Aliotta v. Gruenberg

237 F.R.D. 4, 2006 U.S. Dist. LEXIS 50316, 88 Empl. Prac. Dec. (CCH) 42,597, 2006 WL 2055734
CourtDistrict Court, District of Columbia
DecidedJuly 25, 2006
DocketCivil No. 05-2325 (RMU)
StatusPublished
Cited by9 cases

This text of 237 F.R.D. 4 (Aliotta v. Gruenberg) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Aliotta v. Gruenberg, 237 F.R.D. 4, 2006 U.S. Dist. LEXIS 50316, 88 Empl. Prac. Dec. (CCH) 42,597, 2006 WL 2055734 (D.D.C. 2006).

Opinion

MEMORANDUM OPINION

URBINA, District Judge.

Granting the Plaintiffs’ Motion For Class Certification

I. INTRODUCTION

The plaintiffs are 49 current and former employees of the Federal Deposit Insurance Corporation (“FDIC”) who are all over 50 years young. The plaintiffs claim that the FDIC’s campaign to trim its workforce through a buyout program and a Reduction-in-Force program (“RIF”) violated the plaintiffs’ rights under the Age Discrimination in Employment Act (“ADEA”), 29 U.S.C. § 621 et seq. The plaintiffs are now asking the court to certify their case as a class action. Because the plaintiffs satisfy Federal Rule 23’s requirements, the court grants the plaintiffs’ motion and certifies this case as a class action.

II. BACKGROUND

A. Factual Background

The FDIC is a government agency responsible for insuring money deposits at banks and savings associations across the United States. Def.’s Opp’n at 3. The plaintiffs were all employed in the FDIC’s Division of Resolutions and Receiverships (“DRR”), Am. Compl. If 5, which runs receiverships of failed banks and liquidates their assets, Def.’s Opp’n at 3. All plaintiffs were employed in either the Washington, D.C. or Dallas, TX offices. Pis.’ Mot. at 18. In the 1980s and 1990s, the FDIC was busy handling the fallout from failed financial institutions during the famed savings and loan crisis. Id; Am. Compl. 1156. According to the defendant, as the banking crisis eased, so too did the [8]*8FDIC’s workload, and it began reducing the size of its workforce accordingly. Def.’s Opp’n at 3.

According to the plaintiffs, the Director of the DRR, Michael Glassman, issued a message to all DRR employees that he was recommending to FDIC management that DRR reduce its staffing levels by more than half during 2005. Am. Compl. U 68; Def.’s Opp’n at 8. Pursuant to this plan, the defendant offered a buyout (calculated by the employee’s grade and salary) to DRR employees not eligible for full retirement. Am. Compl. 1174. Over 100 DRR employees accepted this buyout offer and signed documents indicating their intent to retire early.1 Id. 1175.

A second set of plaintiffs, they allege, were separated by the FDIC on September 3, 2005.2 Am. Compl. 1179. The plaintiffs claim that the FDIC separated approximately 50 other employees who did not accept the buyout offer. Id. According to the Amended Complaint, despite placing several of the plaintiffs on a re-employment priority list, the defendant filled vacant positions with younger and less senior employees no better qualified than older workers. Id. 1180. The plaintiffs allege that plaintiff Gregory Haag, in addition to roughly 30 other employees, accepted a reduction in grade in a different division of the FDIC to avoid the RIF. Pis.’ Mot. at 6; Pls.’s Reply at 12.

The plaintiffs allege that in total, approximately 171 DRR employees, at least 126 of whom were over the age of 50, were separated from the FDIC (either through the buyout or termination). Am. Compl. II90. The plaintiffs claim that the defendant’s RIF program and the FDIC’s implementation of that program violates the ADEA. Am. Compl. HH 99-101.

B. Procedural Background

On October 31, 2005, the plaintiffs’ attorney sent a letter to the United States Equal Employment Opportunity Commission (“EEOC”) notifying it that “Barbara Aliotta and at least nineteen other former and current employees intend to file suit” against the FDIC pursuant to the ADEA. Def.’s Opp’n Ex. 10-1. Aso on October 31, 2005, the plaintiffs’ attorney sent a letter to the FDIC stating that “at least two of the claimants may act as class agents” in the action. Def.’s Supp. Memo. Ex. B. Between October 31, 2005 and February 21, 2006, counsel sent nine additional letters to the EEOC adding current and former FDIC employees as individuals intending to file suit. Def.’s Opp’n at Exs. 10-2 through 10-10.

On December 5, 2005, the plaintiffs filed suit in this case. The plaintiffs now move for class certification pursuant to Federal Rule of Civil Procedure 23(b)(3). Pis.’ Mot. Specifically, the plaintiffs would like the court to certify the class as

Former or present employees of FDIC’s Division of Resolution and Receiverships who were born on a date on or before September 30, 1955 who were terminated from their positions in the DRR, or who were offered and accepted a buyout to avoid termination, as a result of the 2005 RIF, or who accepted a reduction in grade to retain their employment.3

[9]*9Pis.’ Reply at 9. The court now turns to the plaintiffs’ motion.

III. ANALYSIS

The plaintiffs bring their case under the ADEA. The ADEA sets forth certain procedural requirements as prerequisites to filing civil suits. 29 U.S.C. § 633(d). Accordingly, in this ease, class action is appropriate if the plaintiffs have satisfied the ADEA statutory requirements in addition to the specific class action requirements set forth in Federal Rules of Civil Procedures 23(a) and 23(b).

A. The Plaintiffs Satisfy the Requirements of the ADEA

Under the ADEA,

When the individual has not filed a complaint concerning age discrimination with the [EEOC], no civil action may be commenced by any individual under this section until the individual has given the [EEOC] not less than thirty days’ notice of an intent to file such action. Such notice shall be filed within one hundred and eighty days after the alleged unlawful practice occurred[.]

29 U.S.C. § 633a(d). The plaintiffs sent ten letters to the EEOC notifying it of the plaintiffs’ intent to file suit. Def.’s Opp’n Exs. 10-1 through 10-10. For example, the initial letter indicated that “Barbara Aliotta and at least nineteen other former and current employees intend to file suit.” Def.’s Opp’n Ex. 10-1. The defendant argues that the plaintiffs did not provide appropriate notice to the EEOC of their class claim. Def.’s Opp’n at 12. However, notice does not need an “explicit mention that a representative action is contemplated.”4 Anderson v. Montgomery Ward & Co., Inc., 852 F.2d 1008, 1017 (7th Cir.1988) (construing a similar section of the ADEA that governs non-federal employees as a general notice requirement). As long as the “defendant understands the magnitude of his potential liability,” notice is sufficient. Id. (holding that so long as there is an indication of an allegation of class-wide discrimination, notice may serve as a basis for suit by others who are similarly situated).

Though the statute requires only general notice for class action cases, a representative of each category of plaintiffs must have served notice. See James v. England, 332 F.Supp.2d 239, 248 (D.D.C.2004) (ruling that exhaustion of individual remedies is not required to be a member of a class); Bradley v.

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237 F.R.D. 4, 2006 U.S. Dist. LEXIS 50316, 88 Empl. Prac. Dec. (CCH) 42,597, 2006 WL 2055734, Counsel Stack Legal Research, https://law.counselstack.com/opinion/aliotta-v-gruenberg-dcd-2006.