Schojan et al v. Papa John's International, Inc. et al
Filing
80
ORDER: Plaintiffs' Motion for Class Certification 60 is GRANTED. Plaintiffs' Motion for Oral Argument or, in the Alternative, Motion for Leave to File a Reply to Defendants' Response in Opposition to Motion for Class Certification [7 2] is DENIED. Papa John's International and Papa John's USA's Unopposed Motion for Leave to File a Supplemental Brief in Opposition to Class Certification 75 is DENIED. Signed by Judge Virginia M. Hernandez Covington on 12/16/2014. (AKH)
UNITED STATES DISTRICT COURT
MIDDLE DISTRICT OF FLORIDA
TAMPA DIVISION
BRUCE SCHOJAN, individually
and on behalf of all others
similarly situated, ET AL.
Plaintiffs,
v.
Case No. 8:14-cv-1218-T-33MAP
PAPA JOHNS INTERNATIONAL, INC.,
ET AL. 1,
Defendants.
_______________________________/
ORDER
This cause comes before the Court for consideration of
Plaintiffs,
Bruce
Schojan,
Sean
Timmons,
and
Christopher
Tollerton’s Motion for Class Certification (Doc. # 60) filed
on October 16, 2014. Defendant Papa John’s International,
Inc.
and
Papa
John’s
USA,
Inc.
(“Papa
John’s”)
filed
a
response in opposition (Doc. # 68) on November 18, 2014. Upon
due
consideration
and
for
the
reasons
set
forth
below,
Plaintiffs’ Motion for Class Certification is granted.
I.
1
Background
The remaining Defendants in this action are Papa John’s
International, Inc. and Papa John’s USA, Inc. This Court shall
refer to the Defendants collectively as Papa John’s. However,
the Defendants refer to Papa John’s International, Inc. as PJ
International and Papa John’s USA, Inc. as PJ USA.
Plaintiffs filed this putative class action in state
court on March 28, 2014, alleging that Papa John’s negligently
misrepresented a sales tax for food delivered to customers
that included a sales tax on the Papa John’s delivery fee.
(Doc. # 2 at ¶ 40). Furthermore, Plaintiffs claim that Papa
John’s charged and collected excess sales tax on delivery
fees charged to its customers in violation of Florida law.
(Id.).
Specifically,
Plaintiffs
allege
that
Papa
John’s
included in the base amount upon which the tax was calculated
a $3.00 delivery fee that Plaintiffs claim is exempt from
taxation under Florida law because it is not “part of the
[relevant pizza] sale[s].” (Doc. # 15 at 2).
Papa John’s removed the case to this Court on May 22,
2014, under the Class Action Fairness Act. (Doc. # 1). On
June 11, 2014, Plaintiffs filed an unopposed motion to extend
the time to file a motion for class certification. (Doc. #
13). This Court granted the motion in part and extended the
deadline to September 15, 2014. (Doc. # 14). Thereafter, on
June 13, 2014, Papa John’s moved to dismiss or alternatively
stay this action “because the relief sought – a refund of a
purported sales tax overcharge – is barred by section 213.756,
Florida Statutes, by the voluntary payment doctrine, and
because Plaintiffs failed to exhaust their administrative
2
remedies with the Florida Department of Revenue.” (Doc. #
14).
This Court denied Papa John’s motion to dismiss on July
23, 2014, and directed Papa John’s to file a response to the
Complaint. (Doc. # 34). On September 15, 2014, the parties
filed agreed motions to seal the motion for summary judgment
and motion for class certification. (Doc. ## 50, 51). The
Court denied the parties’ request to seal documents and
directed the motions be filed on the open record. (Doc. #
48). Plaintiffs then filed their motion to certify class on
September 30, 2014. (Doc. # 57). That motion was denied
without prejudice when this Court granted Plaintiffs leave to
amend their Complaint and directed that the motion to certify
class could be refiled in conjunction with the new complaint.
(Doc. # 58).
Plaintiffs filed the Second Amended Complaint on October
6, 2014. (Doc. # 59). The Motion to certify class, which is
presently before this Court, was filed on October 16, 2014.
(Doc. # 60). Papa John’s requested an extension of time to
respond to the Motion until and including November 17, 2014,
which this Court granted. (Doc. ## 63, 64). Papa John’s filed
its response in opposition to the Motion on November 18, 2014.
(Doc. # 68).
3
II.
Legal Standard
A district court has broad discretion in determining
whether to certify a class. Washington v. Brown & Williamson
Tobacco Corp., 959 F.2d 1566, 1569 (11th Cir. 1992); Griffin
v. Carlin, 755 F.2d 1516, 1531 (11th Cir. 1985). As explained
in Valley Drug Co. v. Geneva Pharmaceuticals, Inc., 350 F.3d
1181, 1187 (11th Cir. 2003), Federal Rule of Civil Procedure
23
“establishes the legal roadmap courts must follow when
determining
whether
class
certification
is
appropriate.”
Under Rule 23(a), a class may be certified 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.
Fed. R. Civ. P. 23(a).
The burden of proof to establish the
propriety of class certification rests with the advocate of
the class, and failure to establish any one of the four Rule
23(a) factors and at least one of the alternative requirements
of Rule 23(b) precludes class certification. Amchem Prods.,
Inc. v. Windsor, 521 U.S. 591, 613-14 (1997).
4
This Court must conduct a rigorous analysis of the Rule
23 prerequisites before certifying a class. Gen. Tel. Co. of
the S.W. v. Falcon, 457 U.S. 147, 161 (1982). “Although the
trial court should not determine the merits of the plaintiffs’
claim at the class certification stage, the trial court can
and should consider the merits of the case to the degree
necessary to determine whether the requirements of Rule 23
will be satisfied.” Valley Drug Co., 350 F.3d at 1188, n.15;
see also Coopers & Lybrand v. Livesay, 437 U.S. 463, 469
(1978)(“The
class
determination
generally
involves
considerations that are enmeshed in the factual and legal
issues comprising the plaintiff’s cause of action. . . . The
more complex determinations required in Rule 23(b)(3) class
actions
entail
even
greater
entanglement
with
the
merits.”)(internal citations omitted).
III. Analysis
A.
Rule 23(a) Requirements
Before a class can be certified through one of the
provisions of Rule 23(b), it must first satisfy several
prerequisites:
(1)
numerosity;
(2)
commonality;
typicality; and (4) adequate representation.
(3)
See Buford v.
H & R Block, Inc., 168 F.R.D. 340, 347 (S.D. Ga. 1996)(quoting
Fed. R. Civ. P. 23(a)).
5
Under Rule 23(a), a class may be certified only if (1)
the class is so numerous that joinder of all members would be
impracticable; (2) there are questions of fact and law common
to
the
class;
(3)
the
claims
or
defenses
of
the
representatives are typical of the claims and defenses of the
unnamed members; and (4) the named representatives will be
able to represent the interests of the class adequately and
fairly.
“Failure to establish any one of these four factors
and at least one of the alternative requirements of Rule 23(b)
precludes class certification.” Valley Drug Co., 350 F.3d at
1188.
1.
Numerosity
Federal Rule of Civil Procedure 23(a)(1) requires that
the class be “so numerous that joinder of all members is
impracticable.”
Fed.
R.
Civ.
P.
23(a)(1).
While
“mere
allegations of numerosity are insufficient,” Fed. R. Civ. P.
23(a)(1) imposes a “generally low hurdle,” and “a plaintiff
need not show the precise number of members in the class.”
Manno v. Healthcare Revenue Recovery Grp., LLC, 289 F.R.D.
674, 684 (S.D. Fla. 2013); see Vega v. T-Mobile USA, Inc.,
564 F.3d 1256, 1267 (11th Cir. 2009); Evans v. U.S. Pipe &
Foundry Co., 696 F.2d 925, 930 (11th Cir. 1983)(explaining
that the class representative is not required to establish
6
the exact number in the proposed class). “Nevertheless, a
plaintiff still bears the burden of making some showing,
affording the district court the means to make a supported
factual finding that the class actually certified meets the
numerosity requirement.” Manno, 289 F.R.D. at 684 (quoting
Vega, 564 F.3d at 1267).
Although mere numbers are not dispositive, the Eleventh
Circuit
has
plaintiffs
indicated
is
that
inadequate,
less
and
than
more
twenty-one
than
forty
class
class
plaintiffs is generally enough to satisfy the rule. Cox v.
Am. Cast Iron Pipe Co., 784 F.2d 1546, 1553 (11th Cir. 1986).
The Court may also consider factors such as “the geographic
diversity of the class members, the nature of the action, the
size of each plaintiff’s claim, judicial economy and the
inconvenience of trying individual lawsuits, and the ability
of
the
individual
class
members
to
institute
individual
lawsuits.” Walco Inv., Inc. v. Thenen, 168 F.R.D. 315, 324
(S.D. Fla. 1996).
According
to
Plaintiffs,
“over
$74,500,000
has
been
collected as separately stated delivery fees and every penny
of that has been taxed at a rate between 6% and 7.55% translating to over $5,000,000 from Floridians in sales taxes
that were never owed and should never have been charged or
7
collected.” (Doc. # 60 at 11, 12). Plaintiffs submit that
“any rational assumption about how many pizza’s people order
a year will produce a class numbering in the tens of thousands
- and more likely the hundreds of thousands of people – having
been affected by the tax policy here at issue.” (Id. at 12).
Upon review, the Court finds that although some of the
potential
class
members
identified
by
Plaintiffs
may
ultimately not meet the class definition, the submission by
Plaintiffs that “numerosity is satisfied here looking only at
a single store’s collection practice since April 2010, or
even
a
single
month
of
deliveries
from
Florida’s
274
restaurants” (Doc. # 60 at 12), is sufficient to meet the
“generally low hurdle” of the numerosity requirement. See
Manno,
289
F.R.D.
at
684;
Vega,
564
F.3d
at
1267.
Furthermore, the Court finds that a potential class size of
thousands or tens of thousands is sufficiently large for the
Court to presume joinder is impracticable. See Cox, 784 F.2d
at 1553.
Therefore, the Court finds that Plaintiffs have met
their burden of demonstrating the numerosity requirement.
2.
Commonality
Federal Rule of Civil Procedure 23(a)(2) requires that
there be “questions of law or fact common to the class.”
R.
Civ.
P.
23(a)(2).
Commonality
8
pertains
to
Fed.
the
characteristics of the group or class as a whole, unlike
typicality which refers to the individual characteristics of
the class representative as compared to those of the class
members. Piazza v. Ebsco Indus. Inc., 273 F.3d 1341, 1346
(11th Cir. 2001) (citing Prado-Steiman v. Bush, 221 F.3d 1266,
1279 (11th Cir. 2000)).
Commonality “does not require complete identity of legal
claims.” Johnson v. Am. Credit Co. of Ga., 581 F.2d 526, 532
(5th Cir. 1978). In fact, commonality can be satisfied even
with some factual variations among class members.
Armstead
v. Pingree, 629 F. Supp. 273, 280 (M.D. Fla. 1986).
In Wal-Mart Stores, Inc. v. Dukes, 131 S. Ct. 2541
(2001),
the
Supreme
Court
clarified
the
commonality
requirement for class certification by specifically rejecting
the use of generalized questions to establish commonality.
Noting
that
“any
competently
crafted
class
complaint
literally raises common questions,” the Court focused the
required discussion as follows:
What matters to class certification . . . is not
the raising of common questions – even in droves but, rather the capacity of a classwide proceeding
to generate common answers apt to drive the
resolution of the litigation.
Dissimilarities
within the proposed class are what have the
potential to impede the generation of common
answers.
9
Id. at 2551 (internal citation omitted). The Court explained
that the “common contention” underpinning a finding of Rule
23(a)(2) “must be of such a nature that it is capable of class
wide resolution – which means that determination of its truth
or falsity will resolve an issue that is central to the
validity of each one of the claims in one stroke.” Id.
Plaintiffs argue that the commonality requirement is
satisfied because the proposed class has the following common
issues of law and fact:
(a)
Whether Defendants are permitted to collect
sales tax on separately stated delivery fees
that are avoidable at the option of the
consumer by picking up the food ordered;
(b)
Whether customers were and continue to be
charged sales tax on separately stated
delivery fees that could have been avoided at
the option of the consumer;
(c)
Whether Defendants charging or collecting, or
participating in the charging and collection,
of sales tax on separately stated and
avoidable delivery fees is a deceptive and
unfair practice;
(d)
Whether PJ International requires all stores
to use PROFIT 2;
2
PROFIT is a computer-based point of sale technology, which
integrates with its “proprietary digital ordering platform,”
the papajohns.com website and mobile applications through
which customers may order food for delivery or pickup. (Doc.
10
(e)
Whether PJ International requires all Florida
stores to comply with Florida law regarding
sales tax.
(f)
Whether PJ International was negligent;
(g)
Whether PJ
negligent;
(h)
Whether PJ USA has the ability to obtain a
refund from the Florida Department of Revenue
for
improperly
charged,
collected,
and
remitted sales tax on delivery fees and
whether PJ International may require its
franchisees to do so as well; and
(i)
Whether PROFIT can be configured to exempt
delivery fees from sales tax in Florida during
those periods of time when a restaurant
permits carry out.
International
or
PJ
USA
was
(Doc. # 60 at 13-15). According to Plaintiffs, “[t]he uniform
practice of Defendants requiring Florida restaurants to use
PROFIT in every Papa John’s location, combined with the
methods by which Defendants implemented and maintained the
configuration of the system as it relates to the charging of
sales tax, will resolve common issues of fact and law and
will apply equally to every member of the proposed class.”
(Id. at 13).
# 60 at 4). PROFIT is installed at all Papa John’s restaurants
by PJ USA, at the direction of PJ International. (Id.).
11
Upon review of the record, the Court finds that there
are “questions of law or fact common to the class.”
further
finds
that
the
above
outlined
The Court
questions
are
sufficient to satisfy the commonality requirement. “These
[common questions] are not simply convenient or collateral
common [questions]. Rather, these questions are central to
the case and their centrality and commonality support the
policy objectives behind class certification.” Buford, 168
F.R.D. at 350. Therefore, Plaintiffs have met their burden of
demonstrating the commonality requirement.
3.
Typicality
Class certification also requires that the claims of the
class representatives be typical of those of the class. See
Fed. R. Civ. P. 23(a)(3). In order to establish typicality,
“there must be a nexus between the class representative’s
claims or defenses and the common questions of fact or law
which unite the class.” Kornberg v. Carnival Cruise Lines,
Inc., 741 F.2d 1332, 1337 (11th Cir. 1984). “A sufficient
nexus is established if the claims or defenses of the class
and the class representative arise from the same event or
pattern or practice and are based on the same legal theory.”
Id.
12
When the class representative’s injury is different from
that of the rest of the class, his claim is not typical and
he
cannot
serve
as
the
class
representative.
Murray
v.
Auslander, 244 F.3d 807, 811 (11th Cir. 2001). Moreover, when
proof
of
the
class
representative’s
claim
would
not
necessarily prove the claims of the proposed class members,
the class representative does not satisfy the typicality
requirement. Brooks v. S. Bell Tel. & Tel. Co., 133 F.R.D.
54, 58 (S.D. Fla. 1990). “Typicality, however, does not
require identical claims or defenses.” Kornberg, 741 F.2d at
1337.
“A
factual
variation
will
not
render
a
class
representative’s claim atypical unless the factual position
of the representative markedly differs from that of other
members of the class.” Id.
Plaintiffs argue that their claims are typical “because
each plaintiff placed at least one order with Papa John’s and
selected to have the order delivered when he had the option
to pick the pizza up if he so chose.” (Doc. # 60 at 15). The
claims and relief sought by Plaintiffs are identical to the
proposed class because they: “(1) should not have been charged
sales tax on the delivery fee; (2) seek declaratory and
injunctive relief to stop Defendants’ unlawful practice; and
13
(3) seek compensation to recover the sales tax wrongfully
charged to and collected from them.” (Id. at 16).
Papa John’s contends that “the named Plaintiffs have not
established – and several of them cannot establish – that
they meet the requirements of Rule 23(a).” (Doc. # 68 at 8).
Papa John’s asserts that the named Plaintiffs all admitted
(a) each and every time they ordered from Papa John’s they
understood the amount that was due for food, (b) each and
every time they ordered from Papa John’s they understood the
amount of sales tax that was due, and (c) each and every time
they ordered from Papa John’s they voluntarily chose to pay
the amounts on the receipt. (Id. at 10). Although Papa John’s
argues that the named Plaintiffs’ admissions of voluntary
payment
render
them
atypical
of
the
proposed
class
and
unsuitable to serve as class representatives, this Court
disagrees. (Id.).
This Court acknowledges Papa John’s contention that the
typicality element is not met because Plaintiffs may be
subject to unique defenses and individualized issues based on
their individual relationship with Papa John’s that differs
from that of members of the potential class. However, this
Court finds that those concerns are better addressed under
the predominance requirement of Fed. R. Civ. P. 23(b)(3).
14
Therefore, for purposes of the present analysis, the Court
will presume the typicality requirement is satisfied.
4.
Adequate Representation by Class Representatives
The final requirement for class certification under Rule
23(a)
is
23(a)(4).
adequate
This
representation.
prerequisite
representatives
have
representative
class
representatives
prosecute
the
and
that
of
the
R.
that
interests
members
interests
Fed.
requires
common
demonstrate
See
the
with
class
P.
class
the
will
non-
that
requires
they
Civ.
the
vigorously
through
qualified
counsel. Piazza, 273 F.3d at 1346. Thus, the adequacy of
representation analysis involves two inquiries: “(1) whether
any
substantial
representatives
conflicts
of
and
class,
the
interest
and
exist
(2)
between
whether
the
the
representatives will adequately prosecute the action.” Valley
Drug Co., 350 F.3d at 1189 (quoting In re HealthSouth Corp.
Sec. Litig., 213 F.R.D. 447, 460–61 (N.D. Ala. 2003)). “The
existence of minor conflicts alone will not defeat a party’s
claim to class certification.” Id. Rather, “the conflict must
be
a
fundamental
one
going
to
the
specific
issues
that
Plaintiffs
in
controversy.” Id.
Here,
Papa
John’s
contends
are
not
adequate class representatives, but Papa John’s does not
15
indicate that any true conflicts of interest exist between
Plaintiffs and the class. In addition, Papa John’s does not
contest the qualifications of Plaintiffs’ counsel and there
is
no
indication
prosecute
Plaintiffs
this
have
that
action.
met
Plaintiffs
Therefore,
their
burden
will
this
of
not
Court
adequately
finds
demonstrating
that
the
adequacy of representation requirement.
B.
Rule 23(b) Requirements
In addition to satisfying the prerequisites of Rule
23(a), parties seeking class certification must satisfy at
least one of the alternative requirements of Rule 23(b):
(b) Types of Class Actions. A class action may be
maintained if Rule 23(a) is satisfied and if:
(1) prosecuting separate actions by or against
individual class members would create a risk of:
(A) inconsistent or varying adjudications with
respect to individual class members that would
establish incompatible standards of conduct
for the party opposing the class; or
(B) adjudications with respect to individual
class members that, as a practical matter,
would be dispositive of the interests of the
other members not parties to the individual
adjudications or would substantially impair or
impede
their
ability
to
protect
their
interests;
(2) the party opposing the class has acted or
refused to act on grounds that apply generally to
the class, so that final injunctive relief or
16
corresponding declaratory relief is
respecting the class as a whole; or
appropriate
(3) the court finds that the questions of law or
fact common to class members predominate over any
questions affecting only individual members, and
that a class action is superior to other available
methods for fairly and efficiently adjudicating the
controversy. The matters pertinent to these
findings include:
(A)
the
class
members'
interests
in
individually controlling the prosecution or
defense of separate actions;
(B) the extent and nature of any litigation
concerning the controversy already begun by or
against class members;
(C) the desirability or undesirability of
concentrating the litigation of the claims in
the particular forum; and
(D) the likely difficulties in managing a
class action.
Fed. R. Civ. P. 23(b).
In their Motion for Class Certification, Plaintiffs seek
certification under Fed. R. Civ. P. 23(b)(1),(2), and (3).
(Doc. # 60 at 16). As Fed. R. Civ. P. 23(b)(3) is the
predominant issue and point of contention between the parties
in this case and because the Court finds that Plaintiffs
satisfy this requirement, the Court will only address that
particular section.
Rule
23(b)(3)
includes
two
requirements:
(1)
that
questions of law or fact common to the members of the class
17
predominate
over
any
questions
affecting
only
individual
members (predominance) and (2) that a class action is superior
to
other
available
methods
for
fair
and
efficient
adjudication of the controversy (superiority). Vega v. TMobile USA, Inc., 564 F.3d 1256, 1265 (11th Cir. 2009).
1.
Predominance
Under Rule 23(b)(3), “[i]t is not necessary that all
questions of fact or law be common, but only that some
questions
are
common
and
that
they
predominate
over
individual questions.” Klay v. Humana, Inc., 382 F.3d 1241,
1254 (11th Cir. 2004). “Whether an issue predominates can
only
be
determined
after
considering
what
value
the
resolution of the class-wide issue will have in each class
member’s underlying cause of action.
Common issues of fact
predominate if they have direct impact on every class member’s
effort to establish liability and on every class member’s
entitlement
omitted).
to
relief.”
Id.
at
1255
(internal
citations
As stated in Kerr v. City of West Palm Beach, 875
F.2d 1546, 1558 (11th Cir. 1989), “[T]he issues in the class
action
that
are
subject
to
generalized
proof,
and
thus
applicable to the class as a whole, must predominate over
those issues that are subject only to individualized proof.”
(internal citations omitted).
18
“The predominance inquiry requires an examination of
‘the
claims,
substantive
defenses,
law,’
resolution
of
individual
class
.
the
.
relevant
.
to
classwide
member’s
facts,
assess
issues
claim
the
and
degree
will
against
applicable
to
which
further
the
each
defendant.”
Babineau v. Fed. Express Corp., 576 F.3d 1183, 1191 (11th
Cir. 2009)(quoting Klay, 382 F.3d at 1254).
In their Motion, Plaintiffs claim that the predominant
dispute in this action is whether either or both Defendants
breached a duty of reasonable care and were negligent:
(a) in charging sales tax on delivery fees, (b)
researching the issue and thereafter communicating
their conclusions to others, (c) supervising the
installation and configuration of PROFIT, (d)
configuring PROFIT to tax delivery fees as a
default, (e) permitting computer systems to be
cloned from one store to the next and thereby making
erroneous tax decisions viral, (f) permitting
franchisees to violate the law by charging sales
tax on delivery fees, (g) failing to warn or
communicate to franchisee and store managers the
illegality of taxing delivery fees, (h) failing to
properly train or supervise those installing
PROFIT, and (i) failing to tell consumers that the
represented sales tax figure for food delivery
includes a sales tax on the delivery fee or to
create an invoice via PROFIT that did so.
(Doc. # 60 at 19-20). Plaintiffs contend that the above
allegations are all common questions that apply to the entire
class and do not require individual proof from each class
member. (Id. at 20). Furthermore, “Plaintiffs’ common legal
19
grievance – that Defendants unlawfully charged sales tax on
delivery fees in violation of Florida law is the primary fact
giving rise to Plaintiffs’ negligence claims and a ruling on
the above negligence issues will apply to all class members
and will be determinative as to whether a claim exists at all
for the class.” (Id.).
At issue is Plaintiffs’ claim that “Defendants have
negligently misrepresented to customers that sales tax was
lawfully due on delivery fees when the customer had the option
to avoid the fee by picking up the pizza.” (Id.). It is
Plaintiffs’ position that “for purposes of certifying a class
arising out of this misrepresentation, reliance is proven for
the class by simply showing that class members paid money
based on Defendants’ disclosure that a charge is due for a
particular purpose when, in fact, the money is not due for
that
purpose.”
(Id.);
Turner
Greenberg
Assocs.,
Inc.
v.
Pathman, 885 So. 2d 1004, 1006-07 (Fla. 4th DCA 2004).
According to Papa John’s, “to find predominance, a Court
must consider the elements of each cause of action, and
determine whether those elements can be satisfied by common,
class-wide proof.” (Doc. # 68 at 13)(quoting In re Currency
Conversion
(S.D.N.Y
Fee
Antitrust
2004)).
To
that
Litig.,
end,
20
230
F.R.D.
303,
309-10
Papa
John’s
states
that
“consideration of the elements of Plaintiffs’ negligence and
FDUPTA claims makes clear that individual issues predominate
over the common issues between the members of the class.”
(Id. at 13). As to the negligence claims, Papa John’s contends
that “[b]ecause Plaintiffs must proceed under a theory of
negligent misrepresentation, they must establish that each
and
every
member
of
the
class
relied
on
the
alleged
misrepresentation regarding taxation of delivery fees” and
that
alone
Moreover,
precludes
Papa
class
John’s
certification.
asserts
that
(Id.
at
Plaintiffs
14).
cannot
establish causation where Plaintiffs continued to purchase
the
product
even
misrepresentation.
after
(Id.
learning
at
15).
“A
about
the
plaintiff’s
alleged
continued
purchase with knowledge of the truth establishes that even
without the alleged deception, the plaintiff would still have
purchased the product in any event.” (Id.).
It
is
Papa
John’s
contention
that
numerous
individualized inquiries will be required to determine the
extent to which Papa John’s action “caused” the tax and
therefore,
payment,
assumption
Papa
John’s
exhaustion
of
individualized
risk
affirmative
of
and
questions
defenses
administrative
comparative
which
21
weighs
of
voluntary
remedies,
fault
against
and
present
class
certification. (Id. at 16, 18). Although this Court notes
Papa John’s concerns, it finds those concerns to be misplaced
at this juncture of the case.
At this preliminary stage, the Court may not pass on the
merits
of
Plaintiffs'
claims.
Fisher
v.
Ciba
Specialty
Chemicals Corp., 238 F.R.D. 273, 296 (S.D. Ala. 2006); See,
e.g., Cooper v. Southern Co., 390 F.3d 695, 712 (11th Cir.
2004)(repeating well-worn admonition that Rule 23 does not
authorize court to conduct preliminary merits inquiry in
making class certification determination); Morrison v. Booth,
763 F.2d 1366, 1371 (11th Cir. 1985) (concurring with district
court's assessment that it “could not conduct a preliminary
inquiry into the merits of a suit in order to determine
whether it may be maintained as a class action”).
Here, the Court finds that predominance is satisfied in
this case. Plaintiffs allege that Papa John’s course of
conduct commonly, and adversely, affected the entire class.
The class members are similarly situated with regard to the
readily determined, allegedly excess fees they incurred as a
result of a standardized process. The class is unified by
both common questions and a common interest. The evidence
necessary to establish Plaintiffs’ claims is common to both
Plaintiffs and all class members; they all seek to prove that
22
Papa John’s delivery tax practice was wrongful. The evidence
to be presented by the Plaintiffs has a direct impact on every
class member’s effort to establish liability and on every
class
member’s
corporate
entitlement
policies
to
“constitute
relief.
the
Moreover,
very
heart
where
of
the
plaintiffs' . . . claims,” as they do here, common issues
will predominate because those policies “would necessarily
have to be re-proven by every plaintiff.” In re Checking
Account Overdraft Litig., 286 F.R.D. 645, 656 (S.D. Fla.
2012); Klay, 382 F.3d at 1257; see also Allapattah Servs.,
Inc. v. Exxon Corp., 333 F.3d 1248, 1261 (11th Cir. 2003),
aff'd,
545
Multidistrict
U.S.
546
Litig.,
(2005);
236
In
F.R.D.
re
62,
Tyco
70
Int'l,
(D.N.H.
Ltd.
2006)
(varying degrees of knowledge among class members do not
present an obstacle to class certification where other common
issues unite the class).
Affirmative
defenses
do
not
automatically
preclude
certification of a class. To the extent that Papa John’s
argues that affirmative defenses make it such that individual
questions
would
predominate
over
common
questions,
the
information provided does not sway this Court. (See Id.).
Unique affirmative defenses rarely predominate where a common
course of conduct is established. Wahl v. Midland Credit
23
Mgmt., 243 F.R.D. 291, 297–298 (N.D. Ill. 2007). Contrary to
Papa John’s arguments, there are no unique defenses asserted
against the Plaintiffs “which threaten to become the focus of
this litigation.” Demmick v. Cellco P'ship, No. 06–2163(JLL),
2010 WL 3636216, *7 (D.N.J. Sept. 8, 2010) (citing Gary
Plastic Packaging Corp. v. Merrill Lynch, Pierce, Fenner &
Smith, Inc., 903 F.2d 176, 180 (2d Cir. 1990)). The defenses
asserted here against Plaintiffs are related to the class
claims and are typical of those that Papa John’s will assert
against
the
class.
Therefore,
this
Court
finds
class
certification to be appropriate at this time.
2.
Superiority
The superiority requirement of Rule 23(b)(3) focuses
“not on the convenience or burden of a class action suit per
se, but on the relative advantages of a class action suit
over
whatever
other
forms
of
litigation
might
be
realistically available to the plaintiffs.” Klay, 382 F.3d at
1269. “It is only when [management] difficulties make a class
action less fair and efficient than some other method, such
as individual interventions or consolidation of individual
lawsuits, that a class action is improper.” Carnegie v. Mut.
Sav. Life Ins. Co., No. 99-cv-3292, 2002 U.S. Dist. LEXIS
21396, at *76-77 (N.D. Ala. Nov. 1, 2002).
24
The Court has examined the factors enumerated in Rule
23(b)(3)(A)-(D), such as “the class members’ interest in
individually controlling the prosecution . . . of separate
actions,”
“the
desirability
or
undesirability
of
concentrating the litigation of the claims in the particular
forum,” and manageability issues.
After so doing, the Court
determines that class wide resolution of the dispute is
superior to other methods of adjudication. This is especially
so because the Court has already determined that Plaintiffs
satisfied
the
predominance
prong
of
Rule
23(b)(3):
“the
predominance analysis . . . has a tremendous impact on the
superiority analysis . . . for the simple reason that, the
more common issues predominate over individual issues, the
more desirable a class action lawsuit will be as a vehicle
for adjudicating the plaintiffs’ claims.” Klay, 382 F.3d at
1269. Furthermore, “the probability that individual members
would not have a great interest in controlling the prosecution
of these claims, all indicate that a class action would be
the superior method of adjudicating the [] claim.” Hicks v.
Client Servs., Inc., No. 07-61822, 2008 U.S. Dist. LEXIS
101129, at *26 (S.D. Fla. Dec. 11, 2008).
IV.
Conclusion
25
Plaintiffs have satisfied the requirements of Fed. R.
Civ. P. 23(a), and this Court finds that Plaintiffs have also
satisfied the requirements of Rule 23(b)(3). As a result,
this Court grants Plaintiffs’ Motion for Class Certification.
Accordingly, it is hereby
ORDERED, ADJUDGED, and DECREED:
(1)
Plaintiffs’ Motion for Class Certification (Doc. #
60) is GRANTED.
(2)
Plaintiffs’
Motion
for
Oral
Argument
or,
in
the
Alternative, Motion for Leave to File a Reply to
Defendants’ Response in Opposition to Motion for Class
Certification (Doc. # 72) is DENIED.
(3)
Papa
John’s
International
and
Papa
John’s
USA’s
Unopposed Motion for Leave to File a Supplemental
Brief in Opposition to Class Certification (Doc. #
75) is DENIED.
DONE and ORDERED in Chambers in Tampa, Florida, this
16th day of December, 2014.
Copies: All Counsel of Record
26
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