Opinion ID: 1377307
Heading Depth: 2
Heading Rank: 4

Heading: Application of American Pipe

Text: (7a) Relying on American Pipe & Construction Co. v. Utah (1974) 414 U.S. 538 [38 L.Ed.2d 713, 94 S.Ct. 756] and its progeny, plaintiff argues that the filing of the class action in Sindell, supra, 26 Cal.3d 588, [16] tolled the statute of limitations with respect to individual members of the putative class until the class was denied certification in 1982. Defendants respond that the issue is not properly before us, as it was not raised below (Cal. Rules of Court, rule 29), a contention we reject in light of the issue's great public importance. (See, e.g., Tyre v. Aetna Life Ins. Co. (1960) 54 Cal.2d 399, 405 [6 Cal. Rptr. 13, 353 P.2d 725].) Alternatively, defendants argue that the tolling principle set forth in American Pipe, supra, 414 U.S. 538, and followed by the Court of Appeal in Bangert v. Narmco Materials, Inc. (1984) 163 Cal. App.3d 207 [209 Cal. Rptr. 438], has no application to the present case. We agree that American Pipe is inapplicable here. We have repeatedly directed that in the absence of controlling state authority, California courts should utilize the procedures of rule 23 of the Federal Rules of Civil Procedure (28 U.S.C.) to ensure fairness in the resolution of class action suits. ( Richmond v. Dart Industries, Inc. (1981) 29 Cal.3d 462, 469, fn. 7 [174 Cal. Rptr. 515, 629 P.2d 23]; La Sala v. American Sav. & Loan Assn. (1971) 5 Cal.3d 864, 872 [97 Cal. Rptr. 849, 489 P.2d 1113]; Vasquez v. Superior Court (1971) 4 Cal.3d 800, 821 [94 Cal. Rptr. 796, 484 P.2d 964, 53 A.L.R.3d 513].) Under rule 23, the filing of a timely class action commences the action for all members of the class as subsequently determined. ( American Pipe, supra, 414 U.S. 538, 550 [38 L.Ed.2d 713, 725].) In American Pipe, the United States Supreme Court held that, under limited circumstances, if class certification is denied, the statute of limitations is tolled from the time of commencement of the suit to the time of denial of certification for all purported members of the class who either make timely motions to intervene in the surviving individual action ( id. at pp. 552-553), or who timely file their individual actions ( Crown, Cork & Seal Co. v. Parker (1983) 462 U.S. 345, 350 [76 L.Ed.2d 628, 633-634, 103 S.Ct. 2392]). Although we are not bound by the United States Supreme Court decisions (see Cartt v. Superior Court (1975) 50 Cal. App.3d 960, 969, fn. 15 [124 Cal. Rptr. 376]; Hypolite v. Carleson (1975) 52 Cal. App.3d 566, 582 [125 Cal. Rptr. 221]), we nevertheless consider the applicability of American Pipe ( supra, 414 U.S. 538) here. In American Pipe the State of Utah commenced a civil action, claiming that defendants conspired to rig steel and concrete pipe prices in violation of the Sherman Act. The suit purported to be a class action, brought on behalf of Utah's public agencies and others who were end users of the pipe. On defendant's motion, the district court denied class action status for failure to satisfy the numerosity requirement of rule 23(a)(1) of the Federal Rules of Civil Procedure. The public agencies who were alleged as class members then filed motions to intervene. The court denied the motions on statute of limitations grounds. The Ninth Circuit reversed. The United States Supreme Court in a unanimous decision affirmed the circuit court: We hold that in this posture, at least where class action status has been denied solely because of failure to demonstrate that `the class is so numerous that joinder of all members is impracticable,' the commencement of the original class suit tolls the running of the statute for all purported members of the class who make timely motions to intervene after the court has found the suit inappropriate for class action status. ( American Pipe, supra, 414 U.S. 538, 552-553 [38 L.Ed.2d 713, 726].) In Bangert v. Narmco Materials, Inc., supra, 163 Cal. App.3d 207, the Court of Appeal extended American Pipe to apply to a class action suit against a plastics research plant seeking injunctive and monetary relief for property damage, economic loss and physical injuries. The asserted class consisted of persons living within a half-mile radius of the plant. The trial court denied class certification on grounds of insufficient community of interest. Thereafter the court denied as untimely plaintiffs' motion for leave to amend the complaint nunc pro tunc to add as plaintiffs 92 members of the class designated in the original complaint. The Court of Appeal reversed. Citing American Pipe, the court held that the filing of the complaint tolled the running of the statute of limitations for all members of the purported class until class action certification was denied, even though, unlike American Pipe, denial was not for lack of numerosity, but for insufficient community of interest. ( Bangert v. Narmco Materials, Inc., supra, 163 Cal. App.3d at p. 212, fn. 2.) Plaintiff urges us to follow the Bangert court's extension of American Pipe so as to find that the filing of the Sindell class action tolled the statute of limitations applicable to her individual suit. To resolve this issue, we need to consider both the nature of the Sindell action and the rationale underlying American Pipe. Judith Sindell filed suit in 1976. She purported to be suing on her own behalf and, with respect to certain relief, on behalf of a class of women allegedly similarly situated. For herself, individually, Sindell claimed damages for specific personal injury suffered as a result of her mother's ingestion of DES during pregnancy. In her cause of action relating to the class claims, Sindell described the class as female residents of California who have been exposed to DES before birth and who may or may not know that fact or danger, and as a result of which, have or may have contracted or in the future may contract adenocarcinoma or vaginal or cervical adenosis or precancerous tumors of the breast or cancer of the bladder. For the class, Sindell sought only declaratory relief and an order directing defendants to publicize the dangers of DES and the necessity of medical evaluations and to fund the establishment and maintenance of clinics to provide free examinations to the DES daughters. Six years later, in 1982, the trial court denied certification. As reason, the court cited, in relevant part, the lack of commonality among class members on issues of proximate cause, extent of injury, and appropriate medical examination or treatment. [17] As a general rule, the court observed, so-called `mass accidents' or `common disasters' are considered not appropriate for class litigation. This inappropriateness is based upon the overwhelming uniqueness of the issues stemming from the necessity for the trier to hear and determine individually each victim's injuries, his suffering, financial loss, etc. Thus even though a common question may be involved (e.g., the defendant's tort) the matter is not suitable for a class action. The question to be asked, then, is whether the Sindell, supra, 26 Cal.3d 588, mass-tort class action fits the rationale of American Pipe, supra, 414 U.S. 538. We believe the answer is no. Underlying the tolling rule of American Pipe were two major policy considerations. The first was the protection of the class action device. In cases where class certification is denied for what the high court characterized as subtle factors, unforeseeable by class members, a rule that failed to protect putative class members from the statute of limitations after denial of certification would induce potential class members to file protective motions to intervene or to join in the event that a class was later found unsuitable, depriving class actions of the efficiency and economy of litigation which is a principal purpose of the procedure. ( American Pipe, supra, 414 U.S. at p. 553 [38 L.Ed.2d at p. 726]; see also Crown, Cork & Seal Co. v. Parker, supra, 462 U.S. at pp. 350-351 [76 L.Ed.2d at pp. 633-635].) The second consideration involved the effectuation of the purposes of the statute of limitations. The policies of ensuring essential fairness to defendants and of barring a plaintiff who has `slept on his rights,' the high court stated, are satisfied when, as here, a named plaintiff who is found to be representative of a class commences a suit and thereby notifies the defendants not only of the substantive claims being brought against them, but also of the number and generic identities of the potential plaintiffs who may participate in the judgment. (414 U.S. at pp. 554-555 [38 L.Ed.2d at p. 727].) In these circumstances, the court concluded, the purposes of the statute of limitations would not be violated by a decision to toll. ( Ibid. ; see, generally, Comment, Class Actions and Statutes of Limitations (1981) 48 U. Chi. L.Rev. 106, 108-109.) The tension between these two considerations, as at least one commentator has observed (Comment, supra, 48 U.Chi.L.Rev. 106, 110-111), has led lower courts in applying American Pipe to use different approaches. Some courts concentrate on the protection of the class action device: We are persuaded that implicit in the Supreme Court's American Pipe decision was the Court's determination that `effectuation of the purpose of litigative efficiency and economy,' (which Rule 23 was designed to perform) transcends the policies of repose and certainty behind statutes of limitations. [Citation.] ( Appleton Elec. Co. v. Graves Truck Line, Inc. (7th Cir.1980) 635 F.2d 603, 609, cert. den. (1981) 451 U.S. 976 [68 L.Ed.2d 357, 101 S.Ct. 2058]; see, e.g., Green v. United States Steel Corp. (E.D. Pa. 1979) 481 F. Supp. 295, 299-301; Goldstein v. Regal Crest, Inc. (E.D. Pa. 1974) 62 F.R.D. 571, 578-80; White v. Sims (Ala. 1985) 470 So.2d 1191, 1192-1194.) Other courts focus on the policies underlying the statute of limitations and thus inquire whether the defendant received notice of a subsequent plaintiff's claim from the prior class suit. [T]he appropriate focus of inquiry here should simply be upon the extent to which the claims asserted in the earlier class proceeding have in fact placed a defendant upon notice of the claims presently at issue. ( Rose v. Ark. Val. Environ. & Utility Auth. (W.D. Mo. 1983) 562 F. Supp. 1180, 1192; see, e.g., McCarthy v. Kleindienst (D.C. Cir.1977) 562 F.2d 1269, 1272-1276 [46 A.L.R.Fed. 852]; Haas v. Pittsburgh National Bank (3d Cir.1975) 526 F.2d 1083, 1097; Stoddard v. LingTemco-Vought, Inc. (C.D.Cal. 1981) 513 F. Supp. 314, 334-335; Bartlett v. Miller and Schroeder Municipals (Minn.App. 1984) 355 N.W.2d 435, 439-440; First Baptist Church v. Citronelle-Mobile (Ala. 1981) 409 So.2d 727, 728-730.) Still others apply American Pipe broadly to mean that the statute of limitations must always be tolled, eliminating discussion of the reason for denial of class status or the notice issue. (See, e.g., Satterwhite v. City of Greenville (5th Cir.1978) 578 F.2d 987, 997, vacated on other grounds (1980) 445 U.S. 940 [63 L.Ed.2d 773, 100 S.Ct. 1334]; Sanders v. John Nuveen & Co. Inc. (7th Cir.1975) 524 F.2d 1064, 1074, fn. 28, vacated on other grounds (1976) 425 U.S. 929 [48 L.Ed.2d 172, 96 S.Ct. 1659]; Jones v. Holy Cross Hospital Silver Springs, Inc. (D. Md. 1974) 64 F.R.D. 586, 590 & fn. 6; Morton v. Charles County Board of Education (D. Md. 1974) 373 F. Supp. 394, 396, affd. (4th Cir.1975) 520 F.2d 871, cert. den. (1975) 423 U.S. 1034 [46 L.Ed.2d 408, 96 S.Ct. 566].) Considering both policy considerations  protecting the efficiency and economy of litigation and protecting the defendant from unfair claims  we decline to extend the tolling doctrine of American Pipe, supra, 414 U.S. 538, to the present case. Rather, for the reasons set forth below, we conclude that the Sindell class action complaint neither sufficiently put defendants on notice of the substance and nature of plaintiff's claims, nor served to further economy and efficiency of litigation, so as to justify affording plaintiff shelter under the protective umbrella of American Pipe. (8) This court has held that the ultimate determination of whether a class action is appropriate turns on the existence and extent of common questions of law and fact. ( City of San Jose v. Superior Court (1974) 12 Cal.3d 447, 460 [115 Cal. Rptr. 797, 525 P.2d 701, 76 A.L.R.3d 1223].) As the trial court in the present case correctly observed, mass-tort actions for personal injury most often are not appropriate for class action certification. (See Fed. Rules Civ. Proc., rule 23, supplemental note of Advisory Com., reported 28 U.S.C.A. rule 23, pp. 54-55.) The major elements in tort actions for personal injury  liability, causation, and damages  may vary widely from claim to claim, creating a wide disparity in claimants' damages and issues of defendant liability, proximate cause, liability of skilled intermediaries, comparative fault, informed consent, assumption of the risk and periods of limitation. ( D'Amico v. Sitmar Cruises, Inc. (1980) 109 Cal. App.3d 323 [167 Cal. Rptr. 254]; Rose v. Medtronics, Inc. (1980) 107 Cal. App.3d 150 [166 Cal. Rptr. 16]; In re Northern Dist. of Cal., Dalkon Shield, etc. (9th Cir.1982) 693 F.2d 847, cert. den. A.H. Robins Co., Inc. v. Abed (1983) 459 U.S. 1171 [74 L.Ed.2d 1015, 103 S.Ct. 817]; In re Tetracycline Cases (W.D. Mo. 1985) 107 F.R.D. 719; Mertens v. Abbott Laboratories (D.N.H. 1983) 99 F.R.D. 38.) Thus, for example, in DES litigation, use of the class action device has consistently been rejected. ( Mertens v. Abbott Laboratories, supra ; McElhaney v. Eli Lilly & Co. (D.S.D. 1982) 93 F.R.D. 875; Ryan v. Eli Lilly & Co. (D.S.C. 1979) 84 F.R.D. 230; Mink v. University of Chicago (N.D. Ill. 1978) 460 F. Supp. 713.) California DES litigation has not departed from this trend; no reported California cases have approved DES litigation in class action form. (7b) The same reasons that render certification of mass-tort claims generally inappropriate render inappropriate the application and extension of American Pipe, supra, 414 U.S. 538, to the present case. Because of the nature of the Sindell complaint  as indicated, Judith Sindell did not seek to certify the class as to personal injury claims, the gravamen of plaintiff's complaint  and the differences in issues of fact and law  plaintiff's action for damages puts into issue the prenatal treatment of her mother, the specific form of DES prescribed (e.g., tablet, capsule), the dosage taken, her mother's obstetrical history and many other issues necessarily involved in proving causation, damages and defenses  the Sindell class suit ( supra, 26 Cal.3d 588) could not have apprised defendants of plaintiff's substantive claims. Therefore, plaintiff cannot now claim that Sindell's complaint put defendants on notice of allegations related to personal injury within the statutory period of limitation so that they might prepare their defense. [18] This deficiency in Sindell's class action suit is alone sufficient to deny plaintiff relief under American Pipe. As Justice Blackmun, in his concurrence in American Pipe, cautioned: Our decision ... must not be regarded as encouragement to lawyers in a case of this kind to frame their pleadings as a class action, intentionally, to attract and save members of the purported class who have slept on their rights. Nor does it necessarily guarantee intervention for all members of the purported class. ¶ As the Court has indicated, the purpose of statutes of limitations is to prevent surprises `through the revival of claims that have been allowed to slumber until evidence has been lost, memories have faded, and witnesses have disappeared.' [Citations.] ( American Pipe, supra, 414 U.S. 538, 561 [38 L.Ed.2d 713, 731] (conc. opn. of Blackmun, J.).) Justice Blackmun's admonition was echoed by three of his colleagues in the principal United States Supreme Court decision interpreting American Pipe  Crown, Cork & Seal Co. v. Parker, supra, 462 U.S. 345. In Crown Cork Justice Powell, in a concurring opinion joined by Justices Rehnquist and O'Connor, emphasized the importance of avoiding abuse of the American Pipe tolling rule: The rule should not be read ... as leaving a plaintiff free to raise different or peripheral claims following denial of class status. ¶ ... [W]hen a plaintiff invokes American Pipe in support of a separate lawsuit, the district court should take care to ensure that the suit raises claims that `concern the same evidence, memories, and witnesses as the subject matter of the original class suit,' so that `the defendant will not be prejudiced.' (462 U.S. at pp. 354-355 [76 L.Ed.2d at pp. 636-637], quoting American Pipe, supra, 414 U.S. at p. 562 [38 L.Ed.2d at p. 731] (conc. opn. by Blackmun, J.).) Our position in the present case ensures that the abuse warned of by Justice Blackmun will not occur. By refusing to extend American Pipe's tolling doctrine to allow the instant suit, we heed Justice Blackmun's admonishment to district judges to exercise discretion in applying the American Pipe rule in order to prevent the type of abuse mentioned above and [to] preserve a defendant whole against prejudice arising from claims for which he has received no prior notice. (414 U.S. at p. 562 [38 L.Ed.2d at p. 731].) Because the Sindell complaint never put defendants on notice that personal injury damages were being sought on a class basis, it would be unfair to defendants to toll the statute of limitations on such personal injury actions. ( American Pipe, supra, 414 U.S. 538, 553 [38 L.Ed.2d 713, 726].) And because the Sindell complaint did not seek personal injury damages on behalf of the class, even those absent class members who were aware of that action could not reasonably have relied on the complaint as a basis for postponing their own personal injury actions. Thus, our ruling today does not result in duplicative litigation of the sort feared by the court in American Pipe, nor does it deprive rule 23 of the Federal Rules of Civil Procedure (28 U.S.C.) of its purpose to further the efficiency and economy of litigation ( American Pipe, supra, 414 U.S. 538, 553). In light of our disposition, we need not address the broader question whether in any personal injury mass-tort case the filing of a class action complaint can serve to toll the statute of limitations for putative class members when the class ultimately is denied certification for lack of commonality. We observe, however, that because personal-injury mass-tort class-action claims can rarely meet the community of interest requirement in that each member's right to recover depends on facts peculiar to each particular case, such claims may be presumptively incapable of apprising defendants of the substantive claims being brought against them ( American Pipe, supra, 414 U.S. 538, 555 [38 L.Ed.2d 713, 727]), a prerequisite, in our view, to the application of American Pipe ( ibid.; see Crown, Cork & Seal Co. v. Parker, supra, 462 U.S. 345, 353 [76 L.Ed.2d 628, 635-636]). This being so, putative class members would be ill advised to rely on the mere filing of a class action complaint to toll their individual statute of limitations. The presumption, rather, should be to the contrary  i.e., that lack of commonality will defeat certification and preclude application of the American Pipe tolling doctrine. [19] For the reasons previously stated, we hold that the American Pipe tolling rule ( supra, 414 U.S. 538) is unavailable to plaintiff. Specifically, we find that plaintiff and other similarly situated plaintiffs seeking personal injury damages in DES cases may not rely on the Sindell class action suit ( supra, 26 Cal.3d 588) to toll the statute of limitations pursuant to American Pipe. [20]