Ludlow v. Flowers Foods, Inc.

District Court, S.D. California·Decided July 6, 2020·No. 3:18-cv-01190-JO-JLB·Unknown

Opinion

1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 SOUTHERN DISTRICT OF CALIFORNIA 10 11 DANIEL LUDLOW, et al., Case No.: 18-cv-01190-JLS-JLB

12 Plaintiffs, ORDER GRANTING IN PART 13 v. PLAINTIFFS’ MOTION FOR PROTECTIVE ORDER 14 FLOWERS FOODS, INC., et al.,

15 Defendants.

16 [ECF No. 169] 17 18 Before the Court is Plaintiffs’ Motion for Protective Order. (ECF No. 169.) 19 Plaintiffs request that the Court issue a protective order limiting the amount of discovery 20 Defendants may propound on the Fair Labor Standards Act (“FLSA”) collective action opt- 21 in plaintiffs. Defendants oppose Plaintiffs’ motion and argue that the Court should allow 22 them to conduct individualized discovery from all the 115 opt-in plaintiffs. (ECF No. 170.) 23 For the reasons set forth below, the Court GRANTS in part Plaintiffs’ Motion for 24 Protective Order. 25 I. BACKGROUND 26 This case centers around Plaintiffs’ challenge to their employment classification and 27 allegation that Defendants willfully misclassified them and their distributor co-workers as 28 independent contractors rather than employees. (ECF No. 56 ¶ 1.) Plaintiffs’ first cause 1 of action alleges that their improper classification has deprived them of overtime 2 compensation to which they are entitled under the FLSA. (Id. ¶¶ 63–68.) Plaintiffs bring 3 this cause of action as a collective action on behalf of themselves and all similarly situated 4 individuals. (Id. ¶ 42.) As stated, the parties dispute whether the Court should permit 5 Defendants to conduct individualized discovery from all individuals who opt in to the 6 collective action, as opposed to representative discovery, and the appropriate breadth of 7 that discovery. 8 On November 1, 2019, counsel for the parties left a joint voicemail message 9 requesting the Court’s assistance with the instant discovery dispute. (ECF No. 145.) On 10 November 15, 2019, the Court held a telephonic, counsel-only Discovery Conference with 11 counsel for the parties. (ECF No. 148.) During the Conference, the Court questioned 12 whether it was procedurally appropriate for Defendants to propound party discovery (as 13 opposed to third-party discovery) on the opt-in plaintiffs or depose them when the District 14 Judge had not yet conditionally certified the FLSA class.1 The Court directed the parties 15 to submit a supplemental joint discovery statement on the issue. (Id.) Additionally, the 16 Court cautioned Defendants that many of their discovery requests were overbroad and 17 urged Defendants to narrow them. The Court further directed Defendants to explain in the 18 supplemental statement the anticipated value of the 36 requests for production (“RFPs”) 19 and 16 interrogatories propounded to each of the 115 opt-in plaintiffs. 20 21 22 1 The Honorable Janis L. Sammartino denied Plaintiffs’ Motion for Conditional 23 Certification of the FLSA collective action as moot on March 22, 2019, after Plaintiffs filed an Amended Complaint that added a second named plaintiff and an additional cause of 24 action. (ECF No. 64.) Between June 26, 2019 and November 5, 2019, 111 additional 25 individuals submitted FLSA consent forms, bringing the size of the opt-in class to 115. (ECF Nos. 86; 96; 97; 114; 125; 146.) Plaintiffs filed a Motion for Class Certification on 26 June 28, 2019, but the motion was only as to class certification under Federal Rule of Civil 27 Procedure 23. (ECF No. 90.) Judge Sammartino denied Plaintiff’s Motion for Class Certification as moot on February 18, 2020, after granting Defendants’ Motion to Stay. 28 1 On December 11, 2019, the Court held a continued, telephonic, counsel-only 2 Discovery Conference. (ECF No. 161.) While continuing to express concern as to the 3 procedural propriety of Defendants propounding party discovery to the opt-in plaintiffs 4 before conditional certification, the Court also reiterated its concern that Defendants had 5 continued to request all of their discovery as initially drafted without narrowing any of their 6 requests or explaining in detail what their requests were meant to achieve. The Court 7 determined that the issues could not be resolved through an informal discovery process and 8 set a deadline for Plaintiffs to formally brief the issue in a motion for protective order. The 9 Court advised Defendants that it would not allow the scope of discovery as requested and 10 once again encouraged Defendants to narrow and limit their requests. The Court cautioned 11 Defendants that if they stood by their requests as drafted and made no effort to refine them, 12 the Court would not be inclined to rewrite any requests in the event Plaintiffs’ objections 13 were sustained. 14 On December 30, 2019, counsel for the parties left a joint voicemail message 15 requesting a two-week extension of all dates in the Briefing Schedule for Plaintiffs’ Motion 16 for Protective Order to allow the parties additional time to meet and confer regarding the 17 scope of Defendants’ discovery requests. (See ECF No. 165.) After the Court granted the 18 parties’ request (ECF No. 165), Plaintiffs filed the instant Motion for Protective Order on 19 January 14, 2020. (ECF No. 169.) Defendants filed an opposition (ECF No. 170) and an 20 amended opposition (ECF No. 171) on January 22, 2020. Plaintiffs filed a reply on January 21 27, 2020. 22 On February 18, 2020, Judge Sammartino granted Defendants’ Motion to Stay 23 pending the California Supreme Court’s determination of whether the “ABC” test as 24 announced in Dynamex Operations West, Inc. v. Superior Court, 4 Cal. 5th 903 (2018), 25 applies retroactively. (ECF No. 174.) Although this case is currently stayed, the Court 26 finds resolving the instant discovery dispute now to be appropriate, for whether the ABC 27 test applies retroactively does not impact this dispute. 28 /// 1 II. LEGAL STANDARD 2 Federal Rule of Civil Procedure 26 provides that parties: 3 may obtain discovery regarding any nonprivileged matter that is relevant to 4 any party’s claim or defense and proportional to the needs of the case, considering the importance of the issues at stake in the action, the amount in 5 controversy, the parties’ relative access to the information, the parties’ 6 resources, the importance of the discovery in resolving the issues, and whether the burden or expense of the proposed discovery outweighs its likely benefit. 7 8 Fed. R. Civ. P. 26(b)(1). The December 2015 amendment to Rule 26 reinforced the 9 proportionality factors for defining the scope of discovery and, thus, under Rule 26, 10 relevancy alone is not sufficient to obtain discovery. See Fed. R. Civ. P. 26(b)(1) advisory 11 committee’s note to 2015 amendment. Discovery must also be proportional to the needs 12 of the case. Doherty v. Comenity Capital Bank, No. 16cv1321-H-BGS, 2017 WL 1885677, 13 at *2 (S.D. Cal. May 9, 2017) (citing Mora v. Zeta Interactive Corp., No. 1:16-cv-00198- 14 DAD-SAB, 2017 WL 1187710, at *3 (E.D. Cal. Feb. 10, 2017)). Rule 26 requires that 15 courts “limit the frequency or extent of discovery otherwise allowed by these rules or by 16 local rule if it determines that . . . the proposed discovery is outside the scope permitted by 17 Rule 26(b)(1).” Fed. R. Civ. P. 26(b)(2)(C)(iii). 18 The relevance standard is commonly recognized as one that is necessarily broad in 19 scope in order “to encompass any matter that bears on, or that reasonably could lead to 20 other matter that could bear on, any issue that is or may be in the case.” Doherty, 2017 21 WL 1885677, at *2 (quoting Oppenheimer Fund, Inc. v.

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