Opinion ID: 2614011
Heading Depth: 1
Heading Rank: 5

Heading: Whether the district court's denial of class status was clearly erroneous.

Text: NRCP 23, identical to its federal counterpart, governs the process of class certification. This rule provides that a class representative can sue on behalf of the class if (1) the class is so numerous that joinder is impractical, (2) questions of law or fact are common to class members, (3) claims and defenses of the representative are typical of those of the class, and (4) the representative will fairly and adequately protect the interests of the class. See NRCP 23(a). The court must also be satisfied that the elements of NRCP 23(b) are met. NRCP 23(b) generally deals with whether maintaining a class action is logistically possible and superior to other actions. In analyzing whether it should certify a class, the court should generally accept the allegations of the complaint as true. Blackie v. Barrack, 524 F.2d 891, 901 (9th Cir.1975), cert. denied, 429 U.S. 816, 97 S.Ct. 57, 50 L.Ed.2d 75 (1976). An extensive evidentiary showing is not required. Id. In the Tenants' case, this court must determine whether questions of law or fact are common to class members. If such questions do exist, then the district court acted arbitrarily and capriciously in failing to certify the class, justifying this court's use of mandamus to compel certification. The Tenants and the NTLA argue that common questions both of law and fact are evident in this case. With respect to questions of fact, the NTLA argues that when a general corporate policy is the focus of litigation, class status for those adversely affected by the policy is appropriate. The NTLA cites Bowling v. Pfizer, Inc., 143 F.R.D 141 (S.D.Ohio 1992), where Pfizer produced thousands of defective heart valves. Id. at 147. Although plaintiffs alleged different injuries and sought many different forms of relief, the court concluded that Pfizer's conduct with regard to all implantees arose out of a single nucleus of operative facts and law, establishing the element of commonality. Id. at 158. The NTLA argues that Bigelow's practice of pinning tenants out of their apartments is a similar corporate practice satisfying the element of commonality. The Tenants make essentially the same argument, albeit with different authority, concluding that commonality is met in circumstances calling into question a general corporate policy. The Tenants also note that a difference in the amount of damages does not defeat commonality. See Johnson, 89 Nev. at 473, 515 P.2d at 73. With respect to questions of law, the NTLA first points out that class members must hold in common questions of fact or law. The existence of questions of law in common is therefore sufficient alone to establish commonality. Both the Tenants and the NTLA argue that questions of whether pinning violated landlord-tenant law, constituted trespass, civil conspiracy, etc., are held in common by all potential class members. The NTLA cites Like v. Carter, 448 F.2d 798 (8th Cir.1971), cert. denied, 405 U.S. 1045, 92 S.Ct. 1309, 31 L.Ed.2d 588 (1972), to justify this argument. There, the trial court held class certification would be inappropriate because facts pertaining to the delay in processing social security applications varied from case to case. Id. at 802. The appellate court reversed, concluding that factual differences are not fatal if common questions of law exist, such as the interpretation and validity of the statutes and regulations in question. Id. Bigelow responds that the issue of commonality is controlled by Johnson, 89 Nev. at 467, 515 P.2d at 68. Bigelow notes that in Johnson this court affirmed the district court's refusal to certify a class action involving allegations of fraud and misrepresentation because of the inherent uniqueness of each litigant's claim and understanding of the contract at issue. Bigelow asserts that the case at hand is analogous. Citing Blackie, Bigelow observes that a class action cannot be maintained when differences among class members are more than slight. Bigelow argues that because differences among Bigelow tenants are more than slight, the factual circumstances surrounding Bigelow's pinning of each tenant would have to be fully explored. We conclude that the Tenants and the NTLA are correct. The very case Bigelow asserts is controlling does nothing to further its arguments in response. Bigelow itself admits that Johnson dealt only with the inherent uniqueness of causes of action for fraud and misrepresentation. The outcome of Johnson rested entirely upon the court's conclusion that the complaint lacked a common thread of fraud which existed and pervaded the transaction at the time of the consumer's purchase. Id. at 472-73, 515 P.2d at 72. In fact, this court concluded that no claim in the complaint could possibly have sustained a cause of action for fraud. Johnson, 89 Nev. at 473, 515 P.2d at 73. Applying Johnson, the biggest problem with Bigelow's rationale for pinning (that is, distinguishing who has moved from who is simply avoiding management) is that pinning itself may be unlawful and is alleged to be so by both the Tenants and the NTLA.