25 Fair empl.prac.cas. 1750, 26 Empl. Prac. Dec. P 31,876 Martha Frances Franks, Martha Ann Thweatt, Plaintiffs-Movant v. The Kroger Company

649 F.2d 1216
CourtCourt of Appeals for the Sixth Circuit
DecidedJune 29, 1981
Docket79-1009
StatusPublished
Cited by60 cases

This text of 649 F.2d 1216 (25 Fair empl.prac.cas. 1750, 26 Empl. Prac. Dec. P 31,876 Martha Frances Franks, Martha Ann Thweatt, Plaintiffs-Movant v. The Kroger Company) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
25 Fair empl.prac.cas. 1750, 26 Empl. Prac. Dec. P 31,876 Martha Frances Franks, Martha Ann Thweatt, Plaintiffs-Movant v. The Kroger Company, 649 F.2d 1216 (6th Cir. 1981).

Opinions

KEITH, Circuit Judge.

This appeal presents a challenge to the district court’s approval of a settlement agreement between the defendant, The Kroger Company, and the class represented by Martha Frances Franks and the other named plaintiffs. For the reasons discussed below, we reverse the district court’s approval of the settlement agreement and remand for proceedings consistent with this opinion.

I.

In January 1976, the named plaintiffs filed this action in the Western District of Tennessee alleging that the Kroger Company had discriminated against them, on the basis of their sex, in violation of Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e et seq. This action was filed on behalf of:

black, female, and Spanish-surnamed persons who are now, have been or might have been employees of the Kroger Company, and who sought, might have sought or might seek employment and promotion by the Defendant Kroger Company and who are, have been, might have been or might be adversely affected because of their race, national origin and/or sex by defendant’s discriminatory hiring, training and promotion practices.

Specifically, the named-plaintiff claimed that Kroger maintained a pattern of hiring, promotion, training and placement which restricted all female, Spanish-surnamed and black employees to clerical, custodial, physical labor and non-management positions. The plaintiffs alleged that Kroger’s male Caucasian employees were trained and placed “so as to be able to transfer throughout the corporate structure at will.”

On July 21, 1976, the district court certified the class under Rule 23(b)(2) of the Federal Rules of Civil Procedure. It defined the class as including “all females within the geographical limits of the Delta Marketing Area of the defendant ... who seek or have sought employment training or promotion to management positions in the Kroger Company.” Following extensive discovery, the parties filed a proposed settlement agreement and, as part of the agreement, filed a joint motion for redefinition of the class. The agreement provided that the class members would pursue their remedies against the company individually after approval of the settlement. Under this procedure, the claimants would have 15 days to file such a claim. The magistrate of the district court would then try all the individual cases, and the district court would hear appeals. However, the agreement also included an express waiver of any right to appeal the rulings of the district court.

Initially the district court responded to the parties’ settlement proposal by granting the joint motion for class redefinition. It redefined the class as including only those “female employees of the Memphis office of the Delta Marketing Area, who seek or have sought at any time since 180 days prior to the filing of a charge with the Equal Employment Opportunity Commission by the Plaintiff Martha Frances Frank.”

Later, a hearing was set to consider objections to the proposed settlement. Notice was sent to all female employees in the Memphis Office of the Kroger Delta Marketing Area and a substantial number of those employees appeared at the hearing to voice their objections. As a result, the district court decided not to approve the proposed settlement agreement. The court specifically rejected the parties’ contention that the procedures in the settlement agreement which provided for the adjudication of individual claims of discrimination were fair and adequate. It noted that the “joint proposal is not a settlement but a mere postponement of disputed issues in this case and [1219]*1219that the rights of the claimants which are postponed will be subjected to more stringent requirements if the settlement is approved.” Accordingly, the court rescinded its previous order which had initially granted the joint motion for class redefinition, and defined the class as consisting:

of all females who have been discriminated against on the basis of their sex within 180 days prior to the filing of a charge with the EEOC by the plaintiff Martha Frances Franks in the area and manner hereinafter set forth. First, all females within the geographical limits of the Delta Marketing Area of the Kroger Company who seek or have sought employment to supervisory or management positions with Kroger Company and all female employees who seek or have sought training or promotion to said supervisory or management positions. Second, all female employees in the Memphis office of the Delta Marketing Area of the Kroger Company who seek or have sought job transfers, training or promotion to other jobs with the Kroger Company.

The district court also found that further discovery was warranted as to the issues raised by the objections at the hearing, and allowed 60 days for supplemental discovery.

After conducting additional discovery, the parties agreed to a revised settlement proposal. Again, they filed a joint motion seeking approval of the agreement and a joint motion for redefinition of the class. Several of the class members who objected at the initial hearing, filed a motion to intervene on the grounds that the class representatives, by agreeing to the revised proposed settlement, had not adequately represented their interests.

Under the revised agreement, the named-plaintiffs would receive monetary and/or employment considerations in return for relinquishing all claims against the company.1 Class relief would consist of the following: (1) the company’s agreement to provide notice to its employees of all management vacancies; (2) the company’s agreement to follow the general hiring procedures provided for in the agreement;2 (3) the company’s agreement to provide notice, through meetings and postings, of vacancies in its management training program; and (4) the company’s agreement to promulgate a “Fair Employment Policy” and to post a copy of its policy on the bulletin boards of its stores. Under the agreement, the claims of individual class members against the company would be resolved through the following procedure:

(i) Within fifteen (15) days after the approval of the Settlement by the Court, Kroger would post a notice on the company bulletin boards in each store, office and warehouse of the Delta Marketing Area, which [1220]*1220would direct class members who claim to have been discriminated against between August 23, 1974 and the date of the Settlement Agreement to file a claim in writing with Kroger within thirty (30) days after the notice was posted.
(ii) The written claims would have to specify the following items: (1) the particular training or promotion to which the class member claimed to have been wrongfully denied; (2) the approximate date of the request for the training or promotion and the name of the person to whom the request was made; (3) the approximate date of denial, the name of the person who denied the request and any reasons given for the denial; (4) the name of the employee awarded the training or promotion in question, and the approximate date of the award; (5) the class member’s basis for claiming that she was qualified for the training or promotion in question; (6) the approximate amount of back pay or other relief sought.

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649 F.2d 1216, Counsel Stack Legal Research, https://law.counselstack.com/opinion/25-fair-emplpraccas-1750-26-empl-prac-dec-p-31876-martha-frances-ca6-1981.