Marlo v. United Parcel Service, Inc.

251 F.R.D. 476, 2008 U.S. Dist. LEXIS 48841, 2008 WL 2485175
CourtDistrict Court, C.D. California
DecidedMay 19, 2008
DocketNo. CV 03-04336 DDP (RZx)
StatusPublished
Cited by28 cases

This text of 251 F.R.D. 476 (Marlo v. United Parcel Service, Inc.) is published on Counsel Stack Legal Research, covering District Court, C.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Marlo v. United Parcel Service, Inc., 251 F.R.D. 476, 2008 U.S. Dist. LEXIS 48841, 2008 WL 2485175 (C.D. Cal. 2008).

Opinion

ORDER DECERTIFYING THE CLASS

DEAN D. PREGERSON, District Judge.

This matter is before the Court on the Court’s Order Setting a Decertification Hearing. (Order Setting Decertification Hearing, April 1, 2008.) Michael Mario (“Plaintiff’) filed this action, on behalf of himself and a class of similarly situated individuals (“the class”), against United Parcel Service, Inc. (“UPS”) for violations of California state law wage-and-hour law. A class was certified pursuant to Federal Rule of Civil Procedure 23 on June 10, 2004. After meeting with the parties on several occasions, reviewing the many papers submitted by the parties in this action, and hearing oral argument, the Court [479]*479finds that it is appropriate to decertify the class.

I. BACKGROUND

In 2003, Plaintiff Mario filed a class action complaint against UPS that asserted several claims, including failure to pay overtime compensation and failure to provide meal and rest breaks in violation of California law. The Court granted Plaintiffs motion for class certification on June 10, 2004. The class was composed of all UPS employees working in California in the capacity of Full-Time Preload Supervisors, Full-Time Package Center Supervisors (also known as “On Road Supervisors”), and Full-Time Hub Operations Supervisors (collectively “Full-Time Supervisors” or “FTS”) from May 6, 1999 to the present. (Order Granting Class Certification, June 10, 2004.)

UPS’s Motion For Summary Judgment Or, In the Alternative, Partial Summary Judgment Based On the Executive and Administrative Exemptions (“UPS’s Motion For Summary Judgment”), and Plaintiff Mario’s Motion For Partial Summary Judgment As To Executive Exemption and Motion For Partial Summary Judgment As To Administrative Exemption (“Plaintiffs Motions For Partial Summary Judgment”) came before the Court on August 17, 2005. On August 23, 2005, the Court granted Defendant’s Motion For Summary Judgment and denied Plaintiffs Motions For Partial Summary Judgment, which resolved all the claims presented in the complaint in UPS’s favor as to Plaintiff and all members of the class. (Order Granting Defendant’s Motion for Summary Judgment, August 23, 2005.)

On October 25, 2007, the Ninth Circuit reversed and remanded the ease. Marlo v. UPS, Inc., 254 Fed.Appx. 568 (9th Cir. Oct. 25, 2007). The Ninth Circuit held that Plaintiff had “raised material issues of fact related to whether the FTS ‘customarily and regularly exercised discretion and independent judgment.’ ” Id. This Court held a remand hearing on January 25, 2008. At that hearing, the Court indicated that the case should proceed to trial. Subsequently, the Court met with the parties on several occasions to discuss various substantive and management issues in preparation for trial, and also received a number of briefs on those issues. During the course of these sessions, the Court became increasingly concerned that individualized issues may predominate over class-wide issues, and that as a result, Plaintiffs class may no longer satisfy the Rule 23 requirements. The Court thus decided to entertain further briefing from the parties and to have an additional hearing regarding decertification.

II. LEGAL STANDARD FOR CLASS DECERTIFICATION

The district court’s order to grant class certification is subject to later modification, including class decertification. See Fed. R. 23(c)(1)(C) (“An order that grants or denies class certification may be altered or amended before final judgment.”); Coopers & Lybrand v. Livesay, 437 U.S. 463, 469 n. 11, 98 S.Ct. 2454, 57 L.Ed.2d 351 (1978) (describing a court’s class certification order as “inherently tentative”); see also Officers For Justice v. Civil Serv. Comm’n, 688 F.2d 615, 633 (9th Cir.1982). In considering the appropriateness of decertification, the standard of review is the same as a motion for class certification: whether the Rule 23 requirements are met. O’Connor v. Boeing N. Am., Inc., 197 F.R.D. 404, 410 (C.D.Cal.2000).

Rule 23(a) requires that class members demonstrate numerosity, commonality, typicality, and adequate representation of the class interest. Fed. R. Civ. Pro. 23(a); Hanon v. Dataproducts Corp., 976 F.2d 497, 508 (9th Cir.1992). Rule 23(b)(3) additionally requires that the court find “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. Pro. 23(b)(3).

Although certification decisions are not to focus on the merits of a plaintiffs claim, see Eisen v. Carlisle and Jacquelin, 417 U.S. 156, 178, 94 S.Ct. 2140, 40 L.Ed.2d 732 (1974), a district court reevaluating the basis for certification may consider its previ[480]*480ous substantive rulings in the context of the history of the case, O’Connor, 197 F.R.D. at 410, and may “consider the nature and range of proof necessary to establish the [class-wide] allegations.” Id. (citing In re Coordinated Pretrial Proceedings in Petroleum Products Antitrust Litig., 691 F.2d 1335, 1342 (9th Cir.1982)) (citing Blackie v. Barrack, 524 F.2d 891, 901 (9th Cir.1975)).

III. DISCUSSION

Here, the Court considers decertification of a class of approximately 1200 supervisors that work for UPS. In what follows, the Court first mentions the changed circumstances since the .initial certification decision, that along with more basic concerns about common proof of misclassification, support considering decertification. The Court then discusses California law on the overtime exemption in the context of a class action lawsuit and examines the burden of proof on misclassification in a class action trial. After a brief review of the parties’ evidence in this case, the Court proceeds to the Rule 23 inquiry, which focuses on whether there is commonality and whether there is a predominance of common issues such that class treatment remains appropriate.

A. Changes Since The Court’s Certificar tion Order

In its Order granting class certification, the Court found that the Rule 23(a) and Rule 23(b)(3) requirements had been satisfied. Among its findings, the Court determined that there was commonality and a predominance of common issues based upon class members’ similar job duties, UPS’s overtime exemption policy, and the predominant legal question was “whether UPS wrongly classified Full Time Supervisors as exempt from overtime compensation.” (Order Granting Class Certification, at 6, 13.) Notably, the Court accepted Plaintiffs representation that common proof of misclassification would be offered to determine the class-wide applicability of the exemption.1

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Bluebook (online)
251 F.R.D. 476, 2008 U.S. Dist. LEXIS 48841, 2008 WL 2485175, Counsel Stack Legal Research, https://law.counselstack.com/opinion/marlo-v-united-parcel-service-inc-cacd-2008.