JAMES C. PALADINO, D.M.D., P.A., ET AL., APPELLANTS,
v.
AMERICAN DENTAL PLAN, INC., ET AL., APPELLEES

Fla. 1st DCA | 1997-07-11
No. 96-3191
WOLF and VAN NORTWICK, JJ., concur.
697 So. 2d 897 Florida District Court of Appeal, First District (1997) Caution
Cited by 10 cases

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Synopsis

Dentists participating in a prepaid dental plan sought class certification to recover accumulated capitation payments withheld by the plan administrator. The court reversed the lower court's denial of class certification, holding that common contractual issues predominated over individual inquiries and that subclasses could be created if needed.


Holding

The court held that the amended complaint alleged common issues of fact and law sufficient to meet the commonality requirement, as every participating dentist had the same capitation provision and sought recovery based on the same alleged breach. The court further held that the interpretation of the capitation provision predominates over other questions affecting individual class members, and that subclasses could be created if necessary after further development of the issues.


Headnotes

[1] A trial court's denial of class certification is reversible error when the amended complaint alleges common issues of fact and law sufficient to meet the commonality requ…

[2] The threshold for commonality in class action suits is not high.

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Key Quotes

“The threshold of 'commonality' is not high.”

Establishes the low bar for meeting the commonality requirement in class certification

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Facts & Procedural History

Appellants are dentists participating in a prepaid dental plan organized by American Dental Plan, Inc. (ADP). A dispute arose over disbursement of acc…

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Opinion of the Court
BOOTH, Judge.

BOOTH, Judge.

This cause is before us on appeal from a non-final order of the lower court denying Appellants’ motion to certify their class action suit. We reverse and remand for further proceedings.

Appellants are dentists participating in a prepaid dental plan organized and marketed by Appellees, American Dental Plan, Inc. (“ADP”).

A dispute arose between Appellants and ADP over the disbursement of accumulated capitation payments (“back capitation”) for periods in which subscribers (patients) had joined the ADP plan, but had not chosen a dentist.1 In May of 1995, Appellants filed an amended complaint on behalf of themselves and all other dentists participating in the plan, claiming they were entitled to said back capitation under their contracts. As to class certification, Appellants alleged that common questions of law and fact existed between them and the alleged members, including: ‘Whether Defendants breached the agreements with Class Members by failing to pay Class Member ‘Capitation’ as defined by the Participating Dentist Agreements and the Amendments thereto....”

The lower court denied class certification, finding that Appellants failed to meet the requirements of commonality under rule 1.220(a)(2) and predominance under rule 1.220(b)(3), Florida Rules of Civil Procedure.

The lower court determined that the capitation payment provision in the parties’ contracts was ambiguous and, thus, required a specific inquiry as to each dentist’s intent at the time they signed the contract. This appeal followed. See Art. V, s. 4(b)(1), Fla. Const., and rule 9.130(a)(3)(C)(vii), Fla. R.App. P.

We hold that the amended complaint alleges common issues of fact and law sufficient to meet the commonality required by rule 1.220(a)(2) so that certification should have been granted. Broin v. Philip Morris Companies, Inc., 641 So. 2d 888, 890 (Fla. 3d DCA 1994) (“The threshold of ‘commonality’ is not high.”). Every participating dentist appears to have the same capitation provision in their contract and each would seek recovery under this provision based upon a breach of contract.

Rule 1.220(a)(2) only requires that resolution of the common questions of law and fact affect all or a substantial number of the class members. Broin, 641 So. 2d at 890; see, e.g., W.S. Badcock Corp. v. Myers, 696 So. 2d 776 (Fla. 1st DCA 1996)(finding that all members of the class had a common right of recovery based on the same financing terms); Love v. General Dev. Corp., 555 So. 2d 397 (Fla. 3d DCA 1989)(holding class certification proper where plaintiffs sued to recover for breaches of r , , , . identical clauses of purchase contracts).

In addition, the interpretation of the contract’s capitation provision predominates over the other questions of law or fact affecting the individual class members. See rule 1.220(b)(3), Fla.R.Civ.P.; R.J. Reynolds Tobacco Co. v. Engle, 672 So. 2d 39 (Fla. 3d DCA)(holding that plaintiffs suing tobacco companies met predominance requirement), rev. denied, 682 So. 2d 1100 (Fla.1996).

Although we acknowledge that some evidence of intent may be necessary to determine the meaning of the capitation provision for certain class members, we believe the better reasoned approach is to maintain the suit as a class action and, if required after further development of the issues, permit the lower court to create subclasses. See, e.g., Love, 555 So. 2d at 398; also, Janicik v. Prudential Ins. Co. of America, 305 Pa.Super. 120, 451 A. 2d 451 (1982) (stating that if refinement of the issues reveals seemingly similar contractual provisions merit differing interpretations, the court may create appropriate subclasses).

Accordingly, we reverse and remand for further proceedings.

WOLF and VAN NORTWICK, JJ., concur. . Capitation is defined under the Participating Dentist Agreements as "that percentage of the Subscriber's Net Contribution collected by ADP on behalf of the Dentists for Dental Benefits rendered by the Dentist to [Subscriber].” More recent Participating Dentist Agreements added that capitation was to be "calculated and begin on the date the Subscriber becomes effective in the given Dental Facility, based on the type of plan and frequency of contributions."


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Citator

Cited By

  • Freedom Life Ins. Co. OF Am. v. Wallant, 891 So. 2d 1109 (Fla. 4th DCA 2004)
    …ommon contract provision predominates, “the better reasoned approach is to maintain the suit as a class action and, if required after further development of the issues, permit the lower court to create subclasses.” Paladino v. Am. Dental Plan, Inc., 697 So. 2d 897, 899 (Fla. 1st DCA 1997). “[NJumerous courts have recognized that the presence of individualized damages issues does not prevent a finding that the common issues in the case predominate.” Allapattah Servs., Inc. v. Exxon Corp., 333 F. 3d 1248, 1261…
  • Humana, Inc. v. Castillo, 728 So. 2d 261 (Fla. 2d DCA 1999)
    …ot a class action lawsuit. Silverman makes no mention, express or implied, that materiality of fact is objective and can be determined by a jury on a class-wide basis. In its order, the trial court also cited Paladino v. American Dental Plan, Inc., 697 So. 2d 897 (Fla. 1st DCA 1997), dismissed, 717 So. 2d 527 (Fla.1998). Reliance on Pala-dino to distinguish Lance, and to justify certification of this class, is inappropriate. Pa-ladino did not involve a claim of fraudulent omissions or any other type of fraud…
  • Arvida/JMB P'rs v. Council OF Villages, Inc., 733 So. 2d 1026 (Fla. 4th DCA 1998)
    …ith the individual suits. We observe that Florida Rule of Civil Procedure 1.220(a)(2) requires only that the resolution of common questions of law and fact affect all or a substantial number of class members. Paladino v. American Dental Plan, Inc., 697 So. 2d 897 (Fla. 1st DCA 1997). The common interest must be in the object of the action, in the result sought or in the question involved, and there must be a common right of recovery based on the same essential facts. Imperial Towers Condominium, Inc. v. Brow…

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