Rite Aid of Ga., Inc. v. Peacock

• Citation: 315 Ga.App. 573,726 S.E.2d 577,12 FCDR 1211
• Decision Date: 12 April 2012
• Docket Number: No. A11A2133.,A11A2133.
• Parties: RITE AID OF GEORGIA, INC. v. PEACOCK et al.
• Court: Georgia Court of Appeals

315 Ga.App. 573

726 S.E.2d 577

12 FCDR 1211

RITE AID OF GEORGIA, INC.

v.PEACOCK et al.

No. A11A2133.

Court of Appeals of Georgia.

March 22, 2012.

Reconsideration Denied Apri 12, 2012.

Alston & Bird, Andrew Jacob Tuck, James Charles Grant, Drew, Eckl & Farnham, Stevan A. Miller, for appellant.

Hamilton & Maddox, Lance John Hamilton, Bell & Brigham, John C. Bell, Leroy Weathers Brigham, for appellees.

ANDREWS, Judge.

On appeal from the certification of a class in this action arising from its sale of customers' medication information to another pharmacy, Rite Aid of Georgia, Inc. argues that the evidence does not support the trial court's determination that plaintiff Richard Peacock and the class he seeks to represent meet the requirements of OCGA § 9–11–23(a) and (b)(3). We agree and therefore reverse.

Plaintiffs have the burden of establishing their right to class certification, and we review the trial court's decision in certifying or refusing to certify a class action for an abuse of discretion. Jones v. Douglas County, 262 Ga. 317, 323–324, 418 S.E.2d 19 (1992).

Although “we will not reverse the factual findings in a trial court's class certification order unless they are clearly erroneous,” Village Auto Ins. Co. v. Rush, 286 Ga.App. 688, 649 S.E.2d 862 (2007), the facts relevant to this appeal are not in dispute. In anticipation of closing its Swainsboro pharmacy, and because the nearest other Rite Aid location was more than 40 miles away, Rite Aid sold the prescription records of more than 4,000 of its customers to a nearby Walgreens on August 27, 2008. Between August 16 and August 19, Rite Aid placed signs at the pharmacy entrance and on its counter to the effect that the Swainsboro location was closing and that all prescription information would be transferred to Walgreens. After the Swainsboro Rite Aid closed, Walgreens placed signs there and sent letters to Rite Aid customers regarding their ability to fill prescriptions at Walgreens.

On August 19, 2008, Richard Peacock, a detective with the Swainsboro Police Department, went to the Swainsboro Rite Aid to pick up a prescription for his wife. Employees informed Peacock that the store was closing and that his prescriptions would be transferred to Walgreens. Ten days later, and two days after the Swainsboro Rite Aid closed, Peacock went to Walgreens to fill a prescription. The Walgreens clerk had trouble opening Peacock's prescription information and informed Peacock that he would need to go back to his doctor for a new prescription. Peacock refused, telling the clerk that “[t]he prescriptions were up to date” and were “sent to you from Rite Aid.” Walgreens resolved the problem, and Peacock received his prescription that day.

In February 2010, Peacock filed this action for breach of duty, breach of contract, and unjust enrichment in Emanuel County Superior Court, later amending his complaint to render it a class action. In April 2011, the trial court certified the class as consisting of “[a]ll Georgia residents who were customers of [Rite Aid's] pharmacy in Emanuel County and whose pharmacy records were transferred by [Rite Aid] to Walgreens in 2008,” but excluding “any employees of [Rite Aid] and any employees of the Superior Court of Emanuel County.” On appeal, Rite Aid argues that the trial court erred when it found that the class had sufficient commonality, typicality, and adequacy of representation as required by OCGA § 9–11–23(a)(2), (3), and (4), as well as the suitability required by OCGA § 9–11–23(b)(3).

1. OCGA § 9–11–23 provides:

(a) One or more members of a class may sue or be sued as representative parties on behalf of all only if: (1)[t]he class is so numerous that joinder of all members is impracticable; (2)[t]here are questions of law or fact common to the class; (3)[t]he claims or defenses of the representative parties are typical of the claims or defenses of the class; and (4)[t]he representative parties will fairly and adequately protect the interests of the class.(Emphasis supplied.) In determining whether a class action should proceed under OCGA § 9–11–23, “the first issue to be resolved is not whether the plaintiffs have stated a cause of action or may ultimately prevail on the merits but whether the requirements of OCGA § 9–11–23(a) have been met.” McGarry v. Cingular Wireless, 267 Ga.App. 23, 25, 599 S.E.2d 34 (2004). When necessary, we look to federal as well as Georgia case law for guidance concerning the propriety of a class certification. Sta–Power Indus. v. Avant, 134 Ga.App. 952, 953–954, 216 S.E.2d 897 (1975).

The United States Supreme Court has recently explained the burden of proof facing a class representative as follows:

A party seeking class certification must affirmatively demonstrate his compliance with [Federal Rule of Civil Procedure 23(a) ]—that is, he must be prepared to prove that there are in fact sufficiently numerous parties, common questions of law or fact, etc. We [have] recognized... that sometimes it may be necessary for the court to probe behind the pleadings before coming to rest on the certification question, and that certification is proper only if the trial court is satisfied, after a rigorous analysis, that the prerequisites of Rule 23(a) have been satisfied.... Frequently that rigorous analysis will entail some overlap with the merits of the plaintiff's underlying claim. That cannot be helped. The class determination generally involves considerations that are enmeshed in the factual and legal issues comprising the plaintiff's cause of action. Nor is there anything unusual about that consequence: The necessity of touching aspects of the merits in order to resolve preliminary matters, e.g., jurisdiction and venue, is a familiar feature of litigation.

(Emphasis supplied.) Wal–Mart Stores v. Dukes, ––– U.S. –––– at ––––(II)(A), 131 S.Ct. 2541, 180 L.Ed.2d 374 (2011).

(a) Commonality. As Dukes also noted, “any competently crafted class complaint literally raises common questions.” (Citation and punctuation omitted.) Dukes, 131 S.Ct. at 2551. Thus the Supreme Court of Georgia has held that where federal regulations authorized the sending of junk faxes to some but not all recipients having an “established business relationship” with the sender, a trial court properly denied class certification for lack of commonality. Carnett's, Inc. v. Hammond, 279 Ga. 125, 129(4), 610 S.E.2d 529 (2005). The Carnett's Court rejected plaintiffs' assertion that a common question existed as to whether the solicitation by fax was wrongful:

[A] common question is not enough when the answer may vary with each class member and is determinative of whether the member is properly part of the class.... [T]he question of solicitation is both a merits question and a class question, and thus the trial court acted within its discretion in reaching it.

(Emphasis supplied.) 279 Ga. at 129(4), 610 S.E.2d 529.

Thus a plaintiff seeking to represent a class must do more than draft a complaint; instead, he must show “that the class members ‘have suffered the same injury,’ [which] does not mean merely that they have all suffered a violation of the same provision of law .” (Emphasis supplied.) Dukes, 131 S.Ct. at 2551, quoting Gen. Tel. Co. v. Falcon, 457 U.S. 147, 157, 102 S.Ct. 2364, 72 L.Ed.2d 740 (1982). This Court has likewise held that a class not sharing a common injury is not properly certified. In Doctors Hosp. Surg. Ctr. v. Webb, 307 Ga.App. 44, 704 S.E.2d 185 (2010), for example, we reversed a trial court's certification order concerning plaintiffs' action for breach of contract, rescission, and negligence because the proposed class—patients arguably affected by a hospital's failure to sterilize the instruments used in its colonoscopies—could not show that common injuries predominated over individualized ones. Id. at 48–49(2), 704 S.E.2d 185; see also John E. King & Assoc. v. Toler, 296 Ga.App. 577, 578, 675 S.E.2d 492 (2009) (physical precedent only) (reversing certification of class pleading common injury from a chiropractic clinic's referral of class members to personal injury attorneys on the ground that no injury resulting from the referral had been shown).

With these precedents in mind, we turn to the question whether the facts of this case present sufficiently common questions of fact and law as to whether Rite Aid committed any legally cognizable wrong when it sold the pharmacy records to Walgreens.

(i) Lack of Injury. Under OCGA § 26–4–80(d), and although medication records are defined as “confidential,” they may be released without the patient's written consent to parties including the patient, his prescribing doctor or other licensed practitioners, and “another licensed pharmacist.” See also OCGA § 26–4–5(5) (defining “confidential information” as including medication records which “may be released only to the patient or, as the patient directs,” to other professionals where, “in the pharmacist's professional judgment, such release is necessary to protect the patient's health and well-being”); Ga. Comp. R. & Regs. r. 480–16–.07(d)(4) (medication records may be released to “[a]nother licensed pharmacist for purposes of transferring a prescription or as a part of a patient's drug utilization review, or other patient counseling requirements”). The trial court held without explanation that Rite Aid's “single transaction” of selling its customers' medication information to Walgreens resulted in “a common impact” on each class member.

Pretermitting whether the sale here violated the statutes quoted above or any other law, Peacock's deposition testimony makes clear that although he felt that the sale of his prescription information to Walgreens was “illegal,” he could not say that he had suffered any actual financial or physical injury, including to his professional or personal reputation, as a result of that sale. Peacock also admitted that given his family's medical needs, including his own continuing...