Applewhite v. Reichhold Chemicals, Inc.

 1                         United States Court of Appeals,
 2
 3                                   Fifth Circuit.
 4
 5                                   No. 94-60545.
 6
 7         Dessie Lee APPLEWHITE, et al., Plaintiffs-Appellants,
 8
 9                                            v.
10
11            REICHHOLD CHEMICALS, INC., Defendant-Appellee.
12
13                                   Oct. 31, 1995.
14
15   Appeal from the United States District Court for the Southern
16   District of Mississippi.
17
18   Before WISDOM, GARWOOD and DAVIS, Circuit Judges.
19
20        WISDOM, Circuit Judge.
21
22        The appellants seek review of the district court's refusal to

23   certify a class action lawsuit and its dismissal of the appellants'

24   complaint.      We    AFFIRM   the     district    court's    denial   of   class

25   certification        but   VACATE      the     dismissal     and   REMAND     for

26   reconsideration of whether dismissal is appropriate in this case.

27                                            I.
28
29        Reichhold Chemicals, Inc., the defendant/appellee, operated a

30   chemical manufacturing         plant    in    Columbus,    Mississippi   between

31   January 1975 and March 1977.           Operations at the plant closed after

32   an explosion and fire in 1977.               In 1984, the Reichhold site was

33   designated for cleanup under the EPA Superfund after the discovery

34   of toxic wastes at the site.

35        Numerous suits were filed against Reichhold Chemicals.                   In

36   1989, in one of these cases, Levell Mark et al. v. Reichhold

37   Chemicals, Inc., a class was certified under Federal Rule of Civil

38   Procedure 23(b)(1)(B) for the resolution of punitive damage claims

39   against Reichhold Chemicals.           The notice of certification provided
1    that only those litigants with a lawsuit pending against Reichhold

2    or filed within sixty days from the date of notice seeking punitive

3    damages and who were found entitled to compensatory damages would

4    be eligible to share in the class's recovery.

5          The plaintiff/appellants filed this suit in response to the

6    punitive damages class notice.           Dessie Lee Applewhite, along with

7    two   hundred     other    plaintiffs,    filed    this    suit    seeking    both

8    compensatory and punitive damages from Reichhold Chemicals for

9    injuries      allegedly    caused   by    the    defendant's      operations    in

10   Columbus.      This action was originally filed in the Mark case.              The

11   case, however, was subsequently re-captioned Dessie Lee Applewhite

12   et al. v. Reichhold Chemicals, Inc.

13         In 1993, the plaintiffs, in a joint motion with plaintiffs in

14   the case of Delores Abram et al. v. Reichhold Chemicals, Inc.,

15   filed a motion for class certification under Rule 23(b)(3).                  After

16   some discovery, the district court denied the plaintiffs' motion

17   for class certification.         The district court also dismissed the

18   plaintiffs' complaint without prejudice based on a March 3, 1992

19   order in the Mark case requiring all subsequent suits against

20   Reichhold      Chemicals   regarding     the    Columbus   site    to   be   filed

21   separately.       On appeal, the plaintiffs challenge both of these

22   decisions.

23                                          II.
24
25             The district court has wide discretion in deciding whether to

26   certify a class action.1        We review this decision for an abuse of


           1
           Jenkins v. Raymark Industries, Inc., 782 F.2d 468, 471-72
     (5th Cir.1986).
1    discretion.2      The party seeking class certification has the burden

2    of showing that the requirements for a class action have been met.3

3    There are six basic requirements for a Rule 23(b)(3) class action

4    suit.    First, Rule 23(a) imposes four prerequisites:                   numerosity,

5    commonality,      typicality,        and    adequacy    of    representation.       In

6    addition, Rule 23(b)(3) requires that the common factual and legal

7    issues predominate and that the movant show that a class action is

8    the superior method of adjudication.4

9             The    district     court    determined       that   the     plaintiffs   had

10   "totally       failed   to    meet    the     requirements       of    Rule   23   for

11   certification of the proposed class."5                 We agree.      On appeal, the

12   plaintiffs' brief fails to address two of the six requirements for

13   class action certification.6                Failure to brief and argue these

14   issues constitutes waiver.7                Also, in regard to the commonality

          2
             Id. at 472.
          3
           Zeidman v. J. Ray McDermott & Company, Inc., 651 F.2d 1030,
     1038 (5th Cir.1981).
          4
             See, Jenkins, 782 F.2d at 472-73.
          5
           The district court's memorandum opinion denying class
     certification and dismissing the plaintiffs' complaint, Record,
     volume 2 at 272.
          6
           The plaintiffs' brief fails to address the requirements of
     Rule 23(b)(3) that the common issues predominate over those
     issues affecting individual litigants and that the movant show
     that a class action is the superior method of adjudication.
          7
           Gann v. Fruehauf Corporation, 52 F.3d 1320, 1328 (5th
     Cir.1995) (deeming a claim abandoned on appeal because the
     appellant did not "advance arguments in the body of his brief in
     support of his appeal of his ... claims"); Cavallini v. State
     Farm Mutual Auto Insurance Company, 44 F.3d 256, 260 n. 9 (5th
     Cir.1995) (noting that "the failure to provide any legal or
     factual analysis of an issue results in waiver of that issue");
     United States v. Maldonado, 42 F.3d 906, 910 n. 7 (5th Cir.1995)
     (refusing to consider an issue because it was not discussed in
1    requirement,       the   plaintiffs   only    assert    one     common    issue.8

2    Although     the   threshold   for    commonality      is   not   high,    class

3    certification       requires    at    least    two     issues     in     common.9

4    Furthermore, the plaintiffs seek a Rule 23(b)(3) class action which

5    requires that the common issues predominate.                If the plaintiffs

6    cannot identify more than one common issue, they cannot argue that

7    the common issues predominate this litigation.                    Finally, the

8    omissions in the plaintiffs' appellate brief, as well as counsel's

9    conduct below, counsels against a finding that the class members

10   would be adequately represented.        Since the plaintiffs have failed

11   to demonstrate that their case meets the requirements of Rule 23,

12   we hold that the district court did not abuse its discretion when

13   it denied class certification.

14            The plaintiffs also argue that the district court erred when

15   it dismissed their complaint without prejudice based on a blanket

16   order that all future suits against Reichhold Chemicals should be

17   filed separately.10       Generally, permissive joinder of plaintiffs


     the appellant's brief).
          8
           In their brief, the plaintiffs argue that the common issue
     is the defendant's gross negligence. The plaintiffs close their
     section on commonality by stating that "the parties to this
     litigation have one or more issues of law or fact common to them
     all". The plaintiffs choose not to identify what these
     additional common issues are, if any. We will not attempt to
     identify those issues on behalf of the plaintiffs.
          9
           Stewart v. Winter, 669 F.2d 328, 335 n. 16 (5th Cir.1982)
     (noting that "by its terms, Rule 23(a)(2) requires more than one
     common question").
          10
           The plaintiffs also maintain that the district court's
     dismissal violates their rights to due process and equal
     protection of the laws as well as the doctrine of separation of
     powers. The plaintiffs cite no authority in support of these
     arguments. In the light of the plaintiffs failure to adequately
1    under Federal Rule of Civil Procedure 20 is at the option of the

2    plaintiffs, assuming they meet the requirements set forth in Rule

3    20.11    Under Rules 20 and 21, the district court has the discretion

4    to sever an action if it is misjoined or might otherwise cause

5    delay        or   prejudice.12   Further,    the   district   court   also   has

6    discretion to sever claims under Federal Rule of Civil Procedure

7    42(b), in furtherance of convenience or economy, or to prevent

8    prejudice.         This discretion, however, should be exercised after an

9    examination of the individual case.           Thus, we remand this case for

10   the district court to consider whether the plaintiffs are properly

11   joined and whether they should be allowed to continue in one

12   action.

13                                         III.
14
15           We AFFIRM the district court's decision not to certify a class

16   action under Rule 23(b)(3) but VACATE the dismissal and REMAND for

17   further proceedings on the issues of joinder and the advisability

18   of severance.

19




     brief these issues and our decision to vacate the dismissal and
     remand, we do not address the plaintiffs constitutional
     arguments.
             11
           Field v. Volkswagenwerk AG, 626 F.2d 293, 299 (3rd
     Cir.1980). Rule 20 requires that all of the plaintiffs' claims
     arise out of the same transaction or occurrence and that there is
     a common issue of fact or law. See, Demboski v. CSX
     Transportation, Inc., 157 F.R.D. 28, 29-30 (S.D.Miss.1994).
             12
           Mosley v. General Motors Corporation, 497 F.2d 1330, 1332-
     33 (8th Cir.1974); see also, Demboski, 157 F.R.D. at 29; Hanley
     v. First Investors Corporation, 151 F.R.D. 76, 77-80
     (E.D.Tex.1993).