Vol. 12, No. 2, Pg. 38. State Court: A Friendlier Forum for Class Actions.

• Author: By Paige J. Gossett

South Carolina Lawyer

2000.

Vol. 12, No. 2, Pg. 38.

State Court: A Friendlier Forum for Class Actions

38STATE COURT: A FRIENDLIER FORUM FOR CLASS ACTIONSBy Paige J. GossettIn the last year, the state Supreme Court has shown that the South Carolina Rules of Civil Procedure offer Southern hospitality to class action plaintiffs. In two separate decisions, the Supreme Court made clear that Rule 23, SCRCP, is more expansive than its federal counterpart and is appropriately used to effectuate classwide resolution of large numbers of claims .

LITTLEFIELD AND KENNEDY

In Littlefield v. South Carolina Forestry Commission, 337 S.C. 348, 523 S.E.2d 781 (1999), a group of former state employees challenged the manner in which state agencies were calculating pay for unused annual leave of terminated, deceased and retiring state employees. The Supreme Court reversed the trial court's denial of class certification, holding that the circuit court erred in relying on two federal cases in denying the motion. The Court noted that the state class action rule differs significantly from federal Rule 23. It went on to state, "Rule 23, SCRCP, endorses a more expansive view of class action availability than its federal counterpart."' Id. at 355, 523 S.E.2d at 784.

In Kennedy v. South Carolina Retirement System, Op. No. 25133 (S.C. Sup. Ct. filed May 22, 2000) (Shearouse Adv. Sh. No. 20 at 18), reh'g granted on other grounds, S.C. Sup. Ct. order dated July 24, 2000 the Supreme Court again demonstrated that Rule 23 is broader than its not-so-identical twin. In Kennedy several state retirees challenged the manner in which the State Retirement System was calculating the average final compensation of employees in connection with the value of unused annual leave. As in Littlefield the trial court had denied class certification. Again, the Supreme Court held that the trial court erred in imputing requirements from federal case law to the state rule.

The Kennedy Court traced the history of state Rule 23, noting that the Field Code adopted in 1870 created South Carolina's first statute allowing class actions. Kennedy, Op. No. 25133 at27. The Court further noted that, historically, South Carolina has had a very restrictive view of class actions and permitted class certification only in limited circumstances. Id. The Court then unequivocally observed, "The adoption of the new Rule 23, SCRCP in 1985 signaled the end of...