Tracy v. Dean Witter Reynolds, Inc.

185 F.R.D. 303, 1998 U.S. Dist. LEXIS 22212, 1998 WL 1031414
CourtDistrict Court, D. Colorado
DecidedFebruary 24, 1998
DocketNo. Civ.A. 96 Z 501
StatusPublished
Cited by10 cases

This text of 185 F.R.D. 303 (Tracy v. Dean Witter Reynolds, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tracy v. Dean Witter Reynolds, Inc., 185 F.R.D. 303, 1998 U.S. Dist. LEXIS 22212, 1998 WL 1031414 (D. Colo. 1998).

Opinion

ORDER

SCHLATTER, United States Magistrate Judge.

Plaintiffs are non-exempt employees of Dean Witter Reynolds (Dean Witter) who claim in this lawsuit that Dean Witter has failed to pay them overtime compensation for hours of overtime which they worked and reported, in violation of the Fair Labor Standards Act (FLSA). They have filed a Motion to Extend Discovery. The effort to obtain extended discovery in this case is part of plaintiffs’ efforts to obtain the certification of a class for purposes of a class action and/or collective action against Dean Witter. Fed. R.Civ.P. 23; 42 U.S.C. § 216(b). To date, I have allowed plaintiffs to conduct discovery only in the Dean Witter office which is located at the Denver Tech Center.

Dean Witter has approximately 400 offices throughout the nation, and employs approximately 8,000 non-exempt employees. Plaintiffs seek in this present motion an order [304]*304which will authorize them to conduct discovery from other Dean Witter offices on a graduated basis: initially from 40 of the Dean Witter offices, later from all 800 of the offices. Dean Witter vigorously objects to plaintiffs’ efforts to extend discovery.

I conducted a hearing on plaintiffs’ motion on February 4, 1998. Having considered the briefs, and having heard arguments of counsel, I find that plaintiffs’ have failed to persuade me that extended discovery should be allowed in this case. Therefore, plaintiffs’ motion will be denied.

I. BACKGROUND

I am not asked to consider whether a class action or collective action should be certified in the circumstances of this case. Plaintiffs have filed a Motion for Class Certification, and that motion is pending before Judge Weinshienk. At this stage of the proceedings, Judge Weinshienk has not accorded either class status, or conditional class status, to the persons whom plaintiffs allege should be included in this ease, nor has she permitted plaintiffs to send notice to prospective members of the class.

My responsibility in this case is to regulate and govern the discovery proceedings. At the time of the scheduling conference, May 3, 1996, plaintiffs asked to be permitted to take discovery from offices beyond the Denver Tech Center, and I denied that request. I ruled at that time that I would not allow plaintiffs’ to conduct discovery beyond the Denver Tech Center unless or until they could present facts which demonstrated that there was a reasonable likelihood that Dean Witter had a national policy or practice to deny overtime to its employees in violation of the FLSA.

Plaintiffs renewed their request for extended discovery on several subsequent occasions, and on each occasion I denied those requests. I found that plaintiffs had not presented sufficient evidence to satisfy me that Dean Witter had a national policy or practice which violated the FLSA. Objections were taken by the plaintiffs from each of my rulings. On each occasion, Judge Weinsh-ienk overruled plaintiffs’ objections, and affirmed my rulings.

Plaintiffs’ latest motion was filed on September 16, 1997. In this motion, plaintiffs argue that the discovery which has been conducted locally, at the Dean Witter office at the Denver Tech office, demonstrates that “Dean Witter Reynolds does, in fact, have a nationwide de facto policy and practice of refusing to pay earned and reported overtime wages as required by the FLSA.” PI. Mtn, p. 20. Plaintiffs argue:

This failure to compensate full-time, nonexempt employees in the Denver office for overtime was hardly the result of inadvertence or coincidence. Instead it was the product of a coherent, clearly established and regularly honored policy of denying payment for overtime to employees who earned it.

Memo. Class Cert., 3-4.

II. PRINCIPLES OF LAW

District Judge Edward W. Nottingham of this Court has explained convincingly that the procedures for a collective action pursuant to Section 216 should be the same as those procedures which are provided for a class action under Rule 23. Shushan v. University of Colorado, 132 F.R.D. 263, 268 (D.Colo.1990); see also, Bayles v. American Medical Response of Cobrado, 950 F.Supp. 1053, 1060-61 (D.Colo.1996) (Babcock, J.). Thus, in weighing whether plaintiffs have presented sufficient evidence to justify extended discovery in this case, I make no distinctions as between plaintiffs’ efforts to obtain certification of either, or both, a class action or a collective action. Both types of actions must satisfy the requirements which are associated with numerosity, commonality, typicality and adequacy of representation. Fed.R.Civ.P. 23(a)(l)-(4).

Obviously, some discovery is necessary prior to a determination of class certification. National Organization for Women v. Sperry Rand Corp., 88 F.R.D. 272, 276 (D.Conn.1980); see also, East Texas Motor Freight System, Inc. v. Rodriguez, 431 U.S. 395, 405-06, 97 S.Ct. 1891, 1897-98, 52 L.Ed.2d 453 (1977). However, the recognized need for pre-certification discovery is subject to limitations which may be imposed [305]*305by the court, and any such limitations are within the sound discretion of the court. National Organization for Women, 88 F.R.D. at 277; Chateau de Ville Productions, Inc. v. Tams-Witmark Music Library, Inc., 586 F.2d 962, 966 (2d Cir.1978). The discovery which is permitted should be sufficiently broad that the plaintiffs have a fair and realistic opportunity to obtain evidence which will meet the requirements of Rule 23, yet not so broad that the discovery efforts present an undue burden to the defendant. National Organization for Women, 88 F.R.D. at 277. “Discovery is not to be used as a weapon, nor must discovery on the merits be completed precedent to class certification.” Id.

In managing discovery in cases of this nature, district courts are required to balance the need to promote effective case management, the need to prevent potential abuse, and the need to protect the rights of all parties. Shushan v. University of Colorado, 132 F.R.D. at 268. Class plaintiffs are not permitted to send notices to prospective members of a class if the only evidence of a class action consists of the bare allegations of the complaint, or of counsel. Id; see also Severtson v. Phillips Beverage Co., 137 F.R.D. 264, 266 (D.Minn.1991). Before notice to the class will be authorized in this district, one court requires that plaintiffs meet all of the requirements of a Rule 23 class action. Shushan, 132 F.R.D. at 268. However, at this stage of the proceedings, I need not decide whether the requirements of Rule 23 have been met. That decision is to be made by Judge Weinshienk when she rules on plaintiffs’ motion for class certification. I need only decide whether plaintiffs have presented sufficient information to persuade me that they ought to be allowed to conduct discovery from Dean Witter offices beyond the Denver Tech Center.

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Bluebook (online)
185 F.R.D. 303, 1998 U.S. Dist. LEXIS 22212, 1998 WL 1031414, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tracy-v-dean-witter-reynolds-inc-cod-1998.