Justia Class Action Opinion Summaries

Articles Posted in Labor & Employment Law
by
Plaintiff filed a class action against Walgreens, alleging that Walgreens violated employees' rights to meal breaks. The trial court denied plaintiff's motion for class certification. The court concluded that the trail court used the right analysis to analyze plaintiff's motion where the trial court correctly applied the Brinker Restaurant Corp. v. Superior court holding. Brinker adopted the "make available" standard and rejected the "ensure" standard where the employer merely must make meal breaks available, rather than ensure employees take breaks. The trial court said that Walgreens must make breaks available for its employees, but the employer need not ensure employees actually take the meal breaks. In this case, plaintiff failed to provide sufficient evidence to support his motions through an expert opinion, emails, and declarations. The evidence was too weak to convince the trial court and the trial court's evaluations were valid. Accordingly, the court affirmed the judgment. View "In re Walgreen Co. Overtime Cases" on Justia Law

by
Plaintiffs Brett Woods and Kathleen Valdes were state employees and representatives of a class of New Mexico state and local government employees who alleged they paid for insurance coverage through payroll deductions and premiums pursuant to a policy issued by Standard Insurance Company (Standard), but did not receive the coverage for which they paid and, in some cases, were denied coverage entirely. Plaintiffs filed suit in New Mexico state court against three defendants: Standard, an Oregon company that agreed to provide the subject insurance coverage; the Risk Management Division of the New Mexico General Services Department (the Division), the state agency that contracted with Standard and was responsible for administering benefits under the policy; and Standard employee Martha Quintana, who Plaintiffs allege was responsible for managing the Division’s account with Standard and for providing account management and customer service to the Division and state employees. Plaintiffs' ninety-one-paragraph complaint, stated causes of action against Standard and the Division for breach of contract and unjust enrichment; against Standard for breach of fiduciary duty, breach of the implied duty of good faith and fair dealing, and Unfair Practices Act violations; and against Standard and Ms. Quintana for breach of the New Mexico Trade Practices and Fraud Act. The issue this appeal presented for the Tenth Circuit's review centered on whether remand to the state court pursuant to the Class Action Fairness Act (CAFA) was required under either of two CAFA provisions: the state action provision, which excludes from federal jurisdiction cases in which the primary defendants are states; or the local controversy exception, which requires federal courts to decline jurisdiction where, among other things, there is a local defendant whose alleged conduct forms a significant basis for the claims asserted by plaintiffs and from whom plaintiffs seek significant relief. The Court concluded that neither provision provided a basis for remand, and therefore reversed the decision of the magistrate judge remanding the case to state court. But because the Tenth Circuit could not determine whether Defendants have established the amount in controversy required to confer federal jurisdiction, the case was remanded to the district court for the resolution of that issue. View "Woods v. Standard Insurance Co." on Justia Law

by
This case arose when plaintiff filed suit seeking to represent a class of salaried managerial employees who worked at JCS restaurants in California on claims they had been misclassified as exempt employees and were entitled to overtime pay. The trial court subsequently permitted additional plaintiffs to join the lawsuit. The trial court denied class certification based on the ground that plaintiffs failed to establish that their claims were typical of the class, they could represent the class, common questions predominated the claims, and a class action is the superior means of resolving the litigation. The court concluded, however, that the class is adequately represented by plaintiffs and these claims are typical of the class; the trial court failed to adequately assess the means by which plaintiffs' theory of recovery could be proved through resolution of common questions of fact and law; the trial court must reconsider whether class certification provides a superior method of resolving plaintiffs' claim, and therefore, the court reversed the order denying class certification and remanded for further proceedings. View "Martinez v. Joe's Crab Shack Holdings" on Justia Law

by
This class action arose out of the termination of approximately 7,600 former teachers and other permanent employees of the Orleans Parish School Board (OPSB) as a result of Hurricane Katrina and the State of Louisiana’s subsequent takeover of Orleans Parish schools. Although the district court denied defendants’ exceptions of res judicata, a five judge panel of the court of appeal unanimously found that res judicata ordinarily would apply to the facts of this case, but that exceptional circumstances barred its application. The Louisiana Supreme Court granted two writ applications to determine whether the doctrine of res judicata barred plaintiffs’ claims against the OPSB and/or the State defendants, and, if not, whether the OPSB and/or the State defendants violated the plaintiffs’ due process rights in relation to the plaintiffs’ terminations. The Supreme Court agreed with the court of appeal that res judicata applied but found no exceptional circumstances that would preclude its application. Furthermore, the Court found that, even if res judicata did not apply to certain parties’ claims, neither the OPSB nor the State defendants violated plaintiffs’ due process rights. View "Oliver v. Orleans Parish School Board" on Justia Law

by
Named plaintiffs initiated a class action lawsuit against AB Trucking, claiming that AB did not pay its drivers for all hours worked, misclassified some drivers as non-employee trainees and did not pay them at all, and failed to provide required meal and rest breaks. The trial court certified a class of drivers who performed work for AB out of its Oakland, facility. Plaintiffs prevailed on most of their claims and the court awarded the class a total of $964,557.08. In a post-judgment order, the court awarded attorney fees, litigation expenses, and class representative enhancements to plaintiffs. The court of appeal affirmed, rejecting arguments that federal law preempts application of California’s meal and rest break requirements to motor carriers; that the order granting class certification was not supported by substantial evidence; that the court should have reserved individual determinations of damages for the claims administration process; that AB’s drivers are expressly excluded from coverage under Industrial Welfare Commission (IWC) Order No. 9-2001; and that the award of attorney fees and representative enhancements must be reversed. View "Godfrey v. Oakland Port Servs. Corp." on Justia Law

by
In this case involving a class action complaint filed against CVS Pharmacy Inc. in Massachusetts Superior Court for wage and hour violations, the First Circuit clarified the removal time periods and mechanisms under the Class Action Fairness Act of 2005. CVS filed a second notice of removal, claiming that there was a reasonable probability that the amount in controversy exceeded $5 million. The district court granted Plaintiffs’ motion to remand, holding (1) CVS’s notice of removal came too late to meet the thirty-day deadline in 28 U.S.C. 1446(b)(1), and the second thirty-day deadline in section 1446(b)(3) did not apply; and (2) CVS had not met its burden to establish the substantive amount in controversy requirement. The First Circuit reversed, holding (1) the time limits in section 1446(b) apply when the plaintiffs’ pleadings or the plaintiffs’ “other papers” provide the defendant with a clear statement of the damages sought or with sufficient facts from which damages can be readily calculated; (2) CVS’s second notice of removal was timely under section 1446(b)(3); and (3) CVS sufficiently demonstrated that the amount in controversy exceeded $5 million. View "Romulus v. CVS Pharmacy, Inc." on Justia Law

by
Plaintiff, seeking to represent approximately 1,800 drivers engaged by Dynamex as independent contractors, filed suit against Dynamex for violation of California law when the courier and delivery services company converted the status of all drivers from employee to independent contractor. After Dynamex's motion to decertify the class was denied, the company petitioned for a writ of mandate. The court issued an order to show cause why respondent superior court should not be compelled to vacate its order denying the motion to decertify the class; granted the petition in part; concluded that the superior court correctly allowed plaintiffs to rely on the Industrial Welfare Commission (IWC) definition of an employment relationship for purposes of those claims falling within the scope of Wage Order No. 9-2001; with respect to those claims falling outside the scope of the Wage Order, the common law definition of employee will control; and as to those claims, the court granted the petition to allow the superior court to reevaluate whether, in light of the Supreme Court's decision in Ayala v. Antelope Valley Newspapers, Inc., class certification remains appropriate by focusing its analysis on differences in the defendant's right to exercise control rather than variations in how that right was exercised. View "Dynamex v. Super. Court" on Justia Law

by
Numerous class actions throughout the country were filed against FedEx Ground Package System, Inc. by former and current delivery drivers for the company. Plaintiffs claimed they were improperly classified as independent contractors rather than as employees under both state and federal law. The class actions were consolidated, and the Kansas class action was designated as the lead case. A federal district court granted summary judgment for FedEx, determining that the Kansas class plaintiffs were independent contractors under the Kansas Wage Payment Act (KWPA). The district court relied on this decision to enter summary judgment for FedEx in all the other statewide class actions, concluding that Plaintiffs were independent contractors, rather than employees, under each respective state’s substantive law. Plaintiffs appealed. The Court of Appeals for the Seventh Circuit certified to the Kansas Supreme Court questions regarding the proper classification of the FedEx drivers under the KWPA. The Supreme Court answered that, under the undisputed facts presented, the plaintiff delivery drivers were employees of FedEx for purposes of the KWPA. View "Craig v. FedEx Ground Package Sys., Inc." on Justia Law

by
Plaintiff filed a class action suit to recover unpaid overtime wages from her former employer, Bloomingdale's. The district court granted Bloomingdale's motion to compel arbitration, determining that shortly after being hired by Bloomingdale's, plaintiff entered into a valid, written arbitration agreement and that all of her claims fell within the scope of that agreement. The court concluded that plaintiff had the right to opt out of the arbitration agreement, and had she done so she would be free to pursue this class action in court. Having freely elected to arbitrate employment-related disputes on an individual basis, without interference from Bloomingdale's, she could not claim that enforcement of the agreement violated either the Norris-LaGuardia Act, 29 U.S.C. 101 et seq., or the National Labor Relations Act, 29 U.S.C. 151 et seq. The court concluded that the district court correctly held that the arbitration agreement was valid and, under the Federal Arbitration Act, 9 U.S.C. 1 et seq., it must be enforced according to its terms. The court affirmed the judgment of the district court.View "Johnmohammadi v. Bloomingdale's, Inc." on Justia Law

by
Plaintiff filed a class action suit alleging that Nordstrom violated various state and federal employment laws by precluding employees from bringing most class action lawsuits in light of AT&T Mobility LLC v. Concepcion. Nordstrom, relying on the revised arbitration policy in its employee handbook, sought to compel plaintiff to submit to individual arbitration of her claims. The district court denied Nordstrom's motion to compel. The court concluded that Nordstrom satisfied the minimal requirements under California law for providing employees with reasonable notice of a change to its employee handbook, and Nordstrom was not bound to inform plaintiff that her continued employment after receiving the letter constituted acceptance of new terms of employment. Accordingly, the court concluded that Nordstrom and plaintiff entered into a valid agreement to arbitrate disputes on an individual basis. The court reversed and remanded for the district court to address the issue of unconscionably.View "Davis v. Nordstorm, Inc." on Justia Law