DW±³>$@VLQJOHGLJLWPD[LPXPLVDSSURSULDWHLQDOOEXWWKH PRVWH[FHSWLRQDORIFDVHV´FLWLQJState Farm86DW Seeid.DW± See+D\5RVHQEHUJsupraQRWHDW³&ODVVDFWLRQVVHWWOHPRVWRIWKH WLPH´ @ COMMONALITY AND THE CONSTITUTION ZLWKWHQVRIWKRXVDQGVRISODLQWLIIVRUPRUHLQWKHFRXUWVZLWKYDU\LQJIDFWVDQG FODLPV7KLVW\SHRIOLWLJDWLRQFDQSXVKWKHERXQGDULHVRIGXHSURFHVVDVZHOO ,QExxonWKH6XSUHPH &RXUWUHFRJQL]HGLQFODVVDFWLRQOLWLJDWLRQ WKDWSXQLWLYH GDPDJHVDUHDSSURSULDWHXQGHUWKHULJKWVHWRIFLUFXPVWDQFHV+RZHYHUWKH&RXUW ZDUQHGWKDWH[FHVVLYHGDPDJHVGRQRWFRPSO\ ZLWKWKH&RQVWLWXWLRQ6LPLODUO\ FODVVDFWLRQ OLWLJDWLRQ DOVR KDV D UROH LQ $PHULFDQ MXULVSUXGHQFH ZKHQ GRQH DSSURSULDWHO\ DQG LQ FRPSOLDQFH ZLWK )HGHUDO 5XOH RI &LYLO 3URFHGXUH :KHUH V\VWHPLF OLWLJDWLRQ GRHV QRW FRPSO\ ZLWK WKH )HGHUDO 5XOHV DQG ODFNV VXIILFLHQW FRPPRQDOLW\WKHRXWHUOLPLWVRIWKH&RQVWLWXWLRQDUHEUHDFKHGWal-MartUHSUHVHQWV WKH EHVW H[DPSOH RI KRZ FODVVDFWLRQ OLWLJDWLRQ FDQ UXQ DIRXO RI WKH 'XH 3URFHVV &ODXVH7KHGHIHQGDQWLQWKDWFDVHFRXOGQRWSURSHUO\GHIHQGWKHHQRUPRXVOLWLJDWLRQ EURXJKWDJDLQVWLWZKHUHWKHOLWLJDWLRQKDGQRFRPPRQWKUHDG 7KHExxonGHFLVLRQMXVWOLNHPhilip MorrisLOOXVWUDWHVKRZLOOGHILQHGPDVVLYH FODLPVFDQOLPLWWKHGHIHQGDQW¶VULJKWWRQRWLFHDQGDQRSSRUWXQLW\WREHKHDUG7KH VXEVWDQWLYH GXH SURFHVV FRQFHUQV UDLVHG E\ WKHVH UHFHQW 6XSUHPH &RXUW GHFLVLRQV WKXVSHUYDGHV\VWHPLFOLWLJDWLRQDVZHOO ,,,&5,7,48,1*7+(WAL-MART&2167,787,21$/$5*80(17 )URPExxonDQGPhilip MorrisWKHQDFRQVWLWXWLRQDODUJXPHQWEHJLQVWRHPHUJH IURPWKHWal-MartGHFLVLRQ7KLVDUJXPHQWSURYLGHVWKDWZKHUHDFODVVDFWLRQFDVH ODFNV VXIILFLHQW FRPPRQDOLW\ WKH GHIHQGDQW LV GHSULYHG RI GXH SURFHVV XQGHU WKH &RQVWLWXWLRQ)URPDSUDFWLFDOVWDQGSRLQWWKLVPHDQVWKDWWal-Mart¶VLQWHUSUHWDWLRQ RIWKHFRPPRQDOLW\VWDQGDUGZRXOGDSSO\QRWRQO\WRFDVHVEURXJKWLQWKHIHGHUDO FRXUWVEXWWRV\VWHPLFVWDWHFDXVHVRIDFWLRQDVZHOO7KLVDUJXPHQWKDVWZRPDMRU FRPSRQHQWV ZKLFK DUH GHULYHG IURP WKH SULQFLSOHV HQXQFLDWHG LQ WKH 6XSUHPH &RXUW¶VUHFHQWGXHSURFHVVGHFLVLRQVGLVFXVVHGDERYH 7KH Wal-Mart FRQVWLWXWLRQDO DUJXPHQW VSHFLILHV WKDW WR VDWLVI\ GXH SURFHVV D V\VWHPLFFODLPPXVWDSURYLGHSURSHUQRWLFHWRWKHGHIHQGDQWDQGEQRWVXEMHFW WKHGHIHQGDQWWRXQUHDVRQDEOHRUXQH[SHFWHGKDUP7KHDUJXPHQWIXUWKHUPDLQWDLQV WKDWWal-MartFUHDWHVDFRQVWLWXWLRQDOIORRU7KH6XSUHPH&RXUW¶VGHFLVLRQGHILQHG FRPPRQDOLW\DQGDQ\ V\VWHPLFFODLPVWKDWIDLOWRVDWLVI\WKDWGHILQLWLRQFDQQRW PHHWWKHGXHSURFHVVJXDUDQWHHV7KLVFRQVWLWXWLRQDODUJXPHQWWKXV PDLQWDLQVWKDW Wal-Mart¶V GHILQLWLRQ RI FRPPRQDOLW\ H[WHQGV EH\RQG WKH )HGHUDO 5XOHV RI &LYLO 3URFHGXUHDQGDSSOLHVWRDOOVWDWHFODVVDFWLRQFODLPVDVZHOO 7KHWal-MartFRQVWLWXWLRQDODUJXPHQWLVSUHPLVHGRQWZRSULPDU\DVSHFWVRIWKH Exxon DQG Philip Morris GHFLVLRQV GLVFXVVHG DERYH 7KHVH WZR SULQFLSOHV²DV DSSOLHGVSHFLILFDOO\WRFODVVDFWLRQFODLPV²DUHDGGUHVVHGLQPRUHGHWDLOEHORZ See Exxon86 See id. DW. See :DO0DUW6WRUHV,QFY'XNHV6&W Seeid.DW INDIANA LAW JOURNAL >9RO A. Third-Party Harm :KHUH D FODVVDFWLRQ FODLP ODFNV VXIILFLHQW FRPPRQDOLW\ WKH GHIHQGDQWV DUH IRUFHGWRUHVSRQGWRWKLUGSDUW\KDUPLQWKHFDVH7KLVUHTXLUHVWKHOLWLJDQWVWRGHIHQG DJDLQVWSDUWLHVZKRDUHQRWSURSHUO\EHIRUHWKHFRXUW:LWKRXWDQ\³JOXHKROGLQJWKH DOOHJHG UHDVRQV´ IRU WKH FODLPV WRJHWKHU D FODLP ODFNLQJ LQ FRPPRQDOLW\ PDNHV FODVVDFWLRQ SODLQWLIIV XQDEOH WR ³SURGXFH D FRPPRQ DQVZHU WR >DQ\@ FUXFLDO TXHVWLRQ´LQWKHFDVH5DWKHUWKHTXHVWLRQVLQYROYHGZRXOGEHXQLTXHWRHDFKFDVH DQGWKHDQDO\VLVZRXOGSURFHHGRQDPXFKPRUHLQGLYLGXDOL]HGEDVLV :KHUHWKHUHLVLQVXIILFLHQWFRPPRQDOLW\LQDFDVHWKHQWKHGXHSURFHVVSULQFLSOHV GLVFXVVHGLQPhilip MorrisDUHYLRODWHG:LWKRXWFRPPRQDOLW\WKHFDVHWDNHVRQD ³VWDQGDUGOHVV GLPHQVLRQ´ WKDW LV DOPRVW LPSRVVLEOH IRU WKH SDUWLHV WR GHIHQG DJDLQVWPhilip MorrisFDOOVLQWRTXHVWLRQWKHDELOLW\RISODLQWLIIVWRXVHWKLUGSDUW\ KDUP LQ WKH FDVH :KHUH FODLPV ODFN DQ\ FRPPRQ WKUHDG GHIHQGDQWV DUH HVVHQWLDOO\UHTXLUHGWRVKRZZK\FHUWDLQSODLQWLIIV²ZKRDUHQRWSURSHUO\EHIRUHWKH FRXUW²DUHQRWHQWLWOHGWRUHOLHI'HIHQGLQJDJDLQVWWKLVW\SHRIWKLUGSDUW\KDUPUXQV DIRXORIWKH&RQVWLWXWLRQDVUHFHQWO\GHILQHGE\WKH&RXUW B. Lack of Notice :KHUHWKHUHLV DODFNRIFRPPRQDOLW\LQWKHFDVHWKHGHIHQGDQWZLOOQRWKDYHFOHDU NQRZOHGJHRIWKHFODLPVDJDLQVWLW:KHUHWKHV\VWHPLFOLWLJDWLRQLVLOOGHILQHGWKH SDUWLHV FDQ EH OHIW WR GHIHQG DJDLQVW DPRUSKRXV FODLPV Exxon SUHVHQWV WKH EHVW H[DPSOH RI WKLV FRQVWLWXWLRQDO SULQFLSOH :KHUH GHIHQGDQWV DUH VXEMHFWHG WR FDWDVWURSKLF GDPDJHV ZLWK QR GLUHFW FRUUHODWLRQ WR WKH KDUP FDXVHG WKH QRWLFH FRPSRQHQWRIWKH'XH3URFHVV&ODXVHLVYLRODWHG 7KH&RXUW¶VGHFLVLRQLQExxonFOHDUO\KROGVWKDWSXQLWLYHUHOLHILQDFDVHPXVWEH SURSRUWLRQDO WR WKH KDUP FDXVHG $ GHIHQGDQW PXVW KDYH VRPH QRWLFH²DQG UHDVRQDEOHH[SHFWDWLRQ²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xxonWKXVSHUYDGHFODVVDFWLRQODZDQGWKHGHIHQGDQWPXVWKDYH SURSHUQRWLFHRIWKHFRQWRXUVRIWKHV\VWHPLFFODLPWKDWLVEHLQJEURXJKWDJDLQVWLW Id.HPSKDVLVRPLWWHG 3KLOLS0RUULV86$Y:LOOLDPV86 See Philip Morris86DW See([[RQ6KLSSLQJ&RY%DNHU86 See Exxon86DW @ COMMONALITY AND THE CONSTITUTION C. The Constitutional Dimension 7KHQRWLFHUHTXLUHPHQWVDQGSURKLELWLRQDJDLQVWWKLUGSDUW\KDUPWKXVIRUPWKH EDVLVRIWKHGXHSURFHVVUHTXLUHPHQWVIRUFODVVDFWLRQFODLPV6RPHGHIHQGDQWVKDYH DOUHDG\EHJXQWRDUJXHWKDWWKH6XSUHPH &RXUW¶VGHFLVLRQ LQ Wal-MartFRQWDLQVD FRQVWLWXWLRQDOGLPHQVLRQDVZHOO7KHVHGHIHQGDQWVKDYHWKXVDWWHPSWHGWRDUJXH WKDW WKH FRPPRQDOLW\ VWDQGDUG FUHDWHG E\ WKH 6XSUHPH &RXUW LQ Wal-Mart DOVR FUHDWHVGXHSURFHVVJXDUDQWHHVIRUGHIHQGDQWV,QHVVHQFHWKLVDUJXPHQWPDLQWDLQV WKDW WKH Wal-Mart GHILQLWLRQ RI FRPPRQDOLW\ FUHDWHV D FRQVWLWXWLRQDO IORRU IRU FODVVDFWLRQFODLPV 7KLVWal-MartFRQVWLWXWLRQDODUJXPHQWLVDOUHDG\SHUFRODWLQJLQWKHFRXUWVDQG ³>G@HIHQGDQWV KDYH DOUHDG\ EHJXQ WR UDLVH WKH FRQVWLWXWLRQDOL]HG FRPPRQDOLW\ DUJXPHQWLQDZLGHUDQJH´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allFODVVDFWLRQFODLPVQRW MXVWWKRVHEURXJKWLQIHGHUDOFRXUW ,QLubin v. Wackenhut Corp.WKH/RV$QJHOHV&RXQW\6XSHULRU&RXUWDGGUHVVHG ZKHWKHU D ZDJHKRXU FODLP EURXJKW E\ QRQH[HPSW VHFXULW\ RIILFHUV VKRXOG EH FHUWLILHG ,Q LWV DPLFXV EULHI ILOHG LQ WKH &DOLIRUQLD &RXUW RI $SSHDOV WKH 86 &KDPEHURI &RPPHUFHDUJXHGWKDWHYHQWKRXJK ³WKH Wal-MartFRXUWFHQWHUHGLWV GHFLVLRQRQWKH5XOHV(QDEOLQJ$FWVXFKFODVVDFWLRQSURFHGXUDOµSURWHFWLRQV>DUH@ JURXQGHGLQGXHSURFHVV¶´6LPLODUO\LQJacobsen v. Allstate Insurance Co.WKH See, e.g.6WUDZQY)DUPHUV,QV&RRI2U3G2UGLVFXVVLQJ FODVV DFWLRQ VWDQGDUGV LQ VWDWH ODZ FDXVH RI DFWLRQ cert. denied 6 &W 6DPXHO%DVVHWWY.LD0RWRUV$P,QF$G3DVDPHcert. denied 6 &W -RKQ + %HLVQHU 5REHUW 63HFN Emerging Civil Justice Issues -/ (&21 32/¶<FLWLQJFDVHVZKHUHWKH6XSUHPH&RXUWKDVGHQLHGFHUWLRUDUL RQWKHTXHVWLRQRIZKHWKHUWKHWal-MartVWDQGDUGDSSOLHVWRVWDWHFDXVHVRIDFWLRQ See %HLVQHU3HFNsupraQRWHDW± 5RVHQWKDOsupraQRWHDW See 5RVHQWKDO supraQRWHDW. See, e.g.%HLVQHU3HFNsupraQRWHDW³7KH&RXUWKDGVHHQDVHULHVRIFHUW SHWLWLRQVRYHUWKHSDVW\HDUWKDWKDGDVNHGWKH>&@RXUWWRWU\WRLPSRVHWKHLUYLHZDVH[SUHVVHG LQWalmartRQWKHVWDWHVDVDPDWWHURIGXHSURFHVV´ See/XELQY:DFNHQKXW&RUS1R%&DO&W$SSDSSHDOGRFNHWHG2FW DPLFXVEULHIE\&KDPEHURI&RPPHUFH'XUDQY86%DQN1DW¶O$VV¶Q&DO 5SWUG&W$SSDPLFXVEULHIE\&KDPEHURI&RPPHUFHvacated3G &DO-DFREVHQY$OOVWDWH,QV&R3G0RQWDPLFXVEULHIE\(TXDO (PSOR\PHQW $GYLVRU\ &RXQFLO cert. denied 6 &W See generally 5RVHQWKDOsupraQRWHDWGLVFXVVLQJLVVXHRIFRQVWLWXWLRQDOL]LQJFRPPRQDOLW\ /XELQY:DFNHQKXW&RUS1R%//$&QW\6XS&W$XJ appeal docketed1R%DW&DO&W$SS2FW $PLFL&XULDH%ULHIRI&KDPEHURI&RPPHUFHRIWKH8QLWHG6WDWHVRI$PHULFDHWDO INDIANA LAW JOURNAL >9RO 0RQWDQD6XSUHPH&RXUWDGGUHVVHGZKHWKHUDFODVVFODLPFRXOGEHFHUWLILHGRQWKH EDVLV RI DQ LQVXUDQFH FDUULHU¶V FODLP DGMXVWPHQW JXLGHOLQHV WKDW DOOHJHGO\ GLVFULPLQDWHG DJDLQVW XQUHSUHVHQWHG SDUWLHV 7KH (TXDO (PSOR\PHQW $GYLVRU\ &RXQFLO ILOHG DQ DPLFXV EULHI LQ D SHWLWLRQ IRU FHUWLRUDUL EHIRUH WKH 86 6XSUHPH &RXUW7KDWSHWLWLRQPDLQWDLQHGWKDWWKHUHTXLUHPHQWVRI5XOHDQGWKHWal-Mart GHFLVLRQ ³DUH LQWHQGHG WR FRPSRUW ZLWK IHGHUDO FRQVWLWXWLRQDO SULQFLSOHV RI GXH SURFHVVGHVLJQHGWRµHIIHFWLYHO\OLPLWWKHFODVVFODLPVWRWKRVHIDLUO\HQFRPSDVVHG E\WKHQDPHGSODLQWLII¶VFODLPV¶´ 7KH LVVXH ZDV DOVR UHFHQWO\ UDLVHG²VRPHZKDW LURQLFDOO\²LQ DQRWKHU FDVH LQYROYLQJWKHVDPHHPSOR\HUBraun v. Wal-Mart Stores, Inc.LQ3HQQV\OYDQLDVWDWH FRXUW ,Q WKDW FDVH WKH 3HQQV\OYDQLD 6XSUHPH &RXUW DSSURYHG D PLOOLRQ DZDUG LQ D FODVVDFWLRQ ZDJH GLVSXWH LQYROYLQJ DOPRVW HPSOR\HHV :DO0DUWVRXJKWFHUWLRUDULLQWKHFDVHDVNLQJWKDWWKHKROGLQJRIWKHDukesGHFLVLRQ DQGGXHSURFHVVSULQFLSOHVEHDSSOLHGWRWKLVVWDWHFRXUWDFWLRQ7KH86&KDPEHU RI&RPPHUFHVLPLODUO\ILOHGDQDPLFXVEULHIDVNLQJWKH&RXUWWRFRQVLGHUWKHLVVXH DVZHOO D. Why the :DO0DUW “Constitutional Argument” Fails 7KRXJK LW KDV \HW WR IRUP WKH EDVLV RI D PDMRU FRXUW RSLQLRQ WKH Wal-Mart FRQVWLWXWLRQDO DUJXPHQW LV FRPSHOOLQJ $V GLVFXVVHG DERYH 5XOH KDV KDG D FRQVWLWXWLRQDO GLPHQVLRQ VLQFH LWV LQFHSWLRQ DQG WKHUH FDQ EH QR GRXEW WKDW DOO GHIHQGDQWVDUHHQWLWOHGWRFHUWDLQGXHSURFHVVJXDUDQWHHV$QGWKHUXOHLWVHOIZDVSXW LQSODFHDWOHDVWLQSDUWWRSURWHFWWKHLQWHUHVWVRIGHIHQGDQWV1RQHWKHOHVVWKH Wal-MartFRQVWLWXWLRQDODUJXPHQWIDLOVIRUVHYHUDOLPSRUWDQWUHDVRQV:KLOHLWLVWUXH WKDW DOO SDUWLHV DUH HQWLWOHG WR QRWLFH DQG DQ RSSRUWXQLW\ WR EH KHDUG WKH 6XSUHPH &RXUW¶V GHFLVLRQ LQ WKH FDVH IDLOV WR DGGUHVV WKH FRQVWLWXWLRQDO OLPLWV RI WKH FRPPRQDOLW\ UHTXLUHPHQW 7KH &RXUW GLG QRW LQWHQG IRU WKH FDVH WR FUHDWH D LQ6XSSRUWRI'HIHQGDQWDQG5HVSRQGHQW/XELQY:DFNHQKXW&RUS1R%&DO&W $SS )HE :/ DW DOWHUDWLRQ LQ RULJLQDO FLWDWLRQ RPLWWHG TXRWLQJ7D\ORUY6WXUJHOO86 Jacobsen3G %ULHI $PLFXV &XULDH RI WKH (TXDO (PSOR\PHQW $GYLVRU\ &RXQFLO LQ 6XSSRUW RI 3HWLWLRQHU $OOVWDWH ,QV &R Y -DFREVHQ 6 &W 1R :/ Id.DWTXRWLQJ:DO0DUW6WRUHV,QFY'XNHV6&W $G3Dpetition for cert. filed86/:860DU Id. DW . 3HWLWLRQ IRU :ULW RI &HUWLRUDUL :DO0DUW 6WRUHV ,QF Y %UDXQ1R 86 0DU-DQH09RQ%HUJHQWal-Mart Wants U.S. Supreme Court to Overturn Pa’s. Wage Case 3+,//<&20 0DU KWWSDUWLFOHVSKLOO\FRPEXVLQHVV BBSHQQV\OYDQLDVXSUHPHFRXUWIRUPHUHPSOR\HHMXU\>SHUPDFF)6%;@ %ULHI RI WKH &KDPEHU RI &RPPHUFH RI WKH 8QLWHG 6WDWHV RI $PHULFD %XVLQHVV 5RXQGWDEOHDV$PLFL&XULDHLQ6XSSRUWRI3HWLWLRQHUV:DO0DUW6WRUHV,QFY%UDXQ1R 86$SU See 0LFKHOVHQsupraQRWHGLVFXVVLQJWKHSXUSRVHRI5XOH6RPHUVsupraQRWH VDPH @ COMMONALITY AND THE CONSTITUTION FRQVWLWXWLRQDOEHQFKPDUNIRUFRPPRQDOLW\1RZKHUHLQWKH&RXUW¶VGHFLVLRQGRHVLW SXUSRUW WR FUHDWH D VWDQGDUG LQ WKLV UHJDUG ,QGHHG WKH &RXUW¶V GHFLVLRQ RQ FRPPRQDOLW\QHYHUH[SUHVVO\XVHVWKHWHUPV³QRWLFH´RU³GXHSURFHVV´ ,QGHHGWKH&RXUWLVVLPSO\DGGUHVVLQJWKHIDFWVEHIRUHLWLQRQHSDUWLFXODUFDVH $QGRIQRWHWKHIDFWVRIWKDWFDVHDUHH[WUDRUGLQDULO\XQXVXDO,QGHHGDVDGGUHVVHG E\WKH&RXUWWKHWal-MartIDFWVSUHVHQW³RQHRIWKHPRVWH[SDQVLYHFODVVDFWLRQV HYHU´7KH&RXUWVHWRXWQRWWRGHILQHFRPPRQDOLW\RQDFRQVWLWXWLRQDOOHYHOEXW WR GHWHUPLQH ZKHWKHU FRPPRQDOLW\ ZDV VDWLVILHG XQGHU WKH IDFWV RI RQH H[WUHPH VLWXDWLRQ7KH&RXUWUHSHDWHGO\HPSKDVL]HGWKHHQRUPRXVVL]HDQGJHRJUDSKLFVFRSH RIWKHGHFLVLRQ7KLVHPSKDVLVFOHDUO\VKRZVWKDWWKH&RXUWZDVFRQFHUQHGQRWZLWK WKH FRQVWLWXWLRQDO GLPHQVLRQ RI WKH FDVH EXW ZLWK WKH VSHFLILF DQG XQXVXDO IDFWV EHIRUHLW )RUH[DPSOHWKH&RXUWQRWHGWKDWWKHFRPSDQ\ ³RSHUDWHVDSSUR[LPDWHO\ VWRUHVDQGHPSOR\VPRUHWKDQRQHPLOOLRQSHRSOH´7KH&RXUWDOVRVWDWHGWKDWWKHUH LVQRFRPPRQSROLF\RUSUDFWLFHDWWKHFRPSDQ\³WKDWWLHVDOOPLOOLRQFODLPV WRJHWKHU´$QGWKH&RXUWQRWHGWKDWWKHFODLPVLQYROYHGWKRXVDQGVRIORFDWLRQVDQG D³µYDULHW\RIUHJLRQDOSROLFLHVWKDWDOOGLIIHUHG¶´7RVD\WKDWWKHWal-Mart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expresslyFUHDWHDGXHSURFHVVVWDQGDUG$QGWRUHDGWKHGHFLVLRQ DVimplicitlyFUHDWLQJRQHZRXOGEHLPSURSHU'HYHORSLQJDFRQVWLWXWLRQDOVWDQGDUG IRUGXHSURFHVVZDVVLPSO\QRWWKHLVVXHEHIRUHWKH&RXUW ,QDGGLWLRQWKHFDVHLVXQLTXHEHFDXVHWKHUHLVDFRPSOHWHODFNRIFRPPRQDOLW\ XQGHUWKHIDFWVRIWKHFODLP7KHSODLQWLIIVLQWKHFDVH²DWOHDVWLQWKHYLHZRIWKH See:DO0DUW6WRUHV,QFY'XNHV6&W Id.DWSee generally6XMD$7KRPDVHow Atypical, Hard Cases Make Bad Law (See, e.g., the Lack of Judicial Restraint in :DO0DUW7ZRPEO\and5LFFL):$.()25(67 /5(9±GLVFXVVLQJWKH³DW\SLFDO´IDFWVRIWKHWal-MartFDVH See, e.g. Wal-Mart6&WDWQ Id.DW Id.DW± Id. DW TXRWLQJ 'XNHV Y :DO0DUW 6WRUHV ,QF )G .R]LQVNL&-GLVVHQWLQJ ,WLVZRUWKQRWLQJWKDWWKHPDMRULW\DQGGLVVHQWVWURQJO\GLVDJUHHGRQWKHTXDOLW\RIWKH SODLQWLII¶VHYLGHQFHRIFRPPRQDOLW\7KLV$UWLFOHGRHVQRWFULWLTXHWKHPDMRULW\¶VFRQFOXVLRQ WKDWWKHHYLGHQFHRIIHUHGZDV³ZRUOGVDZD\´IURPVDWLVI\LQJWKHFRPPRQDOLW\VWDQGDUGId.DW ,QVWHDGDVLWPXVWWKLV$UWLFOHDFFHSWVWKH&RXUW¶VYLHZRQWKHDSSDUHQWODFNRIHYLGHQFH RQWKLVTXHVWLRQDQGHPEUDFHVWKH&RXUW¶VGHFLVLRQWKDWWKHSODLQWLIIVZHUHQRWHYHQFORVHWR VDWLVI\LQJ WKH FRPPRQDOLW\ WHVW %HFDXVH WKH SODLQWLII¶V HYLGHQFH ZDV VR GHILFLHQW LQ WKLV UHJDUG LW RQO\ VHUYHV WR XQGHUVFRUH WKH IDFW WKDW WKLV FDVH LV D SRRU FKRLFH WR VHUYH DV D ³EHQFKPDUN´IRUWKHFRQVWLWXWLRQDOTXHVWLRQRIFRPPRQDOLW\XQGHU5XOH INDIANA LAW JOURNAL >9RO PDMRULW\²IDLOHGWRGHPRQVWUDWHD³JHQHUDOSROLF\RIGLVFULPLQDWLRQ´7KH³VRFLDO IUDPHZRUN´ DQG VWDWLVWLFDO HYLGHQFH RIIHUHG E\ WKH SODLQWLIIV ZDV H[SUHVVO\ GLVUHJDUGHGE\WKH&RXUW$QGWKH³FRUSRUDWHSROLF\´RI³DOORZLQJGLVFUHWLRQE\ ORFDOVXSHUYLVRUVRYHUHPSOR\PHQWPDWWHUV´IDLOVWRSURYLGHDQ\LQIHUHQFHWKDWWKH FRPSDQ\ ZDV GLVFULPLQDWLQJ RQ D QDWLRQZLGH EDVLV ,Q VXP WKH PDMRULW\ FRQFOXGHG WKDW WKH SODLQWLIIV LQ Wal-Mart ZHUH ³ZRUOGV DZD\´ IURP HVWDEOLVKLQJ FRPPRQDOLW\ 7KHIDFWVRIWal-MartWKHQSUHVHQWDQH[WUHPHFDVHZKHUHWKH&RXUWEHOLHYHG WKDWWKHFRPPRQDOLW\VWDQGDUGZDVQRWHYHQFORVHO\PHW,QWKH&RXUW¶VYLHZWKH SODLQWLIIVLQWKHFDVHZHUHODUJHO\GLVVLPLODUDQGIDLOHGWRFRPHDQ\ZKHUHQHDUWKH 5XOHDWKUHVKROG*LYHQWKHFRPSOHWHODFNRIDQ\FRPPRQWKUHDGLQWKH FDVH WKH GHFLVLRQ RIIHUV D ZKROO\ XQGHVLUDEOH YHKLFOH IRU HVWDEOLVKLQJ WKH FRPPRQDOLW\ VWDQGDUGV RQ D FRQVWLWXWLRQDO OHYHO $ EHQFKPDUN IRU FRQVWLWXWLRQDO GXHSURFHVVLQFRPSOH[OLWLJDWLRQGRHVH[LVW7KDWEHQFKPDUNKRZHYHULVVLPSO\ QRWFUHDWHGE\WKHWal-MartGHFLVLRQZKLFKRQO\JLYHVXVDQH[DPSOHRIRQHFDVH ZKHUHWKHIDFWVKDYH³µOLWWOHLQFRPPRQ¶´RWKHUWKDQWKHSODLQWLIIV¶³µVH[DQG>WKH@ ODZVXLW¶´LQTXHVWLRQ&HUWDLQO\Wal-MartSURYLGHVVRPHLQVLJKWLQWR³ZKDWLV QRW´FRPPRQDOLW\EXWLWGRHVYHU\OLWWOHWRKHOSVKHGDQ\OLJKWRQZKDWW\SHRIQRWLFH DQGRWKHUGXHSURFHVVUHTXLUHPHQWVDUHDFWXDOO\QHFHVVDU\IRUFODVVDFWLRQFODLPV 7KHFDVHGRHVQRWWHOOXVZKDWWKHPLQLPXPVWDQGDUGVRIWKH&RQVWLWXWLRQDUHIRU FRPPRQDOLW\DQGZHDUHOHIWWRVSHFXODWHRQWKLVTXHVWLRQ 0RUHRYHU LW LV ZRUWK KLJKOLJKWLQJ WKDW WKH &RXUW RQO\ UHVROYHG WKH GLVSXWH LQ Wal-Mart ZLWK UHVSHFW WR )HGHUDO 5XOH RI &LYLO 3URFHGXUH D 7KH FDVH FDQQRW²DQG VKRXOG QRW²EH UHDG DV DSSO\LQJ EH\RQG WKLV SURFHGXUDO UXOH ,Q LWV GHFLVLRQ WKH &RXUW UHSHDWHGO\ GLVFXVVHG DQG GHILQHG 5XOH D DQG HYDOXDWHG ZKHWKHUWKHSODLQWLIIVKDGVDWLVILHGWKLVVWDQGDUG7KH&RXUWH[SUHVVO\VHWIRUWKWKH HQWLUH WH[W RI WKH UXOH LQ WKH FDVH DQG LW VSHFLILFDOO\ PHQWLRQHG WKH UXOH RYHU D GR]HQWLPHVRYHUWKHFRXUVHRILWVGHFLVLRQ,QWKHFDVHWKH&RXUWQRWHGWKDWWKH ³>U@XOH¶V UHTXLUHPHQWV HIIHFWLYHO\ µOLPLW WKH FODVV FODLPV WR WKRVH IDLUO\ HQFRPSDVVHGE\WKHQDPHGSODLQWLII¶VFODLPV¶´7KH&RXUWIXUWKHUVWDWHGWKDW³>D@ SDUW\VHHNLQJFODVVFHUWLILFDWLRQPXVWDIILUPDWLYHO\GHPRQVWUDWHKLVFRPSOLDQFHZLWK WKH 5XOH´ DQG WKH &RXUW SURYLGHG WKDW ³>W@KH FUX[ RI WKLV FDVH LV FRPPRQDOLW\ >XQGHU@WKHUXOH´ ,WLVFOHDUIURP WKHGHFLVLRQ²ZKLFKUHSHDWHGO\DGGUHVVHVWKHFRQWRXUVRI 5XOH D²WKDWWKH&RXUWLVQRWLQWHQGLQJWRJREH\RQGWKLVUXOHLQLWVGHFLVLRQ7KH&RXUW Id.DW Id.DW±LQWHUQDOTXRWDWLRQPDUNVRPLWWHG Id.DWHPSKDVLVRPLWWHG Id. Id.DW Id. DW TXRWLQJ 'XNHV Y :DO0DUW 6WRUHV ,QF )G .R]LQVNL&-GLVVHQWLQJ Id.DW See Wal-Mart6&W Id.DWTXRWLQJ*HQ7HO&RRIWKH6ZY)DOFRQ86 Id.DW Id.DW @ COMMONALITY AND THE CONSTITUTION GRHVQRWSXUSRUWWRLQWHUSUHWFRPPRQDOLW\XQGHUWKH&RQVWLWXWLRQEXWUDWKHUGHILQHV WKH WHUP VSHFLILFDOO\ ZLWK UHJDUG WR 5XOH D 7KH &RXUW¶V LQWHUSUHWDWLRQ RI FRPPRQDOLW\WKHQZKLOHFULWLFDOWRFDVHVEURXJKWLQWKHIHGHUDOFRXUWVLVQRWELQGLQJ RQFODLPVEURXJKWLQVWDWHFRXUW1RUZDVLWLQWHQGHGWREH ,QVXPWKHUHFDQEHOLWWOHGRXEWWKDWFODVVDFWLRQVKDYHDFRQVWLWXWLRQDOFRPSRQHQW WKDW SURYLGHV GHIHQGDQWV ZLWK FHUWDLQ GXH SURFHVV JXDUDQWHHV 7KH Wal-Mart GHFLVLRQKRZHYHUGRHVQRWGHILQHZKDWWKHVHJXDUDQWHHVVKRXOGEH5DWKHUWKHFDVH LVH[SUHVVO\GHFLGHGXQGHU)HGHUDO5XOHRI&LYLO3URFHGXUHD²DUXOHZKLFKWKH &RXUW UHOLHV RQ UHSHDWHGO\ WKURXJKRXW WKH GHFLVLRQ $GGLWLRQDOO\ QRZKHUH LQ WKH &RXUW¶V GHFLVLRQ FDQ DQ\ GLVFXVVLRQ RI WKH GXH SURFHVV OLPLWV RI FRPPRQDOLW\ EH IRXQG1RVHULRXVDUJXPHQWFDQEH PDGHWKDW WKH &RXUW LQWHQGHGWRHVWDEOLVKD FRQVWLWXWLRQDOERXQGDU\IRUFRPPRQDOLW\ZLWKRXWH[SUHVVO\SURYLGLQJWKDWWKLVZDV ZKDWLWZDVLQWHQGLQJWRGR7KH&RXUWKDVQHYHUEHHQVK\ZKHQGHYHORSLQJWKHODZ DQGLWZRXOGEHEL]DUUH²WRVD\WKHOHDVW²IRUWKH&RXUWWRFUHDWHDQHZVWDQGDUGIRU GXHSURFHVVZLWKRXWH[SUHVVO\VD\LQJWKDWWKLVZDVLWVLQWHQW)LQDOO\DVQRWHGDERYH WKHIDFWVRIWKHWal-MartGHFLVLRQDUHH[WUHPH7KHFDVHLQYROYHVRYHURQHPLOOLRQ SXWDWLYHSODLQWLIIVDVZHOODVWKHODUJHVWSULYDWHHPSOR\HULQWKHFRXQWU\7KH&RXUW UHSHDWHGO\HPSKDVL]HVWKURXJKRXWLWVGHFLVLRQWKHXQLTXHQDWXUHRIWKHFDVHEHIRUH LW*LYHQWKHXQXVXDOFLUFXPVWDQFHVRIWKHFDVHWKHIDFWVRIWKHGHFLVLRQcannotEH FRQVWUXHGDVFUHDWLQJDQHZVWDQGDUGIRUGXHSURFHVV,WLVWUXHWKDWWKHFDVHGRHV SUHVHQWRQHH[WUHPHIDFWXDOVFHQDULRWKDWIDLOVWRVDWLVI\WKHFRPPRQDOLW\WHVWEXWLW LVGLIILFXOWWRUHDGDQ\WKLQJEH\RQGWKLVLQWRWKHFDVH $WWKHHQGRIWKHGD\LWLVFOHDUWKDWDGXHSURFHVVVWDQGDUGIRUFRPPRQDOLW\H[LVWV ,W LV HTXDOO\ DV FOHDU WKDW WKH&RXUW KDV QRW \HW GHILQHG ZKDW WKLV VWDQGDUG LV DQG Wal-MartRQO\SURYLGHGVRPHJHQHUDOJXLGDQFHRQZKDWFRPPRQDOLW\PHDQVXQGHU DVLQJOHVHWRIIDFWV$Q\DUJXPHQWWKDWWal-MartGLGPRUH²WKDWLWDFWXDOO\FUHDWHG D FRQVWLWXWLRQDO VWDQGDUG IRU FRPPRQDOLW\ LQ FODVVDFWLRQ FODLPV²PXVW IDLO Wal-Mart ZDVRQO\LQWHQGHGWRDSSO\WRIHGHUDOFODLPVEURXJKWXQGHU5XOHDQG WKHGHFLVLRQFDQQRWEHH[WHQGHGWRWKHVWDWHFRXUWV 7KLVREYLRXVO\OHDYHVWKHTXHVWLRQDVWRZKDWFRPPRQDOLW\DFWXDOO\PHDQVXQGHU WKH 'XH 3URFHVV &ODXVH ,I FODVV DFWLRQV GR KDYH D FRQVWLWXWLRQDO FRPSRQHQW WR WKHP²DVWKLV$UWLFOHDUJXHV²KRZLVFRPPRQDOLW\GHILQHGXQGHUWKHEURDGHUGXH SURFHVVWHVW"7KLV$UWLFOHSURYLGHVEHORZDIUDPHZRUNIRUFRPPRQDOLW\XQGHUWKH &RQVWLWXWLRQ :KLOH LW LV LPSRVVLEOH WR SURYLGH D FOHDU GHILQLWLRQ IRU WKH VWDQGDUG ZLWKRXWDGGLWLRQDO6XSUHPH&RXUWJXLGDQFHVRPHJHQHUDOJXLGHOLQHVFDQEHVHWIRUWK WRKHOSVKDSHWKHPHDQLQJRIFRPPRQDOLW\XQGHUWKH'XH3URFHVV&ODXVH ,9'(9(/23,1*$1250$7,9(/<)$,5'(),1,7,212)&20021$/,7< 7KRXJKWal-MartGLGQRWFUHDWHDFRQVWLWXWLRQDOVWDQGDUGIRUFRPPRQDOLW\VXFK DVWDQGDUGPXVWVWLOOH[LVW$PRUSKRXVV\VWHPLFFODLPVODFNLQJDFRPPRQQXFOHXV RIIDFWVFOHDUO\UXQDIRXORIGXHSURFHVV7KHUHPXVWWKXVEHVRPHJHQHUDOQRUPDWLYH VWDQGDUG IRU ZKDW FRPPRQDOLW\ PHDQV IURP D FRQVWLWXWLRQDO SHUVSHFWLYH $V See Wal-Mart6&W Id.DW See Wal-Mart6&W INDIANA LAW JOURNAL >9RO GLVFXVVHGDERYHGHIHQGDQWVDUHHQWLWOHGWRQRWLFHDQGDQRSSRUWXQLW\WREHKHDUG :KHUHDV\VWHPLFFODLPODFNVVXIILFLHQWFRPPRQDOLW\WKHVHGXHSURFHVVJXDUDQWHHV DUHEUHDFKHG 7KHTXHVWLRQWKXVDULVHVDVWRZKDWDQRUPDWLYHO\IDLUGHILQLWLRQRIFRPPRQDOLW\ WUXO\LV,IWal-Mart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hilip MorrisDQGExxonWKLV$UWLFOHGUDZVXSRQWKHVHGHFLVLRQV²DQG RWKHUV²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both WKHLQWHUHVWVRISODLQWLIIVDQGGHIHQGDQWV 7KHVH HOHPHQWV GUDZ XSRQ WKH Wal-Mart GHFLVLRQ DV ZHOO DV RWKHU IHGHUDO FRXUW OLWLJDWLRQ +RZHYHU Wal-Mart RQO\ VHUYHV WR KHOS GHILQH WKH HGJHV RI FRPPRQDOLW\²DVGLVFXVVHGDERYH²DQGLWGRHVQRWSURYLGHDWHVWIRUGHWHUPLQLQJ ZKHWKHUGXHSURFHVVLVVDWLVILHG ,WFDQEHXVHIXOWREUHDNGRZQHDFKRQHRIWKHVHHOHPHQWVWRGHVFULEHWKHQHFHVVLW\ RILWVLQFOXVLRQLQWKHIUDPHZRUN See supraQRWHV±DQGDFFRPSDQ\LQJWH[W @ COMMONALITY AND THE CONSTITUTION A. A Uniform Company Policy or Problem $W LWV FRUH DQ\ V\VWHPLF FODLP PXVW SUHVHQW D XQLIRUP FRPSDQ\ SROLF\ RU SUREOHP :LWKRXW FRPPRQDOLW\ DV WR D SDUWLFXODU SROLF\ RU SUREOHP WKH LVVXHV EHFRPH IDU WRR LQGLYLGXDOL]HG DQG FDQQRW EH SURSHUO\ GHIHQGHG DJDLQVW RQ D FODVVZLGHEDVLV:KHUHWKHUHLVQRFRPPRQSROLF\DWSOD\GHIHQGDQWVZLOOQRWKDYH SURSHUQRWLFHRIWKHV\VWHPLFFODLPEHIRUHWKHP'HIHQGDQWVFDQQRWEHH[SHFWHGWR OLWLJDWHWKHVHW\SHVRIFODLPVZLWKQRFRPPRQWKUHDGDQGUHTXLULQJWKHPWRGRVR ZRXOGUXQDIRXORIWKH'XH3URFHVV&ODXVH 7KHWal-MartGHFLVLRQGRHVSURYLGHVRPHJXLGDQFHRQWKLVLVVXH,QWal-Mart WKH&RXUWFRQFOXGHGWKDWWKHUHZDVQRHYLGHQFHWKDWWKHFRPSDQ\³RSHUDWHGXQGHUD JHQHUDOSROLF\RIGLVFULPLQDWLRQ´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individualizedEDVLVZKHUHWKH\FDQSURSHUO\EH GHIHQGHGDJDLQVW:KHQVXFKVXLWVDUHILOHGLQGLYLGXDOO\GHIHQGDQWVZLOOKDYHFOHDU NQRZOHGJHRIWKHIDFWVDQGDOOHJDWLRQVLQHDFKFDVH,WLVRQO\ZKHUHWKHVHVXLWVDUH EURXJKW RQ D V\VWHPLF OHYHO WKDW GXH SURFHVV LVVXHV DULVH $ FRPPRQ SROLF\ RU SUREOHPLQWKHFDVHLVWKXVDFULWLFDOHOHPHQWDQGJXLGHSRVWIRUVDWLVI\LQJGXHSURFHVV ZKHQDWWHPSWLQJWRGHILQHFRPPRQDOLW\XQGHUWKH&RQVWLWXWLRQ Wal-Mart6&WDWLQWHUQDOTXRWDWLRQPDUNVRPLWWHG See id.DW± Id. See, e.g.6FRWWY)DPLO\'ROODU6WRUHV,QF)GWK&LUILQGLQJ LQVXIILFLHQWHYLGHQFHRIJHQHUDOSROLF\RIGLVFULPLQDWLRQcert. denied6&W 5RGULJXH] Y 1DW¶O &LW\ %DQN )G ± G &LU ILQGLQJ LQVXIILFLHQW HYLGHQFH RI D JHQHUDO SROLF\ WKDW GHPRQVWUDWHG D FRPPRQ KDUP 0F5H\QROGV Y 0HUULOO /\QFK3LHUFH)HQQHU6PLWK,QF)GWK&LUILQGLQJDFRPPRQSROLF\ ZLWKUHJDUGWREURNHUFRPPLVVLRQVWKDWZDVVXIILFLHQWWRVDWLVI\WKHFRPPRQDOLW\TXHVWLRQ cert. denied6&W%ROGHQY:DOVK&RQVWU&R)GWK&LU GHQ\LQJ FHUWLILFDWLRQ EDVHG RQ ODFN RI FRUSRUDWHZLGH SROLF\ RI GLVFULPLQDWLRQ &KLFDJR 7HDFKHUV8QLRQ/RFDOY%GRI(GXFRI&KLFDJR )5'1',OOILQGLQJ LQVXIILFLHQW HYLGHQFH RI JHQHUDO SROLF\ WR VDWLVI\ WKH FRPPRQDOLW\ TXHVWLRQ rev’d and remanded )G WK &LU %XUWRQ Y 'LVWULFW RI &ROXPELD )5' ''&ILQGLQJSROLF\LQTXHVWLRQZDVYDJXHDQGFRQFOXVRU\ See FDVHVFLWHGsupraQRWH INDIANA LAW JOURNAL >9RO B. Policy Effectuated by Management-Level Employees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²LI QRW LPSRVVLEOH²WR VKRZ FRPPRQDOLW\ LQ WKH FDVH $JDLQ WKLV ZLOO GLUHFWO\ LPSOLFDWH GXH SURFHVV FRQFHUQV :KHUH D FRPSDQ\ LV IRUFHG WR GHIHQG D SROLF\WKDWZDVQRWSXWLQSODFHE\LWVPDQDJHPHQWOHYHOHPSOR\HHVWKDWSROLF\ZLOO EH VFDWWHUHG DQG YDULHG 5HTXLULQJ D GHIHQGDQW WR OLWLJDWH WKLV W\SH RI DPRUSKRXV DFWLRQZRXOGIRUFHLWWRGHIHQGDJDLQVWXQIRUHVHHQWKLUGSDUW\KDUP$VGLVFXVVHGLQ WKH Philip Morris GHFLVLRQ VXFK D UHTXLUHPHQW ZRXOG YLRODWH GXH SURFHVV SULQFLSOHV6LPLODUO\ZKHUHDFKDOOHQJHGSROLF\LVQRWDGRSWHGE\WKRVHFORDNHG ZLWK DXWKRULW\ DW WKH FRPSDQ\ WKH GHIHQGDQW ZLOO QRW KDYH SURSHU QRWLFH RI WKH XQODZIXODFWLRQVWKDWKDYHWDNHQSODFH 7KH FDVH ODZ LOOXVWUDWHV WKH QHFHVVLW\ RI WKLV UHTXLUHPHQW ,Q Wal-Mart IRU H[DPSOHWKH&RXUWUHMHFWHGWKHSODLQWLIIV¶FODLPVEHFDXVHWKHUHZDVQRFODVVZLGH FRUSRUDWHSROLF\LPSOHPHQWHGE\XSSHUPDQDJHPHQW5DWKHULQGLYLGXDOPDQDJHUV ZHUH UHVSRQVLEOH IRU GHYHORSLQJ WKHLU RZQ SD\ DQG SURPRWLRQ SROLFLHV DW D ORFDO OHYHO :LWKRXW VRPH XQLIRUP SROLF\ DGRSWHG E\ WKH FRUSRUDWLRQ WKHUH ZDV D FRPSOHWHODFNRIFRPPRQDOLW\UHODWHGWRWKHFODLPVRIWKHSXWDWLYHFODVV0DQ\ RWKHUFDVHVDOVRGHPRQVWUDWHWKHQHHGIRUVRPHW\SHRIPDQDJHPHQWOHYHOLPSULQWRQ WKH SROLF\ LQ TXHVWLRQ WR VXVWDLQ D V\VWHPLF FODLP $V FDQ EH VHHQ IURP WKHVH See :DWVRQ Y )RUW :RUWK %DQN 7UXVW 86 ³:H JUDQWHG FHUWLRUDUL WR GHWHUPLQH ZKHWKHU WKH FRXUW EHORZ SURSHUO\ KHOG GLVSDUDWH LPSDFW DQDO\VLV LQDSSOLFDEOHWRDVXEMHFWLYHRUGLVFUHWLRQDU\SURPRWLRQV\VWHPDQGZHQRZKROGWKDWVXFK DQDO\VLVPD\EHDSSOLHG´ See*HQ7HO&RRIWKH6ZY)DOFRQ86Q³6LJQLILFDQW SURRIWKDWDQHPSOR\HURSHUDWHGXQGHUDJHQHUDOSROLF\RIGLVFULPLQDWLRQFRQFHLYDEO\FRXOG MXVWLI\DFODVVLIWKHGLVFULPLQDWLRQPDQLIHVWHGLWVHOILQKLULQJDQGSURPRWLRQSUDFWLFHVLQ WKHVDPHJHQHUDOIDVKLRQVXFKDVWKURXJKHQWLUHO\VXEMHFWLYHGHFLVLRQPDNLQJSURFHVVHV´ 3KLOLS0RUULV86$Y:LOOLDPV86± :DO0DUW6WRUHV,QFY'XNHV6&W Id.DW Id.DW± See 6FRWW Y )DPLO\ 'ROODU 6WRUHV ,QF )G WK &LU TXHVWLRQLQJ GLVWULFWFRXUW¶VIDLOXUHWRFHUWLI\FODVVZKHUHGHFLVLRQPDNLQJZDVPDGHE\KLJKOHYHOFRUSRUDWH GHFLVLRQPDNHUVZLWKDXWKRULW\RYHUDEURDGVHJPHQWRIWKHFRPSDQ\cert. denied6&W 0F5H\QROGVY0HUULOO/\QFK3LHUFH)HQQHU6PLWK,QF)GWK &LUSHUPLWWLQJFHUWLILFDWLRQLQFDVHZKHUHDOOHJHGGLVFULPLQDWRU\SROLF\ZDVGHYHORSHGE\ FRPSDQ\PDQDJHPHQWcert. denied6&W%ROGHQY:DOVK&RQVWU&R )G WK &LU UHMHFWLQJ FHUWLILFDWLRQ RI V\VWHPLF GLVFULPLQDWLRQ FODLP ZKHUH GLVFULPLQDWRU\DFWVRFFXUUHGRQDORFDOOHYHOUDWKHUWKDQWKURXJKFRUSRUDWLRQZLGHSROLF\ +HDOH\Y,QW¶O%KGRI(OHF:RUNHUV/RFDO8QLRQ1R)5'1',OO @ COMMONALITY AND THE CONSTITUTION FDVHV²LUUHVSHFWLYH RI WKH FRQVWLWXWLRQDO LPSOLFDWLRQV LQYROYHG²D V\VWHPLF FODLP ZLOOQRWEHDSSURYHGZKHUHWKHFRPSDQ\KDVQRWHQGRUVHGDFRPPRQSROLF\WKDWLV LQTXHVWLRQ $VWKH6XSUHPH&RXUW¶VFDVHODZ PDNHVFOHDUWKH&RQVWLWXWLRQUHTXLUHVQRWLFH DQG DQ RSSRUWXQLW\ WR EH KHDUG IRU GHIHQGDQWV LQ V\VWHPLF OLWLJDWLRQ :LWKRXW D XQLILHG SROLF\²ZKHWKHU IRUPDO RU LQIRUPDO²WKDW KDV EHHQ DGRSWHG E\ FRPSDQ\ PDQDJHPHQWWKHUHFDQEHQRSURSHUFODVVDFWLRQFODLPDJDLQVWWKHGHIHQGDQW2QFH DJDLQWKLVGRHVQRWPHDQWKDWLQGLYLGXDOOLWLJDWLRQFDQQRWSURFHHG%XWGHIHQGDQWV FDQQRW EH IRUFHG WR OLWLJDWH WKHVH W\SHV RI FODLPV RQ D FODVVZLGH EDVLV 7KH &RQVWLWXWLRQJXDUDQWHHVPRUH C. Common Harm &RPPRQDOLW\XQGHUWKH'XH3URFHVV&ODXVHIXUWKHUUHTXLUHVFRPPRQKDUPLQWKH FDVH:KHUHWKHKDUPLVYDULHGWKHFDVHEHFRPHVIDUWRRQHEXORXVWRGHIHQGDJDLQVW $V GLVFXVVHG DERYH GXH SURFHVV SULQFLSOHV UHTXLUH VXIILFLHQW QRWLFH XQGHU WKH &RQVWLWXWLRQ Philip Morris DQG Exxon SURYLGHG H[FHOOHQW H[DPSOHV RI KRZ WKH SRWHQWLDO GDPDJHV LQ D FODVVDFWLRQ FDVH FDQ UXQ DIRXO RI WKLV FRQVWLWXWLRQDO UHTXLUHPHQW Philip Morris KHOG WKDW WKLUGSDUW\ KDUP FRXOG QRW EH LQWURGXFHG LQ FHUWDLQFLUFXPVWDQFHVZLWKRXWYLRODWLQJGXHSURFHVVJXDUDQWHHVExxonVLPLODUO\ FRQFOXGHG WKDW SHUPLWWLQJ DQ H[FHVVLYH UDWLR RI SXQLWLYH GDPDJHV WR DFWXDO KDUP YLRODWHGWKH&RQVWLWXWLRQ*HQHUDOSULQFLSOHVRIGXHSURFHVVIXUWKHUUHTXLUHWKDWWKH KDUPFDXVHGLQDV\VWHPLFFDVHLVFRPPRQWRDOOSODLQWLIIVDQGWKDWWKHGDPDJHVUXQ DFURVVWKHHQWLUHFODVV $VWal-MartUHFRJQL]HGFRPPRQKDUPPHDQVPXFKPRUHWKDQVLPSO\PDNLQJ VLPLODUDOOHJDWLRQVRIZURQJGRLQJXQGHUWKHVDPHVWDWXWH5DWKHUWKHUHPXVWEHD ³FRPPRQFRQWHQWLRQ´RIKDUPWKDWSHUYDGHVWKHHQWLUHFODVV7KRXJKWKHSODLQWLIIV LQWal-MartIDLOHGWRPHHWWKLVEXUGHQWKH&RXUWQRWHGWKDWVXFKDVKRZLQJFRXOG KDYHEHHQPDGHWKURXJK³WKHDVVHUWLRQRIGLVFULPLQDWRU\ELDVRQWKHSDUWRIWKHVDPH VXSHUYLVRU´ &RPPRQ KDUP WKXV SURYLGHV WKH ³JOXH KROGLQJ´ WKH FDVH WRJHWKHU DQGLWLVHVVHQWLDOIRUDQ\V\VWHPLFFODLPWal-MartLVQRWDQRXWOLHULQLPSRVLQJ ILQGLQJFRPPRQDOLW\WHVWVDWLVILHGZKHUHHYLGHQFHVKRZHGWKDWXQLIRUPSROLF\H[LVWHG WKDWGLGQRWUHTXLUHWKH&RXUWWR³GHOYHLQWRKRZLWZDVXVHGRUDSSOLHGWRLQGLYLGXDOZRUNHUV´ <RXQJEORRGY)DPLO\'ROODU6WRUHV,QF1R&LY50%:/DW 6'1<2FW³8QOLNHWKHFODLPVLQWal-Mart3ODLQWLIIV¶1<//FODLPVµGRQRW UHTXLUH DQ H[DPLQDWLRQ RI WKH VXEMHFWLYH LQWHQW EHKLQG PLOOLRQV RI LQGLYLGXDO HPSOR\PHQW GHFLVLRQVUDWKHUWKHFUX[RIWKLVFDVHLVZKHWKHUWKHFRPSDQ\ZLGHSROLFLHVDVLPSOHPHQWHG YLRODWHG3ODLQWLIIV¶VWDWXWRU\ULJKWV¶´TXRWLQJ&UHHO\Y+&50DQRU&DUH,QF1R&9 :/DW1'2KLR-XO\ See FDVHVFLWHGsupraQRWH 3KLOLS0RUULV86$Y:LOOLDPV86 ([[RQ6KLSSLQJ&RY%DNHU86 :DO0DUW6WRUHV,QFY'XNHV6&W Id. Id. Id.DW INDIANA LAW JOURNAL >9RO WKLVUHTXLUHPHQW,QGHHGWKHFDVHODZKDVXQLIRUPO\KHOGWKDWVRPHW\SHRIFRPPRQ KDUPLVQHFHVVDU\IRUDFODVVDFWLRQWRSURFHHG *HQHUDOL]HGDOOHJDWLRQVRIFRPPRQKDUPDUHVLPSO\QRWHQRXJKWRPHHWWKHGXH SURFHVVSULQFLSOHVLQFODVVDFWLRQFDVHV'HIHQGDQWVDUHHQWLWOHGWRIDUPRUHQRWLFHDV WRWKHDOOHJHGKDUPWKDWKDVRFFXUUHG²DQGWKLVKDUPPXVWSUHVHQWDFRPPRQWKHPH LQ WKH FDVH :KHUH WKH KDUP EHFRPHV WRR LQGLYLGXDOL]HG GHIHQGDQWV FDQQRW EH H[SHFWHGWROLWLJDWHWKHFDVHRQDV\VWHPLFEDVLV5DWKHUVXFKOLWLJDWLRQVKRXOGRFFXU RQDQLQGLYLGXDOOHYHO D. Mutual Questions Shared by All Plaintiffs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ee, e.g. 5RGULJXH] Y 1DW¶O &LW\ %DQN )G ± G &LU UHMHFWLQJFODVVFHUWLILFDWLRQZKHUHSODLQWLIIVIDLOHGWRGHPRQVWUDWHDFRPPRQKDUP0'ex rel.6WXNHQEHUJY3HUU\)GWK&LUUHMHFWLQJFODVVFHUWLILFDWLRQLQDFDVH ZKHUHWKHKDUPZDVWRRYDULHGDQGJHQHUDODFURVVWKHSXWDWLYHFODVV0F5H\QROGVY0HUULOO /\QFK3LHUFH)HQQHU6PLWK,QF)GWK&LUUHYHUVLQJGHQLDORIFODVV FHUWLILFDWLRQZKHUHVLPLODUKDUPDOOHJHGE\SODLQWLIIVcert. denied6&W 6SUHDG(QWHUV,QFY)LUVW'DWD0HUFK6HUYV&RUS)5'±('1< UHMHFWLQJFODVVFHUWLILFDWLRQEHFDXVHWKHSODLQWLIIVIDLOHGWRSURYHFRPPRQLQMXU\$EE\Y 3DLJH)5'±6')ODUHMHFWLQJFODVVFHUWLILFDWLRQZKHUHSODLQWLIIV HPSKDVL]HG FRPPRQ YLRODWLRQV E\ GHIHQGDQW EXW IDLOHG WR VKRZ FRPPRQDOLW\ RI KDUP WR SURSRVHGFODVVPHPEHUV See, e.g. Wal-Mart 6 &W DW UHTXLULQJ FODVVDFWLRQ SODLQWLIIV WR VKRZ D FRPPRQSUREOHPLQWKHFDVHRodriguez)GDWKROGLQJWKDWSODLQWLIIVGLGQRWKDYH D FRPPRQ TXHVWLRQ EHFDXVH WKH\ IDLOHG WR PHHW ³WKHLU EXUGHQ RI GHPRQVWUDWLQJ WKDW WKH µGHIHQGDQW¶VFRQGXFWZDVFRPPRQDVWRDOORIWKHFODVVPHPEHUV¶´TXRWLQJ6XOOLYDQY'% ,QYV,QF)GG&LUStukenberg)GDW±UHTXLULQJ FRPPRQTXHVWLRQVRIODZDQGIDFWIRUFODVVDFWLRQFHUWLILFDWLRQMcReynolds)G DW FRQFOXGLQJ WKDW DOOHJHGGLVFULPLQDWRU\ SROLF\ VSDQQHG DOO FRPSDQ\ VLWHV FUHDWLQJ D FRPPRQTXHVWLRQIRUDOOSODLQWLIIV SeeFDVHVFLWHGsupraQRWH @ COMMONALITY AND THE CONSTITUTION DGGUHVVLQJ WKH OLWLJDWLRQ 7KLV UHTXLUHPHQW LV IXQGDPHQWDO WR V\VWHPLF FODLPV DQG JRHVWRWKHKHDUWRIWKHGXHSURFHVVJXDUDQWHHVRIWKH&RQVWLWXWLRQ E. The Question Is Capable of Resolution Across the Entire Class $VGLVFXVVHGDERYHFRPPRQTXHVWLRQVIRUPWKHFRUHRIDQ\V\VWHPLFOLWLJDWLRQ 3ODLQWLIIVKRZHYHUPXVWGRPRUHWKDQVLPSO\DUWLFXODWHDPXWXDOLVVXHLQWKHFDVH &ODVVPHPEHUVPXVWIXUWKHUGHPRQVWUDWHWKDWWKHTXHVWLRQSUHVHQWHGLVFDSDEOHRID GHWHUPLQDWLRQWKDWZLOOUHVROYHWKHFODLPVRIDOOSODLQWLIIV7KLVLVDFULWLFDO²EXWRIWHQ IRUJRWWHQ²DVSHFW RI V\VWHPLF OLWLJDWLRQ :KLOH LW PD\ EH SRVVLEOH WR GHYHORS D XQLIRUPTXHVWLRQLQWKHFDVHLWFDQEHPXFKPRUHGLIILFXOWWRGHPRQVWUDWHWKDWWKH DQVZHU WR WKLV TXHVWLRQ ZLOO UHVROYH WKH FRPSOH[ OLWLJDWLRQ EHIRUH WKH FRXUW 'XH SURFHVVSULQFLSOHVDUHDJDLQGLUHFWO\LPSOLFDWHGKHUH$GHIHQGDQWFDQQRWEHH[SHFWHG WRGHIHQGDJDLQVWFODVVDFWLRQOLWLJDWLRQWKDWLVLPSRVVLEOHWRUHVROYHWKURXJKFRPPRQ DQVZHUVWRWKHTXHVWLRQVSUHVHQWHGLQWKHFDVH Wal-MartSUHVHQWVSHUKDSVWKHEHVWH[DPSOHRIWKLVSULQFLSOH,QWKDWFDVH WKH &RXUWHPSKDVL]HGWKDWWKHSODLQWLIIV PXVWGHPRQVWUDWHWKDWWKH LVVXHSUHVHQWHG³LV FDSDEOHRIFODVVZLGHUHVROXWLRQ´7KLVUHTXLUHVWKDWFODVVPHPEHUVDUHDEOHWRVKRZ ³WKDWGHWHUPLQDWLRQRI>WKH@WUXWKRUIDOVLW\>RIWKHTXHVWLRQ@ZLOOUHVROYHDQLVVXHWKDW LVFHQWUDOWRWKHYDOLGLW\RIHDFKRQHRIWKHFODLPVLQRQHVWURNH´7KLVVKRZLQJ RIWHQUHTXLUHVDGHPRQVWUDWLRQRIWKHPHULWVRIWKHSODLQWLIIV¶FODLP7KLVLVEHFDXVH ³SURRIRIFRPPRQDOLW\QHFHVVDULO\RYHUODSV´ZLWKWKHPHULWVRIWKHFDVH 2WKHU FDVHV KDYH IROORZHG WKH VDPH DSSURDFK DV Wal-Mart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al-Mart6&W DW Id. Id.DW± Id.DW See, e.g. $EGXOODK Y 86 6HF $VVRFV ,QF )G WK &LU FRQFOXGLQJ WKDW ³SODLQWLIIV¶ FODLPV ZLOO \LHOG D FRPPRQ DQVZHU WKDW LV µDSW WR GULYH WKH UHVROXWLRQ RI WKH OLWLJDWLRQ¶´ TXRWLQJ )(' 5 &,9 3 D In re :KLUOSRRO &RUS )URQW/RDGLQJ :DVKHU 3URGV /LDE /LWLJ. )G WK &LU ILQGLQJ WKH GLVWULFW FRXUW FRUUHFWO\ LGHQWLILHG ³WZR SULPDU\ TXHVWLRQV WKDW ZLOO SURGXFH LQ RQH VWURNH DQVZHUVWKDWDUHFHQWUDOWRWKHYDOLGLW\RIWKHSODLQWLIIV¶OHJDOFODLPV´0'ex rel.6WXNHQEHUJ Y 3HUU\ )G WK &LU UHTXLULQJ FODVV PHPEHUV WR H[SODLQ KRZ D UHVROXWLRQZRXOGKDYHWKHFDSDFLW\WR³µJHQHUDWHFRPPRQDQVZHUVDSWWRGULYHWKHUHVROXWLRQ RIWKHOLWLJDWLRQ¶´HPSKDVLVRPLWWHGTXRWLQJWal-Mart6&WDW0F5H\QROGV Y 0HUULOO /\QFK 3LHUFH )HQQHU 6PLWK ,QF )G WK &LU SHUPLWWLQJ FHUWLILFDWLRQZKHUHFRPPRQLVVXHUHODWHGWRGLVFULPLQDWLRQFRXOGEHUHVROYHGDFURVVFODVV cert. denied6&W See FDVHVFLWHGsupraQRWH. INDIANA LAW JOURNAL >9RO 9,03/,&$7,2162)352326('&20021$/,7<*8,'(32676 7KH6XSUHPH&RXUWKDVFOHDUO\DUWLFXODWHGRQHVWDQGDUGIRUFRPPRQDOLW\LQLWV Wal-Mart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²E\WKHLUYHU\QDWXUH²DUHPHDQWWR EHPDOOHDEOHDQGDOWHUHGWRKHOSDQDO\]HPRUHXQLTXHV\VWHPLFDFWLRQV See supra3DUW,9GLVFXVVLQJFRQVWLWXWLRQDOJXLGHSRVWVIRUFRPPRQDOLW\ See supra3DUW,9. See'XUDQY86%DQN1DW¶O$VV¶Q&DO5SWUG&W$SSvacated 3G&DO/XELQY:DFNHQKXW1R%//$&QW\6XS &W$XJappeal docketed1R%&DO&W$SS2FW-DFREVHQY $OOVWDWH,QV&R3G0RQW cert. denied6&W%UDXQY :DO0DUW6WRUHV,QF$G3Dpetition for cert. filed86/: 860DU 1R See generally 5RVHQWKDO 1RWH supraQRWH DW GLVFXVVLQJLVVXHRIFRQVWLWXWLRQDOL]LQJFRPPRQDOLW\ But see 5RVHQWKDO supra QRWH DW ³6LQFH WKH GXH SURFHVV DUJXPHQW IRU FRQVWLWXWLRQDOL]HG FRPPRQDOLW\ IDLOV RQ GRFWULQDO VWUXFWXUDO DQG RULJLQDOLVW JURXQGV RQH ZRXOGKRSHWKDWWKH&RXUWZRXOGUHMHFWWKHFODLP´ 7KHJXLGHOLQHVGHYHORSHGKHUHZRXOGEHSDUWLFXODUO\DSSURSULDWHLQWKHHPSOR\PHQW FRQWH[WDQGLQFDVHVSUHVHQWLQJV\VWHPLFFODLPVLQWKHFRUSRUDWHRUZRUNSODFHHQYLURQPHQW :KLOHWKHJXLGHOLQHVRIIHUHGKHUHPLJKWQHHGWREHPRGLILHGWRILWVRPHV\VWHPLFFODLPVRI PDVVWRUWRUQHJOLJHQFHWKHVDPHEDVLFSULQFLSOHVFRXOGEHDSSOLHGWRWKRVHVLWXDWLRQV$JDLQ LWLVLPSRUWDQWWRNHHSLQPLQGWKDWWKHJXLGHSRVWVRIIHUHGKHUHDUHH[DFWO\WKDW²JXLGHOLQHV WKDWDUHPHDQWWRSURYLGHRQO\JHQHUDOJXLGDQFHWRWKHFRXUWVDQGOLWLJDQWV6SHFLILFYDULDWLRQV @ COMMONALITY AND THE CONSTITUTION )ROORZLQJWKHJXLGHOLQHVVHWIRUWKKHUHZLOOKHOSWKHORZHUFRXUWVDQGOLWLJDQWVWR DSSUHFLDWHWKHSDWKWKDWWKH6XSUHPH&RXUWKDVEOD]HGIRUGHIHQGDQWVLQ WKLVDUHD )URPExxonPhilip MorrisDQGWKHRWKHU6XSUHPH&RXUWGHFLVLRQVGLVFXVVHGDERYH LW LV FOHDU WKDW WKH &RXUW LV FRQFHUQHG ZLWK WKH SRWHQWLDO IRU GHIHQGDQWV WR EH EOLQGVLGHG E\ FRPSOH[ DFWLRQV RU KLJKGROODU FODLPV Phillip Morris SURWHFWV DJDLQVW XQUHDVRQDEOH WKLUGSDUW\ KDUP WR GHIHQGDQWV ZKLOH Exxon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±Wal-MartLWKDV \HWWRIRUPWKHEDVLVIRUDPDMRUGHFLVLRQ7KLVZLOOOLNHO\FKDQJHDVWKHFRQVWLWXWLRQDO SULQFLSOHRIFRPPRQDOLW\FRQWLQXHVWREHDGYDQFHGE\ZHOONQRZQHPSOR\HUJURXSV VXFK DV WKH 86 &KDPEHU RI &RPPHUFH DQG WKH (TXDO (PSOR\PHQW $GYLVRU\ &RXQFLO 'HILQLQJFRPPRQDOLW\XQGHUWKH&RQVWLWXWLRQWKHQZLOOSURYHWREHRQHRIWKH NH\EDWWOHJURXQGVIRUV\VWHPLFOLWLJDWLRQLQWKHFRPLQJ\HDUVEHIRUHWKHLVVXHILQDOO\ PDNHVLWVZD\XSWRWKH6XSUHPH&RXUW:KLOHZHQRZNQRZDIWHUWal-Mart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ee supra 3DUW ,, GLVFXVVLQJ 6XSUHPH &RXUW¶V PRYHPHQW WRZDUG D GHIHQVHEDVHG DSSURDFKIRUFODVVDFWLRQFODLPV See supra3DUW,,GLVFXVVLQJUHFHQW6XSUHPH&RXUWGHFLVLRQV See :DO0DUW6WRUHV,QFY'XNHV6&W Cf.5RVHQWKDOsupraQRWHDW³:KHQWKH&RXUWFRQVLGHUVLWWKHµGD\LQFRXUW¶ LGHDO DQG FRUUHVSRQGLQJ &RQIURQWDWLRQ &ODXVH SULQFLSOHV ZLOO OLNHO\ WHPSW WKH &RXUW LQWR DGRSWLQJFRQVWLWXWLRQDOL]HGFRPPRQDOLW\´ See/XELQY:DFNHQKXW1R%//$&QW\6XS&W$XJ appeal docketed1R%&DO&W$SS2FW-DFREVHQY$OOVWDWH,QV &R3G0RQW cert. denied6&W%UDXQY:DO0DUW 6WRUHV,QF$G3Dpetition for cert. filed86/:860DU 1R See FDVHVFLWHGsupra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¶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¶IHHVDQGFRXUW FRVWV )LQDOO\ DV WKH JXLGHSRVWV SURYLGH D EDVLF VWUXFWXUH IRU DQDO\]LQJ RQH¶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al-MartGHFLVLRQLWVHOIZKLFKSUHVHQWHGD SRRUFDVHIRUFRPPRQDOLW\7KLVLVRQHUHDVRQZK\WKHWal-MartGHFLVLRQFDQQRWEHUHDGDV FUHDWLQJDFRQVWLWXWLRQDOVWDQGDUGIRUFRPPRQDOLW\XQGHUWKH'XH3URFHVV&ODXVH7KHKLJKO\ XQXVXDOIDFWVRIWKDWFDVHPDNHLWKDUGWRUHDGDQ\WKLQJSDVWWKH&RXUW¶VVSHFLILFGHFLVLRQLQ WKDWVLQJOHFDVH See 5LFKDUG % 6WHZDUW The Discontents of Legalism: Interest Group Relations in Administrative Regulation:,6 / 5(9³7KHPRUHFHUWDLQWKHODZ²WKHOHVVWKH YDULDQFH LQ H[SHFWHGRXWFRPHV²WKH PRUH OLNHO\ WKH SDUWLHV ZLOO SUHGLFW WKH VDPH RXWFRPH IURP OLWLJDWLRQDQGWKHOHVVOLNHO\WKDWOLWLJDWLRQZLOORFFXUEHFDXVHRIGLIIHUHQFHVLQSUHGLFWHGRXWFRPHV´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al-MartZDVH[SUHVVO\GHFLGHGXQGHUWKH)HGHUDO5XOHVWKHGHIHQVHEDU KDVDOUHDG\EHJXQWRDUJXHWKDWWKHFDVHZDVGHFLGHGRQFRQVWLWXWLRQDOJURXQGV7KLV $UWLFOHFULWLTXHVWKHWal-MartFRQVWLWXWLRQDODUJXPHQWDQGH[SODLQVZK\LWPXVWIDLO 1RQHWKHOHVV WKH 'XH 3URFHVV &ODXVH XQGRXEWHGO\ JXDUDQWHHV WKDW WKHUH PXVW EH VXIILFLHQWFRPPRQDOLW\LQDOOFODVVDFWLRQOLWLJDWLRQ7KLV$UWLFOHKHOSVWRGHILQHZKDW FRPPRQDOLW\ PHDQV XQGHU WKH &RQVWLWXWLRQ GHYHORSLQJ D ILYHSDUW IUDPHZRUN IRU DQDO\]LQJDOOV\VWHPLFFODLPV7KHJXLGHSRVWVLGHQWLILHGKHUHZLOOKHOSVWUHDPOLQHDOO IXWXUH FRPSOH[ OLWLJDWLRQ DQG ZLOO KRSHIXOO\ VSDUN D GLDORJXH LQ WKH DFDGHPLF FRPPXQLW\RQWKLVWRSLF
© Copyright 2026 Paperzz