Opinion ID: 744549
Heading Depth: 2
Heading Rank: 2

Heading: Dismissal of the 14(e) Claims as to the Entire Class

Text: 25 The district court dismissed Count 4, which alleged securities fraud in violation of section 14(e) of the Securities Exchange Act, in its entirety, on the basis that Tacey was the only named plaintiff for that count and his claim was moot pursuant to the statute of limitations. Tacey argues that the district court erred in dismissing Count 4 as to the entire class. He contends that he remains a proper class representative both because his claim is not moot and because of the nature of class actions. Farmland argues that the class fails because Tacey's claim became moot before the class was certified. 26 Farmland correctly points out that whether the mootness of a class representative's claim warrants dismissal of the entire class on that count is a question of timing. Compare Sosna v. Iowa, 419 U.S. 393, 400-01, 95 S.Ct. 553, 557-58, 42 L.Ed.2d 532 (1975) (holding that postcertification mootness of representative's claim does not render class members' claims moot) with Shipman v. Missouri Dep't of Family Serv., 877 F.2d 678, 682 (8th Cir.1989) (affirming dismissal of class action complaint without a ruling on class certification where class representative had not filed a motion requesting class certification prior to his own claim becoming moot), cert. denied, 493 U.S. 1045, 110 S.Ct. 842, 107 L.Ed.2d 837 (1990). However, Tacey's claim does not technically suffer from a mootness problem; rather, he has a live controversy that is barred by the statute of limitations. Thus, we find the discussions in the mootness cases and their reliance on Article III limitations unhelpful. 27 Rule 23 of the Federal Rules of Civil Procedure, which sets forth the requirements for class certification, provides an answer to this puzzle. Inherent in Rule 23 is the requirement that the class representatives be members of the class. Fed.R.Civ.P. 23(a) (stating that one or more members of a class may sue or be sued as representative parties....); Vervaecke v. Chiles, Heider & Co., 578 F.2d 713, 719-20 (8th Cir.1978) (The plaintiff- or defendant-representative (in a class action suit) must be a member of the class which he purportedly represents.) (quoting 3B Moore's Federal Practice p 23.04, at 23-254 (2d ed.1977)); see also Fed.R.Civ.P. 17(a) (real party in interest requirement); 7A Charles Alan Wright, Arthur R. Miller & Mary Kay Kane, Federal Practice and Procedure § 1761 (2d ed.1986) (discussing requirement that representatives must be members of the class). Here, Tacey is not and cannot be a class member because his claim is time barred; consequently, he cannot represent the class. See Weinberger v. Retail Credit Co., 498 F.2d 552, 556 (4th Cir.1974); Mason v. Anheuser-Busch, Inc., 579 F.Supp. 871, 873 & n. 1 (E.D.Mo.1984). Because Tacey is the only named representative in Count 4, the putative class lacks a representative on that count. Without a class representative, the putative class cannot be certified and its claims cannot survive. The district court's dismissal was therefore proper. Cf. Vervaecke, 578 F.2d at 719-20 (holding district court did not abuse its discretion in striking class claims prior to class certification where class representative's claims failed).