Fauteck v. Montgomery Ward & Co.

91 F.R.D. 393, 24 Fair Empl. Prac. Cas. (BNA) 1101, 31 Fed. R. Serv. 2d 363, 1980 U.S. Dist. LEXIS 17194, 27 Empl. Prac. Dec. (CCH) 32,281
District Court, N.D. Illinois·Decided September 4, 1980·No. No. 78 C 1189·Published·Cited by 8 cases

Opinion

MEMORANDUM OPINION AND ORDER

DECKER, District Judge.

This is a class action alleging that the employment practices of defendant Montgomery Ward & Company violate Title VII of the Civil Rights Act of 1964. Plaintiffs are four female past and present employees of Montgomery Ward’s Merchandising Group in Chicago, and represent a class of similarly situated employees. Plaintiffs have presented the court with two motions: a motion to authorize written communication with class members to solicit financial [395] contributions for the maintenance of this action, and a motion to compel the production of employment records in computer readable form.

I.

The first motion is the third attempt by plaintiffs to send some form of notice to class members. The first was denied by Judge Will, to whom the case was originally assigned, on April 13, 1979. Judge Will stated that because the case was a Rule 23(b)(2), rather than a (b)(3) class action, notice was unnecessary. However, Judge Will also said that he was willing to entertain a motion to authorize some sort of communication with class members. Plaintiffs renewed their motion to send notice to class members before this court. The motion was denied on October 31, 1979, “without prejudice to the renewal of the motion at the conclusion of discovery and before the submission of the final pre-trial order.”

Different grounds are presented for the present motion. Plaintiffs wish to do more than to inform class members of the pend-ency of this action. They state that there is no reason for them to individually advance the amount needed for trial preparation of a case brought on behalf of a large class. They wish to avoid this financial burden by soliciting contributions from class members. A similar procedure was allowed by the court in Norris v. Colonial Commercial Corp., 77 F.R.D. 672 (S.D.Ohio 1977). Norris, however, was a (b)(3) class action, in which notice and an opportunity to “opt out” of the class, had already been sent to class members. Here, no court-sanctioned information has been disseminated to class members, whose first knowledge of this suit would be in the form of a request for contributions. This is a complicated case, involving allegations of discrimination in various aspects of defendant’s business. Unless class members are provided with extensive information about the case, it will be virtually impossible for them to make an intelligent decision about whether to help fund it. Because not all class members have been affected by defendant’s employment practices in the same way, defendant’s liability toward each type of employee may differ. Persons whose stake in the outcome of this litigation is unknown may be asked to help finance it. Thus, there are serious risks presented of misleading those who are asked to contribute.

It was just this type of risk which local civil rule 22 was designed to avoid. This rule forbids communication with actual or potential class members not formal parties to the action without the prior approval of the court. It was modeled on sample local rule 7 in the Manual for Complex Litigation, Part II, § 1.41. The reasons for rule are discussed in Part I, § 1.41 of the Manual. One of the “abuses” of the class action device sought to.be prevented by the rule is the solicitation of funds from class members to pay litigation expenses and fees.

“To the party solicited, solicitation may appear to be an authorized activity approved by the court, simply because of references to the title of the court, the style of the action, the name of the judge, and to official processes. Such unapproved solicitation may be of doubtful ethical propriety and may result in well founded dissatisfaction with the judicial management of the action.”

Id. 1 Moore’s Federal Practice, Pt. 2 at p. 32. The court finds that no adequate justification has been presented for allowing the proposed communication, which would cause precisely the dangers which local rule 22 was designed to eliminate.

Plaintiff argues that, even so, the proposed communication with class members is protected by the First Amendment, and cannot be constitutionally prohibited by this court. In support of this argument, plaintiff cites Bernard v. Gulf Oil Co., 619 F.2d 459 (5th Cir. 1980), in which the Fifth Circuit en banc, held that a court order along the lines of local rule 22 was a prior restraint on protected First Amendment activity, and was unconstitutional on its face. Before dealing with the question of the constitutionality of the local rule, the court will consider whether the proposed commu[396] nication is protected activity. Bernard does not hold that every type of communication with potential class members is protected by the First Amendment; only that the district court’s order swept such activity within its scope.

In Bernard, the communication forbidden by the district court was a notice advising black employees of the defendant not to sign a release distributed by the defendant before they consulted a lawyer. The notice further stated that lawyers representing the fellow workers of those notified, in a suit filed on their behalf, would speak to them for free. A much stronger argument can be made that this type of communication is protected by the First Amendment than is the solicitation for funds contemplated in this case. Such a notice may have been essential to continued vigorous prosecution of the lawsuit, which can itself be viewed as a means of protected expression. See In re Primus, 436 U.S. 412, 98 S.Ct. 1893, 56 L.Ed.2d 417 (1978); N.A.A. C.P. v. Button, 371 U.S. 415, 83 S.Ct. 328, 9 L.Ed.2d 405 (1963). Moreover, this notice may have been necessary to make the class members aware of their rights, and to avoid the possibility that they would be misled by the defendant’s offer of settlement. In this case, by contrast, the proposed communication does nothing to further the interests of class members, and may itself mislead class members. It is merely designed to alleviate the inconvenience to the named plaintiffs of having to bear the costs of litigation alone, costs they have not denied that they are able and willing to bear. This interest does not outweigh the confusion that will result from sending the communication.

In further support of their argument that the proposed communication is protected activity, plaintiffs cite a footnote to the Bernard opinion, which states in part:

“In at least some situations the collection or solicitation of funds to defray litigation costs is a necessary adjunct to obtaining meaningful access to the courts. Such activity is therefore deserving of constitutional protection in appropriate eases."

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Fauteck v. Montgomery Ward & Co., 91 F.R.D. 393, 24 Fair Empl. Prac. Cas. (BNA) 1101, 31 Fed. R. Serv. 2d 363, 1980 U.S. Dist. LEXIS 17194, 27 Empl. Prac. Dec. (CCH) 32,281 (N.D. Ill. 1980).

91 F.R.D. 393 (Fauteck v. Montgomery Ward & Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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