Nelson v. Wal-Mart Stores, Inc.
Nelson v. Wal-Mart Stores, Inc.
Opinion of the Court
Pending is Plaintiffs’ Motion for Class Certification,
I. BACKGROUND
Plaintiffs Tommy Armstrong and Daryal T. Nelson are African American truck drivers who applied for positions as over-the-road truck drivers at transportation offices operated by Defendant Wal-Mart Transportation LLC, a wholly owned subsidiary of Defendant Wal-Mart Stores, Inc. (collectively ‘Wal-Mart”), but were rejected. This case challenges Wal-Mart’s hiring practices for over-the-road truck drivers.
Wal-Mart’s Logistics Division is divided into two subdivisions: (1) the Transportation Division in charge of Wal-Mart’s truck fleet and its support; and (2) the Distribution Division in charge of the distribution centers that the trucking fleet services.
Each over-the-road truck driver is assigned to a transportation office.
Wal-Mart’s field transportation operations are divided into ten regions.
All hiring and personnel policies for the transportation offices are developed at and disseminated from Wal-Mart’s central headquarters in Bentonville. The corporate-level Human Resources Department develops the human resource policies that apply throughout Wal-Mart.
The primary elements of the hiring process for drivers at every transportation office are identical. First, new drivers are recruited almost exclusively through the “word of mouth” of current Wal-Mart drivers.
All who call the 1-800 number, regardless of which transportation office they wish to apply, are initially processed and screened at Wal-Mart’s Bentonville headquarters.
After the application is forwarded from the Bentonville headquarters, a screening committee, consisting of current drivers at the transportation office, decides which ap
Beyond the minimum qualifications, WalMart has no written or objective criteria to guide the driver screening committees when analyzing applicants during the hiring process.
From January 1, 2000, to September 19, 2005, Wal-Mart hired 4,135 over-the-road truck drivers.
In 1999, Kevin Upham, the driver recruitment coordinator, undertook a detailed evaluation of Wal-Mart’s current recruiting practices.
Wal-Mart revived the recruitment position in 2004 and placed Frank Paris in that position.
Wal-Mart has the ability to generate and retain complex demographic data and other statistical information.
II. CERTIFICATION UNDER RULE 23(A)
Plaintiffs seek to certify a class consisting of:
a. African American persons who reside in the continental United States of America who have applied for employment as over-the-road truck drivers at Wal-Mart since September 22, 2001, and who have not been hired; and
b. African American persons who reside in the continental United States of America who were deterred or thwarted from applying for positions as over-the-road truck drivers at Wal-Mart due to WalMart’s challenged policies and practices.60
To obtain class certification, Plaintiffs must meet all four requirements of Federal Rule of Civil Procedure 23(a) and the requirements of at least one of the subdivisions of Rule 23(b). A ease is “not maintainable as a class action by virtue of its designation as such in the pleadings.”
The decision whether to certify a class action is left to the sound discretion of the district court.
While not explicitly listed in Rule 23(a), some courts have required that a precisely defined class exist before considering the Rule 23(a) criteria for class certification.
The Supreme Court has held that, in certain situations, deterred applicants are entitled to relief under Title VII.
[t]he effects of and the injuries suffered from discriminatory employment practices are not always confined to those who were expressly denied a requested employment opportunity. A consistently enforced discriminatory policy can surely deter job applications from those who are aware of it and are unwilling to subject themselves to the humiliation of explicit and certain rejection.
If an employer should announce his policy of discrimination by a sign reading “Whites Only” on the hiring-office door, his victims would not be limited to the few who ignored the sign and subjected themselves to personal rebuffs. The same message can be communicated to potential applicants more subtly but just as clearly by an employer’s actual practices — by his consistent discriminatory treatment of actual applicants, by the manner in which he publicizes vacancies, his recruitment techniques, his responses to casual or tentative inquiries, and even by the racial or ethnic composition of that part of his work force from which he has discriminatorily excluded members of minority groups. When a person’s desire for a job is not translated into a formal application solely because of his unwillingness to engage in a futile gesture he is as much a victim of discrimination as is he who goes through the motions of submitting an application.70
Where, as here, the employment practice complained of involves word-of-mouth recruitment, courts have often included deterred and thwarted applicants in the class challenging such a practice.
Wal-Mart in its surreply vigorously contests Plaintiffs’ characterization of WalMart’s driver recruitment practices as “word of mouth.” Instead, Wal-Mart chooses to characterize driver hiring as “a more formal hiring process with many objective components.”
While some courts have excluded deterred applicants from class participation out of fear that the class size will become unlimited or unwieldy,
B. Numerosity
Since it is undisputed that the class is “so numerous that joinder of all members is impracticable,” I find that Plaintiffs have met Rule 23(a)(l)’s numerosity requirement.
C. Commonality
Rule 23(a)(2) requires that there be common questions of law or fact among the members of the class.
Plaintiffs argue that commonality is met because all class members are over-the-road truck drivers who have been affected by the excessive subjectivity of Wal-Mart’s uniform hiring policies. I am satisfied that there are common questions of law and fact with respect to the class and its representatives. Plaintiffs do not seek to certify a class challenging across-the-board discrimination for a broad range of jobs across several departments,
“[I]t is uniformly held that plaintiffs seeking class certification may represent a multifacility class only where centralized and uniform employment practices affect all facilities the same way.”
Plaintiffs have produced evidence of hiring practices promulgated by Wal-Mart’s central office in Bentonville that each transportation office must follow. These practices include relying primarily on current drivers to solicit potential applicants for driver positions through distribution of the 1-800 cards; entrusting current drivers to conduct both the initial screening to determine which applicants will be granted an interview and the initial interview; and entrusting the final stage of interviews and the ultimate hiring decision to the general transportation managers. Plaintiffs have produced evidence that Wal-Mart has not established any objective hiring criteria besides the minimum qualifications printed on the 1-800 cards to guide the decisionmakers at any step of the hiring process. Consequently, drivers and general transportation managers are free to apply subjective and idiosyncratic factors in deciding which applicants are hired. Plaintiffs have produced evidence that the application of such subjective factors has led to statistically significant under-representation of African American over-the-road truck drivers in Wal-Mart’s work force. Plaintiffs have produced evidence that, although WalMart was aware of both the potential for its hiring process to produce this disparity and had the means to attempt to correct the disparity, Wal-Mart did nothing to change its hiring policies.
This evidence presented by Plaintiffs demonstrates the existence of common issues of fact and law to be decided at trial (if not on Wal-Mart’s motion). Plaintiffs will have to establish that Wal-Mart’s hiring policies and
Wal-Mart asserts several reasons as to why Plaintiffs’ proposed class cannot meet the commonality requirement, none of which are persuasive. First, Wal-Mart argues that commonality is defeated because of the variations in qualifications and experience among the class members. Wal-Mart cites several eases to support its argument. Those eases all stand for the unremarkable proposition that, absent a showing of a pattern or practice of discrimination common to the class, “[discrimination based solely on membership in a protected class [wjhieh manifests itself in a different set of facts for each employee is not enough to satisfy the commonality requirement.”
Next, Wal-Mart argues that the evidence of significant variations in the hiring processes of the 47 individual transportation offices prevents a finding of commonality. For example, Wal-Mart points out that different general transportation managers and screening committees use different evaluation methods for driver candidates, some of which involve assessing objective qualifications.
That last point ties into Wal-Mart’s third, and most substantial, argument against a finding of commonality here. Wal-Mart argues that commonality is defeated because, despite similar hiring policies, the hiring decisions are made independently by each general transportation manager. Wal-Mart cites numerous cases where other courts refused to grant certification when an employer “had a centralized policy of decentralization.”
This position [that a policy of decentralized decisionmaking defeats commonality] would permit companies to escape Title VII class actions by minimizing the amount of control that they exercise over individual managers. Such a holding would run afoul of the purpose of Title VII, which is “not to provide redress but to avoid harm,” by encouraging employers “to adopt antidiscrimination policies and to educate their personnel on Title VII’s prohibitions.”92
The Ninth Circuit has made the same point: “The unsurprising fact that some employment decisions are made locally [should] not allow a company to evade responsibility for its policies.”
Nevertheless, even assuming that a centralized policy of decentralized, subjective decisionmaking cannot by itself meet the commonality requirement for Rule 23, the unique factual situation of this case makes a finding of commonality appropriate here.
Again, although Wal-Mart vigorously disputes the inferences to be drawn from Plaintiffs’ evidence and introduces its own evidence to counter Plaintiffs’ claims, I note again that my task, at this stage of the litigation, is not to determine the merits.
D. Typicality
The Eighth Circuit has defined typicality as requiring “a demonstration that there are other members of the class who have the same or similar grievances as the plaintiff.”
Wal-Mart does make one argument specifically addressed to the typicality requirement. Wal-Mart argues that Plaintiffs cannot meet the typicality requirement because of the differing qualifications and factual circumstances of the named plaintiffs and the members of the proposed class.
E. Adequacy of Representation
The fourth Rule 23(a) requirement requires that “a class representative ... be part of the class and possess the same interest and suffer the same injury as the class members.”
While Wal-Mart does not challenge the competency of Plaintiffs’ counsel, Wal-Mart does challenge the adequacy of the named plaintiffs to represent the class. It makes three arguments regarding the adequacy of the named plaintiffs. First, Wal-Mart argues that Plaintiff Armstrong is not an appropriate class representative because he did not verify that he met the minimum qualifications to be hired as an over-the-road truck driver at Wal-Mart.
Second, Wal-Mart argues that the named plaintiffs are not adequate representatives for the deterred applicants. “A fundamental requirement of representatives in a class action is that they must be members of the subclasses they seek to represent. The representatives must possess the same interest and suffer the same injury as their fellow class members.”
Third, Wal-Mart argues that the named plaintiffs are not adequate class representatives because, by not seeking compensatory damages, they “place themselves in conflict with any absent class members who might have claims for such damages.”
Plaintiffs’ claim for punitive damages, however, is another matter. It may raise res judicata concerns for any class member wishing to pursue compensatory damages in an individual suit.
III. CERTIFICATION UNDER RULE 23(B)
Besides meeting the Rule 23(a) requirements of commonality, typicality, numerosity, and adequacy of representation, a plaintiff must also show that the proposed class meets the requirements of one of the three categories listed in Rule 23(b). The relevant portion of Rule 23(b) is:
(b) Class Actions Maintainable. An action may be maintained as a class action if the prerequisites of subdivision (a) are satisfied, and in addition:
* * *
(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; or
(3) the court finds that the questions of law or fact common to the members of the class predominate over any questions affecting only individual members, and that a class action is superior to other available methods for the fair and efficient adjudication of the controversy. The matters pertinent to the findings include: (A) the interest of members of the class in individually controlling the prosecution or defense of separate actions; (B) the extent and nature of any litigation concerning the controversy already commenced by or against members of the class; (C) the desirability or undesirability of concentrating the litigation of the claims in the particular forum;
(D) the difficulties likely to be encountered in the management of a class action.120
Plaintiffs seek class certification under Rule 23(b)(2) or, as an alternative, Rule 23(b)(3).
A. Rule 23(b)(2)
Rule 23(b)(2) requires Plaintiffs to show that Wal-Mart “acted or refused to act on grounds generally applicable to the class.”
1. Predomination under Rule 23(b)(2)
Proposed Rule 23(b)(2) classes involving claims for monetary damages should be treated with special care. “[T]he class treatment of claims for monetary damages implicates the Seventh Amendment and due process rights of individual class members,” since such claims involve individual interests that are “necessarily heterogeneous in na
The advisory committee provided guidance as to when monetary relief is allowable in a(b)(2) class. They state that Rule 23(b)(2) does not extend to “cases in which the appropriate final relief relates exclusively or predominately to money damages.”
[T]he recovery of incidental damages should typically be concomitant with, not merely consequential to, class-wide injunctive or declaratory relief. Moreover, such damages should at least be capable of computation by means of objective standards and not dependent on the intangible, subjective differences of each class member’s circumstances. Liability for incidental damages should not require additional hearings to resolve the disparate merits of each individual’s case; it should neither introduce new and substantial legal or factual issues, nor entail complex individualized determinations.129
If the monetary relief sought is a group remedy rather than an individual-by-individual remedy, however, it does not predominate and the class can be certified under Rule 23(b)(2).
a. Back Pay
While the back-pay remedy Plaintiffs seek would seem to be classified as non-
b. Punitive Damages
The more perplexing question is whether the punitive damages Plaintiffs’ seek predominate over the declaratory and injunctive relief sought. Both parties were afforded an opportunity at the April 24, 2007, hearing to provide further argument on this difficult issue. While several courts have addressed the question of whether compensatory damages,
In order to resolve this question, I must determine the nature of the claim for punitive damages in this case. Punitive damages are available in claims under Title VII where the employer has engaged in intentional discrimination and has done so with malice or reckless indifference to the federally protected rights of “an aggrieved individual.”
In most cases, punitive damages are an individualized, and not a classwide, remedy. To be eligible to receive punitive damages an individual plaintiff must “establish that the defendant possessed a reckless indifference to the plaintiffs federal rights — a fact-specific inquiry into that plaintiffs circumstances.”
Plaintiffs here argue, however, that their claim for punitive damages could be considered on a classwide basis rather than individually because their claim is based on a pattern of similar acts perpetrated by WalMart. Plaintiffs assert that, because the focus of punitive damages is on Wal-Mart’s conduct, and not the injury to each class member, classwide punitive damages is appropriate in this case.
Here, Plaintiffs do allege that each potential class member has been affected by WalMart’s hiring policies and practices in a similar way. Furthermore, Plaintiffs rely on Williams v. ConAgra Poultry Company
Where there has been a pattern of illegal conduct resulting in harm to a large group of people, our system has mechanisms such as class action suits for punishing defendants. Punishing systematic abuses by a punitive damages award in a case brought by an individual plaintiff, however, deprives the defendant of the safeguards against duplicative punishment that inhere in the class action procedure.155
Plaintiffs urge me to read that statement as a recognition by the Eighth Circuit that some awards of punitive damages may flow to a class as a whole.
Furthermore, Plaintiffs’ claim for punitive damages would be non-incidental even if a jury in this case were to find that Wal-Mart engaged in a pattern of discriminatory acts that affected class members in a similar way. Even after such a finding, a jury would not be able to determine the extent of the harm caused by Wal-Mart’s conduct, and as a corollary the extent of the need for punishment and deterrence,
2. Opting Out of a Rule 23(b)(2) Class
Plaintiffs argue that the due-process problems caused by allowing non-incidental damages in a Rule 23(b)(2) class can be avoided if class members are given notice and an opportunity to opt out as other courts have done.
B. Rule 23(b)(3)
Plaintiffs request, as an alternative to Rule 23(b)(2), that either their proposed class be certified entirely under Rule 23(b)(3) or that two classes be certified: one under Rule 23(b)(2) for the issues of liability and declaratory and equitable relief, the other under Rule 23(b)(3) on the issue of punitive damages. In addition to the Rule 23(a) requirements,
“a class certified under Rule 23(b)(3) must meet that provision’s heightened requirements that ‘[common] questions of law or fact ... predominate over any questions affecting only individual members, and that a class action is superior to other available methods for the fair and efficient adjudication of the controversy.’ ”167
As mentioned above, recovery of punitive damages in Title VII cases is a fact-specific inquiry requiring “individualized and independent proof of injury to, and the means by which discrimination was inflicted upon, each class member.”
C. Rule 23(c)(4)(A) Severance
Although Plaintiffs’ class claim for punitive damages throws a monkey wrench in certification under either Rule 23(b)(2) or Rule 23(b)(3), that is not the end of the matter. In my letter to the parties dated
The advisory committee envisioned severance of liability issues from damages issues as an appropriate use of Rule 23(c)(4)(A).
CONCLUSION
Based on all the filings and proceedings on the Plaintiffs’ motion, and for the reasons stated above, Plaintiffs’ Motion for Class Certification is GRANTED IN PART and DENIED IN PART. I certify the following class under Federal Rule of Civil Procedure 23(b)(2) for purposes of classwide liability, declaratory relief, and equitable relief only:
a. African American persons who reside in the continental United States of America who have applied for employment as over-the-road truck drivers at Wal-Mart since September 22, 2001, and who have not been hired; and
b. African American persons who reside in the continental United States of Amer*381 ica who were deterred or thwarted from applying for positions as over-the-road truck drivers at Wal-Mart due to WalMart’s challenged policies and practices.
IT IS SO ORDERED.
. Doc. No. 54. For purposes of this Opinion and Order, “Doc. No." refers to the CM/ECF docket entry number, while "Pis.” Ex.” (or "Defs.' Ex.”) refers to the number of the exhibit to the class certification motion (or response to the class certification motion) submitted by the respective party.
. Doc. No. 64.
. Doc. Nos. 105; 106.
. Doc. No. 82 at 3.
. See Defs.’ Ex. 24 ¶ 4. Counsel stated at the hearings that Wal-Mart now has 47 transportation offices.
. Doc. No. 77-9 at 23.
. Doc. Nos. 63-2 at 11; 77-9 at 17-19.
. Doc. No. 77-9 at 28-30.
. Doc. No. 77-11.
. Pis.’ Ex. 3.
. Pis.' Exs. 5 at 17-19; 7 at 20-21.
. See, e.g., Pis.’ Exs. 12 at 32-34; 13 at 8-12; 14 at 10.
. Pis.’ Ex. 3.
. Pis.’Ex. 5 at 28-30.
. id. at 39.
. Id. at 39-40.
. Pis.' Ex. 8.
. Pis.'Ex. 7 at 10-12.
. Id. at 38.
. Id. at 9-10, 152.
. Id. at 145-46, 152.
. Id. at 151-52.
. While Wal-Mart vigorously disputes that fact, it is amply supported by Wal-Mart’s own admission in an answer to one of Plaintiffs’ interrogatories as well as the corporate memos and presentations and deposition testimony of Wal-Mart’s own employees. See PI. Exs. 9 at 6 (interrogatory response no. 4); 7 at 46-48, 180-81, 184, 194, 197, 204-05; 10 at 745; 11 at 4; 12 at 44-48; 13 at 28-30; 15 at 33-34; 16 at 52; 20 at 10-14; 21 at 12, 44, 47-48; 22 at 269; 83 at 15-16, 58.
. Pis.’ Ex. 9 at 6.
. Id.
. See Pis.’ Ex. 7 at 49, 58.
. Id. at 49-50.
. Id. at 180-81; see also Pis.’ Exs. 23; 24.
. Pis.’ Exs. 28; 29.
. Id.
. Id.
. Id.
. Pis.' Ex. 7 at 72-75.
. Pis.'Ex. 31.
. Id.
. Id.
. Pis.' Ex. 7 at 127.
. Id. at 153-54.
. Id. at 80-89.
. Id. at 127.
. Id. at 54, 89, 127.
. Pis.’ Ex. 45 at 76-77.
. Pis.'Ex. 43.
. See, e.g., Pis.’ Exs. 20 at 30; 21 at 34-35; 65 ¶ 7; 71 ¶ 9; 80 ¶ 7.
. Pis.’ Exs. 94 at 90; 95 at 94-95, 119, 149-50; 96 at 61-73.
. Defs.' Ex. 32-3 at 4.
. Defs.’ Ex. 32-1 at 7.
. Pis.’ Ex. 102.
. See Pis.’ Ex. 93 at A-3.
. Pis.' Ex. 10.
. See id. at 745.
. Id.
. Pis.'Ex. 7 at 183-85.
. Id. at 195.
. Id.
. Pis.' Ex. 11 at 4; see also Pis.' Exs. 22 at 269; 7 at 200-201.
. See Pis.' Exs. 45 at 28-29; 58.
. Pis.’ Exs. 45 at 25-26, 49-54; 46; 48.
. Pis.'Ex. 7 at 207-08.
. Doc. No. 105 at 9.
. In re Am. Med. Sys., Inc., IS F.3d 1069, 1079 (6th Cir. 1996).
. id.
. Coleman v. Watt, 40 F.3d 255, 259 (8th Cir. 1994).
. Id.
. Eisen v. Carlisle & Jacquelin, 417 U.S. 156, 178, 94 S.Ct. 2140, 40 L.Ed.2d 732 (1974).
. Mehl v. Canadian Pac. Ry. Ltd., 227 F.R.D. 505, 509 (D.N.D. 2005) (citation omitted).
. See Gen. Tel. Co. of the Sw. v. Falcon, 457 U.S. 147, 160, 102 S.Ct. 2364, 72 L.Ed.2d 740 (1982).
. Dirks v. Clayton Brokerage Co. of St. Louis Inc., 105 F.R.D. 125, 130 (D.Minn. 1985) (citing Roman v. ESB, Inc., 550 F.2d 1343, 1348 (4th Cir. 1976)).
. Int’l Bhd. of Teamsters v. United States, 431 U.S. 324, 97 S.Ct. 1843, 52 L.Ed.2d 396 (1977).
. Id. at 365-66, 97 S.Ct. 1843.
. See, e.g., Catlett v. Mo. Highway & Transp. Comm'n, 828 F.2d 1260, 1262 (8th Cir. 1987) (class of females "who applied or might have applied for maintenance positions” with the defendant); Domingo v. New England Fish Co., 727 F.2d 1429, 1433, 1442 (9th Cir. 1984) (class of all nonwhites who "were employed by Nefco, applied for employment with Nefco, or were deterred from applying for employment with Nefco’'); Bibbs v. Jemberg Indus., Inc., No. 93 C 0637, 1993 WL 535338, at *3 (N.D.Ill.Dec.17, 1993); Van v. Plant & Field Serv. Corp., 672 F.Supp. 1306, 1308 (C.D.Cal. 1987) (class of all women who were past or present applicants for hire or were deterred from applying); Kraszewski v. State Farm Gen. Ins. Co., No. C 79-1261, 1985 WL 1616, at *78, *80 (N.D.Cal. Apr.29, 1985) (class consisting of all "female applicants and deterred applicants”); Pollar v. Judson Steel Corp., No. C-82-6833, 1984 WL 968, at *3 (N.D.Cal. Mar.30, 1984) ("female applicants and deterred female applicants”);
. Defs.’ Surreply at 7.
. The Supreme Court was unmistakably clear in Eisen that "nothing in either the language or history of Rule 23 ... gives a court any authority to conduct a preliminary inquiry into the merits
. See Pis.' Exs. 2; 57.
. Pis.’ Exs. 7 at 180, 184, 195, 197; 9 at 6.
. See Pis.' Exs. 71 ¶ 6; 77 ¶ 6; 16 at 55; 68 ¶ 8; 70 ¶ 7; 79 ¶ 9.
. See, e.g., Parham v. Sw. Bell Tel. Co., 433 F.2d 421, 426-27 (8th Cir. 1970).
. For example, the court in Harris v. General Development Corporation, 127 F.R.D. 655 (N.D.Ill. 1989), addressed the inclusion of deterred applicants in an employment class action: In certain cases ... class identification would be entirely feasible. For example, a class comprised of current employees who were "chilled” from applying for a promotion is relatively limited, readily identifiable, and capable of more accurate verification. In contrast to that situation, plaintiffs’ class of deterred applicants encompasses the entire available black labor force in the City of Chicago and its contiguous suburbs. In attempting to cull the truly deterred applicants from such an expansive universe, a tremendous amount of valuable court time and resources would be consumed, placing a severe burden on the court and litigants.
Id. at 659 (citation omitted).
. See id. (entire available black labor force in the City of Chicago); see also Sondel v. Nw. Airlines, Inc., No. 3-92-381, 1993 WL 559031, at *4 (D.Minn. Sept. 30, 1993) (finding that the proposed sub-class of deterred applicants was the equivalent of a "substantial percentage of the nation's female work force").
. Paxton, 688 F.2d at 561.
. Falcon, 457 U.S. at 155, 102 S.Ct. 2364.
. Id. at 159 n. 15, 102 S.Ct. 2364.
. Abrams v. Kelsey-Seybold Med. Group, Inc., 178 F.R.D. 116, 129 (S.D.Tex. 1997).
. Cf. Falcon, 457 U.S. at 152, 102 S.Ct. 2364 (describing "across-the-board” challenge to defendant's employment practices involved in the case); Bradford v. Sears, Roebuck, & Co., 673 F.2d 792, 794-95, 796 (5th Cir. 1982) (challenging hiring, firing, pay, and promotion practices across all of defendant’s job classifications in the state of Mississippi); Yapp v. Union Pac. R.R. Co., 229 F.R.D. 608, 610 (E.D.Mo. 2005) (challenging selection practice for non-union positions across all of the defendant’s departments); Dukes v. Wal-Mart Stores, Inc., 222 F.R.D. 137, 141, 146 (N.D.Cal. 2004) (challenging the pay and promotion practices across several departments and numerous job classifications); Clayborne v. Omaha Pub. Power Dist., 211 F.R.D. 573, 578 (D.Neb. 2002) (challenging promotion, pay, training, and performance-evaluation practices for positions companywide); Wright v. Circuit City Stores, Inc., 201 F.R.D. 526, 528, 531 (N.D.Ala. 2001) (challenging promotion assignment, training, and transfer practices across multiple positions and departments); Bacon v. Honda of Am. Mfg., Inc., 205 F.R.D. 466, 477 (S.D.Ohio 2001) (seeking to certify class "consisting of every African American who has ever been employed at the Ohio Honda facilities”).
. Clayborne, 211 F.R.D. at 595.
. Ellis v. Elgin Riverboat Resort, 217 F.R.D. 415, 427 (N.D.Ill. 2003) (internal quotation omitted); see also Skipper v. Giant Food Inc., 68 Fed.Appx. 393, 397 (4th Cir. 2003) (“Given the nature of the claims plaintiffs have pressed, the facts will vary widely from worker to worker in cases of disparate treatment, and they will vary widely from warehouse to warehouse in cases of a hostile work environment.”); Johnson v. U.S. Beef Corp., No. 04-0963, 2006 WL 680918, at *4 (W.D.Mo. Mar. 14, 2006) (noting that “plaintiffs have failed to identify what policies or procedures they believe are discriminatory”).
. Defs.’ Resp. Br. at 23.
. Pis.' Reply Br. at 20.
. McReynolds v. Sodexho Marriott Servs., Inc., 208 F.R.D. 428, 442 (D.D.C. 2002).
. Defs.' Resp. Br. at 28-29 (citing Reid v. Lockheed Martin Aeronautics Co., 205 F.R.D. 655, 670 (N.D.Ga. 2001)).
. Melissa Hart, Subjective Decisionmaking and Unconscious Discrimination, 56 Ala. L. Rev. 741, 787 (2005) (collecting cases).
. 208 F.R.D. at 443 (citing Kolstad v. Am. Dental Ass’n, 527 U.S. 526, 545, 119 S.Ct. 2118, 144 L.Ed.2d 494 (1999) (internal quotation omitted)); See generally Daniel S. Klein, Note, Bridging the Falcon Gap: Do Claims of Subjective Decision-making in Employment Discrimination Class Actions Satisfy the Rule 23(a) Commonality and Typicality Requirements?, 25 REV. LITIG. 131, 152-165 (2006).
. Staton v. Boeing Co., 327 F.3d 938, 956 (9th Cir. 2003).
. See, e.g., Prado-Steiman ex rel. Prado v. Bush, 221 F.3d 1266, 1275-76 (11th Cir. 2000) (noting that most certification decisions turn on "case-specific matters of fact").
. Eisen, 417 U.S. at 177-78, 94 S.Ct. 2140.
. Chaffin v. Rheem Mfg. Co., 904 F.2d 1269, 1276 (8th Cir. 1990).
. Id. at 1275.
. Id. (quoting Paxton, 688 F.2d at 562).
. Falcon, 457 U.S. at 157 n. 13, 102 S.Ct. 2364.
. Defs.’ Resp. Br. at 26.
. Paxton, 688 F.2d at 562; see also Donaldson v. Pillsbury Co., 554 F.2d 825, 831 (8th Cir. 1977) ("When the claim arises out of the same legal or remedial theory, the presence of factual variations is normally not sufficient to preclude class action treatment.”).
. Alpern v. UtiliCorp United, Inc., 84 F.3d 1525, 1540 (8th Cir. 1996) (“Factual variations in the individual claims will not normally preclude class certification if the claim arises from the same event or course of conduct as the class claims, and gives rise to the same legal or remedial theory.”).
. East Tex. Motor Freight Sys., Inc. v. Rodriguez, 431 U.S. 395, 403, 97 S.Ct. 1891, 52 L.Ed.2d 453 (1977) (internal quotation omitted).
. Falcon, 457 U.S. at 157 n. 13, 102 S.Ct. 2364.
. Amchem Prods., Inc. v. Windsor, 521 U.S. 591, 626 n. 20, 117 S.Ct. 2231, 138 L.Ed.2d 689 (1997).
. Defs.' Resp. Br. at 35.
. See Pis.' Reply Br. at 35.
. Alba Conte & Herbert B. Newberg, Newberg on Class Actions § 3.29 (4th ed. 2002).
. Roby v. St. Louis Sw. Ry. Co., 775 F.2d 959, 961 (8th Cir. 1985) (citing Rodriguez, 431 U.S. at 403, 97 S.Ct. 1891) (internal quotation omitted).
. See, e.g., Catlett, 828 F.2d at 1262 (class representatives were all applicants who represented a class including “all females who applied or might have applied”); Van, 672 F.Supp. at 1308-09 (class representatives were applicants who represented a class including "[a]ll women who are past or present applicants [or who were] deterred from applying”).
. See, e.g., Ortiz v. Fibreboard Corp., 527 U.S. 815, 831-32, 119 S.Ct. 2295, 144 L.Ed.2d 715 (1999) (finding that district court should have ensured that the "potentially conflicting interests of easily identifiable categories of claimants be protected by provisional certification of subclasses under Rule 23(c)(4)”).
. I can create subclasses if this becomes an issue later. Fed. R. Civ. P. 23(c)(1)(C), (c)(4); see also U.S. Fid. & Guar. Co. v. Lord, 585 F.2d 860, 865 (8th Cir. 1978) ("[T]he district court can redefine the class or create subclasses, on its own initiative, or on motion of any party.”).
. Defs.’ Resp. Br. at 36.
. See Thompson v. Am. Tobacco Co., Inc., 189 F.R.D. 544, 550-51 (D.Minn. 1999); Zachery v. Texaco Exploration & Prod., Inc., 185 F.R.D. 230, 243 (W.D.Tex. 1999); Feinstein v. Firestone Tire & Rubber Co., 535 F.Supp. 595, 606-07 (S.D.N.Y. 1982).
. Matsushita Elec. Indus. Co., Ltd. v. Epstein, 516 U.S. 367, 396, 116 S.Ct. 873, 134 L.Ed.2d 6 (1996); Fed. R. Civ P. 23(c)(3) advisory committee’s note.
. Coleman v. Gen. Motors Acceptance Corp., 220 F.R.D. 64, 80-81 (M.D.Tenn. 2004).
. Riser v. Franklin, 94 F.3d 1287, 1291 (9th Cir. 1996); see also Cooper v. Fed. Reserve Bank of Richmond, 467 U.S. 867, 104 S.Ct. 2794, 81 L.Ed.2d 718 (1984); Fortner v. Thomas, 983 F.2d 1024, 1031 (11th Cir. 1993); Norris v. Slothouber, 718 F.2d 1116, 1117 (D.C.Cir. 1983); In re Jackson Lockdown/MCO Cases, 568 F.Supp. 869, 892 (E.D.Mich. 1983) ("[E]veiy federal court of appeals that has considered the question has held that a class action seeking only declaratory and injunctive relief does not bar subsequent individual suits for damages based on the same or similar conditions.”).
. See Samuel Issacharoff, Preclusion, Due Process, and the Right to Opt Out of Class Actions, 77 Notre Dame L. Rev. 1057, 1078 (2002) (drawing the distinction between equitable remedies and traditional common-law compensatory remedies in describing the res-judicata effect of class actions).
. See id.
. Fed.R.Civ.P. 23(b).
. Id.
. Coleman v. Gen. Motors Acceptance Corp., 296 F.3d 443, 448 (6th Cir. 2002) (citing Ortiz, 527 U.S. at 846, 119 S.Ct. 2295).
. Fed.R.Civ.P. 23(c)(2) advisory committee's note.
. Whether such requirements can be grafted onto a(b)(2) class will be discussed below.
. Wetzel v. Liberty Mut. Ins. Co., 508 F.2d 239, 256 (3d Cir. 1975).
. The Supreme Court has questioned in dicta whether monetary damages can ever be recovered in a Rule 23(b)(2) class action, stating that there was at least a "substantial possibility” that they could not. Ticor Title Ins. Co. v. Brown, 511 U.S. 117, 121, 114 S.Ct. 1359, 128 L.Ed.2d 33 (1994). The Supreme Court has never squarely faced the issue, however. And holding that no monetaiy relief could be recovered in a(b)(2) class flies in the face of long established circuit-court precedent.
. Fed.R.Civ.P. 23 advisory committee's notes.
. 151 F.3d 402, 415 (5th Cir. 1998); see also Barabin v. Aramark Corp., No. 02-8057, 2003 WL 355417, at *1-*2 (3d Cir. Jan.24, 2003) (adopting the Allison approach to incidental damages); Coleman, 296 F.3d at 448; Murray v. Auslander, 244 F.3d 807, 812 (11th Cir. 2001); Jefferson v. Ingersoll Int’l Inc., 195 F.3d 894, 898 (7th Cir. 1999). But see Robinson v. Metro-North Commuter R.R. Co., 261 F.3d 147, 164 (2d Cir. 2001) (rejecting the Fifth Circuit's incidental damages approach as defined in Allison in favor of an ad hoc balancing determination); Molski v. Gleich, 318 F.3d 937, 950 (9th Cir. 2003) (refusing to follow Allison because it "would nullify the discretion vested in the district courts through Rule 23” and might have "troubling implications for the viability of future civil rights actions, particularly those under the Civil Rights Act of 1991”).
. Allison, 151 F.3d at 415.
. Murray, 244 F.3d at 812.
. Allison, 151 F.3d at 415.
. Daniel F. Piar, The Uncertain Future of Title VII Class Actions After the Civil Rights Act of 1991, 2001 Byu L. Rev. 305, 319 (2001); see also Cooper v. S. Co., 390 F.3d 695, 720 (11th Cir. 2004) ("Back pay is considered equitable relief and can therefore be awarded in a case certified under Rule 23(b)(2).”); Jefferson, 195 F.3d at 896 (mentioning the tradition in Title VII where back pay was allowed to be recovered in a Rule 23(b)(2) class action and noting that "back pay is a form of equitable relief, but this relief was treated as incidental to the injunction”).
. Marshall v. Kirkland, 602 F.2d 1282, 1295 (8th Cir. 1979) (footnote and quotation omitted).
. See Allison, 151 F.3d at 416 n. 10.
. See Kirby v. Colony Furniture Co., Inc., 613 F.2d 696, 699-700 (8th Cir. 1980); see also Allison, 151 F.3d at 415 (noting that back pay is “an equitable remedy similar to other forms of affirmative injunctive relief permitted in (b)(2) class actions").
. See, e.g., Coleman, 296 F.3d at 446-48; Robinson, 267 F.3d at 155; Murray, 244 F.3d at 812; Taylor v. D.C. Water & Sewer Auth., 205 F.R.D. 43 (D.D.C. 2002); Buycks-Roherson v. Citibank Fed. Sav. Bank, 162 F.R.D. 322, 335 (N.D.Ill. 1995) (citing cases).
. See, e.g., Lemon v. Int’l Union of Operating Engineers, Local No. 139, AFL-CIO, 216 F.3d 577, 579 (7th Cir. 2000); Allison, 151 F.3d at 416-18; Adler v. Wallace Computer Services, Inc., 202 F.R.D. 666 (N.D.Ga. 2001); Hoffman v. Honda of Am. Mfg., Inc., 191 F.R.D. 530 (S.D.Ohio 1999); Faulk v. Home Oil Co., Inc., 186 F.R.D. 660 (M.D.Ala. 1999).
. See Carlson v. C.H. Robinson Worldwide, Inc., No. 02-3780, 2005 WL 758602, at *16 (D.Minn. Mar.31, 2005); Dukes, 222 F.R.D. at 170-71, aff'd, 474 F.3d 1214 (9th Cir. 2007); Anderson v. Boeing Co., 222 F.R.D. 521, 542 (N.D.Okla. 2004); Palmer v. Combined Ins. Co. of Am., 217 F.R.D. 430 (N.D.Ill. 2003). Plaintiffs can request punitive damages without also asking for compensatory damages because the Eighth Circuit is one of the circuits that allows an award of punitive damages without any award of compensatory damages. Anderson, 222 F.R.D. at 542 (citing cases).
. 42 U.S.C. § 1981a(b)(l).
. Defs.’ Resp. Br. at 41-42.
. Pis.’Br. at 42-45.
. Lemon, 216 F.3d at 581.
. See Philip Morris USA v. Williams, -U.S. -, -, 127 S.Ct. 1057, 1065, 166 L.Ed.2d 940 (2007) (holding that the "Due Process Clause prohibits a State's inflicting punishment for harm caused strangers to the litigation.”); State Farm Mut. Auto. Ins. Co. v. Campbell, 538 U.S. 408, 426, 123 S.Ct. 1513, 155 L.Ed.2d 585 (2003) (”[C]ourts must ensure that the measure of punishment is both reasonable and proportionate to the amount of harm to the plaintiff and to the general damages recovered.”); BMW of N. Am. v. Gore, 517 U.S. 559, 580, 116 S.Ct. 1589, 134 L.Ed.2d 809 (1996) ("The second and perhaps most commonly cited indicium of an unreasonable or excessive punitive damages award is its ratio to the actual harm inflicted on the plaintiff.”). Oftentimes that means that the amount of punitive damages awardable to an individual plaintiff is bounded by some ratio of the compensatory damages awarded to that plaintiff. See, e.g., Pac. Mut. Life Ins. Co. v. Haslip, 499 U.S. 1, 23, 111 S.Ct. 1032, 113 L.Ed.2d 1 (1991) (suggesting that a four-to-one ratio of punitive damages to compensatory damages was "close to the line” of constitutional impropriety).
. See Campbell, 538 U.S. at 423, 123 S.Ct. 1513 ("A defendant should be punished for the conduct that harmed the plaintiff, not for being an unsavory individual or business.”).
. Pis.’ Reply Br. at 44.
. Allison, 151 F.3d at 407 (use of an informal word-of-mouth announcement process by the defendant Citgo to fill job vacancies and the use of a subjective decisionmaking process by Citgo’s predominantly white supervisory staff in reviewing applicants for hire and employees for promotion).
. Id.
. Id.
. Id. at 417.
. Id.
. Id.
. Id. at 417, 418.
. 378 F.3d 790 (8th Cir. 2004).
. See Pis.’ Br. at 43-44.
. Williams, 378 F.3d at 797.
. Cf. Anderson, 222 F.R.D. at 541 ("Because the purpose of punitive damages is not to compensate the victim, ... [the inquiry] hinges, not on facts unique to each class member, but on the defendant's conduct toward the class as a whole.”); Barefield v. Chevron, U.S.A., Inc., No. C 86-2427, 1988 WL 188433, *3 (N.D.Cal. Dec. 6, 1988) (holding that a class-wide request for punitive damages was incidental to declaratory and injunctive relief because it did not detract from the "homogeneity or cohesiveness” of the 23(b)(2) class).
. If, for instance, the defendant acts in the same manner towards each class member while at the same time perceiving the risk that such a policy may violate those class members’ federally-protected rights, then a claim for punitive damages might be thought of as flowing to the class as a whole upon a finding of liability.
. See Williams, 127 S.Ct. at 1062 ("This Court has long made clear that punitive damages may properly be imposed to further a State’s legitimate interests in punishing unlawful conduct and deterring its repetition.") (internal quotation and alteration omitted).
. See Teamsters, 431 U.S. at 371-72, 97 S.Ct. 1843 (“The task remaining for the District Court [after finding a pattern-and-practice of discrimination] will not be a simple one. Initially, the court will have to make a substantial number of individual determinations in deciding which of the minority employees were actual victims of the company’s discriminatory practices.”).
. Although this conclusion appears to be inconsistent with allowing back pay in a(b)(2) class — a remedy which will potentially involve just as many individualized determinations as an award of punitive damages — it is worth reiterating that the back-pay remedy has been historically recoverable in Rule 23(b)(2) Title VII class actions, while punitive damages have not.
. 111 F.Supp.2d 1101, 1127 (E.D.Ark. 2000); see also Eubanks v. Billington, 110 F.3d 87, 93-94 (D.C.Cir. 1997) (collecting cases).
. See Robert M. Brava-Partain, Note, Due Process, Rule 23, and Hybrid Classes: A Practical Solution, 53 Hastings L.J. 1359, 1369-70 (2002).
. 64 F.3d 1171, 1175 (8th Cir. 1995).
. Robinson, 111 F.Supp.2d at 1127.
. Id.
. 64F.3dat 1175.
. Blyden v. Mancusi, 186 F.3d 252, 269 (2d Cir. 1999) (quoting Fed.R.Civ.P. 23(b)(3)).
. Robinson v. Tex. Auto. Dealers Ass’n, 387 F.3d 416, 426 n. 29 (5th Cir. 2004) ("[P]roposed (b)(2) classes need not withstand a court's independent probe into the superiority of the class action over other available methods of adjudicationf,] as (b)(3) classes must.”).
. Allison, 151 F.3d at 419.
. Title VII plaintiffs have a right to a jury trial when they request punitive damages, 42 U.S.C. § 1981a(c), and Plaintiffs have exercised that right here. Doc. No. 40 at 16.
. Teamsters, 431 U.S. at 371, 97 S.Ct. 1843.
. Jackson v. Motel 6 Multipurpose, Inc., 130 F.3d 999, 1006 (11th Cir. 1997); see also Rutstein v. Avis Rent-A-Car Sys., Inc., 211 F.3d 1228, 1235 (11th Cir. 2000) ("Given that each plaintiff must demonstrate that he or she suffered from intentional discrimination, however, we expect that most, if not all, of the plaintiffs’ claims will stand or fall, not on the answer to the question whether [Avis] has a practice or policy of [ethnic] discrimination, but on the resolution of ... highly case-specific factual issues.”) (internal quotation omitted); Adams v. Henderson, 197 F.R.D. 162, 172 (D.Md. 2000) ("The issue of liability will depend on the circumstances surrounding each individual employment decision, relating to each class member. This will require individualized evidence as to the qualifications of the persons who applied for and received promotions, as well as the qualifications of the persons who were denied those promotions.”); Ramirez v. DeCoster, 194 F.R.D. 348, 354 (D.Me. 2000).
. If Plaintiffs establish that Wal-Mart’s hiring polices amounted to a pattern-or-practice of discrimination, then the burden would rest on WalMart to demonstrate that the individual applicant was denied an employment opportunity for lawful reasons. Teamsters, 431 U.S. at 362, 97 S.Ct. 1843.
. Allison, 151 F.3d at 409; see also Piar, supra, at 318 ("While not entirely formulaic, [back pay determinations, as opposed to the determinations necessary for awards of compensatory or punitive damages,] are made according to methods of calculation that are well developed and can be applied with some degree of classwide efficiency, especially because they need not be determined by juries.”).
. Allison, 151 F.3d at 420.
. Fed.R.Civ.P. 23(c)(4)(A).
. Robinson v. Gillespie, 219 F.R.D. 179, 185 (D.Kan. 2003).
. 7A Charles Alan Wright, Arthur R. Miller & Mary Kay Kane, Federal Practice and Procedure § 1790 (3d ed. 2005).
. Emig v. Am. Tobacco Co., 184 F.R.D. 379, 395 (D.Kan. 1998) (internal quotation omitted).
. The advisory committee’s note states:
This provision recognizes that an action may be maintained as a class action as to particular issues only. For example, in a fraud or similar case the action may retain its "class” character only through the adjudication of liability to the class; the members of the class may thereafter be required to come in individually and prove the amounts of their respective claims.
fed. R. Civ. P. 23(c)(4)(A) advisoiy committee’s note; See also Hannah Stott-Bumsted, Note, Severance Packages: Judicial Use of Federal Rule of Civil Procedure 23(c)(4)(A), 91 GEO. LJ. 219, 222 (2002).
. See, e.g., Carlson v. C.H. Robinson Worldwide, Inc., No. 02-3780, 2005 WL 758602, at *16 (D.Minn. Mar.31, 2005); Morgan v. United Parcel Serv. of Am., Inc., 169 F.R.D. 349, 358 (E.D.Mo. 1996).
. Robinson, 267 F.3d at 167 ("District courts should take full advantage of [Rule 23(c)(4)(A)] to certify separate issues in order to reduce the range of disputed issues in complex litigation and achieve judicial efficiencies.”) (internal quotations omitted).
. See Issacharoff, supra, at 1073 (limiting certification to those claims that actually fit the Rule 23(b)(2) model leaves "individuals free to pursue their separate claims should individual class members ... find that these claims merited individual prosecution” without the fear that those claims have been waived in the class action).
Reference
- Full Case Name
- Daryal T. NELSON and Tommy Armstrong, individually and on behalf of all persons similarly situated v. WAL-MART STORES, INC and Wal-Mart Transportation LLC
- Cited By
- 4 cases
- Status
- Published