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WAL-MART: 9th Circuit Favors Assistant Managers in Overtime Suit
In an unpublished opinion, the 9th U.S. Circuit Court of Appeals says that the trial court -- U.S. District Court for the Central District of California -- erred when it refused to allow assistant managers at Wal-Mart to present their case as a class action suit, Digg Newsvine reports.
"The district court must focus on the intent of the plaintiffs in bringing suit. We therefore hold that the district court abused its discretion in denying class certification," 9th Circuit ruling said.
"On remand the district court shall reconsider class certification," the 9th Circuit says.
The Class Action Reported on Oct. 16, 2007, that the U.S. District Court for the Central District of California stayed the purported class action, captioned "Sepulveda v. Wal-Mart Stores, Inc.," pending a decision on plaintiff's appeal in the matter.
Generally, the suit -- involving more than 2,750 assistant managers -- is alleging violations of California's meal break and overtime laws. It seeks certification of a class of salaried managers who challenge their exempt status under state and federal laws.
The CAR recounted that in May 2006, the federal court denied a motion for class certification. In refusing to certify the class action, Judge Dale S. Fischer found that the claims of the assistant managers were too individualized and that injunctive relief would fail to address the concerns of the majority of potential class members since they are no longer with the company.
The plaintiffs then appealed the ruling to the U.S. Court of Appeals for the Ninth Circuit. On Aug. 11, 2006, the 9th Circuit granted the plaintiffs permission to appeal the order denying class certification. In their appeal, the plaintiffs argued that the District Court's decision denying class certification was manifestly erroneous.
The District Court found that the stay of the suit was appropriate because the class certification decision involves an unsettled, fundamental issue of law.
The suit is "Daniel Sepulveda, et al. v. Wal-Mart Stores Inc., et al., Case No. 2:04-cv-01003-DSF-E," on appeal from the U.S. District Court for the Central District of California under Judge Dale Fischer.
Representing the plaintiffs are:
Robert J. Drexler, Jr., Esq. (rdrexler@quislaw.com) Quisenberry Law Firm 2049 Century Park East, Suite 2200 Los Angeles, CA 90067-2909 Phone: 310-785-7966
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Steven G. Pearl, Esq. (sgpearl@sgpearl.com) Pearl Law Offices 16133 Ventura Boulevard, Suite 625 Encino, CA 91436-2412 Phone: 818-995-8300
Representing the defendants is: Lawrence C. DiNardo, Esq. Jones Day 77 West Wacker Drive, Suite 35 Chicago, IL 60601-1692 Phone: 312-782-3939
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