Tanseer Kazi v. PNC, Bank, N.A.

Background

Tanseer Kazi originally filed the action. The parties later agreed to add Linda Scheid as a plaintiff. Although the plaintiffs initially sought to have both Kazi and Scheid serve as class representatives, they later acknowledged that Kazi did not qualify because of his bankruptcy. The court certified a class represented only by Scheid.

Motion and parties’ positions

The plaintiffs moved under Federal Rule of Civil Procedure 41(a)(2) to voluntarily dismiss Kazi as a named plaintiff. They asked that the dismissal not prevent Kazi or his bankruptcy trustee from recovering as an absent class member. The bankruptcy trustee did not object to those terms.

PNC argued that Rule 41 allowed dismissal only of an entire action, so Kazi could not be dismissed as a named plaintiff while retaining a possible right to recover through the class. PNC also argued that plaintiffs’ counsel had failed to disclose Kazi’s bankruptcy and might not have had authority to act on his behalf or to agree to add Scheid. PNC suggested that these issues warranted discovery and could support a future motion for summary judgment.

Court’s reasoning

The court concluded that the requested dismissal was consistent with Rule 41(a)(2). The plaintiffs sought to dismiss all of Kazi’s claims, so Kazi would no longer be a named party. The possibility that Kazi or the bankruptcy trustee could still recover as an absent class member was consistent with a dismissal without prejudice. The court also noted that Rule 41(a)(2) permits dismissal on terms the court considers proper.

The court found the proposed terms appropriate because they would allow the case to proceed efficiently without parallel proceedings involving Kazi’s individual claims or active involvement by the bankruptcy trustee. The court noted that other courts in the district had allowed named plaintiffs to leave a class action while preserving possible recovery as absent class members.

The court did not resolve PNC’s arguments about counsel’s authority, discovery, or a possible future summary-judgment motion. It stated that those issues were not a reason to keep Kazi in the case because the proposed dismissal would not prejudice PNC.

Disposition

Judge Joseph C. Spero granted the plaintiffs’ motion. All of Kazi’s claims were dismissed without prejudice, including without prejudice to any relief Kazi or his bankruptcy estate might recover as an absent class member.