Katz v. Carte Blanche Corp., 52 F.R.D. 510, 53 F.R.D. 539 (W.D.Pa. 1971). Lamar v. H B Novelty Loan Co., 55 F.R.D. 22 (D.Or. 1972). Martin v. Family Publications Service, Inc., Civil No. 5829 (D.Vt., filed June 30, 1970).
Trust Co., Civ. No. 6799-71-P (S.D.Ala., May 23, 1973); Griffin v. First Nat'l Bank, Civ. No. 6800-71-P (S.D.Ala., May 23, 1973); Hoffman v. Charnita, Inc., 58 F.R.D. 86 (M.D.Pa. 1973); Alpert v. U.S. Indus., Inc., 59 F.R.D. 491 (C.D.Cal. 1973); Richmond v. Railey's Appliance Center, Inc., 59 F.R.D. 641 (E.D.Va. 1973); Fisher v. First Nat'l Bank, Civ. Nos. 72-0-156, 82-0-157 (D.Neb., June 20, 1973); Turoff v. May Co., No. C71-948 (N.D.Ohio, July 23, 1973). Granted: Martin Alexander v. Family Publications Serv., Inc., No. 5829 (D.Vt., June 30, 1970); Richardson v. Time Premium Co., Civ. No. 70-1814 (S.D.Fla., Feb. 4, 1971); Douglas v. Beneficial Fin. Co., 334 F. Supp. 1166 (D.Ala. 1971), rev'd on other grounds, 469 F.2d 453 (9th Cir. 1972); Smith v. International Magazine Serv. of Mid Atlantic, Inc., Civ. No. 71-16-F (N.D.W.Va., Oct. 29, 1971); Katz v. Carte Blanche Corp., 52 F.R.D. 510, 53 F.R.D. 539 (W.D.Pa. 1971); Joseph v. Norman's Health Club, Inc., 336 F. Supp. 307 (D.Mo. 1971); La Mar v. H B Novelty Loan Co., 55 F.R.D. 22 (D.Or. 1972); Flickinger v. Horseshoe Dev. Corp., Civ. No. 11-334-C-1 (S.D.Iowa, March 10, 1972); Kristiansen v. John Mullins Sons, Inc., 59 F.R.D. 99 (E.D.N.Y. 1973); Eovaldi v. First Nat'l Bank, No. 71 C 1654 (N.D.Ill., June 15, 1973), modifying 57 F.R.D. 545 (N.D.Ill. 1972); McDermott v. Hollander, 60 F.R.D 643 (E.D.La. 1973).Class Actions and the Truth in Lending Act
the Court is guided by Haas v. Pittsburgh National Bank, 526 F.2d 1083 (3d Cir.1975), and its progenitor, La Mar v. H & B Novelty & Loan Co., 489 F.2d 461 (9th Cir.1973). In La Mar, the named plaintiff initiated an action against all Oregon-licensed pawn brokers on behalf of all customers of such pawn brokers to recover penalties for the defendants' alleged violations of the federal Truth-In-Lending Act, although La Mar, the putative class representative, had only borrowed money from the first-named defendant, H & B Novelty & Loan Co. (" H & B" ). 55 F.R.D. 22, 23 (D.Or.1972). Initially, the district court ruled that La Mar could only represent a class of persons who, like him, had borrowed money from H & B. Id. at 23.
To be maintainable as a class action, the four requirements of Rule 23(a) must be satisfied, and the action must fall within one of the categories listed in Rule 23(b), F.R.Civ.P., McAdory v. Scientific Research Instruments, Inc., 355 F.Supp. 468 (D.Md.1973); In re Caesars Palace Sec. Lit., 360 F.Supp. 366, 396 (S.D.N.Y.1973); LaMar v. H & B Novelty & Loan Co., 55 F.R.D. 22 (D.Ore.1972); Thomas v. Clarke, 54 F.R.D. 245 (D.Minn.1971). It is plaintiffs' burden to show that the requisites of a class action are met. Danner v. Phillips Petroleum Co., 447 F.2d 159 (5th Cir. 1971); Cash v. Swifton Land Corp., 434 F.2d 569 (6th Cir. 1970); Demarco v. Edens, 390 F.2d 836 (2nd Cir. 1968).
Cases have permitted class actions where there is a common course of conduct, which is said to ‘ predominate’ notwithstanding separate contractual terms. Lamar v. H & B Novelty Loan Co., 55 F.R.D. 22 (D.Or.1972); Contract Buyers League v. F& F Investment, 48 F.R.D. 7 (N.D.Ill.1969); SeeAlameda Oil Co. v. Ideal Basic Industries, Inc., 326 F.Supp. 98 (D.Colo.1971).
Chevalier, et al. v. Barid Savings Association, et al., C.A. No. 72-1599 (E.D.Pa. March 7, 1973) and that portion of Samuel which permits named plaintiffs to proceed against Penn State and Temple are examples of this second type of judicial resolution of the problem. La Mar v. H. & B. Novelty and Loan Co., et al., 55 F.R.D. 22 (D.Oregon 1972), appeal docketed No. 72-1485 (9th Cir.), in which the District Court expressly recognized the problem and granted representative status notwithstanding, is by far the rarer instance. Some attention might well be paid to the practical aspects of what is basically a conceptual problem.
Kauffman v. Dreyfus Fund, supra, 434 F.2d at 734-737 But see, LaMar v. H B Novelty and Loan Co., 55 F.R.D. 22 (D.Or. 1972), appeal docketed, No. 72-1485 (9th Cir.), in which a court used Federal Rule of Civil Procedure 23 to expand plaintiff's standing to sue under the Truth-in-Lending Act on the ground that a common issue of law existed as to the alleged class and the class action was designed for small claims. The LaMar decision is squarely contrary to the principles articulated in Kauffman (controlling in the Third Circuit) and the other decisions cited in the Kauffman text.
Corporation, 4 CCH Consumer Credit Guide ¶ 99,271 (S.D.Fla., April 12, 1971); Mourning v. Family Publications Service, Inc., 4 CCH Consumer Credit Guide ¶ 99,632 (S.D.Fla., November 27, 1970, rev'd on other grounds, 449 F.2d 235 (5th Cir. 1971), rev'd on other grounds 411 U.S. 356, 93 S.Ct. 1652, 36 L.Ed.2d 318, 1973); Gerlach v. Allstate Insurance Company, 338 F.Supp. 642 (S.D.Fla., 1972); Shields v. Valley National Bank of Arizona, 56 F.R.D. 448 (D.Ariz., 1972); Shields v. First National Bank of Arizona, supra ; Wilcox v. Commerce Bank d/b/a Bank-Americard, supra ; Garza v. Chicago Health Clubs, Inc., 56 F.R.D. 548 (N.D.Ill., 1972); Goldman v. First National Bank of Chicago, supra ; Kenney v. Landis Financial Group, Inc., 349 F.Supp. 939 (N.D.Iowa 1972); Kriger v. European Health Spa, Inc. of Milwaukee, Wisconsin, 56 F.R.D. 104 (E.D.Wis., 1972). Class actions have been permitted in the following reported cases: La Mar v. H & B Novelty & Loan Company d/b/a H & B Loan Company et al., 55 F.R.D. 22 (D.Ore., 1972); Smith v. International Magazine Service of Mid Atlantic, Inc., 4 CCH Consumer Credit Guide ¶ 99,249 (N.D.W.Va., October 29, 1971); Martin and Alexander v. Family Publications Service, Inc., 4 CCH Consumer Credit Guide ¶ 99,267 (D.Vt., June 30, 1970); Katz v. Carte Blanche, 53 F.R.D. 539 (W.D.Pa., 1971); Berkman v. Westing-house Electric Corporation, 4 CCH Consumer Credit Guide ¶ 99,270 (N.D.Ill., June 25, 1971); Richardson v. Time Premium Company, 4 CCH Consumer Credit Guide ¶ 99,273 (S.D.Fla., February 4, 1971); Joseph v. Norman's Health Club, Inc., 336 F.Supp. 307 (E.D.Mo., 1971); Douglas v. Beneficial Finance Co. of Anchorage et al., 334 F.Supp. 1166 (D.Alaska, 1971), rev'd on other grounds, 469 F.2d 453 (9th Cir. 1972). Mullins further argues that a class action is not maintainable under Rule 23 because there is no showing that the class is too numerous to permit joinder, or that there are questions of law or fact common to the class, or that plaintiff's c
Katz v. Carte Blanche Corp., 52 F.R.D. 510, 53 F.R.D. 539 (W.D.Pa.1971). Lamar v. H & B Novelty & Loan Co., 55 F.R.D. 22 (D.Or.1972). Martin v. Family Publications Service, Inc., Civil No. 5829 (D.Vt., filed June 30, 1970).
See, e. g., Wilcox v. Commerce Bank, 55 F.R.D. 134 (D.Kansas 1972); Rogers v. Coburn Finance Corp., 54 F.R.D. 417 (N.D.Ga.1972). Contra, LaMar v. H & B Novelty & Loan Co., 55 F.R.D. 22 (D.Oregon 1972); Katz v. Carte Blanche Corp., 53 F.R.D. 539 (W.D.Pa.1971), appeal docketed, No. 72-1054, 3rd Cir., Jan. 1972. While the instant case can be distinguished from Ratner and other Truth-in-Lending cases in several ways, one difference is compelling.