“Further, ‘such a class impermissibly skirts the bar of res judicata.’”
How later courts described this case
- “Further, ‘such a class impermissibly skirts the bar of res judicata.’”
- finding a release and indemnity agreement entered by a parent on behalf of their child void as against public policy as “[t]he agreement placed the father’s personal interest in a position antagonistic to his duty toward the infant.”
- denying the welfare board’s request to release personal injury proceeds held on behalf of a minor child for future surgery to pay for present expenses for the child or repay the welfare board
- finding an indemnity clause in an out of court settlement agreement void as against public policy
Written by the judges who cited it.
The opinion
UNITED STATES DISTRICT COURT
DISTRICT OF NEW JERSEY
TIFFANEE GOULD, individually
and on behalf of her minor son, Civ. No. 22-cv-01861 (NLH/AMD)
A.J., et al.,
OPINION
Plaintiffs,
v.
THE GUIDA-SEIBERT DAIRY
COMPANY, et al.,
Defendant.
APPEARANCES:
JOSEPH D. LENTO, ESQUIRE
SAMUEL D. JACKSON, ESQUIRE
LENTO LAW GROUP, P.C.
3000 ATRIUM WAY
SUITE 200
MT. LAUREL, NJ 08054
Attorneys for Plaintiffs
PHILIP A. GOLDSTEIN, ESQUIRE
MCGUIREWOODS LLP
1251 AVENUE OF THE AMERICAS
20TH FLOOR
NEW YORK, NEW YORK 10020
Attorneys for the Defendant The Guida-Seibert Dairy Company
HILLMAN, District Judge
Before the Court is Defendant the Guida-Seibert Dairy
Company’s (“Defendant” or “Guida-Seibert”) Partial Motion to
Dismiss (ECF 10) and Motion to Strike (ECF 11). For the reasons
expressed below Defendant’s Partial Motion to Dismiss will be
granted and Defendant’s Motion to Strike will be denied.
BACKGROUND
For purposes of the instant motion, the Court will treat
all facts alleged in the Complaint as true and draw all
reasonable inferences in favor of Plaintiffs. See Jones v. Pi
Kappa Alpha Int’l Fraternity, 431 F. Supp. 3d 518, 522 (D.N.J.
Dec. 18, 2019).
Plaintiffs are a group of parents individually and on
behalf of their minor children who allege that their children
were injured as a result of drinking contaminated milk processed
by Guida-Seibert. (ECF 1 at 1–3). The minor children all
attend school in the Camden School District. (Id. at 3). The
Camden School district has a contract with Aramark for food
services within the schools. (Id. at 4). In turn, Aramark
contracts with Guida-Seibert for milk to provide in the schools.
(Id.).
On March 30, 2022, Plaintiffs were advised that
contaminated milk was provided to the students and that their
children consumed the contaminated milk. (Id.) The milk was
contaminated with a commercial cleaning agent, either Vortex of
Vortexx. (Id. at 4–5). Plaintiffs were further advised that
that their children were displaying physical symptoms after
consuming the milk. (Id. at 5). Plaintiffs’ children’s
symptoms included “severe stomach pain and cramping, nausea,
vomiting, diarrhea, and flatulence.” (Id.). Plaintiffs’
children were transported from school to a local hospital. (Id.
at 4). All of the children were discharged from the hospital.
(Id. at 5). Plaintiffs claim they are unsure what lasting
effects the chemical consumption may have on their children.
(Id.). As of the filing of the complaint, some of the children
continued to have stomach pain. (Id.).
Plaintiffs filed their complaint on April 1, 2022. (ECF
1). Plaintiffs allege the following counts: (1) negligence, (2)
New Jersey Products Liability Act (“NJPLA”), and (3) Negligent
Infliction of Emotional Distress (“NIED”). (Id. at 9–12).
Plaintiffs’ complaint includes class allegations. (Id. at
6–8). Plaintiffs describe two classes, the New Jersey Parent
Class consisting of the parents and legal guardians of students
in New Jersey school districts that ingested Guida-Seibert
contaminated milk, and the New Jersey Student Class consisting
of students in New Jersey school districts that ingested the
contaminated milk. (Id. at 6).
On May 23, 2022, Defendant filed both its Motion to Dismiss
(ECF 10) and Motion to Strike (ECF 10). On July 5, 2022,
Plaintiffs filed memorandums in opposition to these motions.
(ECF 20, ECF 21). Finally, Defendant filed reply briefs on July
11, 2022. (ECF 24, ECF 25).
DISCUSSION
A. Standard for Motion to Dismiss
When considering a motion to dismiss a complaint for
failure to state a claim upon which relief can be granted
pursuant to Federal Rule of Civil Procedure 12(b)(6), a court
must accept all well-pleaded allegations in the complaint as
true and view them in the light most favorable to the plaintiff.
Evancho v. Fisher, 423 F.3d 347, 350 (3d Cir. 2005). A pleading
is sufficient if it contains “a short and plain statement of the
claim showing that the pleader is entitled to relief.” Fed. R.
Civ. P. 8(a)(2).
“While a complaint attacked by a Rule 12(b)(6) motion to
dismiss does not need detailed factual allegations, a
plaintiff’s obligation to provide the ‘grounds’ of his
‘entitle[ment] to relief’ requires more than labels and
conclusions, and a formulaic recitation of the elements of a
cause of action will not do.” Bell Atl. Corp. v. Twombly, 550
U.S. 544, 555 (2007) (alteration in original) (citation
omitted).
To determine the sufficiency of a complaint, a court must
take three steps: (1) the court must take note of the elements a
plaintiff must plead to state a claim; (2) the court should
identify allegations that, because they are no more than
conclusions, are not entitled to the assumption of truth; and
(3) when there are well-pleaded factual allegations, a court
should assume their veracity and then determine whether they
plausibly give rise to an entitlement for relief. Malleus v.
George, 641 F.3d 560, 563 (3d Cir. 2011) (quoting Ashcroft v.
Iqbal, 556 U.S. 662, 664, 675, 679 (2009) (alterations,
quotations, and other citations omitted). A court in reviewing
a Rule 12(b)(6) motion must only consider the facts alleged in
the pleadings, the documents attached thereto as exhibits, and
matters of judicial notice. S. Cross Overseas Agencies, Inc. v.
Kwong Shipping Grp. Ltd., 181 F.3d 410, 426 (3d Cir. 1999).
“A motion to dismiss should be granted if the plaintiff is
unable to plead ‘enough facts to state a claim to relief that is
plausible on its face.’” Malleus, 641 F.3d at 563 (quoting
Twombly, 550 U.S. at 570).
I. Subject Matter Jurisdiction
This Court has jurisdiction over Plaintiffs’ claims under
28 U.S.C. § 1332.
II. Motion to Dismiss
A. Negligence and NIED
Defendants argue that Plaintiffs’ claims for negligence and
for NIED should be dismissed because the NJPLA subsumes these
other causes of action in products liability matters. (ECF 10-1
at 13–15). While Plaintiffs admit that the NJPLA “encompass[es]
virtually all possible causes of action relating to harms caused
by consumer and other products,” they argue that that Federal
Rule of Civil Procedure 8 permits plaintiffs to plead in the
alternative. (ECF 20 at 12–13) (alteration in original). Thus,
they claim that the negligence and NIED counts should proceed in
the event that the NJPLA does not apply to certain plaintiffs.
(Id. at 13–14). Defendant responds that courts have already
contemplated this argument, and found that such alternative
pleading “would ‘contravene the NJPLA’s intent to provide a
single statutory products liability claim.’” (ECF 24 at 9
(quoting Nagy v. Goodyear Tire & Rubber Co., No. 12-4235, 2013
U.S. Dist. LEXIS 45147, at *6-7 (D.N.J. Mar. 28, 2013)).
The NJPLA was enacted by the New Jersey Legislature in 1987
“based on an ‘urgent need for remedial legislation to establish
clear rules with respect to certain matters relating to actions
for damages for harm caused by products.’” Sinclair v. Merck &
Co., Inc., 948 A.2d 587, 593 (N.J.2008) (citing N.J.S.A. 2A:58C–
1(a)). In 2007, the New Jersey Supreme Court set forth
substantive guidance regarding the scope of the NJPLA and
explicitly recognized that “[w]ith the passage of the Product
Liability Act, . . . there came to be one unified, statutorily
defined theory of recovery for harm caused by a product.” In Re
Lead Paint Litigation, 924 A.2d 484, 503 (N.J. 2007) (citation
omitted) (alteration in original). The New Jersey Supreme Court
also observed that “[t]he language chosen by the Legislature in
enacting the PLA is both expansive and inclusive, encompassing
virtually all possible causes of action relating to harms caused
by consumer and other products.” Id. (citing N.J.S.A. 2A:58C–
1(b)(3)).
A product liability action is statutorily defined as “any
claim or action brought by a claimant for harm caused by a
product, irrespective of the theory underlying the claim, except
actions for harm caused by breach of an express warranty.”
N.J.S.A. 2A:58C–1(b)(3). The NJPLA further defines the type of
“harm” caused by a product to include the following: “(a)
physical damage to property, other than to the product itself;
(b) personal physical illness, injury or death; (c) pain and
suffering, mental anguish or emotional harm; and (d) any loss of
consortium or services or other loss deriving from any type of
harm described in subparagraphs (a) through (c) of this
paragraph.” N.J.S.A. 2A:58C–1(b)(2).
Thus, regardless of the underlying legal theory advanced by
a plaintiff, the NJPLA is the exclusive method to prosecute a
claim for physical harm caused by a product, where that harm is
claimed to be caused by a manufacturing defect, a design defect,
or a failure for the product to contain adequate warnings or
instructions. Koruba v. American Honda Motor Co., Inc., 935
A.2d 787, 795 (N.J. Super. Ct. App. 2007); N.J.S.A. 2A:58C–2.
Plaintiffs’ allegations fall squarely within the purview of
the NJPLA’s coverage of manufacturing defects, as they allege an
issue with the milk’s packaging or processing. (ECF 1 at 9,
12). Therefore, Plaintiffs’ negligence and NIED claims are
subsumed by the NJPLA. Plaintiffs’ counts for negligence and
for NIED will be dismissed.
B. NJPLA
The NJPLA provides for strict liability against a
manufacturer or seller of a product where the claimant proves
that a product caused harm because it “was not reasonably fit,
suitable or safe for its intended purpose” because it failed to
conform to design specifications or standards, failed to include
adequate warnings, or was defectively designed.” N.J.S.A.
2A:58C–2. Here, Plaintiffs allege a manufacturing defect, as
the milk “deviated from the ‘design specification, formulae, or
performance standards’ of [Guida-Seibert] or from ‘otherwise
identical units’, i.e. cartons of milk from other,
uncontaminated batches.” (ECF 1 at 10).
Defendant argues that the NJPLA claim should be dismissed
to the extent it is brought on behalf of the parents in their
individual capacity because they do not allege that the parents
suffered physical injury. (ECF 10-1 at 22). Plaintiffs admit
that the parents did not suffer a physical injury and “do not
oppose” this argument. (ECF 20 at 14 n.1).
The Supreme Court of New Jersey has held that the NJPLA
requires a physical injury. Sinclair v. Merck & Co., 948 A.2d
587, 595 (N.J. 2008). The Supreme Court explained that prior to
the NJPLA, New Jersey applied the Restatement (Second) of Torts
§ 402A for strict liability for defective products in New
Jersey, which required physical harm. Id. Because “[n]othing
in the legislative history of the PLA suggests that the
Legislature intended to eliminate that physical component,” the
New Jersey Supreme Court determined that liability for defective
products under the NJPLA requires physical injury as well. Id.
As Plaintiffs admit, they have not plead any physical
injury suffered by the parents. (ECF 20 at 14 n.1). As such,
the parents in their individual capacities have not sufficiently
plead a NJPLA claim. The NJPLA claim on behalf of the parents
in their individual capacities will be dismissed. With this
dismissal, the parents no longer have any remaining claims in
their individual capacities. Thus, the parents may proceed in
this action only on behalf of their minor children.
C. Punitive Damages
Defendants assert that Plaintiffs request for punitive
damages should be dismissed because Plaintiffs have not plead
the requisite level of culpability to support a punitive damages
award. (10-1 at 24). Plaintiffs counter that “[g]iven the size
of this contamination event – an event stemming from products
that presumably went through numerous steps of the supply chain
– it is reasonable to infer that at least one representative at
Defendant-company was aware of this contamination and either
contumaciously or recklessly shipped the product out anyway.”
(ECF 20 at 30). Defendant responds that such allegation is not
included in the complaint, and that regardless it is
“unsupported and idle supposition.” (ECF 24 at 20).
Pursuant to New Jersey’s Punitive Damages Act:
Punitive damages may be awarded to the
plaintiff only if the plaintiff proves, by
clear and convincing evidence, that the harm
suffered was the result of the defendant’s
acts or omissions, and such acts or
omissions were actuated by actual malice or
accompanied by a wanton and willful
disregard of persons who foreseeably might
be harmed by those acts or omissions. This
burden of proof may not be satisfied by
proof of any degree of negligence including
gross negligence.
N.J.S.A. § 2A:15-5.12.
Plaintiffs’ complaint does not include allegations that
describe Defendant’s acts or omissions that may rise to a level
beyond negligence. We therefore dismiss the request for
punitive damages without prejudice.
III. Motion to Strike
Defendant moves to strike Plaintiffs allegations pleading a
class action.
A. Standard for Motion to Strike Class Allegations
Pursuant to Federal Rule of Civil Procedure 12(f), “[t]he
court may strike from a pleading an insufficient defense or any
redundant, immaterial, impertinent, or scandalous matter.” As
it relates to class allegations, “[a]t an early practicable time
after a person sues or is sued as a class representative, the
court must determine by order whether to certify the action as a
class action.” Fed. R. Civ. P. 23(c)(1)(A). But, “[a]s a
practical matter, the court’s [decision] usually should be
predicated on more information than the complaint itself affords
. . . [and] courts frequently have ruled that discovery
relating to the issue whether a class action is appropriate
needs to be undertaken before deciding whether to allow the
action to proceed on a class basis.” Oravsky v. Encompass Ins.
Co., 804 F.Supp.2d 228, 240-41 (D.N.J. Apr. 28, 2011) (citing 5C
Wright, Miller & Kane, Federal Practice & Procedure Civil 3d §
1785.3 (explaining that the practice employed in the
overwhelming majority of class actions is to resolve class
certification only after an appropriate period of discovery)).
Thus, “dismissal of class certification allegations should
be ordered only ‘in those rare cases where the complaint itself
demonstrates that the requirements for maintaining a class
action cannot be met.’” S. Broward Hosp. Dist. v. MedQuist,
Inc., 516 F.Supp.2d 370, 401 (D.N.J. Mar. 30, 2007) (quoting
Clark v. McDonald's Corp., 213 F.R.D. 198, 205 n.3 (D.N.J. Mar.
3, 2003)). Further, “the better course is to deny [a motion to
strike class allegations] because ‘the shape and form of a class
action evolves only through the process of discovery.’” Id. at
401-02 (citations omitted).
B. Plaintiffs’ Class Allegations
Plaintiffs describe two classes, the New Jersey Parent
Class and New Jersey Student Class. (ECF 1 at 6). Plaintiffs
include in these respective classes the parents and legal
guardians of students in New Jersey school districts that
ingested Guida-Seibert contaminated milk and the students that
ingested the contaminated milk. (Id.) While the Plaintiffs
named in the complaint are all parents of children and children
in the Camden City School District, Plaintiffs extend the class
to “other such school districts within the State of New Jersey
as discovery may reveal.” (Id.).
Plaintiffs assert that their proposed class has numerosity,
and that the members “could clearly range from the hundreds to
the thousands.” (ECF 1 at 7). Plaintiffs admit that they “do
not know, at present, how many of the students within the Camden
City School District ingested the contaminated milk, nor whether
any schools from other districts were similarly affected.”
(Id.). As for Plaintiffs’ Brief in Opposition to the Motion to
Strike, they have clarified that “[t]he number of children
affected was not ‘huge’—believed at this time to be no more than
100.” (ECF 21 at 5).
Plaintiffs allege that common questions predominate,
specifically (1) whether defendant carelessly, recklessly, or
negligently introduced a contaminant into its milk, (2) whether
such contamination proximately caused harm to class members, and
(3) the proper measure of damages. (ECF 1 at 7).
Plaintiffs assert that their claims are typical of the
class, as all of the Plaintiff-parents are parents of children
who ingested Defendant’s contaminated milk, and all of the
Plaintiff-children ingested Defendant’s contaminated milk. (Id.
at 8)
Plaintiffs aver that they “will fairly and adequately
protect and represent the interest of the Classes” and that they
“are represented by counsel who are experienced and competent.”
(Id.).
Finally, Plaintiffs allege that a class action is a
superior method for the fair and efficient adjudication of the
instant controversy because it is efficient and avoids
unnecessary duplication of evidence, effort, and expense.
(Id.). They assert that permitting the suit to proceed as a
class action provides those injured “with a method for obtaining
redress on claims that might not be practicable to pursue
individually.” (Id.).
Because we are dismissing all of the claims brought by the
parents as individuals, the following discussion of the class
allegations refers only to the student class.
C. Predominance and Superiority
Defendant argues that the nature of Plaintiffs’ personal
injury allegations will require an individualized analysis.
(ECF 11-1 at 16–22). Defendant points to chemical exposure
cases in support of this argument, which require inquiry into
the duration of chemical exposure, the nature of the exposure,
pre-existing conditions, and other individual factors. (Id. at
16–22). Plaintiffs respond that the circumstances here are
distinct from other chemical exposure cases. (ECF 21 at 6).
For example, unlike other cases involving dangerous chemicals,
the levels of exposure here are much more consistent; none of
the children are believed to have consumed more than, at most, a
single, half-pint carton of the tainted milk.” (Id.).
Resolution of the question of predominance and superiority
requires consideration of the facts of this case. Thus, this is
not one of “those rare cases where the complaint itself
demonstrates that the requirements for maintaining a class
action cannot be met.” S. Broward Hosp. Dist., 516 F.Supp.2d at
401 (quoting Clark, 213 F.R.D. at 205 n.3). Rather, discovery
will inform the issue of predominance. We find that striking
the class allegations at this stage on these grounds is
premature.
D. Fail-Safe
Defendant next urges that this Court should strike the
class allegations because Plaintiffs’ class description is a
fail-safe class. (ECF 11-1 at 22). Defendant explains that
defining the class as students who ingested Defendant’s milk
“and who experienced physical symptoms or illness therefrom”
requires a showing of causation for inclusion in the class.
(ECF 11-1 at 23). They assert that “were [Guida-Seibert]
successful in proving that consumption of the Product caused no
injury, such a verdict would have no preclusive effect.” (ECF
11-1 at 23–24). Plaintiffs argue that the class is not “fail-
safe,” but instead the class is ascertainable through “objective
criteria.” (ECF 21 at 8). Moreover, Plaintiffs assert that
“[i]n the event that the Court does find that Plaintiffs’ class
definitions are ‘fail-safe’ classes, then Plaintiffs ought to be
permitted to make whatever grammatical adjustments are necessary
to bring their class definitions in line with this rule.” (ECF
21 at 9).
“A fail-safe class is ‘one that is defined so that whether
a person qualifies as a member depends on whether the person has
a valid claim.’” Landy v. Nat. Power Sources, LLC, No. 21-
00425, 2022 WL 797967, at *4 (D.N.J. Mar. 16, 2022) (quoting
Messner v. Northshore Univ. HealthSystem, 669 F.3d 802, 825 (7th
Cir. 2012)). We note that “[t]he Third Circuit has not yet
determined that a fail-safe class is impermissible.” Id. That
said, the issue with a “fail-safe” class definition is that “a
class member either wins or, by virtue of losing, is defined out
of the class and is therefore not bound by the judgment.” Id.
(quoting Messner, 669 F.3d at 825). This undermines the
preclusive effect of a class action. Id. (quoting Zarichny v.
Complete Payment Recovery Servs., Inc., 80 F. Supp. 3d 610, 624
(E.D. Pa. 2015) (“Further, ‘such a class impermissibly skirts
the bar of res judicata.’”).
While a Court may strike class allegations based on a fail-
safe definition, the Court may also provide Plaintiffs with an
opportunity to amend the class description. Martinez v. TD Bank
USA, N.A., No. 15-7712, 2017 WL 2829601, at *12 (D.N.J. June 30,
2017) (striking class allegations based on a fail-safe
description where “[n]o amount of additional class discovery
will alter that conclusion”); Grubb v. Green Tree Servicing,
LLC, No. 13-07421, 2017 WL 3191521, at *14 (D.N.J. July 27,
2017) (“Although ‘fail-safe’ classes are generally denied
certification on these grounds, some courts, nevertheless, have
allowed plaintiffs to amend their proposed class definition so
that they are legally sufficient.”); Merino v. Wells Fargo &
Co., No. 16-7840, 2017 WL 3908670, at *6 (D.N.J. Sept. 6, 2017)
(quoting Messner v. Northshore Univ. HealthSystem, 669 F.3d 802,
825 (7th Cir. 2012)) (“Defining a class so as to avoid, on one
hand, being over-inclusive and, on the other hand, the fail-safe
problem is more of an art than a science. Either problem can and
often should be solved by refining the class definition rather
than by flatly denying class certification on that basis.”).
Moreover, Courts have also explained that determination of
whether a class definition is fail-safe is better left to the
class certification stage, rather than decision on a motion to
strike. Merino, 2017 WL 3908670, at *6 (declining to strike the
class allegations and reserving the question for the class
certification stage). In their motion to certify class,
Plaintiffs may refine their class description. Carney v.
Goldman, No. 15-00260, 2018 WL 2441766, at *10 (D.N.J. May 30,
2018) (quoting Kalow & Springut, LLP v. Commence Corp., 272
F.R.D. 397, 402 (D.N.J. 2011), on reconsideration in part, No.
07–3442, 2011 WL 3625853 (D.N.J. Aug. 15, 2011)) (“Plaintiff[s]
[are] not bound by the class definitions proposed in [their]
Amended Complaint, and the Court can consider Plaintiff[s’]
revised definitions, albeit those revisions [being] made in
[their] motion for class certification.”).
Assuming without deciding that the current class definition
is fail-safe, we refuse to strike the class allegations on these
grounds. At this stage, we are not convinced that no amount of
class discovery could permit Plaintiffs to refine their
definition so as to not be fail-safe. As such, it is not
appropriate to strike the class allegations as fail-safe at this
time. Plaintiffs may be able to refine their class definition.
Under the facts of this case, analysis of this question is best
left to the class certification stage. See Merino, 2017 WL
3908670, at *6. Defendant may raise this argument at the class
certification stage.
E. Rules Enabling Act
Defendant argues that this Court should strike the class
allegations based on the Rules Enabling Act. (ECF 11-1 at 26).
Defendant claims that New Jersey law conflicts with Federal Rule
of Civil Procedure 17(c), abridging the rights of the minor
children in this action and enlarging the rights of the parents.
(Id. at 31). Defendant explains that Federal Rule of Civil
Procedure 17(c) permits “a general guardian” to file suit on
behalf of a minor. (Id. at 26). Defendant notes that under New
Jersey law “a parent of a minor may be appointed guardian ad
litem without court order ‘upon the filing of a pleading or
certificate signed by an attorney stating the parental
relationship, the child’s status, and, if a minor, the age, the
parent’s consent to act as guardian ad litem and the absence of
a conflict of interest between parent and child.’” (Id. at 28
(quoting N.J. Ct. R. 4:26-2(b)(1)).
Defendant’s argument relies on a mischaracterization of the
New Jersey Court rule. The full section of the rule that
Defendant cites states:
Appointment of Parent in Negligence Actions.
In negligence actions, unless the court
otherwise directs, a parent of a minor shall
be deemed to be appointed guardian ad litem
of the child without court order upon the
filing of a pleading or certification signed
by an attorney stating the parental
relationship; the child’s status and age;
the parent’s consent to act as guardian ad
litem; and the absence of a conflict of
interest between parent and child.
N.J. Ct. R. 4:26-2(b)(1). While Defendant’s characterization
suggests that a parent may be appointed, the Court rule states
that the parent shall be deemed appointed. This distinction
undercuts Defendant’s argument. Both Federal Rule of Civil
Procedure 7 and New Jersey Court Rule 4:26-2 permit a parent to
file suit on behalf of their child. Thus, these parents filing
on behalf of their children does not violate the Rules Enabling
Act as their rights are not enlarged nor are the minors’ rights
abridged.
In addition to whether a parent can bring a claim on behalf
of their child, Defendant also points to New Jersey Court Rule
4:44-3, which requires a court in cases involving minors to
“determine whether the settlement is fair and reasonable as to
its amount and terms.” (ECF 11-1 at 29). The Court must also
undertake an analysis of whether the settlement is fair and
reasonable pursuant to the Federal Rule of Civil Procedure
regarding class action settlements, which requires that “[i]f
the proposal would bind class members, the court may approve it
only after a hearing and only on finding that it is fair,
reasonable, and adequate.” Fed. R. Civ. P. 23(e)(2). To the
extent that Defendant’s argument here is that the Court will not
be able to assess the fairness and reasonableness without an
individualized assessment of each plaintiff, such argument
relies on the specific facts of this case and as such this Court
will permit class discovery before deciding this point.
Although we have concluded that Defendant’s argument that
class certification violates the Rules Enabling Act is unfounded
based on the text of the New Jersey and Federal Rules, we now
also address the caselaw that Defendant cites.
Defendant relies on a Michigan case and comparison to
Michigan law in support of its analysis that class certification
violates the Rules Enabling Act. (ECF 11-1 at 29). In support
of its persuasiveness, Defendant argues that “like New Jersey,
Michigan required individual scrutiny on a parent’s ability to
bring and settle claims on behalf of his or her minor child.”
(Id.). However, New Jersey Court Rule 4:26-2 presumes that a
guardian may bring a suit on behalf of their child unless the
Court otherwise states. This is distinct from the Michigan law
where “not even parents may bring a minor’s claim on the minor’s
behalf without a court first formally appointing the parent as
the minor’s representative.” In re Flint Water Cases, 558 F.
Supp. 3d 459, 494 (E.D. Mich. 2021). Michigan law is also
stricter than New Jersey in its approval of personal injury
settlements for minors. While New Jersey law requires the Court
to determine that “the settlement is fair and reasonable as to
its amount and terms” New Jersey Court Rule 4:44-3, Michigan law
specifies that in making such determination “[f]or a claim for
damages due to personal injury, the minor ‘shall appear in court
personally to allow the judge an opportunity to observe the
nature of the injury unless, for good cause, the judge excuses
the minor’s [ ] presence.’ Mich. Ct. R. 2.420(B)(1).” In re
Flint Water Cases, 558 F. Supp. 3d 459, 494 (E.D. Mich. 2021).
Defendant has not pointed to any such requirement in New Jersey
nor is the Court aware of any.
The New Jersey cases that Defendant cites discuss a
parent’s ability to release claims on behalf of their child or
settle claims on behalf of their child without court approval.
Colfer v. Royal Globe Ins. Co., 519 A.2d 893, 894 (N.J. Super.
App. Div. 1986) (holding that a settlement of a UMI claim made
by parents on behalf of a minor child was not binding on the
child where the parents signed a release and indemnity
agreement, but the settlement was not submitted for court
approval); Fitzgerald v. Newark Morning Ledger Co., 267 A.2d
557, 559 (N.J. Super. Law. Div. 1970) (finding a release and
indemnity agreement entered by a parent on behalf of their child
void as against public policy as “[t]he agreement placed the
father’s personal interest in a position antagonistic to his
duty toward the infant.”); Hojnowski v. Vans Skate Park, 901
A.2d 381, 389–90 (N.J. 2006) (holding that “a parent’s execution
of a pre-injury release of a minor’s future tort claims arising
out of the use of a commercial recreational facility is
unenforceable.”); Loesch, to Use of Harleysville Mut. Cas. Co.
v. Vassiliades, 86 A.2d 14, 16 (N.J. Super. App. Div. 1952)
(finding an indemnity clause in an out of court settlement
agreement void as against public policy); Cumberland Cnty.
Welfare Bd. v. Rodriquez, 365 A.2d 723, 731 (N.J. Super. Law.
Div. 1976) (denying the welfare board’s request to release
personal injury proceeds held on behalf of a minor child for
future surgery to pay for present expenses for the child or
repay the welfare board).
Each of these cases are distinct from the procedural
posture here. The rule underlying each of these cases is that
under New Jersey Law “[n]o binding compromise or settlement of
the claim or cause of action of an infant may be made, even by a
judicially appointed guardian, except by leave of court.”
Loesch, to Use of Harleysville Mut. Cas. Co., 86 A.2d at 15
(quoting Rubin v. Trowbridge Sign Co., 99 N.J.L. 216, 122 A. 763
(E. & A. 1923)). However, unlike each of Defendant’s examples,
here there is Court oversight.
Consistent with the New Jersey caselaw that Defendant
cites, this Court has the authority to comply with the
requirements of the New Jersey Court rules requiring judicial
approval of settlements on behalf of minor children. While we
will not strike the class allegations on these grounds at this
time, the Court acknowledges that there are public policy
considerations here that relate to binding a minor to a
settlement.1 Thus, the Court reserves final determination of
whether this will pose an issue with respect to certification of
the class, with consideration of the predominance or superiority
requirements of a class action, at the class certification
stage.
CONCLUSION
For the reasons expressed above, Defendant’s Partial Motion
to Dismiss the complaint will be granted and Defendant’s motion
to strike will be denied. The Negligence (Count One) and
Negligent Infliction of Emotional Distress (Count Three) claims
will be hereby dismissed against all defendants. The New Jersey
Products Liability Act claim (Count Two) on behalf of the
1 We note that certain concerns are alleviated by the dismissal
of the parents’ individual claims, as this alleviates concern of
conflict between parents’ individual interests in the litigation
and the minors’ interests.
parents in their individual capacities will be dismissed. The
New Jersey Products Liability Act claim (Count Two) brought on
behalf of the minor children will proceed as the only remaining
claim.
An appropriate order will be entered.
Date: February 21, 2023 s/ Noel L. Hillman
At Camden, New Jersey NOEL L. HILLMAN, U.S.D.J.