Mutual of Omaha Insurance Co. v. Blury-Losolla

LEHMAN, Justice,

dissenting.

I respectfully dissent. The majority rephrases the key issue, calling for an answer to a question neither asked by the district court nor briefed by the parties — whether the county courts have jurisdiction to hear class action suits. The answers to the certified questions are not dependent on whether class actions are available in county court, but instead turn on whether the county court is vested with exclusive subject matter jurisdiction over the parties’ claims. To the extent the majority suggests county courts are without jurisdiction to hear class actions, I believe that the question is, at the very least, open for debate. In fact, both parties in their briefs assume that the county courts do have jurisdiction. This is not an unreasonable assumption. Section 5 — 5—131(a)(i) of the Wyoming Statutes gives county courts exclusive original civil jurisdiction over cases where the “prayer for recovery is an amount not exceeding seven thousand dollars,” and Rule 1.06 of the Wyoming Rules of Civil Procedure for County Courts only precludes application of the rules governing class actions “unless and until county courts have statutory subject matter jurisdiction of cases in which such relief is requested.” The majority correctly asserts that our rules of practice and procedure shall neither abridge, enlarge nor modify the substantive rights of any person nor the jurisdiction of any of the courts, but in the same breath says it is our own Rule 1.06 which precludes class actions in county court. I find that reasoning inap-posite. In any event, the determination of whether the county courts can entertain class action suits is beyond the scope of the certified questions, and we should wait for a properly briefed appeal to determine the issue.. See Wilder v. Cody Country Chamber of Commerce, 933 P.2d 1098, 1106 n. 2 (Wyo.1997).

I also part company with the majority insofar as its decision relies on federal prece*1123dent. I must agree that our current statutory scheme, as well as Wyoming’s constitution and this court’s prior precedent, do not allow aggregation of claims to meet the jurisdictional threshold of the district court. However, the reasons for precluding aggregation of claims in the federal courts to achieve diversity jurisdiction do not apply to class actions at the state level. The federal rule against aggregation is based in part on the premise that because diversity cases involve issues of state law, those issues are more appropriately resolved in state courts. The federal policy is also directed at reducing the caseload of federal district courts. The Wyoming legislature has not expressed an intent to limit the number of suits filed in state district courts or to remove district courts as a forum for class actions, nor is there any reason to assume such legislative intent. Therefore, the majority’s reliance on federal authority is misplaced.

There are important benefits to be derived from class action suits. A class action offers an economically effective procedure for adjudicating numerous similar, though small, claims. This is particularly true in disputes involving citizens with limited resources who may be prevented from seeking redress unless permitted to band together in a single lawsuit. In addition, class actions can eliminate repetitious litigation and possibly inconsistent adjudications involving common questions, related events or requests for similar relief. Considering these benefits, I am compelled to point out what I perceive to be major deficiencies in the way class actions fit into our current jurisdictional scheme.

If we assume, as does the majority, that county courts cannot hear class action suits, then as a practical matter plaintiffs with individual claims of less than $7,000 have no judicial forum in which to seek relief as a class. Consider, for example, a business entity which erroneously overcharges every Wyoming resident $5 a month for a period of months. Certainly, no one individual will bring a suit because the cost of filing the action would be more than the recovery. However, the business entity would accumulate thousands if not millions in profit as a result of its wrongdoing, with virtually no risk of legal liability. In effect, any entity who by error or by design bilks Wyoming citizens out of sums which individually fall below the jurisdiction of district courts may be insulated from suit, even though collectively the damages may be quite large.

On the other hand, if we assume that class actions are permitted in county courts, a different set of problems arises. At the county level, Wyoming has either county courts or justice of the peace courts, each with different jurisdictional thresholds. In county court counties, plaintiffs with claims of less than $7,000 would be required to file suit in county court. Because county courts have no minimum jurisdictional amount, plaintiffs with even very small claims could be included in a class action. However, pursuant to Rule 1(a)(3) of the Wyoming Rules of Civil Procedure for Justice of the Peace Courts, the rules governing class actions are inapplicable in justice of the peace courts, without exception. This leads to the bizarre and inequitable result that in justice of the peace counties plaintiffs with claims exceeding $1,000 could bring their claims in the district court,1 while plaintiffs with claims of $1,000 or less would be precluded from joining a class action at all.

In either' ease, this scheme defeats the main benefits of class actions because it mandates multiple actions, and perhaps even multiple class actions. For the foregoing reasons, Purge the legislature to consider a statutory enactment which would vest the district courts with exclusive jurisdiction over all class actions regardless of the amount in controversy, provided claimants meet the requirements of W.R.G.P. 23.

. In fact, from the information contained in the record, it appears that had suit been filed in Buffalo (home of named-plaintiff Lusher), the district court would have had jurisdiction, at least over those plaintiffs with claims exceeding $1,000.