FOR PUBLICATION
ATTORNEY FOR APPELLANT: ATTORNEYS FOR APPELLEE:
R. BROCK JORDAN IRWIN B. LEVIN
Rubin & Levin, P.C. DAVID J. CUTSHAW
Indianapolis, Indiana SCOTT D. GILCHRIST
ERIC S. PAVLACK
Cohen & Malad, L.L.P.
Indianapolis, Indiana
KARL L. MULVANEY
NANA QUAY-SMITH
CANDACE L. SAGE
Bingham McHale, LLP
Indianapolis, Indiana
CORE FUNDING GROUP, LLC, )
)
Appellant-Defendant, )
)
vs. ) No. 49A05-0208-CV-364
)
JAMES H. YOUNG, on behalf of himself and all )
others similarly situated, )
)
Appellee-Plaintiff. )
OPINION FOR PUBLICATION
(A) Prerequisites to a class action. 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; and
(4) the representative parties will fairly and adequately protect the interests of the
class.
(B) Class actions maintainable. An action may be maintained as a
class action if the prerequisites of subdivision (A) are satisfied, and in addition:
(1) the prosecution of separate actions by or against individual members of the
class would create a risk of:
(a) inconsistent or varying adjudications with respect to individual members of the class
which would establish incompatible standards of conduct for the party opposing the class,
or
(b) adjudications with respect to individual members of the class which would as
a practical matter be dispositive of the interest of the other members not
parties to the adjudications or substantially impair or impede their ability to protect
their interests; or
(2) the party opposing the class has acted or refused to act on
grounds generally applicable to the class, thereby making appropriate final injunctive relief or
corresponding declaratory relief with respect to the class as a whole; or
(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.
(C) Determination by order whether class action to be maintained--Notice--Judgment--Actions conducted partially as
class actions.
(1) As soon as practicable after the commencement of an action brought as
a class action, the court, upon hearing or waiver of hearing,
See footnote
shall determine
by order whether it is to be so maintained. An order under
this subdivision may be conditional, and may be altered or amended before the
decision on the merits.
(Emphasis and footnote supplied.)
Core asserts appellate review of the class-certification issue is permissible and appropriate despite
the default judgment, relying on Davis v. Hutchins, 321 F.3d 641 (7th Cir.
2003). Davis does not support Cores position. Davis brought a class
action against Hutchins, an attorney, alleging Hutchins violated the Fair Debt Collection Practices
Act. The trial court entered a default judgment and awarded attorneys fees,
$2,000 in actual damages for Davis, and $500,000 in damages for the class.
Hutchins appealed, arguing among other things that the default judgment and the award
of class-action damages were error. The Seventh Circuit determined the default was
properly entered but that class-action damages should not have been awarded. Hutchins
argued, as does Core in the case before us, that at least some
of the class certification requirements were lacking. See Associated Med. Networks, Ltd.
v. Lewis, 785 N.E.2d 230, 235 (Ind. Ct. App. 2003) (in determining the
propriety of class action certification, a trial court must first determine whether the
class meets the four prerequisites of T.R. 23(A), generally known as numerosity, commonality,
typicality, and adequacy of representation). However, the Seventh Circuit did not address
those arguments because although the district court awarded class damages, no class had
ever been certified.
Davis argued the class was effectively certified by the entry of default because
when a default is entered, the factual allegations in the complaint are deemed
admitted by the defendant. 321 F.3d at 648. The panel acknowledged
the general principle that factual allegations in the complaint are deemed admitted by
the defendant upon default, id., but noted that Rule 23 imposes an independent
duty on the trial court to determine by order that the requirements of
Rule 23 are met regardless of the defendants admissions. Id. A
class may be certified only if the trial court is satisfied, after a
rigorous analysis, that the prerequisites of Rule 23(a) have been satisfied. Id.
at 649 (quoting Gen. Tel. Co. of the S.W. v. Falcon, 457 U.S.
147, 160-61 (1982)). That requirement serves the important function of protecting absent
class members whose rights might be affected by the class certification. Id.
No such judicial determination had been made in Davis; however, in the case
before us the trial court did determine by order that the requirements of
T.R. 23 had been satisfied. Core asserts the required rigorous analysis was
not performed, apparently on the ground Core did not appear at the class
certification hearing to oppose Youngs motion.
We decline to adopt Cores apparent premise that a trial court cannot conduct
a sufficiently rigorous analysis of the propriety of a class action without participation
by the defendant. Under Cores rationale, a defendant could prevent any class
action from ever going forward merely by failing to participate in the class
certification phase of the litigation.
Youngs complaint included the allegations necessary to support an action under the TCPA
and a class action under T.R. 23, the trial court conducted a hearing
on the class certification, and it issued an order certifying the class.
Youngs complaint alleged, among other things, a violation of the TCPA and it
defined the class as all persons or entities in the United States who
received facsimile transmissions from Core Funding that contained advertising during the two years
before the complaint was filed. (Appellants App. at 15.) It alleged
at least forty people had received such faxes, so it was impracticable to
join all the individual class members. It alleged common questions of law
and fact that predominated over any questions affecting individual class members. It
alleged Youngs claims were typical of the class claims and that Young would
protect the interests of the class. Young moved for a hearing on
his petition for certification of the class and the trial court held the
hearing. Core submitted a motion asking the court to reconsider the class
certification and it attached case law supporting its motion. The trial courts
analysis of the class certification question was as thorough as it could be
without Cores participation.
We decline to hold the trial courts analysis of the propriety of a
class action was not sufficiently rigorous. Cores challenge to the class certification
is therefore foreclosed by the default judgment against it.