Sperling v. Hoffmann-La Roche, Inc.

145 F.R.D. 357, 1992 U.S. Dist. LEXIS 20351, 64 Empl. Prac. Dec. (CCH) 43,010, 60 Fair Empl. Prac. Cas. (BNA) 902, 1992 WL 398471
CourtDistrict Court, D. New Jersey
DecidedDecember 18, 1992
DocketCiv. A. No. 85-2138
StatusPublished
Cited by3 cases

This text of 145 F.R.D. 357 (Sperling v. Hoffmann-La Roche, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sperling v. Hoffmann-La Roche, Inc., 145 F.R.D. 357, 1992 U.S. Dist. LEXIS 20351, 64 Empl. Prac. Dec. (CCH) 43,010, 60 Fair Empl. Prac. Cas. (BNA) 902, 1992 WL 398471 (D.N.J. 1992).

Opinion

[358]*358OPINION

HAROLD A. ACKERMAN, District Judge.

This is a putative class action brought by former employees of defendant HoffmannLa Roche, Inc. (“Roche”), on behalf of themselves and others similarly situated, alleging violations of the Age Discrimination in Employment Act (“ADEA”), 29 U.S.C. § 621 et seq. Before me now is plaintiffs’ motion for legal tolling of the statute of limitations. This motion was referred .to the Special Master appointed in this action, who submitted a Report recommending that the court grant plaintiffs’ motion. Because the motion for legal tolling is a dispositive motion, I must review the matter de novo.

For the reasons discussed below, plaintiffs’ motion for legal tolling is granted.

I. FACTUAL AND PROCEDURAL BACKGROUND

On February 4, 1984, Roche discharged or demoted about 1,200 employees pursuant to a systematic reduction in force, or “RIF.” Richard Sperling, one of the employees and a named plaintiff in this case, filed an age discrimination charge with the Equal Employment Opportunity Commission (“EEOC”) for himself and for all employees similarly situated. On May 7, 1985, Sperling, along with the other named plaintiffs, filed an action in this court alleging, inter alia, that the defendant had discriminated against a defined class of employees in violation of the ADEA. Plaintiffs then moved for discovery of the names and addresses of all similarly situated employees and requested that the court send notice of the action to all potential class members. The court granted plaintiffs’ motion on January 5, 1988. The court’s order authorized plaintiffs to send a notice and consent form to employees and provided that all consents be filed with this court by a certain date. This order was subsequently affirmed by both the Third Circuit and the United States Supreme Court.

In April 1990, the notice of pendency of this action was finally circulated among Roche’s former employees. Thereafter, approximately 100 persons filed consents to join the action. These consents, although filed within the time permitted by this court’s order, were filed after the applicable statute of limitations had expired. Plaintiffs then moved for an order providing that the filing of the original complaint in this action tolled the statute of limitations as to those plaintiffs who subsequently joined the action.

This motion was referred to the Special Master in this case, Professor Alan Schwartz. The parties fully briefed the issue and had oral argument before the Special Master, who issued his Report on August 28, 1992. The Report recommends that plaintiffs’ motion for legal tolling of the statute of limitations be granted as to those individuals who joined the action in accordance with the procedure established by this court’s order of January 5, 1988.

In his Report, the Special Master observed that neither the statutory language nor the legislative history of the ADEA provides a definitive answer to the question of tolling in ADEA actions. He therefore proceeded to analyze the policies underlying the statute of limitations and class actions, generally and under the ADEA. He first reasoned that a class action should be treated like a true representative class action when 1) the rights of nonparties are fully protected by the named plaintiff because the named plaintiff raises the claims of all class members and must prove everything the class members would have to prove; and 2) the defendant receives adequate notice of all class members’ claims from the class complaint. The Special Master then reasoned that when these requirements are satisfied, the statute of limitations should be tolled since the goals of the statute of limitations—timely notice to the defendant of the claims against it and preventing plaintiffs from sleeping on their rights—are also satisfied. With respect to class actions under the ADEA, the Special Master noted that age discrimination cases often raise issues common to large groups of employees. That is, the claims of all class members are similar where an em[359]*359ployer is alleged to have engaged in a practice or course of conduct that affected a large number of employees in a similar fashion. Thus, when an ADEA action is brought, the named plaintiff will raise the claims of all affected employees and the defendant employer is given timely notice of all claims against it. The Special Master thus concluded that ADEA class actions should be treated as true representative class actions for purposes of the statute of limitations, thereby warranting tolling. He noted that tolling is also consistent with the antidiscrimination goals of the ADEA.

The defendant filed objections to the Special Master’s Report on October 13, 1992. Plaintiffs responded to those objections and the defendant was given the opportunity to reply.

II. DISCUSSION

A. Background Discussion

1. Class Actions under Rule 23

To provide a background for my analysis of class actions under the ADEA and tolling, I will begin with a brief discussion of the class action procedure created by Rule 23 of the Federal Rules of Civil Procedure. Rule 23 governs most federal class actions, including those involving race and sex discrimination. See Fed.R.Civ.P. 23. Under Rule 23, all class members are automatically bound by the judgment. That is, there is no requirement that class member affirmatively join the action in order to participate in the action and be .bound by the judgment. Under Rule 23(b)(3), class member may elect to “opt-out” of the class action, however, and thus not be bound by the judgment. Under Rule 23(b)(1) and (b)(2) class members are precluded from opting-out.

The Supreme Court has held that under Rule 23, the commencement of a class action tolls the statute of limitations as to all class members. American Pipe & Constr. Co. v. Utah, 414 U.S. 538, 554, 94 S.Ct. 756, 766, 38 L.Ed.2d 713 (1974). The Court stated that a principal purpose of the class action procedure is the “promotion of efficiency and economy of litigation.” Id. at 553, 94 S.Ct. at 766. According to the court, tolling is necessary to protect these policies. Id. at 554, 94 S.Ct. at 766. Unless the filing of the class action complaint tolled the statute of limitations, potential class members would be induced to file motions to intervene or to join, or to file separate actions in order to protect themselves in the event that class certification was denied. Id. at 553, 94 S.Ct. at 766.

2. Class Actions under the ADEA

The ADEA prohibits employers from discriminating against employees on the basis of age. Enforcement of the ADEA is governed in part by certain provisions of the Fair Labor Standards Act, 29 U.S.C. § 201 et seq., (“FLSA”). That is, the enforcement provision of the ADEA, 29 U.S.C.

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Sperling v. Hoffmann-La Roche, Inc.
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145 F.R.D. 357, 1992 U.S. Dist. LEXIS 20351, 64 Empl. Prac. Dec. (CCH) 43,010, 60 Fair Empl. Prac. Cas. (BNA) 902, 1992 WL 398471, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sperling-v-hoffmann-la-roche-inc-njd-1992.