Opinion ID: 1282082
Heading Depth: 1
Heading Rank: 2

Heading: We therefore expand our study to determine if, under the issues presented here, trial court's ruling should be supported on other grounds.

Text: A. Of course this examination must be pursued in light of the purposes of R.C.P. 42, the rules governing its interpretation, the alternatives presented to trial court, and our scope of review. The basic thought behind the class action was that it would avoid a multiplicity of suits. Kainz v. Anheuser-Busch, Inc., supra, 194 F.2d at 740. To permit the defendants to contest liability with each claimant in a single, separate suit, would, in many cases give defendants an advantage which would be almost equivalent to closing the door of justice to all small claimants. This is what we think the class suit practice was to prevent. Like many another practice, necessity was its mother. Weeks v. Bareco Oil Co., supra, 125 F.2d at 90. On the other hand, there are also advantages to a class action defendant in avoiding a dissipation of defensive efforts and costs in numerous venue jurisdictions before various judges unfamiliar with the common issues of law and fact. See Union Carbide and Carbon Corporation v. Nisley, 300 F.2d 561, 570 (10th Cir. 1961); Weeks v. Bareco Oil Co., supra, 125 F.2d at 90. Although difficulties may often be encountered in meeting varying questions of law and fact applicable to individual members of the class, these may decrease in significance when compared to the difficulties and circumstances that may result from a number of actions brought in the various counties of the state involving the same issues. Klicker v. State, 293 Minn. 149, 154, 197 N.W.2d 434, 437 (1972). Neither should we ignore the diminished court congestion which might result from processing common issues of law and fact in one, rather than many, forums. The spurious class action Rule is based on the assumption that the economy of time, effort, and expense which will result from a common trial of substantial common issues involving rights several in character exceeds the additional burden which may be imposed upon the court and the parties by the necessity of also determining in the common litigation those issues which may be several. 59 Am.Jur.2d Parties § 50, at 413-414. While this court has never indicated the manner in which R.C.P. 42 should be construed and applied, there are plain guideposts at hand. Rule 42(c) is closely related to R.C.P. 75, governing interventions. We have said, R.C.P. 75 is remedial and should be liberally construed to reduce litigation and expeditiously determine matters before the court. Schimerowski v. Iowa Beef Packers, Inc., 196 N.W.2d 551, 555 (Iowa 1972). A second indicia is found in § 4.2, The Code, where the legislature provided the Code's provisions and all proceedings under it shall be liberally construed with a view to promote its objects and assist the parties in obtaining justice. Finally, we are convinced the appropriate view is that adopted by federal courts in applying former federal rule 23. Those courts consistently held the rule should be liberally construed and the policy should favor maintenance of class actions. McGrath v. Tadayasu Abo, 186 F.2d 766, 770 (9th Cir. 1951), cert. denied, 342 U.S. 832, 72 S.Ct. 38, 96 L.Ed. 629; Montgomery Ward & Co. v. Langer, 168 F.2d 182, 187 (8th Cir. 1948); Weeks v. Bareco Oil Co., supra, 125 F.2d at 88; 3B Moore's Federal Practice § 23.02[4], at 23-81. Given the above policy, it is important to note the manner in which the crucial question was reached below. A class action was denied through the device of a motion to drop parties. The pertinent rule provides: 27. Remedy for misjoinder (a) Parties. Misjoinder of parties is no ground for dismissal of the action, but parties may be dropped by order of the court on its own motion or that of any party at any stage of the action, on such terms as are just, or any claim against a party improperly joined may be severed and proceeded with separately. (b)   . (emphasis supplied) Under the former practice, a misjoinder of parties was ground for a demurrer or dismissal. McPherson v. Commercial Building & Sec. Co., 206 Iowa 562, 566, 218 N.W. 306, 308 (1928); see comment, 1 Iowa Rules of Civil Procedure Annotated, Rule 27 at 176. Misjoinder is no longer a ground for dismissal. Claeys v. Moldenschardt, 169 N.W.2d 885, 889 (Iowa 1969); Appanoose Co. R. Tax Assoc. v. Iowa State Tax Com'n, 261 Iowa 1191, 1197, 158 N.W.2d 176, 179-180 (1968). We note R.C.P. 27(a) significantly offers trial court the alternative of severing claims against parties improperly joined, instead of dropping parties, so that those claims can be separately processed. B. We think the applicable standard recognizes a rule 27(a) motion is addressed to the sound discretion of trial court. See City of Cedar Rapids v. Cox, 250 Iowa 457, 469, 93 N.W.2d 216, 223 (1958); Blades v. Walker, 36 Iowa 266, 267-268 (1873). An analogous approach is taken by the federal courts with respect to motions under similar federal rule 21. See United States v. Wyoming Nat'l Bank of Casper, 505 F.2d 1064, 1067 (10th Cir. 1974); 3A Moore's Federal Practice § 21.03[1], at 21.10 (1974). We thus examine trial court's ruling to determine whether it exceeded its discretion in dropping all parties except one plaintiff and one defendant. It is of course apparent trial court gave little, if any, consideration to the alternative of severing claims rather than dropping parties because our Bennett holding, overruled above, was so obviously applicable. We may summarily dispose of the issue relating to defendant seed companies which sold no seed corn to any of the named plaintiffs. None of the named plaintiffs could insure adequate representation (R.C.P. 42) of unnamed members of the class who allegedly did purchase from those seed suppliers. Our count discloses these named plaintiffs purchased seed corn from only 13 of the 116 defendant seed corn producers. All except those the amended petition alleges sold seed to these plaintiffs should be dropped, and to that extent trial court's ruling should be affirmed. We next turn to the remaining parties. After giving careful attention to all of the relevant papers and briefs, together with the transcript of the hearing below, it is apparent those five plaintiffs who purchased seed from defendant Pioneer Hi-Bred International, Inc., for example, had and pled a viable spurious class action against that defendant. The same is true of those five plaintiffs who purchased seed from defendant De Kalb Agresearch, Inc., and other plaintiffs, properly grouped, who purchased from each supplier. Viewed as severed spurious class actions against separate defendants, the evils projected by defendants dissipate. The same evidence could disclose defendant's manner of hybrid seed development, production, testing and marketing. Plaintiffs who purchased from that defendant would all be horizontally related as purchasers from a single supplier. If, as contended by defendants, each defendant has different advertising, warranties and disclaimers, a severance of the claims against each remaining defendant would enhance the common features of the litigation. We see little difference between such a severed action and Professor Moore's classic spurious class action example in which a railroad negligently sets fire to property, and widespread damage to many property owners ensues. Here there is a question of law and fact common to many persons. A, B, and C could bring an action on behalf of themselves, and all others similarly situated, against the railroad.    Other persons who had been injured could intervene   . 3B Moore's Federal Practice § 23.10[1], at 23-2604, 23-2605. See Puget Sound Alumni of Kappa Sigma v. City of Seattle, supra, 70 Wash.2d at 234-235, 422 P.2d at 806-807. Properly severed as a separate spurious class action against each seed-supplying defendant, it is clear each resulting action would involve substantial common questions of law and fact. The common question of law would be whether defendant is liable to its customer plaintiffs under any of the three theories set out in the petition. The basic common question of fact would be whether the hybrid seed corn produced and sold by the defendant was unreasonably susceptible to disease. The requirement of R.C.P. 42(c) would thus be met. The remaining requirements of several rights and common relief would also be met as indicated in division II. In view of the policy we adopt, supra, favoring in appropriate cases the maintenance of class actions, we hold in this case trial court's ruling which dropped all parties except one plaintiff and one defendant exceeded its discretion. The result, although understandable because of the court's reliance on Bennett, was analogous to wielding an axe when a scalpel would have been the appropriate tool. The proper disposition would retain all plaintiffs and all defendants who sold seed corn to the named plaintiffs. The claims against each defendant should have been severed and ordered recast to provide one spurious class action against each defendant, pursuant to the R.C.P. 27(a) alternative that a claim against a party improperly joined may be severed and proceeded with separately.