In 2003, Plaintiffs filed a class action alleging that Defendant BP America Production Company (BP) improperly deducted postproduction costs from royalty payments due between January 1986 and December 1997. To toll the applicable six-year statute of limitations, Plaintiffs claimed that BP fraudulently concealed material facts which gave rise to their claims. The trial court certified the class, and the appellate court affirmed. BP then appealed to the Supreme Court, arguing: (1) proof of fraudulent concealment was inherently individualized, and not amenable to resolution on a class basis; and, (2) the class time period was overly broad and as a result, includes members who had no costs deducted under the "netback" methodology. BP thus argued that the trial court erred in certifying the class. Upon review, the Supreme Court disagreed with either of BP's arguments, and affirmed the trial court's certification of the class.
Consumers brought a class action against ten automobile dealerships operating under the "Medved" name and their owner John Medved, alleging violations of the Colorado Consumer Protection Act (CCPA). Plaintiffs alleged that Medved's sales documents failed to disclose the price and existence of various dealer-added aftermarket products, injuring Plaintiffs who paid for those products. Plaintiffs sought certification of two classes: one which included customers who paid for the add-ons but that were never installed, and another class for those who paid for the add-ons but who were unaware of them due to Medved's sales documents. The trial court determined that Plaintiffs could prove causation and injury in their CCPA claims with circumstantial evidence. However, the trial court did not consider whether the individual evidence presented by Medved rebutted the class-wide inferences of causation and injury which was crucial to certification of both classes. The appellate court concluded that the trial court erred by not rigorously analyzing the evidence presented by Medved to refute Plaintiffs' theories of liability. Upon review, the Supreme Court affirmed the appellate court, and remanded the case back to the trial court for further analysis to determine "to its satisfaction whether Plaintiffs could establish causation and injury.
The issue on appeal to the Supreme Court in this case pertained to the standards a trial court applies when it decides whether to certify a class pursuant to C.R.C.P. 23. The Supreme Court reversed the court of appeals' rulings: that the trial court must apply a "preponderance of the evidence" standard to C.R.C.P. 23's requirements, that the trial court must resolve factual or legal disputes dispositive of class certification regardless of any overlap with the merits, and that the trial court must resolve expert disputes regardless of any overlap with the merits. The Court also concluded that the trial court rigorously analyzed the evidence in determining that Plaintiffs in this case established an identifiable class and satisfied C.R.C.P. 23(b)(3)'s "predominance" requirement.
Posted in: Class Action, Colorado Supreme Court, Energy, Oil & Gas Law, Injury Law, Real Estate & Property Law
The class certification issue presented in this case arose from a dispute concerning the payment of medical bills under the Colorado Automobile Accident Reparations Act (No-Fault Act). Plaintiffs Pauline Reyher and Dr. Wallace Brucker filed suit against State Farm Mutual Automobile Insurance Company (State Farm) alleging that it failed to pay full, reasonable amounts in medical expenses in violation of the No-Fault Act and its own contracts. Plaintiffs subsequently moved to certify two classes that included all insureds and providers, respectively, who submitted medical bills to State Farm and were reimbursed for less than the full amounts. The trial court denied the motion for certification on grounds that Plaintiffs failed (among other things) to establish the "predominance" requirement. The appellate court reversed and remanded the case to enter an order certifying the class. State Farm appealed, arguing that the appellate court's finding of "predominance" was made in error. Upon review, the Supreme Court affirmed the trial court's decision and reversed the appellate court.