Johnson v. Diakon Logistics

CourtDistrict Court, N.D. Illinois
DecidedJanuary 23, 2020
Docket1:16-cv-06776
StatusUnknown

This text of Johnson v. Diakon Logistics (Johnson v. Diakon Logistics) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Johnson v. Diakon Logistics, (N.D. Ill. 2020).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION

TIMOTHY JOHNSON and DARRYL ) MOORE, individually and on behalf of all ) others similarly situated, ) ) Plaintiff, ) ) No. 16-cv-06776 v. ) ) Judge Andrea R. Wood DIAKON LOGISTICS, et al., ) ) ) Defendants. )

MEMORANDUM OPINION AND ORDER In this putative class action, Plaintiffs Timothy Johnson and Darryl Moore have sued Defendants Diakon Logistics (“Diakon”), as well as Innovel Solutions, Inc. and Sears Roebuck and Co. (collectively, “Sears”), for alleged violations of the Illinois Wage Payment and Collection Act (“IWPCA”), 820 ILCS 115/9. Specifically, Plaintiffs claim that Defendants incorrectly classified delivery drivers as independent contractors instead of employees, resulting in unlawful deductions being taken out of their paychecks. Now before the Court is Plaintiffs’ motion to certify a plaintiff class under Federal Rule of Civil Procedure 23(b)(3). For the reasons explained below, the Court grants the motion. BACKGROUND In their Third Amended Complaint (“TAC”), Plaintiffs claim that Defendants required them and other drivers to sign agreements falsely stating that they were independent contractors. (TAC ¶ 18, Dkt. No. 102.) Defendants then deducted certain expenses from those drivers’ pay, including amounts for insurance coverage, truck rentals, and uniforms. (Id. ¶ 23.) Plaintiffs contend that because Defendants exercised control and direction over their work, they instead should have been classified as employees under the IWPCA, which prohibits employers from taking deductions from employees’ wages. (Id. ¶¶ 19, 61–63, 67–69.) Specifically, as detailed in the TAC, Diakon provides supply-chain management services for businesses hoping to reduce transportation costs; it delivers appliances, furniture, and other items to locations across the United States. (Id. ¶ 16; Defs.’ Opp’n to Mot. for Class Certification

at 2, Dkt. No. 143.) Innovel Solutions, a subsidiary of Sears, Roebuck and Co. that delivers furniture and appliances for Sears, is one of Diakon’s customers in Illinois. (TAC ¶ 8; Pls.’ Mem. in Supp. of Mot. for Class Certification at 1, Dkt. No. 135.) Innovel Solutions focuses on consolidating and grouping orders for delivery to Sears’s customers. (Defs.’ Opp’n to Mot. for Class Certification at 2.) Diakon contracts with transportation companies, such as those run by Plaintiffs Johnson and Moore, to drive delivery trucks and deliver Sears merchandise to customers’ homes.1 (TAC ¶ 16; Defs.’ Opp’n to Mot. for Class Certification at 2.) Johnson and Moore are Illinois residents who performed delivery services for Diakon— in Johnson’s case, from 2011 to 2013, and in Moore’s case, from 2014 to 2015. (TAC ¶¶ 3–4.)

They allege that they were required to sign service agreements with Diakon that classified them as independent contractors. (Id. ¶ 18; Service Agreement, Ex. 4 to Defs.’ Opp’n to Mot. for Class Certification, Dkt. No. 146-4.) Diakon further required drivers to observe a strict set of rules with respect to the delivery of Sears merchandise. When making Sears deliveries, drivers were required to wear Sears uniforms, drive trucks with a Sears logo, and carry Sears business cards. (TAC ¶ 37(g).) They were also required to report to a Sears warehouse for meetings and

1 In their opposition to class certification, Defendants note that Diakon contracted with company contractors rather than with the individual Plaintiffs. Indeed, for the example agreement provided to the Court, Johnson signed on behalf of his company, EZ Techniques, Inc. (Service Agreement, Ex. 4 to Defs.’ Opp’n to Mot. for Class Certification, Dkt. No. 146-4.) But whether the individual Plaintiffs or their companies were actually parties to the service agreements does not impact the question of whether the Court should certify the class of individual drivers proposed by Plaintiffs. receiving products. (Id. ¶ 37(a)–(b).) These requirements, Plaintiffs contend, illustrate that Sears and Diakon exercised such extensive control over the drivers’ work performance that the drivers should have been classified as employees under Illinois law. Yet, Plaintiffs allege, Defendants required drivers to sign service agreements classifying them as independent contractors and allowing Defendants to make deductions from their paychecks. For instance, Diakon and Sears

required that deductions be taken from drivers’ paychecks for expenses such as truck rental and vehicle maintenance costs, insurance, and faulty installations. (Id. ¶¶ 29, 37(d), 37(g).) Based on their allegations that drivers were uniformly treated as employees by Diakon and Sears, Plaintiffs seek to certify a class consisting of delivery drivers who made deliveries from June 28, 2006 to the present and signed service agreements classifying them as independent contractors. On behalf of the proposed class, Plaintiffs seek compensatory and punitive damages. Diakon, on behalf of all Defendants, opposes Plaintiffs’ request for class certification. DISCUSSION The IWPCA applies to all employees and employers in Illinois. 820 ILCS 115/1. Its

purpose is “to protect employees in Illinois from being stiffed by their employers.” Glass v. Kemper Corp., 133 F.3d 999, 1000 (7th Cir. 1998) (internal citations and emphasis omitted). Toward that end, the IWPCA imposes wage-related obligations on employers and provides a means for employees to collect wages due them. 815 ILCS 115/4–115/6. Plaintiffs in this case claim that Defendants violated the provision of the IWPCA that forbids employers from taking deductions from wages unless those deductions are “made with the express written consent of the employee, given freely at the time the deduction is made.” 820 ILCS 115/9. Plaintiffs contend that Defendants required their drivers to sign contracts classifying them as independent contractors despite being subject to a strict set of rules and requirements set out by Diakon and Sears. Defendants counter that Plaintiffs have failed to demonstrate that the IWPCA should apply on a class-wide basis, and further argue that even if the IWPCA does apply to the drivers, the question of whether each driver authorized deductions from their wages is an individualized inquiry unsuited to a class action. I. Requirements for Class Certification

Federal Rule of Civil Procedure 23 permits individual plaintiffs to sue as representatives of an aggrieved class while imposing upon the Court a gatekeeping function. See Fed. R. Civ. P. 23. A district court has broad discretion to determine whether to certify a class action. See Mira v. Nuclear Measurements Corp., 107 F.3d 466, 471 (7th Cir. 1997). To be certified, a proposed class must first satisfy all four requirements of Rule 23(a): (1) the class must be so numerous that joinder of all members is impracticable (“numerosity”); (2) there must be questions of law or fact common to the class (“commonality”); (3) the claims or defenses of the representative parties must be typical of the claims or defenses of the class (“typicality”); and (4) the representative parties must fairly and adequately protect the interests of the class (“adequacy”). Fed. R. Civ. P.

23(a).

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Bluebook (online)
Johnson v. Diakon Logistics, Counsel Stack Legal Research, https://law.counselstack.com/opinion/johnson-v-diakon-logistics-ilnd-2020.