Stammco, L.L.C. v. United Tel. Co. Of Ohio, Addressing Rule 23 Requirements For Class Certification In Ohio

After eight years and two visits, the Ohio Supreme Court has issued an opinion that not only addresses key developments in federal class action jurisprudence, but also decided the underlying class certification question. The resulting opinion will have a major impact on Ohio class action law in all substantive areas, but will certainly impact employment law.

Writing for a 5-2 majority of the Court, on July 16, 2013 Justice Sharon Kennedy ruled in Stammco, L.L.C. v. United Tel. Co. of Ohio, ("Stammco II"), that the trial court acted properly in refusing to permit the case to proceed as a class action but for a different reason than those the trial court stated - because the proposed amended class definition did not meet Rule 23 requirements. Consequently, the Ohio Supreme Court reversed the court of appeals and reinstated the order of the trial court overruling plaintiffs' motion to amend the class definition, effectively decertifying the class action.

Background

The case was brought in 2005 by Stammco, L.L.C. and its owners Kent and Carrie Stamm against United Telephone Company of Ohio ("UTO"), the provider of both their local and long-distance service. The plaintiffs' complaint alleged that their UTO bills contained unauthorized charges from third parties which constituted "cramming". Plaintiffs sought injunctive relief and compensatory damages for a broadly defined class of UTO subscribers.

The History

Initially, the trial court had certified the class as defined and the court of appeals affirmed, but only under Rule 23(B)(3). On appeal, the Ohio Supreme Court reversed, holding that the class definition failed to "readily identify" prospective members and was ambiguous. The Court also held that the class was not readily identifiable because "individual determinations" would be needed to ascertain if the third party charges were authorized and more than reasonable effort was required. Stammco L.L.C. v. United Tel. Co. of Ohio, 125 Ohio St. 3d 91 (2010) ("Stammco I"). The Court reversed the judgment of the court of appeals and remanded the case to the trial court to redefine the class. UTO's other arguments, however, were not addressed by the Supreme Court at that time.

On remand, the plaintiffs offered an amended class definition but after extensive briefing and an oral hearing the trial court denied the amended motion for class certification. Plaintiffs appealed claiming the trial court's denial was improper, in part, because some of...