Funliner of Alabama, L.L.C., et al. v. Fred Pickard and Lewis Dowdell

Summary

The Supreme Court of Alabama reviewed orders certifying a plaintiff class and two defendant classes in litigation concerning video-gaming machines, as well as a preliminary injunction prohibiting operation of the machines. The court held that the trial court improperly certified the classes because monetary and individualized issues predominated, and it dissolved the preliminary injunction. The case was remanded for further proceedings.

Holdings

1. A class seeking compensatory and punitive damages may not be certified under Rule 23(b)(1)(A) when the action is principally one for monetary relief rather than declaratory or injunctive relief.
2. Certification under Rule 23(b)(2) is improper when monetary relief predominates over injunctive or declaratory relief and the damages require individualized determinations.
3. The plaintiff class could not be certified under Rule 23(b)(3) because individualized questions predominated over common questions of law or fact.
4. The proposed defendant classes could not be certified because the plaintiffs failed to establish typicality, and the trial court improperly applied the juridical-link exception.
5. The defendant classes could not be certified under Rule 23(b)(1), (b)(2), or (b)(3) as the orders were framed.
6. The preliminary injunction was properly dissolved because the defendants did not receive the notice and hearing required before issuance of an injunction.

Questions Presented

1. Whether the trial court properly certified the proposed plaintiff class under Rule 23(b)(1), (b)(2), or (b)(3), Ala. R. Civ. P.
2. Whether the trial court properly certified the proposed arcade and leasing defendant classes under Rule 23.
3. Whether the trial court properly issued a preliminary injunction without providing notice and an opportunity for a hearing.
4. Whether the trial court could rely on a juridical-link theory to satisfy the typicality requirement for the proposed defendant classes.

Disposition

reversed_and_remanded