Wilmington Pain & Rehabilitation Center, P.A. v. USAA General Indemnity Insurance Company ( 2017 )


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  • IN THE SUPERIOR COURT OF THE STATE OF DELAWARE
    WILMINGTON PAIN &
    REHABILITATION CENTER, P.A.,
    on behalf of itself and all Others similarly
    Situated,
    Plaintiff, C.A. N0. NlSC-()6-218 JRJ CCLD
    V.
    USAA GENERAL INDEMNITY
    INSURANCE COMPANY and
    GARRISON PROPERTY AND
    CASUALTY INSURANCE COMPANY,
    Defendants.
    OPINION
    Date Submitted: September 7, 2017
    Date Decided: October l7, 2017
    Upon Wilmington Paz``n & Rehabilitation Center, P.A.’S Motion for Class
    Certifl``cation: DENIED.
    John S. Spadaro, Esquire, John Sheehan Spadaro, LLC, Smyrna, DE, Attorney for
    Plaintiff.
    Sidney S. Liebesman, Esquire, Lisa Zwally Brown, Esquire, Montgomery
    McCracken Walker & Rhoads LLP, Wilmington, DE, Jay Williams, Esquire (pro
    hac vice) (argued), Paula M. Ketcham, Esquire (pro hac vice), Schiff Hardin LLP,
    Chicago, IL, Attorneys for Defendants.
    Jurden, P.J.
    I. INTRODUCTION
    Wilmington Pain & Rehabilitation Center, P.A. (“WPRC”) brings this
    putative class action against USAA General Indemnity Insurance Company and
    Garrison Property and Casualty Insurance Company (“USAA”), alleging that
    USAA has failed to pay reasonable medical expenses submitted by WPRC and
    other DelaWare health care providers under their patients’ Personal lnjury
    Protection (“PIP”) policies in violation of 21 Del. C. § 2118(a).l Novv before the
    Court is WPRC’s Motion for Class Certification (“Motion”).2 For the following
    reasons, WPRC’s Motion is DENIED.
    II. FACTUAL AND PROCEDURAL BACKGROUND
    A. The Parties and the DelaWare PIP Statute
    WPRC is a DelaWare professional association and outpatient care facility
    that specializes in physical medicine and rehabilitation3 lt regularly treats
    DelaWare residents for injuries suffered in automobile collisions.4 USAA is a
    Texas corporation engaged in the business of insurance.5 lt regularly sells auto
    insurance in the State of DelaWare.6
    l WPRC’s Amended Complaint (“Am. Compl.”) 11 l (Trans. ID. 58206331).
    2 WPRC’s Opening Brief in Support of Motion for Class Certification (“WPRC’s Opening Br.”)
    (Trans. ID. 59732453); WPRC’s Reply Brief in Support of Motion for Class Certification
    (“WPRC’S Reply Br.”) (Trans. ID. 60652543).
    3 WPRC’s Opening Br. at l.
    4 Id.
    5 Id. at 2.
    6 ld.
    Title 21, Section 2118 of Delaware Code, commonly referred to as the
    “Delaware PIP statute,” requires that every owner of a motor vehicle registered in
    Delaware must maintain specified insurance with specified minimum coverage7
    This includes PlP coverage, defined as “[c]ompensation to injured persons for
    reasonable and necessary expenses incurred within two years from the date of the
    accident” for medical and other related expenses8
    B. USAA’s Practice in Paying PIP Claims
    When a PlP policyholder submits a claim to USAA, USAA utilizes a
    computerized bill review system, which it calls “Reasonable Fee Methodology”
    (“RF System”), to determine the reasonableness of medical expenses9 The first
    step of the RF System is “benchmarking.” The benchmarking step relies on a
    database compiled by the U.S. Department of Health and Human Services/Centers
    for Medicare and Medicaid Services (“CMS”).10 This database contains 1 billion
    records of charges billed by health care providers across the country and submitted
    to CMS.‘1 The RF System organizes those charges in the CMS database by CPT
    Code, geozip, and time period.12 lt then lines them from lowest to highest and
    7 21 Del. C. § 2118(a).
    8 Ia’. (emphasis added).
    9 USAA’s Brief in Opposition to Plaintiff’ s Motion for Class Certification (“USAA’s Opp’n
    Br.”) (Trans. ID. 60599408) at 9.
    ‘° ld.
    11 1a
    12 Ia'. at 10.
    divides them into percentiles.13 USAA uses the 80th percentile of those charges as
    a benchmark, which is the amount at which at least 80% of the charges are equal to
    or lower than. lf a claim submitted by a health care provider is not higher than the
    8011‘ percentile, it would be deemed reasonable14
    The second step of the RF System involves a “rounding up” rule. lf a
    provider’s charge is above the 80th percentile, in addition to paying the amount of
    the 80111 percentile, USAA will pay an additional $10 or 5% of that 80th percentile,
    whichever is higher.15 The amount calculated after “benchmarking” and “rounding
    up” is the final amount USAA will pay for the PIP claim, subject to the policy
    limitS.16
    C. Procedural History
    WPRC filed its initial complaint in June 201517 and amended it in November
    2015. USAA filed its answer to the amended complaint in December 2015.18
    From June 2015 to January 2016, the parties exchanged written discovery requests
    and responses. On October 19, 2016, after several months of no activity in the
    case, USAA filed a motion to dismiss for failure to prosecute19 Two days later,
    WPRC filed the instant Motion and supporting brief. On May 12, 2017, USAA
    13 Id.
    14 Id. at lO-ll.
    15 Ia’. at 11.
    16 Id.
    17 WPRC’s Complaint (Trans. ID. 57432659).
    18 USAA’s Answer to Plaintist Amended Complaint (Trans. lD. 58336085).
    19 USAA’s Motion to Dismiss for Failure to Prosecute (Trans. lD. 59720660).
    4
    filed its answering brief, and WPRC filed a reply brief on May 26, 2017. On July
    21, 2017, the Court heard oral argument on the l\/lotion.20
    ln its amended complaint, WPRC asserts a single claim for declaratory
    judgment.21 Specifically, WPRC seeks a judicial declaration that USAA, by using
    the RF System to determine the reasonableness of PIP claims, has wrongfully
    underpaid those claims in violation of 21 Del. C. § 2118(a).22 Through its Motion,
    WPRC seeks to certify the following class:
    All care providers who, at any time since June 19, 2012,
    have billed medical-expense-related Delaware PlP claims
    to USAA, where USAA has subjected those claims to its
    “Reasonable Fee Methodology.”23
    III. STANDARD OF REVIEW
    The requirements for certification of a class action are set forth in Superior
    Court Civil Rule 23 (“Rule 23”). When considering a motion for class
    certification, the Court conducts a two-step analysis. First, the proposed class must
    satisfy each of the four elements of Rule 23 (a):
    a. Numerosity: the class is so numerous that joinder of all members is
    impracticable;
    b. Commonality: there are questions of law or fact common to the class;
    20 Juiy 21, 2017 superior Ceurr Preeeeding worksheet (Trans. iD. 60883813).
    21 Arn. Compl. 11 1.
    22 1a
    23 WPRC’s Opening Br. at 1.
    c. Typicality: the claims or defenses of the representative parties are typical
    of the claims or defenses of the class;
    d. Adequacy: the representative parties will fairly and adequately protect the
    interests of the class.
    Second, if the Rule 23(a) prerequisites are satisfied, the Court must determine
    whether the action falls within one of three categories set forth in Rule 23(b). ln
    the instant action, WPRC seeks to certify a class under Rule 23(b)(1)(A) or Rule
    23(b)(2):
    Rule 23(b)(1)(A): The prosecution of separate actions by or against
    individual members of the class would create a risk of inconsistent or
    varying adjudications with respect to individual members of the class which
    would establish incompatible standards of conduct for the party opposing the
    class;
    Rule 23(b)(2): The party opposing the class has acted or refused to act on
    grounds generally applicable to the class, thereby making appropriate final
    injunctive relief or corresponding declaratory relief with respect to the class
    as a whole. ``
    Because Rule 23 is patterned after Federal Rule of Civil Procedure 23, cases
    interpreting Federal Rule 23 are persuasive authority in Delaware courts.24 When
    analyzing Rule 23’s federal counterpart, a federal court must engage in a “rigorous
    analysis” in order to decide whether to certify a class.25 This “rigorous analysis” is
    similarly required under Delaware Rule 23.26 When conducting this analysis, the
    24 see Blance v. AMVAC Chem. Cerp_, 2012 wL 3194412, at *7 (Del. super Aug. 8, 2012)
    (citing Appriva S’hola’er Litig. Co. v. EV$, Inc., 
    937 A.2d 1275
    , 1286 (Del. 2007)).
    25 Wal-Mart Stores, lnc. v. Dukes, 
    564 U.S. 338
    , 350-51 (2011).
    26 In re Celera Corp. S’hola'er Litig., 
    59 A.3d 418
    , 432 (Del. 2012).
    6
    Court must evaluate the whole record and examine the method by which the
    7 and may “delve
    plaintiff proposes to prove its claims on a classwide basis,2
    beyond the pleadings to determine whether the requirements for class certification
    are satisfied.”28
    IV. DISCUSSION
    A. WPRC’s Standing
    ln USAA’s opposition to the Motion, it contends that WPRC has no right to
    bring the instant action.29 Specifically, USAA argues that WPRC purports to bring
    this action as an assignee of its patients but the assignment forms signed by
    WPRC’s patients are unenforceable30 WPRC counters by arguing that it brings
    this action on its own behalf and as the assignee of its patients. WPRC cites
    Sammons v. Hartfora' Una'erwriters lns. C0.,31 arguing that a health care provider
    who submits PlP claims to its patient’s auto insurer qualifies as a “claimant” under
    21 Del. C. § 2118B and has a private right of action to sue for unpaid/underpaid
    bills.32 At oral argument, USAA did not address Sa)nmons or respond to WPRC’s
    27 See In re Hya'rogen Peroxia'e Antitrust Litig., 
    552 F.3d 305
    , 316-17 (3d Cir. 2008) (internal
    citations omitted).
    28 Ia'. at 316 (internal citations omitted); see also Dakes, 
    564 U.S. at 351
     (“Frequently that
    ‘rigorous analysis’ will entail some overlap with the merits of the plaintiff s underlying claim.”).
    29 lt appears that USAA is launching a standing challenge here, although it does not explicitly
    characterize it as such.
    30 USAA’s Opp’n Br. at 18.
    31 
    2011 WL 6402189
     (Del. Super. Dec. 15, 2011).
    32 WPRC’s Reply Br. at 11-12.
    argument on standing. The Court therefore assumes that USAA has abandoned its
    challenge to WPRC’s standing
    B. Rule 23(a)
    a. Numerosity
    The parties do not dispute that this requirement is satisfied
    b. Commonality
    Generally, a purported class should share at least one common question of
    law or fact to meet the commonality requirement33 At first impression, as WPRC
    contends, there appear to be many factual and legal questions in common, such as:
    ls the proposed class member a Delaware care provider? Has it sent PIP claims to
    USAA and have those claims been subject to the RF System? Does the RF System
    violate the Delaware PlP statute?34 But commonality requires more than that.
    The United States Supreme Court elaborated at length on the commonality
    element in Wal-Mart Stores, [nc. v. Dakes. ln that case, three Wal-Mart female
    employees sought to certify a class consisting of all women employed at Wal-Mart
    retail stores who had been subjected to Wal-Mart’s pay and promotion policies and
    practices35 They alleged that Wal-Mart’s “uniform corporate culture” permitted
    discrimination against women when its managers exercised their discretionary
    33 E.g., Smah v. Hercales, rne., 2003 wL 1580603, at *7 (Dei. super Jarr. 31, 2003) (internal
    citations omitted).
    34 wPRC’s opening Br. at 15.
    35 564 U.s. at 346.
    power in making promotion and pay decisions36 The Supreme Court recognized
    in Dakes that “any competently crafted class complaint literally raises common
    ‘questions’.”37 ln Dakes, the purported common questions included, “Do all of us
    plaintiffs indeed work for Wal-Mart? Do our managers have discretion over pay?
    ls that an unlawful employment practice?”38 The Supreme Court held that merely
    reciting these questions was not sufficient to establish commonality.39 lt further
    explained that commonality requires that the class members have all “suffered the
    same injury” which generated claims that can “productively be litigated at once.”40
    Their claims must “depend upon a common contention” which must be “capable of
    classwide litigation.”41 Namely, the determination of that contention will “resolve
    an issue that is central to the validity of each one of the claims in one stroke.”42
    WPRC contends that the one central claim common to all class members is
    whether USAA, by applying the RF System to determine the reasonableness of PlP
    claims, fails to pay the reasonable medical expenses required under 21 Del. C. §
    2118.43 The Court finds that this claim cannot be resolved on a classwide basis.
    36 1a at 345.
    37 Ia’. at 349.
    33 1a
    39 Ia’.
    40 Ia’. at 350.
    41 1a
    42 Ia'.
    43 E.g., WPRC’s Opening Br. at l. See also July 21, 2017 Oral Argument Transcript (“Oral Arg.
    Tr.”) at 15:13~15:16 (Trans. ID. 61089819) (“The case is about whether [USAA’s] methodology
    consistently . . . is designed to underpay, and does underpay, the range of reasonableness.”).
    ' 9
    Under Delaware law, in order to prove an insurer’s payment violates 21 Del. C. §
    2118, the burden lies on the plaintiff to show the incurred medical expenses are
    “reasonable and necessary.”44 As noted by USAA, this is a factual determination
    and requires a particularized assessment of individual issues, for example, each
    plaintiff’s injuries, treatment, and medical bills.45
    WPRC argues that the crux of this action is not about whether each
    plaintiff’s charges are reasonable, but whether the amounts USAA ultimately paid
    are anreasonal)le.46 But this cannot be resolved on a classwide basis either. The
    RF System calculates and determines a benchmark amount for each CPT code
    based upon geozip and time period. The PlP claims submitted by each putative
    class member presumptively contain medical procedures with different CPT codes,
    and the procedures presumptively have occurred at different times and in different
    geographic locations. lt appears WPRC intends to prove that there is an
    objectively reasonable amount (or a range of amounts) for each CPT code within a
    specific geozip and time period, and every single benchmark amount calculated by
    the RF System is lower than that objectively reasonable amount. But WPRC has
    not offered or provided a convincing plan to prove that on a classwide basis.
    44 Murphy v. United Servs. Auto. Ass ’n, 
    2005 WL 1249374
    , at *2 (Del. Super. May 10, 2005).
    45 USAA’s Opp’n Br. at 27; see also Watson v. Metro. Prop. & Cas. lns. Co., 
    2003 WL 22290906
    , at *5-6 (Del. Super. Oct. 2, 2003) (“[T]he determination of the ‘reasonableness’ of a
    medical provider’s bills is entirely factual in nature.”) (internal citations omitted).
    46 WPRC’s Reply Br. at 15 (“The issue, then, is not whether the provider charged a reasonable
    fee, but whether USAA paid a reasonable fee.”).
    1'0
    WPRC proposes three ways to prove its claim: (l) evidence that a number of
    other insurance companies pay WPRC the full amount charged for the same
    treatments for which USAA claims a discount; (2) USAA’s business records which
    show that WPRC’s charges are lower to those of the Delaware medical
    community; and (3) nonparty discovery about the fees charged by other prolific
    Delaware medical service providers.47 With respect to the first mode of proof, it
    only concerns what other insurers pay for WPRC’s own PlP claims. Without
    corresponding evidence regarding other class members’ PlP claims, it has little
    probative value in a classwide trial where WPRC needs to demonstrate that the
    amounts USAA pays other class members are also unreasonable As to the other
    two modes of proof, although WPRC says it would obtain and present at trial
    evidence regarding other Delaware providers’ charges, WPRC has not submitted
    any such evidence. WPRC also does not explain how it intends to conduct such
    discovery, which supposedly will cover a huge number of Delaware doctors and
    medical facilities and seeks to obtain information about their charges for numerous
    CPT codes during the past five years. WPRC makes conclusory allegations about
    USAA’s wrongful conduct but does not provide evidence, or demonstrate how it
    could obtain evidence, to substantiate them. WPRC has failed to demonstrate how
    it can prove all class members’ claims in one class action trial.
    43 wPRC’S Reply Br. at 17-18.
    . 11 _
    Several other courts that have addressed a similar “reasonable fee” issue
    have reached the same conclusion. For example, in Johnson v. Geico Casaalty
    Comjoany48 which has a very similar fact pattern,49 plaintiffs also asserted one
    count for declaratory relief under 21 Del. C. § 2118, contending that the common
    issues for declaratory judgment involved whether defendants’ policies and
    procedures were improper.50 The U.S. District Court for the District of Delaware
    refused to certify a class whose PlP claims had been reduced by defendants using a
    computerized review system, finding that the commonality requirement was not
    met.51 Similarly, in Ross-Randolph v. Allstate Insarance Company,52 another
    federal district court, when faced with an allegation that the defendant used
    computer programs to generate an unreasonable amount in violation of a Maryland
    PIP statute, held that an insurer’s obligation under Maryland’s PlP statute
    necessarily turned on whether an individual claimant’s charges were reasonable,
    and that the court cannot avoid individual inquires to determine that issue.53
    43 673 F. supp. 2d 255 (D. Del. 2009).
    49 One of plaintiffs’ allegations in Johnson is that defendants reduced bills to the 801h percentile
    of charges submitted based on a recommendation made by their database providers. Id. at 266.
    30 1a ar 273.
    51 Id. (“The Court is persuaded that certifying the . . . Geographic Reduction Class to pursue a
    declaratory judgment . . . based on such a broad assertion of commonality is inconsistent with its
    duty to conduct a rigorous analysis into the requirements of Rule 23.”).
    52 
    2001 WL 36042162
    (D.Md. May11,2011).
    53 Id. at *6. See also MRI Assocs. of St. Pete, Inc. v. State Farm Mut. Auto. Ins. Co., 
    755 F. Supp. 2d 1205
    , 1208 (M.D. Fla. 2010) (“Plaintiffs’ claims, even for declaratory relief, require
    proof that the amounts provided in the statutory fee schedule are not reasonable. . . . [W]hat
    constitutes a reasonable amount will vary based on many factors specific to the individual
    claim.”).
    12
    WPRC cites to several cases in which courts seem to have certified a class
    under similar circumstances as the instant action. Although those cases also
    involve insurance companies’ payment decisions supposedly generated from a
    computerized system, they can be distinguished in a significant respect, i.e.,
    plaintiffs in those cases directly attacked the computer software program itself,
    rather than alleging the amount the insurers ultimately paid was unreasonable For
    instance, in Brooks v. Ea'acators Mutaal Life Insurance Company,54 plaintiff
    insureds sued a group health insurer, alleging that the insurer, by using a computer
    software program, failed to pay the reasonable and customary charge for anesthesia
    services.55 Specifically, plaintiffs argued that the insurer’s use of the program
    violated its insurance contracts because the program did not specify from which
    geographical area its data was drawn, and the program took into account the
    amount anesthesia providers ultimately accepted as payments as opposed to what
    they originally charged.56 Plaintiffs in Brooks specifically alleged there were
    systematic flaws in the challenged computer software. Those allegations in Brooks
    were central to the plaintiffs’ entire action, and unlike the allegations in the instant
    54 
    206 F.R.D. 96
     (E.D. Pa. 2002). WPRC did not cite Brooks in its briefs. lt brought this case to
    the Court for the first time at oral argument USAA opposed consideration of Brooks. The
    Court finds even if it takes Brooks into consideration, it does not support WPRC’s position.
    55 Id. at 98-99.
    36 1a at 99.
    13
    action, they had little to do with each class member’s individual factual situation.57
    But WPRC has not alleged any such systematic flaws in the design or operation of
    the RF System. Unlike in Brooks, there is no common question in the instant
    action the resolution of which will produce a common answer to all class
    members’ claims.
    c. Typicality
    Typicality tests the sufficiency of the named plaintiffs.58 The class
    representative must be part of the class and “possess the same interest and suffer
    the same injury as the class members.”59 Where a class representative is subject to
    a unique defense, typicality may be lacking.60 WPRC asserts that its claim is not
    only typical, but also identical to those of other class members WPRC further
    argues that its claim arises from the same event that gives rise to claims of other
    class members, i.e., USAA’s applying the RF System to PlP claims, and is based
    on the same legal theory, i.e., violation of the Delaware PIP statute.61
    57 Most other cases cited by WPRC can be distinguished for the same reason. For example, in
    First State Orthopaedics v. Concentra, Inc., the plaintiff insured alleged that the computer bill
    review system adopted by the insurer was manipulated through certain “faulty and corrupt”
    statistical methods and the amount ultimately paid was calculated in an “arbitrary and capricious
    manner” based on this “flawed database.” 534 F. Supp. 2d. 500, 505 (E.D. Pa. 2007).
    
    58 Johnson, 673
     F. Supp. 2d at 270 (internal citations omitted).
    39 E.g., osrrefv. stare Farm Ma¢. Auzo. lns. Co., 
    200 F.R.D. 521
    , 529 (D. Md. 2001) (internal
    citations omitted). The United States Supreme Court has stated that the commonality and
    typicality requirements tend to merge as they both serve as guideposts for determining whether
    the named plaintiffs’ claims and the class claims are so interrelated Dakes, 
    564 U.S. at
    349 n.5
    (citing Gen. Tel. Co. ofSw. v. Falcon, 
    457 U.S. 147
    , 157-58 n.l3 (1982)).
    30 Osrref, 200 F.R.D. at 529.
    61 WPRC’s Opening Br. at l7.
    14
    Typicality requires that a class representative maintains a very similar
    factual and legal position as other class members62 As discussed above, WPRC’s
    entire case focuses on unreasonableness of USAA’s PlP payments, the proof of
    which strongly depends on evaluation of each class member’s individual
    circumstances Presumably WPRC would encounter defenses that may not be
    asserted against all other class members Therefore, the Court does not find the
    typicality that Rule 23(a) demands
    d. Adequacy
    USAA contends that WPRC is not a qualified class representative because it
    lacks the basic understanding of the bill review system utilized by USAA and how
    that system operates63 USAA also contends that WPRC lacks the desire to
    vigorously litigate the instant action because it did no work for eight months before
    ”64 Finally,
    it filed the Motion which “lifted large sections from its [c]omplaint.
    USAA suggests that WPRC is not a qualified class representative because it
    engaged in unlawful billing and referral practices65 Because the Court finds that
    both commonality and typicality are not satisfied, the Court need not address the
    adequacy prong.66
    63 See, @_g., Leon N. Wemer & Assecs. v. Krapr, 
    584 A.2d 1220
    , 1225 (Del. 1991).
    55 USAA’s Opp’n Br. at 34.
    64 1a
    63 1a
    66 See, e.g., Menns v. Del. Am. Life rns. CO., 2000 wL 973299, at *1 (Dei. super May 30, 2000)
    (internal citations omitted) (“The first step [of deciding whether to certify a class under Rule 23]
    15
    C. Rule 23(b)
    lf a class representative fails to meet any of the Rule 23(a) requirements,
    analysis under Rule 23(b) is unnecessary. However, even if WPRC had satisfied
    the Rule 23(a) requirements it cannot satisfy the Rule 23(b) requirements
    a. 23(b)(1)(A)
    Rule 23(b)(1)(A) intends to avoid the risk of prejudice that may be suffered
    by the opposing party. lt addresses the concern that if individual class members
    bring multiple actions, the opposing party may be subject to incompatible
    standards of conduct established by inconsistent adjudications.67 ln the instant
    action, USAA does not contend that it would suffer any prejudice if the case is not
    certified. ln fact, it affirmatively asserts that individual PlP suits brought by the
    t.68 Since
    class members present no risk of incompatible standards of conduct to i
    the Court has already found that resolution of this case involves a fact-driven
    evaluation of each plaintiffs injuries, procedures and medical bills, the Court
    agrees with USAA that judgment in each potential individual case would be
    predicated on a different factual situation, and thus the risk contemplated by Rule
    23(b)(1)(A) does not exist here.
    b. 23(b)(2)
    requires that the action satisfy all four of the prerequisites mandated by subsection (a) of the
    ruie.”).
    67 See, e.g., Ross-Rana'olph, at *8 (internal citations omitted).
    63 USAA’s opp’n Br. at 31.
    16
    At first impression, this case seems to fit under Rule 23(b)(2) because
    WPRC is challenging an act conducted by USAA “on grounds generally applicable
    to the class,” i.e., usage of the RF System to process PlP claims But the putative
    class lacks the required “cohesiveness” that makes the classwide declaratory relief
    appropriate
    lt is well established that Rule 23(b)(2) class members/claims must be
    cohesive69 The key feature of a Rule 23(b)(2) class is the “indivisible nature of
    the injunctive or declaratory remedy warranted.”70 lt means that the challenged
    conduct “can be enjoined or declared unlawful only as to all of the class members
    of as to none of them.”71 Rule 23(b)(2) does not authorize class certification when
    each class member may be entitled to a different declaratory judgment.72 As
    discussed above, whether a class member in the instant case is entitled to the
    requested declaratory relief relies heavily on analysis of his particular
    circumstances On the record before it, the Court does not find the requisite
    indivisible nature of the declaratory remedy sought on behalf of the whole class
    WPRC consistently asserts that it seeks only declaratory relief, not monetary
    damages, and is not attempting to certify a class under Rule 23(b)(3).73 WPRC
    argues that Rule 23(b)(1)/(2) does not have the predominance requirement as in
    69 E_g., Barnes v. Am. Tebacco Ce., 
    161 F.3d 127
    , 143 (3d Cir. 1998).
    30 Dakes, 564 U.s. at 360.
    31 1a
    33 1a
    75 See WPRC’s Reply Br. at 18; see also Oral Arg Tr. at 23:10-23:11.
    17
    23(b)(3),74 seemingly suggesting that Rule 23(b)(1)/(2) somehow imposes less
    rigorous certification standards than 23(b)(3). However, although predominance is
    not at issue here, a Rule 23(b)(2) class requires more cohesiveness than a (b)(3)
    class, because in a (b)(2) class action, unnamed class members are bound by the
    final result of the action and have no opportunity to opt out.75 Here, since the
    unnamed members of the putative class cannot opt out, certifying a class action
    which will result in a unified declaratory judgment is unfair to them. This is
    especially so in light of the significantly disparate factual circumstances of each
    putative class member.
    V. CONCLUSION
    For the foregoing reasons, the purported class does not meet the
    requirements for certification set forth in Rule 23. WPRC’s Motion for Class
    Certification is hereby DENIED.
    IT IS SO ORDERED.
    ._,,ff’ 7 /
    %rden, President Judge
    74 Rule 23(b)(3) mandates that “the questions of law or fact common to the members of the class
    predominate over any questions affecting only individual members”
    75 Barnes, 
    161 F.3d at 142-43
    .
    18