Cruz v. Dollar Tree Stores, Inc.

270 F.R.D. 499, 2010 WL 3619800
CourtDistrict Court, N.D. California
DecidedSeptember 9, 2010
DocketNos. 07-2050 SC, 07-4012 SC
StatusPublished
Cited by2 cases

This text of 270 F.R.D. 499 (Cruz v. Dollar Tree Stores, 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
Cruz v. Dollar Tree Stores, Inc., 270 F.R.D. 499, 2010 WL 3619800 (N.D. Cal. 2010).

Opinion

ORDER GRANTING IN PART AND DENYING IN PART DEFENDANT’S MOTION TO DECERTIFY

SAMUEL CONTI, District Judge.

I. INTRODUCTION

This matter comes before the Court on the Motion to Decertify filed by Defendant Dollar Tree Stores, Inc. (“Defendant” or “Dollar Tree”). ECF No. 188.1 Plaintiffs Robert Runnings, Miguel Cruz, and John Hansen (collectively “Plaintiffs”) filed an Opposition, and Defendant submitted a Reply. ECF Nos. 212, 218. For the following reasons, the Court GRANTS IN PART and DENIES IN PART the Motion to Decertify.

II. BACKGROUND

The Court assumes the parties are familiar with the procedural and factual background of this dispute, which the Court set out in its Order Granting the Amended Motion for Class Certification. ECF No. 107 (“May 26, 2009 Order”). Plaintiffs allege they were improperly classified as exempt employees. See Runnings Action, ECF No. 1 (“Runnings Compl.”); Cruz Action ECF No. 23 (“Cruz Am. Compl.”). As a result, Plaintiffs allege that Dollar Tree failed to pay them overtime compensation and failed to provide meal and rest breaks, in violation of California law. [501]*501Id. The class is currently defined as “[a]ll persons who were employed by Dollar Tree Stores, Inc. as California retail Store Managers at any time on or after December 12, 2004, and on or before May 26, 2009.” ECF No. 113 (“July 2, 2009”) at 5. Starting the class at December 12, 2004 ensures that any eventual awards to Tree Store Managers (“SMs”) will not overlap with the that resulted from a previous settlement. See May 26, 2009 The class consists of 718 SMs who worked in 273 retail locations in California. Mot. at 1.

As explained in the order certifying the class, Dollar Tree requires its SMs to certify that they spend more than fifty percent of their actual work time each week performing the following duties and responsibilities:

1. Supervision of associates.
2. Oversee daily store activities, including opening and closing store.
3. Ensure customer and associate safety.
4. Protect all company assets, including store cash, merchandise and equipment.
5. Maintain proper sales, banking, inventory, accounting, productivity, payroll and time records.
6. Responsible for adequate staffing of store. Recruit, interview, hire, employ, and train sales associates. Train associates to properly use all equipment and technology as well as provide thorough merchandise display training.
7. Schedule and assign work to store personnel. Evaluate, motivate, counsel, develop, discipline and discharge sales associates appropriately. Maintain production reports to evaluate job performance of sales associates.
8. Provide leadership and direction to store personnel.
9. Communicate company policies to sales associates. Ensure associates comply with company policies and procedures, including safety guidelines and human resources policies.
10. Analyze sales, expenses, and profit, review reports, analyze competition, determine customer preferences, manage sales forecasting, meet sales and profit objectives and goals, determine product mix, determine most effective placement of product and ensure standards for merchandise presentation, displays and signage to maximize sales. Assist in developing promotions and advertisements as appropriate.
11. Control inventory. Supervise ordering, receiving, stocking and pricing of goods. Ensure goods are properly marked and mark downs are properly recorded.
12. Responsible for overall cleanliness and appearance of store.
13. Ensure highest level of customer service. Handle customer complaints and problems.
14. Ensure accident reports and damage reports are completed in timely and accurate manner.
15. Complete management reports in a timely and accurate manner.
16. Ensure compliance with applicable laws and regulations.
17. Communicate professionally and effectively with customers, subordinates and supervisors.

Kuehn Decl. Ex. 2 (“Weekly Payroll Certification”).2 The certification form states that SMs “may not spend more than a total of 35% of his/her actual work time each week receiving product, distributing and storing product, stocking product and cashiering.” Id. A SM must certify “yes” if he or she spent the majority of his or her time performing the seventeen duties, and “no” if he or she did not. See id. If the SM responds no, “s/he must immediately provide an explanation to both Payroll and Human Resources. No salary or wage will be withheld because of non-compliance.” Id. The form provides a space for SMs to write in their explanation. See id.

[502]*502Dollar Tree’s expert, Robert Crandall, MBA (“Crandall”), analyzed certification responses comprising 29,431 workweeks during the class period. ECF No. 190 (“Crandall DeeL”) ¶ 15. His analysis show that approximately 62 percent of SMs always certified that they spent the majority of their workweeks on the seventeen managerial tasks, 2.5 percent reported that they never spent most of their time performing these tasks, and about 35 percent of SMs fall somewhere in between.3 Id. ¶¶ 22-23, Ex. 2 (“Summary of Managers’ Weekly Responses”). As explained in Part IV(E), infra, the Court regards the weekly payroll certifications as a reliable source of information concerning how SMs were spending their time at Dollar Tree.

III. LEGAL STANDARD

The district court has discretion to certify a class under Federal Rule of Civil Procedure 23. Dukes v. Wal-Mart Stores, Inc., 603 F.3d 571, 579 (9th Cir.2010). Rule 23(a) requires that the plaintiff demonstrate (1) numerosity, (2) commonality, (3) typicality, and (4) fair and adequate representation of the class interest. Fed.R.Civ.P. 23(a). In addition to meeting these requirements, the plaintiff must also show that the lawsuit qualifies for class action status under one of the three criteria found in Rule 23(b). See Dukes, 603 F.3d at 592-93. Here, the Court previously ruled that Plaintiff had satisfied Rule 23(a) and certified the class under Rule 23(b)(3), which requires that “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.” Fed.R.Civ.P. 23(b)(3).

A previously certified class is subject to modification at the Court’s discretion. See General Tel. Co. of the Southwest v.

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Bluebook (online)
270 F.R.D. 499, 2010 WL 3619800, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cruz-v-dollar-tree-stores-inc-cand-2010.