Armstrong v. Powell

230 F.R.D. 661, 2005 U.S. Dist. LEXIS 34781, 87 Empl. Prac. Dec. (CCH) 42,194, 2005 WL 1907278
CourtDistrict Court, W.D. Oklahoma
DecidedAugust 10, 2005
DocketNo. CIV-03-255-C
StatusPublished
Cited by4 cases

This text of 230 F.R.D. 661 (Armstrong v. Powell) is published on Counsel Stack Legal Research, covering District Court, W.D. Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Armstrong v. Powell, 230 F.R.D. 661, 2005 U.S. Dist. LEXIS 34781, 87 Empl. Prac. Dec. (CCH) 42,194, 2005 WL 1907278 (W.D. Okla. 2005).

Opinion

MEMORANDUM OPINION AND ORDER

CAUTHRON, District Judge.

Plaintiffs, seven current or former employees of the Federal Deposit Insurance Company (FDIC) and one spouse of a deceased former FDIC employee, brought this action alleging that the FDIC adopted an express policy to “thin its ranks” of management-level employees over the age of 40 in violation of the Age Discrimination in Employment Act (ADEA). Plaintiffs have moved to certify a class consisting of

current and former FDIC employees in all divisions who [from 1995 to present] applied for positions ... in Grade Levels 11-15, E-l and E-2 and who, at the age of 40 or older, (i) were referred for final selection ... [but] not selected for such jobs that were awarded to persons 5 or more years younger, (ii) declined to apply for jobs because of the FDIC’s pattern and practice of awarding them to persons significantly younger, [or]1 (iii) were constructively discharged from the FDIC because of the FDIC’s pattern and practice of ageism.2

Should the Court determine that certification of the entire class is improper, Plaintiffs propose the Court certify one or more of the identified subclasses. Defendant objects to certification, arguing that Plaintiffs have not met the standard of Fed.R.Civ.P. 23. The [664]*664Court agrees and finds that certification is not warranted for either the entire class or the subclasses identified by Plaintiffs.

Standard

As the parties seeking certification, Plaintiffs bear the burden of proving that all the requirements of Fed.R.Civ.P. 23(a) and the requirements of one subsection of Fed. R.Civ.P. 23(b) are met. Rex v. Owens, 585 F.2d 432, 435 (10th Cir.1978). Fed.R.Civ.P. 23(a) lists the following prerequisites to any class action: “(1) the class is so numerous that joinder of all members is impracticable, (2) there are questions of law or fact common to the class, (3) the claims or defenses of the representative parties are typical of the claims or defenses of the class, and (4) the representative parties will fairly and adequately protect the interests of the class.” Plaintiffs assert that they can meet the requirements of either Fed.R.Civ.P. 23(b)(2) or (3) . Rule 23(b)(2) permits certification when the parties are seeking primarily injunctive or declaratory relief. Where the predominate relief sought is money damages, section (b)(3) provides the applicable standard. This section requires that:

the court find[ ] 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 the 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.

Plaintiffs could receive injunctive or declaratory relief were the class certified under Rule 23(b)(3). See Boughton v. Cotter Corp., 65 F.3d 823, 827 (10th Cir.1995).

In keeping with these factors, the decision whether to certify “involves intensely practical considerations, most of which are purely factual or fact-intensive.” Reed v. Bowen, 849 F.2d 1307, 1309 (10th Cir.1988). “Each case must be decided on its own facts, on the basis of ‘practicalities and prudential considerations.’ ” Id. (quoting U.S. Parole Comm’n v. Geraghty, 445 U.S. 388 at 406 n. 11, 100 S.Ct. 1202, 63 L.Ed.2d 479 (1980)). Therefore, the Court focuses on whether the requirements of Rule 23 are satisfied and makes no decision as to whether Plaintiffs’ claims have merit. Eisen v. Carlisle & Jac-quelin, 417 U.S. 156, 177-78, 94 S.Ct. 2140, 40 L.Ed.2d 732 (1974). And, although courts are inclined to err in favor of certification, Plaintiffs are in no way excused from their strict burden of proof. Meyers v. Sw. Bell Tel. Co., 181 F.R.D. 499, 501 (W.D.Okla. 1997); see also Gen. Tel. Co. of the Sw. v. Falcon, 457 U.S. 147, 161, 102 S.Ct. 2364, 72 L.Ed.2d 740 (1982) (requiring courts to perform a “rigorous analysis” to ensure that procedural requirements are met).

BACKGROUND

A. FDIC Downsizing3

Following the wane of the banking crisis that plagued the late 1980s and early 1990s, the FDIC found itself with an excess of nearly 1,500 employees. Most of the excess personnel were at the management level, or Grades 12 and above,4 and were located primarily in three divisions, Legal, Asset Servie-[665]*665ing, and Resolutions.5 To complicate matters, the FDIC had to absorb nearly 3,000 employees from the Resolution Trust Corporation (RTC) in December 1995, and was prohibited via statute from conducting a Re-duetion-in-Force until 1997.6 Although the agency had been under a hiring freeze for approximately two years, the imbalance in the staffing could not be cured through a natural attrition rate.

In various meetings in the fall of 1995, the FDIC candidly discussed how to downsize the agency. On September 26, 1995, the Board voted to offer a buyout program to certain employees. The buyout was available only to those employees in job categories, grade levels, and duty locations identified as excess according to the Core Staffing Analysis.7 According to Plaintiffs, this was the first step in “downsizing the FDIC and reshaping it for the future by targeting older, ‘retirement eligible’ employees for separation.” (Pis.’ Br., Dkt. No. 77, at 4.)

The buyout option was earmarked for persons close to retirement. Following is an excerpt from one of the Board discussions of the various buyout options:

Director Fiechter: How much more generous is the 3B than option 2? I’m not certain I fully understand the difference.
Mr. Squerrini: Well, with — under 3B, by allowing people to get the greater of either 50 percent of salary or severance pay, severance pay can go up to as much as, using the general government format, can go up to as much as a year’s pay.
Chairman Heifer: For the senior people, who are the ones we’re' — ■
Mr. Squerrini: For the more senior people.

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Bluebook (online)
230 F.R.D. 661, 2005 U.S. Dist. LEXIS 34781, 87 Empl. Prac. Dec. (CCH) 42,194, 2005 WL 1907278, Counsel Stack Legal Research, https://law.counselstack.com/opinion/armstrong-v-powell-okwd-2005.