Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-3_06-cv-04347/USCOURTS-cand-3_06-cv-04347-12/pdf.json

Nature of Suit Code: 710
Nature of Suit: Fair Labor Standards Act
Cause of Action: 29:201 Fair Labor Standards Act

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United States District Court

For the Northern District of California

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United States District Court

For the Northern District of California

IN THE UNITED STATES DISTRICT COURT

FOR THE NORTHERN DISTRICT OF CALIFORNIA

RICHARD CASTLE, et al.,

Plaintiffs,

 v.

WELLS FARGO FINANCIAL, INC., d/b/a/

WELLS FARGO FINANCIAL AND WELLS

FARGO FINANCIAL ACCEPTANCE, and

DOES 1-50,

Defendants. /

No. C 06-4347 SI

ORDER GRANTING MOTION TO

EQUITABLY TOLL STATUTE OF

LIMITATIONS

By order filed March 5, 2007, the Court stayed this action until the California Supreme Court

decides Gentry v . Superior Court (S141502). On April 10, 2007, the Court ordered defendant to show

cause why plaintiffs’ motion to equitably toll the FLSA statute of limitations for all putative class

members from March 2, 2007 until the stay is lifted should not be granted. After reviewing the parties’

supplemental briefing on this issue, the Court GRANTS plaintiffs’ motion to equitably toll the FLSA

statute of limitations for all putative class members from March 2, 2007 until the stay in this litigation

is lifted. 

Where plaintiffs are without fault and there are “substantial policy reasons” for doing so, a court

may equitably toll the statute of limitations in a FLSA action. Partlow v. Jewish Orphans’ Home of

Southern Cal., Inc., 645 F.2d 757, 760-61 (9th Cir. 1981), abrogated on other grounds by HoffmanLaRoche Inc. v. Sperling, 493 U.S. 165 (1989). Here, there is no dispute that plaintiffs are without fault.

In addition, the unusual circumstances of this case weigh in favor of equitable tolling. The Court stayed

this litigation in anticipation of the California Supreme Court’s decision regarding the validity of

Case 3:06-cv-04347-SI Document 163 Filed 06/29/07 Page 1 of 2
United States District Court

For the Northern District of California

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Relying on United States v. Cook, 795 F.2d 987, 994 (Fed. Cir. 1986), defendant contends that

the Court lacks authority under Article III to toll the FLSA statute of limitations for prospective

plaintiffs. The Court is not bound by Cook and the Ninth Circuit has not spoken on the issue. Moreover,

since Cook was decided, other courts have equitably tolled the statute of limitations for putative class

members. See, e.g., Adams v. Inter-Con Security Systems, Inc., 2007 1089694, *18 (N.D. Cal. Apr. 6,

2007); Beauperthuy v. 24 Hour Fitness USA, Inc., 2007 WL 707475, *8 (N.D. Cal. Mar. 6, 2007); Lee

v. ABC Carpet & Home, 236 F.R.D. 193, 200 (S.D.N.Y. 2006). The sole Ninth Circuit case to which

defendant points does not address equitable tolling. SNEA v. Bryan, 916 F.2d 1384, 1391 (9th Cir.

1990). Further, Cook recognizes that a court could equitably toll the statute of limitations for class

members once they opted in to this action. Cook, 795 F.2d at 994.

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arbitration agreements signed by a sub-portion of plaintiffs and potential class members. Tolling the

FLSA statute of limitations will preserve the claims of potential class members who never signed

arbitration agreements and whose claims will be unaffected by the Gentry decision. The Court finds

that the statute of limitations should be equitably tolled to eliminate any prejudice suffered by the

collective class members as a result of the stay.1

 

Defendant argues that at a minimum, the statute of limitations should not be tolled for putative

class members who have received notice of this case from plaintiffs’ counsel and have chosen not to file

a consent form. The Court disagrees, and finds that such partial tolling would be needlessly

complicated, difficult to administer, and not in the interest of judicial efficiency. 

For the aforementioned reasons, the Court GRANTS plaintiffs’ motion to equitably toll the

FLSA statute of limitations for putative class members from March 2, 2007 until the stay in this

litigation is lifted. [Docket No. 143].

IT IS SO ORDERED.

Dated: June 29, 2007 

SUSAN ILLSTON

United States District Judge

Case 3:06-cv-04347-SI Document 163 Filed 06/29/07 Page 2 of 2