Puffer v. Allstate Insurance

614 F. Supp. 2d 905, 2009 U.S. Dist. LEXIS 20577, 2009 WL 669780
District Court, N.D. Illinois·Decided March 12, 2009·No. Case 04 C 5764·Published·Cited by 8 cases

Opinion

MEMORANDUM OPINION AND ORDER

SIDNEY I. SCHENKIER, United States Magistrate Judge.

Katherine Puffer filed this suit on behalf of herself and a putative class alleging that Allstate Insurance Company carried out a nationwide pattern or practice of sex discrimination in violation of Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e et seq., and the Equal Pay Act, 29 U.S.C. §§ 206 and 207 (doc. # 13: Am. Compl. at 11-12, ¶ 4). Plaintiff moved to certify a class of “[a]ll female managers holding the position of Division or Department manager and above who worked or continue to work at Allstate Protection at any time between May 9, 2001, and the present and who have been and continue to be injured by the alleged discriminatory employment policies and practices” (doc. # 126: Pl.’s Class Cert. Mem. at 21). On January 15, 2009, this Court issued an opinion denying plaintiffs motion for class certification on the grounds that plaintiffs proposed class did not meet several of the requirements for class certification under Federal Rule of Civil Procedure 23: commonality, typicality, predominance, and superiority. Puffer v. Allstate Ins. Co., 255 F.R.D. 450 (N.D.Ill.2009). The order denying class certification was entered on January 20, 2009 (doc. # 259).

Although the filing of this case tolled the statute of limitations for all putative members of the proposed class, the statute resumed running for those putative class members once this Court entered the order denying class certification on January 20, 2009. Culver v. City of Milwaukee, 277 F.3d 908, 914 (7th Cir.2002). As a result, on January 21, 2009, plaintiff filed an emergency motion to stay the order denying class certification pending the Court’s decision on notice to the putative class (doc. # 261). In her motion, plaintiff asked this Court: (1) to issue notice to putative class members of our ruling denying class certification; and (2) to toll the statute of limitations for each putative class member mmc pro tunc from January 20, 2009, for an indefinite “reasonable” period of time to allow class members time to evaluate and pursue their claims against Allstate (Id. at 1, 6; see also doc. # 264: PL’s Initial Mem. at 1).

At the hearing on plaintiffs emergency motion, the Court explained that it would not stay the order denying class certification because of the effect that could have on the deadline for seeking an interlocutory appeal pursuant to Federal Rule of Civil Procedure 23(f) (doc. # 267: 01/22/09 Tr. at 7). 1 We rephrased plaintiffs motion as one that sought to stay the effect of the *908 order denying class certification until the Court decided whether to issue notice (Id. at 3, 7). In addition, we determined that the motion did not present an emergency: if the Court ultimately decides to stay the effect that its order has on the resumption of the statute of limitations, and to do so nunc pro tunc to January 20, 2009, as plaintiff has requested, it would not matter whether the Court did so immediately or after receiving briefing and taking the matter under advisement (Id. at 3, 8). We ordered briefing on the following issues: (1) whether the putative class should receive formal notice, under Rule 23, of the denial of class certification and the resumption of the statute of limitations; (2) whether we should stay the effect of our January 20 order on the resumption of the statute of limitations; and (3) whether we should rule that the statute of limitations should be equitably tolled for putative class members for some reasonable period of time (Id. at 15-16). Upon reviewing the parties’ submissions directed to these issues, the Court asked the parties for “their views, supported by any relevant authority, as to the Court’s subject matter and/or personal jurisdiction to rule on equitable tolling for persons who are not named plaintiffs in the case, but who are within the definition of the putative class for which certification was denied” (doc. #266: 02/05/09 Min. Order). The Court has received and reviewed those supplemental submissions.

For the reasons that follow, we grant plaintiffs motion in part. We hold that under Rule 23(d), we have the discretion to order that the putative class receive notice that class certification has been denied and that this ruling triggered the resumption of the statute of limitations. We further exercise that discretion to require that notice to be sent in this case — although not in the form that plaintiff suggests. However, we deny plaintiffs motion insofar as it asks us to stay the effect of our denial of class certification on the resumption of the statute of limitations, or to make a ruling that all 1,700 putative class members are entitled to equitable tolling of the statute of limitations.

I.

We address first the question of our authority under Rule 23 to require that the putative class members be given notice of the denial of class certification and its effect on the resumption of the statute of limitations. In Culver, the Seventh Circuit held that Rule 23(e) required notice to putative class members following decertification of a class, because decertification has the same effect on members of the class, so far as the running of the statute of limitations is concerned, as dismissal of the class action. 277 F.3d at 915. In so ruling, the appeals court stated that Rule 23(e) required that notice of a dismissal be given to “all members of the class.” Id. at 913. The Seventh Circuit explained that the purpose of this notice is “to enable the class members to protect their interests in the face of the dismissal of the class action,” and that one of their interests that warranted their protection was the possible “expiration of the statute of limitations on the class members’ claims without their realizing it.” Id. at 913-14.

The Culver court then addressed whether the use of the word “class” in Rule 23(e) applied to putative classes prior to certification. The appeals court stated that while the question had not yet been “definitively settled,” the “better view” is that *909 Rule 23(e) applies to the dismissal of a class action prior to certification, reasoning that “the context in which ‘class’ is used in Rule 23(e) indicates that it is not limited to a certified class.” 277 F.3d at 914. The Seventh Circuit further explained that “[t]he prejudice to class members from a dismissal of which they may be unaware is the same” whether that comes after a class is certified or if certification is denied. Id.,

In the wake of Culver,

Free access — add to your briefcase to read the full text and ask questions with AI

Puffer v. Allstate Insurance, 614 F. Supp. 2d 905, 2009 U.S. Dist. LEXIS 20577, 2009 WL 669780 (N.D. Ill. 2009).

614 F. Supp. 2d 905 (Puffer v. Allstate Insurance) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Scholl v. Mnuchin
N.D. California, 2020
Van v. Ford Motor Company
N.D. Illinois, 2018
Barnes v. District of Columbia
924 F. Supp. 2d 103 (District of Columbia, 2013)
Green v. Harbor Freight Tools USA, Inc.
888 F. Supp. 2d 1088 (D. Kansas, 2012)