Opinion ID: 2139434
Heading Depth: 1
Heading Rank: 2

Heading: was class action certification appropriate?

Text: Madera argues that the trial court failed to apply the requisite criteria to certify this matter as a class action. In accordance with SDCL 15-6-23(a), one or more members of a class may sue or be sued as representative parties on behalf of all only if: (1) the class is so numerous that joinder of all members is impracticable, (2) there are questions of law or fact common to the class, (3) the claims or defenses of the representative parties are typical of the claims or defenses of the class, (4) the representative parties will fairly and adequately protect the interests of the class ... Our statute is identical to the comparable provision set forth in Rule 23 of the Federal Rules of Civil Procedure. Therefore, class actions are maintainable if the prerequisites of SDCL 15-6-23(a) are satisfied, and: (3) the court finds that the questions of law or fact common to the members of the class predominate over any questions affecting only individual members, and that a class action is superior to other available methods for the fair and efficient adjudication of the controversy. The matters pertinent to the findings include: (A) the interest of members of the class in individually controlling the prosecution or defense of separate actions; (B) the extent and nature of any litigation concerning the controversy already commenced by or against members of the class; (C) the desirability or undesirability of concentrating the litigation of the claims in the particular forum; (D) the difficulties likely to be encountered in the management of a class action. SDCL 15-6-23(b). Class actions serve an important function in our judicial system. By establishing a technique whereby the claims of many individuals can be resolved at the same time, the class suit both eliminates the possibility of repetitious litigation and provides small claimants with a method of obtaining redress for claims which would otherwise be too small to warrant individual litigation. Eisen v. Carlisle & Jacquelin, 391 F.2d 555, 560 (2nd Cir.1968). In deciding whether to allow a class action, a primary determination to be made is whether the class action is superior to, and not just as good as, other available methods for handling the controversy, and such a determination lies in an area where the trial court's discretion is paramount. Rutledge v. Electric Hose & Rubber Company, 511 F.2d 668, 673 (9th Cir.1975). The burden lies with the party seeking certification to demonstrate that the criteria of Rule 23 have been met. Carr v. New York Stock Exchange, Inc., 414 F.Supp. 1292, 1304 (N.D.Cal.1976). The named representatives were required to meet all of the requirements set forth in SDCL 15-6-23(a), and also fall within one of the subsections of SDCL 15-6-23(b), in order for this class suit to be actionable. See: Eisen, 391 F.2d at 561. It is now recognized that the failure of any one of the threshold requirements destroys the alleged class action. Rutledge, 511 F.2d at 673. On review of an order denying or granting a motion to maintain a class, the lower court may be reversed only for an abuse of discretion. See: Weiss v. York Hospital, 745 F.2d 786, 807 (3rd Cir. 1984), cert denied, __ U.S. ___, 105 S.Ct. 1777, 84 L.Ed.2d 836 (1985).