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SCI Texas Funeral Services, Inc. Professional Funeral Associates, Inc. SCIT Holdings, Inc. SCI Funeral Services, Inc. And Service Corporation International v. David Hijar, Lupe Wiebel and Patricia Villegas

Citation: Not availableDocket: 08-05-00182-CV

Court: Court of Appeals of Texas; July 27, 2006; Texas; State Appellate Court

Original Court Document: View Document

Narrative Opinion Summary

In Becker v. State, the Court of Appeals for the Eighth District of Texas reviewed an interlocutory appeal involving SCI Texas Funeral Services, Inc. and related entities concerning a class certification order. The primary legal issue was the standing of the Appellees to pursue claims against SCI for alleged violations of the federal and state Funeral Rule. The Funeral Rule, aimed at preventing deceptive practices in the funeral industry, requires disclosure of pricing and contractual details. The Appellees alleged violations under this rule and state law, initially filing claims including breach of contract and civil conspiracy. SCI contested the standing and the existence of a private cause of action under the Funeral Rule. The court ruled that the Appellees lacked standing as there is no private right of action under the Funeral Rule, which led to the dismissal of most claims except for injunctive relief. The decision reversed the trial court’s class certification due to the lack of standing and an uncertified injunction class, leaving the petition for injunctive relief as the only viable claim. This case underscores the necessity of establishing standing and a private cause of action in class litigation.

Legal Issues Addressed

Certification of Class Actions

Application: The trial court's certification of a class was reversed due to the failure to establish standing and a private right of action.

Reasoning: Consequently, the court reversed the certification order and dismissed the claims for breach of contract, illegal contract, and civil conspiracy, leaving only the Appellees' petition for injunctive relief to proceed.

Funeral Rule and Private Right of Action

Application: The court found no private right of action under the Funeral Rule, invalidating claims based on this regulation.

Reasoning: The court concluded that the Appellees did not have a private right of action for their claims based on the FTC Funeral Rule, which invalidated their breach of contract, illegal contract, and civil conspiracy claims.

Standing in Class Action Litigation

Application: The court determined that the Appellees lacked standing to pursue individual and class claims, leading to a reversal of the class certification order.

Reasoning: The court concludes that the Appellees lack standing, leading to a reversal of the certification order and a dismissal of all claims except for injunctive relief.

Texas Occupations Code and Private Cause of Action

Application: The Texas Occupations Code does not provide a private cause of action for damages, only permitting injunctive relief.

Reasoning: Regarding the Texas Occupations Code, while it permits monetary administrative penalties, it does not allow for a private cause of action for damages, only for injunctive relief against entities violating Chapter 651.