Sav-On Drug Stores, Inc. v. Superior Court

118 Cal. Rptr. 2d 792, 97 Cal. App. 4th 1070
CourtCalifornia Court of Appeal
DecidedJuly 17, 2002
DocketB152628
StatusPublished

This text of 118 Cal. Rptr. 2d 792 (Sav-On Drug Stores, Inc. v. Superior Court) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sav-On Drug Stores, Inc. v. Superior Court, 118 Cal. Rptr. 2d 792, 97 Cal. App. 4th 1070 (Cal. Ct. App. 2002).

Opinion

118 Cal.Rptr.2d 792 (2002)
97 Cal.App.4th 1070

SAV-ON DRUG STORES, INC., Petitioner,
v.
The SUPERIOR COURT of Los Angeles County, Respondent;
Robert Rocher et al., Real Parties in Interest.

No. B152628.

Court of Appeal, Second District, Division Four.

April 4, 2002.
Review Granted July 17, 2002.

*793 Akin, Gump, Strauss, Hauer & Feld, W. Randolph Teslik, Joel M. Cohn, William A. Norris, Los Angeles, Rex Heinke, Beverly Hills, L. Rachel Helyar, Encino, and Sandra M. Lee for Petitioner.

Law Offices of Steven Drapkin and Steven Drapkin, Los Angeles, for Employers Group as Amicus Curiae on behalf of Petitioner.

No appearance for Respondent.

Righetti-Wynne, Matthew Righetti, and Edward J. Wynne, San Francisco; Daniels, Fine, Israel & Schonbuch, Scott A. Brooks, and Craig S. Momita, Los Angeles, for Real Parties in Interest.

Saperstein, Goldstein, Demchak & Bailer, David Borgen, and Laura L. Ho, Oakland, for Asian Pacific American Legal Center of Southern California, the Legal Aid Society of San Francisco—the Employment Law Center, La Raza Centro Legal, Inc., and the Women's Employment Rights Clinic—Golden Gate University School of Law as Amici Curiae on behalf of Real Parties in Interest.

CHARLES S. VOGEL, P.J.

INTRODUCTION

Plaintiffs Robert Rocher and Connie Dahlin (plaintiffs) on behalf of themselves and others similarly situated brought this class action against defendant Sav-on Drug Stores, Inc. (defendant). Plaintiffs allege that defendant wrongfully failed to pay overtime wages to class members, consisting of current and former employees classified by defendant as operating managers (OM's) and assistant managers (AM's) of defendant's 300 retail stores and claimed by defendant to be managerial employees exempt from overtime wage laws. The trial court granted plaintiffs' motion for class certification. Defendant petitioned this court for a writ of mandate to compel the trial court to deny class certification. We issued an order to show cause.

We shall issue the writ directing the trial court to vacate its order granting class certification. We hold the trial court abused its discretion. The disputed issue in this case, whether the class members were exempt from overtime wage laws, involves individual fact questions that predominate over undisputed common issues, *794 rendering class action treatment inappropriate. In a later portion of this opinion we dispose of routine procedural issues regarding this writ proceeding.

LEGAL BACKGROUND

Exemption from Overtime Wage Requirements

The underlying merits involve whether the AM's and OM's should have been paid overtime wages. Defendant treated them as salaried managers exempt from the overtime wage laws. The period covered by the present complaint is April 1996 to April 2000. A wage order of the Industrial Welfare Commission relating to the mercantile industry, codified in title 8, California Code of Regulations section 11070, provided that the overtime requirements do not apply to "persons employed in administrative, executive, or professional capacities," defined as "engaged in work which is primarily intellectual, managerial, or creative, and which requires exercise of discretion and independent judgment." (§ 11070, subd. 1(A)(1).) "Primarily" was defined as "more than one-half the employee's work time." (§ 11070, subd. 2(J).)

In Ramirez v. Yosemite Water Co. (1999) 20 Cal.4th 785, 85 Cal.Rptr.2d 844, 978 P.2d 2, involving an analogous wage order of the Industrial Welfare Commission relating to outside salespersons, the California Supreme Court construed this quantitative test. The court held that in determining whether an individual employee is exempt, the first and foremost factor is the work actually performed by the employee; the amounts of time the employee spends on exempt and nonexempt work, together with the employer's realistic expectations and the realistic requirements of the job, must be considered. (Id. at pp. 802-803 & fn. 5, 85 Cal.Rptr.2d 844, 978 P.2d 2.)

The parties do not dispute that Ramirez states the applicable test to determine whether an individual employee is exempt from the overtime requirements. Parenthetically, we note that the Industrial Welfare Commission subsequently adopted the Ramirez test, in addition to other specific criteria, in its current wage order determining exemptions in the mercantile industry. (Industrial Welfare Commission wage order No. 7-2001 Regulating Wages, Hours and Working Conditions in the Mercantile Industry, effective January 1, 2001; see Lab.Code, § 515.) As before, primarily means more than one-half the employee's work time.

Class Action Requirements

A class action must meet certain prerequisites. Among these, the questions of law or fact that are common to all members of the class must predominate over the questions of law or fact that are individual to each member. Despite the existence of some common questions of law or fact, a class action may not be maintained if each member's right to recover depends on separate facts applicable only to that individual. (City of San Jose v. Superior Court (1974) 12 Cal.3d 447, 459, 115 Cal.Rptr. 797, 525 P.2d 701; Gerhard v. Stephens (1968) 68 Cal.2d 864, 913, 69 Cal.Rptr. 612, 442 P.2d 692; Weaver v. Pasadena Tournament of Roses (1948) 32 Cal.2d 833, 839, 198 P.2d 514; McCullah v. Southern Cal. Gas Co. (2000) 82 Cal. App.4th 495, 501-502, 98 Cal.Rptr.2d 208; Kennedy v. Baxter Healthcare Corp. (1996) 43 Cal.App.4th 799, 809, 50 Cal. Rptr.2d 736; Clausing v. San Francisco Unified School Dist. (1990) 221 Cal.App.3d 1224, 1233-1234, 271 Cal.Rptr. 72; Brown v. Regents of University of California (1984) 151 Cal.App.3d 982, 988-989, 198 Cal.Rptr. 916.)

The plaintiff proponent of class certification bears the burden to establish that the common questions predominate. *795 (Washington Mutual Bank v. Superior Court (2001) 24 Cal.4th 906, 913, 103 Cal. Rptr.2d 320, 15 P.3d 1071; City of San Jose v. Superior Court, supra, 12 Cal.3d at p. 460, 115 Cal.Rptr. 797, 525 P.2d 701.) A trial court abuses its discretion by certifying a class action if numerous and substantial questions relating to each member individually must be litigated and these predominate over the common questions that may be jointly tried. (Washington Mutual Bank v. Superior Court, supra, 24 Cal.4th at pp. 913-914, 103 Cal.Rptr.2d 320, 15 P.3d 1071; City of San Jose v. Superior Court, supra, 12 Cal.3d at p. 458, 115 Cal.Rptr. 797, 525 P.2d 701.)

The issue in dispute in this writ proceeding is whether the common issues or the individual issues predominate.

FACTUAL AND PROCEDURAL BACKGROUND

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118 Cal. Rptr. 2d 792, 97 Cal. App. 4th 1070, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sav-on-drug-stores-inc-v-superior-court-calctapp-2002.