Opinion ID: 1779066
Heading Depth: 2
Heading Rank: 3

Heading: Same Transaction or Occurrence Requirement

Text: ¶ 13. Almost all post- Armond cases discussing Rule 20(a) to any degree have dealt with analogous fact scenarios to Armond and reaffirmed its holding. See Purdue Pharma, L.P. v. Estate of Heffner, 904 So.2d 100 (Miss.2004); Janssen Pharmaceutica, Inc. v. Jackson, 883 So.2d 91 (Miss.2004); Culbert v. Johnson & Johnson, 883 So.2d 550 (Miss.2004); Janssen Pharmaceutica, Inc. v. Keys, 879 So.2d 446 (Miss.2004); Janssen Pharmaceutica, Inc. v. Scott, 876 So.2d 306 (Miss.2004); Janssen Pharmaceutica, Inc. v. Grant, 873 So.2d 100 (Miss.2004); Bailey, 878 So.2d at 46-49. This case presents us with another post-amendment opportunity to clarify our joinder jurisprudence in a different context in which claims of mass fraud and misrepresentation arise. ¶ 14. In both Armond and Bailey, we discussed the case of Insolia v. Philip Morris, Inc., 186 F.R.D. 547 (W.D.Wis. 1999). [6] Insolia dealt with a case of three former smokers and their spouses who alleged they were subject to an industry-wide conspiracy to mislead consumers regarding the negative effects of smoking. Id. at 548. In discussing the general consensus which has emerged from federal courts dealing with Rule 20(a) in the context of securities fraud lawsuits, the court rightly noted that the rule demands more than the bare allegation that all plaintiffs are victims of a fraudulent scheme perpetrated by one or more defendants[.] Id. at 549. The court added that there must be some indication that each plaintiff has been induced to act by the same misrepresentation. Id. (citing Nor-Tex Agencies, Inc. v. Jones, 482 F.2d 1093, 1100 (5th Cir.1973); McLernon v. Source Int'l, Inc., 701 F.Supp. 1422 (E.D.Wis.1988); Papagiannis v. Pontikis, 108 F.R.D. 177, 179 (N.D.Ill.1985)). ¶ 15. Jones dealt with a securities fraud claim against a defendant who made a series of false statements in regard to the viability of oil production on certain pieces of land. Jones, 482 F.2d at 1095-96. The defendant, Jones, originally made the statements to Riley, an individual investor; but upon relying on the same statements, Riley opted, as president of Nor-Tex, to invest corporate funds in the project. Id. Nor-Tex sued Jones, alleging securities fraud and subsequently joined Riley as plaintiff. Id. at 1099. The Fifth Circuit found joinder of the two plaintiffs appropriate since both Nor-Tex's and Riley's claims were based on a series of false statements made by Jones ... [and] the facts concerning Nor-Tex were inextricably woven together with the facts concerning... Riley. Id. at 1100. ¶ 16. The trial court in McLernon dealt with a case similar to the one before us today. In that case, over three hundred plaintiffs alleged that they had been fraudulently induced into buying unregistered securities. McLernon, 701 F.Supp. at 1424. In ruling that the plaintiffs were improperly joined under Federal Rule of Civil Procedure 20(a), the court observed It is vaguely suggested that all plaintiffs relied upon certain misrepresentations and omissions in newspaper advertisements, brochures, television appearances and personal correspondence. But it is not clear that these misrepresentations are part of all plaintiffs' claims. Indeed, other portions of the amended complaint indicate that some plaintiffs' claims arise out of oral misrepresentations not made to other plaintiffs. Id. In spite of the plaintiffs' initial failure to properly join, the district court allowed the plaintiffs to amend their complaint in the interest of judicial economy. Id. at 1426. ¶ 17. Both Jones and McLernon provide valuable sources of persuasive authority in the case at hand. Though the forty-five plaintiffs in this case have lodged multifarious complaints of deception by Mississippi Life in their pleadings, motions, and briefs, they have failed to present any evidence which specifically identifies any common misrepresentation to all plaintiffs by Mississippi Life, either written or oral. At best, four of the plaintiffs consistently testify, without identifying any deception on the part of Mississippi Life, that Mississippi Life explained nothing to them when it convinced them to purchase the insurance policies. Beyond that, the record reveals nothing more than bare allegations devoid of any evidence that each plaintiff has been induced to act by a common misrepresentation. ¶ 18. Unlike Jones, no plaintiff has alleged fraudulent statements which are inextricably woven together with the facts concerning a statement made to any other plaintiff. Instead, more like the plaintiffs in McLernon, these plaintiffs have vaguely suggested that all plaintiffs relied upon certain misrepresentations and omissions on the part of Mississippi Life. ¶ 19. We quote the language of McLernon to provide future courts and plaintiffs with specific guidance as to the evidentiary burden of proof borne by joined plaintiffs who wish to meet the demands of Rule 20(a) in regard to their allegations of fraud or misrepresentation: In order to satisfy Rule 20(a), [plaintiffs] must allege that their claims arise from one or more uniform misrepresentations. To do so, they must specifically identify which representations and/or omissions, if any, were made to all plaintiffs. If the representation was written, the writing in which the representation appeared and the date of publication must be set forth. That plaintiffs' claims may be premised on oral misrepresentations does not preclude joinder, provided plaintiffs allege that the substance of the oral representations was standardized... Those plaintiffs whose claims arise out of representations not made to other plaintiffs must be specifically identified and will be subject to severance. Id. at 1425-26 (emphasis in original). ¶ 20. Because the plaintiffs in the case at hand have exclusively relied upon general allegations as the basis for their claim of joinder under Rule 20(a), rather than supplementing their allegations with substantive evidence, they consequently do not meet the prerequisite that the claims be based upon the same transaction or occurrence. [7] Neither has Mississippi Life presented sufficient evidence to show that the plaintiffs have not met the same transaction and occurrence requirement of Rule 20. Instead, Mississippi Life merely relies on the multiplicity of loan transactions, the time span during which the loans were made, and the different employees with whom each plaintiff dealt as a basis for arguing that the causes of action do not arise from the same transaction or occurrence. [8] ¶ 21. Since the plaintiffs did not satisfy the first prong of Rule 20(a), they consequently did not present a joinable claim under the rule. See Miss. R. Civ. P. 20(a) cmt. (2004) (Both of these requirements must be satisfied in order to sustain party joinder under Rule 20(a)). We reverse the trial court's decision denying Mississippi Life's Motion to Sever and remand to the trial court for the purpose of requiring that both the plaintiffs and Mississippi Life present substantive evidence demonstrating the propriety or impropriety of joinder. We further add that trial courts, in deciding whether to grant a motion to sever, must specifically state on the record the reasons for granting or denying the motion under Rule 20(a).