Molock v. Whole Foods Mkt. Grp., Inc.
Molock v. Whole Foods Mkt. Grp., Inc.
Opinion of the Court
This putative class action arises from a controversy surrounding a profit-sharing plan implemented by Defendant Whole Foods Market Group, Inc. ("WFMG"), known as the "Gainsharing program," which awarded bonuses to Whole Foods store employees whose departments came in under budget. Pls.' Second Am. Compl., ECF No. 28, ¶ 15. Plaintiffs, who are current and former employees of WFMG, allege that WFMG abused the Gainsharing program on a nationwide scale by "shifting labor costs" to store departments that were underperforming, thus reducing or negating the bonuses that would have been owed to employees in an over-performing department. Id. ¶ 18. Plaintiffs' claims arise solely under District of Columbia or state law.
On March 15, 2018, this court granted in part and denied in part Defendant's Motion to Dismiss Plaintiffs' Second Amended Class Action Complaint. See Mem. Op. & Order, ECF No. 34. As relevant to the instant motion, the court rejected Defendant's assertion that the Supreme Court's recent decision in Bristol-Myers Squibb Co. v. Superior Court of California , --- U.S. ----,
For the reasons discussed below, the court finds that "[a]n immediate appeal would conserve judicial resources and spare the parties from possibly needless expense if it should turn out that this Court's ruling[ ] [is] reversed." APCC Servs., Inc. v. Sprint Commc'ns Co. ,
I.
Under
A.
As to the first element-whether the order involves a "controlling question of law"-there is no genuine dispute. See
Here, whether Bristol-Myers Squibb applies to claims of unnamed, nationwide putative class members in a federal court is a threshold jurisdictional question. If this court's decision is correct, the court may exercise specific jurisdiction over the claims of thousands of unnamed, nonresident putative class members. On the other hand, if the court is wrong and it lacks specific jurisdiction over such claims, this court could not entertain a nationwide class action and the most Plaintiffs could seek to certify is a District of Columbia class. The difference in scope of these two scenarios need not be belabored. Quite obviously, a nationwide class action would place far greater demands on this court and Defendant than would a case that goes forward with only a geographically limited class. For that reason, the order from which Defendant seeks interlocutory review involves a "controlling question of law."
*5B.
The court also is satisfied that the second element-that there exist a substantial ground for difference of opinion-is present in this case. "A substantial ground for difference of opinion is often established by a dearth of precedent within the controlling jurisdiction and conflicting decisions in other circuits." APCC Servs. ,
There is no controlling or persuasive precedent in this jurisdiction, and no circuit authority elsewhere, that addresses Bristol-Myers Squibb 's application to nationwide class actions in federal courts. There are only district court cases, and among them there is a near even split on the question. Defendant points to nine cases that it characterizes as having reached a different conclusion than this court did. Def.'s Mem. at 6-7 & n.3; Def.'s Ltr. Br., ECF No. 41, at 1-2; see, e.g., McDonnell v. Nature's Way Prods., LLC , No. 16-C-5011,
This court's task is not, however, to "keep score" and determine which side has more decisions in its favor, but instead is to analyze the reasoning in those decisions and the "strength of the arguments in opposition" in order to decide whether there is a substantial ground for dispute. APCC Servs. ,
Although this court remains unpersuaded by these contrary interpretations of Bristol-Myers Squibb , it does not find the reasoning employed in those cases to be lacking merit, leading this court to conclude that there is a "substantial ground for a difference of opinion" on the issue. See
C.
Finally, this court must address whether an immediate appeal of its order will "materially advance the ultimate termination of the litigation."
Discovery in this case, in its present form, promises to be drawn out, complex, and expensive. At the hearing on this matter, Plaintiffs' counsel conceded that, in order to establish a class consisting of current and former WFMG employees, and presumably to determine damages, he might demand more than a decade's worth of payroll records from well over two hundred Whole Foods grocery stores operated by WFMG. See Jt. Initial Scheduling Conf. Hr'g Tr. (draft), June 1, 2018, at 25-27. Furthermore, counsel stated that it is his *7belief that the Gainsharing program abuse goes beyond WFMG and infects other Whole Foods operating companies. Id. at 25-26. WFMG is one of multiple companies that operate Whole Foods grocery stores throughout the country. WFMG's stores are located primarily on the eastern seaboard. Id. at 11-12. Plaintiffs' counsel intends to take discovery that will show that abuse of the Gainsharing program was sanctioned at the highest corporate levels and was commonplace throughout the country. If Plaintiffs can make such a showing, counsel explained, they intend to amend the complaint to add the other operating companies, so that Plaintiffs can certify a true nationwide class that covers the current and former employees of every Whole Foods store in the country. See id. at 22-23. There are nearly 500 such stores. Id. at 13. Thus, if Plaintiffs succeed in their plan, they will ask for discovery concerning nearly 500 Whole Foods grocery stores and the thousands of people employed in those stores. The potential time and expense of obtaining such discovery is staggering.
On the other hand, if the court is wrong about Bristol-Myers Squibb , this case becomes simpler and discovery far more manageable. Plaintiffs could not certify in this district court a class of all WFMG employees, let alone a true nationwide class. At most, Plaintiffs would be able to certify a District of Columbia class, consisting of employees who worked in the District's five Whole Foods stores operated by WFMG. In addition, if a nationwide class action cannot be brought here, the court will not face the potential of grappling with the laws of the 43 states in which Whole Foods does business. The court would rather avoid such a morass if it is in fact wrong about Bristol-Myers Squibb 's application in this matter.
Accordingly, given the potential of avoiding burdensome discovery costs and conserving judicial resources in the event of a reversal, this court finds that certifying its prior order for interlocutory appeal will "materially advance the ultimate termination of the litigation."
II.
Before concluding, the court notes that litigation will not cease pending resolution of the interlocutory appeal. Section 1292(b) provides "[t]hat application for an appeal hereunder shall not stay proceedings in the district court unless the district judge or the Court of Appeals or a judge thereof shall so order."
III.
Accordingly, for the reasons stated above, the court grants Defendant's Motion to Certify for Interlocutory Appeal, ECF No. 37. A separate Order accompanies this Memorandum Opinion.
Plaintiffs argue that some of the cases that Defendant cites do not actually support its position or merely address the issue in dicta. Pls.' Mem. at 7; Pls.' Ltr. Br., ECF No. 43, at 1-2. Even if Plaintiffs' reading of these cases is correct, there are still several district court judges who have expressly held that Bristol-Myers Squibb extends to nationwide class actions brought in federal court.
Plaintiffs attempt to downplay the division by pointing out (correctly) that most of the district courts that reached a decision different than this court come from one district-the Northern District of Illinois. See Pls.' Mem. at 7; Pls.' Ltr. Br., ECF No. 43, at 3. However, that fact does not, for the reasons explained below, diminish the strength of the rationale that those courts have advanced in reaching a different conclusion.
The court did not dismiss Plaintiffs' claims under Maryland law; therefore, discovery as to those stores will be permitted to go forward. However, if the D.C. Circuit were to disagree with this court on the application of Bristol-Myers Squibb , this court may not have personal jurisdiction over a Maryland sub-class.
Reference
- Full Case Name
- Michael MOLOCK v. WHOLE FOODS MARKET GROUP, INC.
- Cited By
- 18 cases
- Status
- Published