Hatchell PC
Hatchell PC successfully argues for heightened restrictions on class action litigation. In Schein v. Stromboe the Texas Supreme Court sustained arguments on behalf of Hatchell PC's clients to strengthen requirements for class actions for classes based on predominance of common questions where "reliance" was an important element of the cause of action.

Mike Hatchell recently led an appellate team and orally argued an appeal that successfully reversed certification of a class of dentists dissatisfied with software purchased from Henry Schein. Henry Schein, Inc. v. Stromboe, 102 S.W.3d 675 (Tex. 2002). The decision is important for its dual holdings on Texas Supreme Court jurisdiction and the proof necessary to meet the requirements for class certification. At the time of the decision, the Supreme Court had jurisdiction of appeals from certification orders only if the lower court decision "conflicted" with a prior decision of another court of appeals or the Supreme Court. The Schein decision makes clear that "conflict" jurisdiction exists when two decisions cannot "stand together" regarding the application of legal principles - i.e., it is not necessary that there be pointed disagreement with a prior decision. On the merits, the decision made clear that a "predominance" of common issues will seldom exist - and thus a class cannot be certified - where the class claims involve (i) individual issues of reliance, (ii) differing types of damages, or (iii) application of the laws of many states. The Supreme Court also found error in the standard of review the court of appeals applied. The court of appeals applied a widely-used standard of review viewing the evidence in the light most favorable to the trial court's action and entertaining every presumption in favor of the trial court's judgment. The Supreme Court rejected that standard as in conflict with its decision in Southwestern Refining Co. v. Bernal which held that the standard of review is abuse of discretion, requiring actual, not presumed conformance with Rule 42. Appellate team members included Molly Hatchell, appellate section members at Locke, Liddell & Sapp, Dallas and Austin, and attorneys with Vinson & Elkins, Houston. Molly Hatchell is the co-author of the Class Action section of the Texas Litigation Guide.

Hatchell PC, 112 E. Line Street, Suite 304, Tyler TX 75702,
903.526.6500, 903.526.6600 FAX
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