Church v. Consolidated Freightways, Inc.

137 F.R.D. 294, 91 Daily Journal DAR 8775, 1991 U.S. Dist. LEXIS 8619, 57 Empl. Prac. Dec. (CCH) 40,966, 55 Fair Empl. Prac. Cas. (BNA) 1390, 1991 WL 112787
CourtDistrict Court, N.D. California
DecidedApril 12, 1991
DocketNo. C-90-2290 DLJ
StatusPublished
Cited by20 cases

This text of 137 F.R.D. 294 (Church v. Consolidated Freightways, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Church v. Consolidated Freightways, Inc., 137 F.R.D. 294, 91 Daily Journal DAR 8775, 1991 U.S. Dist. LEXIS 8619, 57 Empl. Prac. Dec. (CCH) 40,966, 55 Fair Empl. Prac. Cas. (BNA) 1390, 1991 WL 112787 (N.D. Cal. 1991).

Opinion

ORDER

JENSEN, District Judge.

I. Introduction

Plaintiffs move this Court to facilitate notice to a proposed class of opt-in plaintiffs by approving the form of the Age Discrimination in Employment Act (“ADEA”) plaintiffs’ notice of their ADEA claim, authorizing the mailing of the notice to members of Subclass C, and ordering defendants to produce the names and addresses of Subclass C members so that notice may be sent.

Plaintiffs appear through counsel Elizabeth Joan Cabraser, Richard M. Heimann, James M. Finberg, Harris D. Butler, James C. Skilling, Merrill G. Davidoff and Alan M. Sandals. Defendants appear through counsel Melvin R. Goldman, Michael L. Zigler, Alan Cope Johnston and Laura V. Best.

[298]*298II. Background

Defendant Consolidated Freightways, Inc. (“CFI”), is a transportation company engaged in land, air and sea transport services. This action arises from events following CFI’s April 1989 acquisition of Emery and its subsequent consolidation of Emery and CFI’s subsidiary, CF Air Freight, Inc. (“CFAF”). The consolidated company began operation as “Emery Worldwide, a CF Company,” in April 1989.

Before the acquisition and consolidation, CFAF was a small air freight service company. Emery was a considerably larger enterprise with nearly ten times the number of employees. See Defendants’ Memorandum in Opposition to ADEA Plaintiffs’ Motion for Approval of and Authorization to Send ADEA Notice at 3. After consolidation, the company encompassed five geographic areas, 23 divisions, and nearly 250 terminals, and had a combined exempt work force that exceeded several thousand employees. Id.

After the consolidation, six former Emery employees brought an action against defendants for violation of the Age Discrimination in Employment Act of 1967 (“ADEA”), 29 U.S.C. § 621 et seq., on behalf of themselves and others similarly situated. The former employees allege that defendants violated ADEA by implementing a single broad scheme designed to replace older, more experienced Emery exempt employees with younger, lower paid employees and to save the cost of paying severance benefits to the senior employees by—in anticipation of these terminations— reducing the maximum amount of severance allowable. Specifically, the plaintiffs allege that defendants adopted a policy of arbitrary preference of the younger former CF Air Freight employees and younger new hires over more experienced and more qualified, yet older Emery managers. See Plaintiffs’ Memorandum in Support of Motion of ADEA Plaintiffs for Approval of ADEA Notice and Authorization to Send Notice to Potential ADEA Plaintiffs at 2. Plaintiffs allege that in anticipation of discharging the older Emery employees, on at least two different occasions in 1989 and 1990, defendants reduced the maximum severance benefits (initial reduction was from a maximum of 26 weeks of severance pay to a maximum of 13 weeks). Id. at 3, 5. Plaintiffs allege that age was a motivating factor in defendants’ decision to discharge, constructively discharge, or force the resignation of hundreds of such older employees. Id. After the merger, plaintiffs allege that defendants, in implementing their plan, terminated hundreds, if not thousands, of older, experienced managerial employees of Emery and replaced them with younger, less experienced CF employees. Id. at 7.

Plaintiffs contend that employment decisions of Emery Worldwide were made at the highest level of the company. Id. at 6. Plaintiffs also maintain that computer records show that over 700 employees separated employment with Emery Worldwide between April 1, 1989, and December 31, 1989. Id. at 7. According to plaintiff, EEOC records indicate that over 100 different ADEA charges have been filed against defendants arising out of the unlawful conduct alleged in plaintiff’s complaint, id., and that six federal actions have been filed against defendants.

Defendants contend that the exempt employees over 40 years of age who left Emery Worldwide in 1989 were employed at 112 different locations in 74 different jobs and left employment on 103 different dates. See Defendants’ Memorandum at 6. Defendants also contend that staffing decisions for the merged company were highly decentralized and that no directives mandating the retention or termination of specific employees or consideration of age were given. Id. at 3.

III. Discussion

A. This Court has authority to facilitate the notice process for class wide claims brought under ADEA.

Age discrimination in employment is forbidden by section 4 of the ADEA, 29 U.S.C. § 623. Section 626(b) of title 29 incorporates enforcement provisions of the Fair Labor Standards Act of 1938 (“FLSA”), 29 U.S.C. § 201 et seq., and provides that the ADEA shall be enforced [299]*299using certain of the powers, remedies, and procedures of the FLSA. A special kind of “opt-in” class action may be brought under one of the FLSA incorporated provisions, 29 U.S.C. § 216(b), which provides for actions to recover damages resulting from a violations of the ADEA and states:

An action to recover liability ... may be maintained against any employer (including a public agency) in any Federal or State court of competent jurisdiction by any one or more employees for and in behalf of himself or themselves and other employees similarly situated. No employee shall be a party plaintiff to any such action unless he gives his consent in writing to become such a party and such consent is filed in the court which such action in brought.

29 U.S.C. § 216(b). Under this statutory authority, plaintiffs request this Court to facilitate notice to the proposed class, Subclass C, by approving the form of the ADEA plaintiffs’ notice of their ADEA claim, authorizing the mailing of that notice to members of Subclass C, and ordering defendants to produce the names and addresses of Subclass C members so that the notice may be sent. Plaintiffs’ proposed Subclass C is defined as follows:

All persons age 40 and over who were exempt (or managerial) employees of Emery and whose employment terminated as a result of the reorganization of Emery Worldwide, by discharge, constructive discharge, forced resignation, or otherwise, during the period from April 6, 1989 through the present time.

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137 F.R.D. 294, 91 Daily Journal DAR 8775, 1991 U.S. Dist. LEXIS 8619, 57 Empl. Prac. Dec. (CCH) 40,966, 55 Fair Empl. Prac. Cas. (BNA) 1390, 1991 WL 112787, Counsel Stack Legal Research, https://law.counselstack.com/opinion/church-v-consolidated-freightways-inc-cand-1991.