Source: https://m.openjurist.org/564/f2d/859
Timestamp: 2020-04-02 00:44:00
Document Index: 533874684

Matched Legal Cases: ['§ 216', '§ 216', '§ 216', '§ 216', '§ 216', '§ 621', '§ 216', '§ 626', '§ 216', '§ 216', '§ 216', '§ 216', '§ 216', '§ 216', '§ 216', '§ 216', '§ 216', '§ 158', '§ 216', '§ 216']

564 F2d 859 Kinney Shoe Corporation v. W Vorhes a | OpenJurist
564 F. 2d 859 - Kinney Shoe Corporation v. W Vorhes a
564 F2d 859 Kinney Shoe Corporation v. W Vorhes a
564 F.2d 859
23 Wage & Hour Cas. (BN 593, 44 A.L.R.Fed. 109,
15 Empl. Prac. Dec. P 7958, 82 Lab.Cas. P 33,604
KINNEY SHOE CORPORATION, a New York Corporation, Defendant-Appellant,
Bob W. VORHES and John A. Wagner et al., Plaintiffs-Appellees.
No. 75-2242.
A. The Notice and Consent-to-Join
At the outset, it should be emphasized that this class action is being prosecuted under § 216(b), and not under Rule 23. Under § 216(b), a member of the class who is not named in the complaint is not a party unless he affirmatively "opts in" by filing a written consent-to-join with the court. 29 U.S.C. §§ 216(b) & 256. No member of the class is either bound by the class action adjudication or barred from filing an individual claim within the limitations period unless he opts to become a party. See generally 3B Moore's Federal Practice P 23.10(4) (2d ed. 1976). This is in contrast to a Rule 23 class action, where, in general, a member of the class once certified is a party to the action unless he affirmatively "opts out." See Fed.R.Civ.P. 23(c)(2)-(3). A FLSA class action under § 216(b) is "spurious," wherein the res judicata effect extends only to the named parties, see Committee Note of 1966 to Fed.R.Civ.P. 23, 3B Moore's Federal Practice, supra ; while in a "true" Rule 23 class action, the res judicata effect of a judgment extends to the entire class, see Committee Note, supra. Aside from the instant context, the question of the applicability of Rule 23 doctrine to § 216(b) cases also arises in suits under the Age Discrimination in Employment Act (ADEA), 29 U.S.C. §§ 621-634, by virtue of the provision that the ADEA shall be enforced under § 216(b). 29 U.S.C. § 626(b).
The clear weight of authority holds that Rule 23 procedures are inappropriate for the prosecution of class actions under § 216(b). See LaChapelle v. Owens-Illinois, Inc., 513 F.2d 286, 289 (5th Cir. 1975); McGinley v. Burroughs Corp., 407 F.Supp. 903, 911 (E.D.Pa.1975).3 At least two circuits have held that Rule 23 and § 216(b) class actions are "mutually exclusive" and "irreconcilable." See Schmidt v. Fuller Brush Co., 527 F.2d 532, 536 (8th Cir. 1975); LaChapelle, supra. Indeed, no case brought to our attention has approved notice to potential § 216(b) class plaintiffs.
Two ADEA cases have considered the issue before us and have held that notice to potential plaintiffs was unavailable in a § 216(b) class action. In McGinley, supra, plaintiffs argued that they could assert their age discrimination claims as a class action under Rule 23. After examining the legislative history of the ADEA, the court reasoned that in light of the clearly-stated applicability of § 216(b) to ADEA actions and the absence of reference to Rule 23 of which Congress was presumably well aware the legislature had clearly intended § 216(b) to afford a statutory class action "independent of and unrelated to the class action covered by Rule 23 . . . ." 407 F.Supp. at 911.
Plaintiffs then alternatively argued as appellees argue here that, even if Rule 23 were itself inapplicable, the court should nevertheless permit a Rule 23-type notice to facilitate the opting-in of potential class members. The court found that adoption of a portion of the procedures of Rule 23 would be just as contrary to the congressional intent as total adoption of the rule. 407 F.Supp. at 911.
In Roshto v. Chrysler Corp., 67 F.R.D. 28 (E.D.La.1975), plaintiff conceded that potential class action aspects in ADEA cases are governed by § 216(b), and defendant moved the court to fix a cutoff date for the appearance of additional plaintiffs. Plaintiff agreed, provided that she be given the right to notify potential plaintiffs of the pendency of the action. Noting the absence of specific authority for notice procedures in § 216(b) class actions, the court proceeded to analyze extensively the distinctions between Rule 23 and § 216(b).
The failure to provide for notice to the class can not be attributed to mere oversight. While notice is, of course, a standard feature of many Rule 23 class actions, it is all too easy to confuse the effect of notice with the true purpose which that notice serves. Needless to say, the effect of notifying potential class members is to alert them to the possibility that they may be sitting on legal claims of their own. Without the benefit of the information provided by the notice, many might never realize that their rights may have been violated and that redress is available in court. However, this interest is not one which class notice is designed to further. Instead, notice is necessary in appropriate cases under Rule 23 so as to provide the due process without which any subsequent judgment might not be binding on all class members. Under Rule 23(c)(2), notice must be ordered so that class members have the opportunity to opt out and avoid being bound by the disposition of the case. As the Advisory Committee noted, the various notice provisions of Rule 23 are "designed to fulfill requirements of due process to which the class action procedure is of course subject." 39 F.R.D. 69, 107 (1966) . . . .
67 F.R.D. at 29-30 (citation omitted). The court also considered the policy concerns of avoiding the involvement of either plaintiff or court in the stirring up of litigation and the solicitation of claims. Id. at 30. See Kline v. Coldwell, Banker & Co., 508 F.2d 226, 237-39 (9th Cir. 1974) (Duniway, J., concurring), cert. denied, 421 U.S. 963, 95 S.Ct. 1950, 44 L.Ed.2d 449 (1975); Cal. Penal Code § 158 (barratry). The notice proviso was refused. See also American Finance System Inc. v. Harlow, 65 F.R.D. 94, 111 (D.Md.1974) (rejects suggestion to append § 216(b) notice to Rule 23 notice involved in a related claim); Paddison v. Fidelity Bank, 60 F.R.D. 695, 700 (E.D.Pa.1973) (no authority under Rule 23 to issue notice in § 216(b) aspects of case); Bradford v. Peoples Natural Gas Co., 60 F.R.D. 432, 437 (W.D.Pa.1973) (concern with champerty problem).
As we reasoned in Pan American, in any action in which persons who do not affirmatively opt in will not be bound by the outcome, notice is not compelled by due process because the employees' right to litigate will not be compromised merely by their absence from the class proceedings. Appellees' citations to Eisen v. Carlisle & Jacquelin, 417 U.S. 156, 94 S.Ct. 2140, 40 L.Ed.2d 732 (1974), Armstrong v. Manzo, 380 U.S. 545, 85 S.Ct. 1187, 14 L.Ed.2d 62 (1965), Schroeder v. City of New York, 371 U.S. 208, 83 S.Ct. 279, 9 L.Ed.2d 255 (1962), Covey v. Town of Somers, 351 U.S. 141, 76 S.Ct. 724, 100 L.Ed. 1021 (1956), and Mullane v. Central Hanover Bank & Trust Co.,339 U.S. 306, 70 S.Ct. 652, 94 L.Ed. 865 (1950) Supreme Court cases all dealing with notice where disposition of the case absent the party raising the notice issue would prejudice his legal interests are thus inapposite. The Pan American court also disapproved notice to potential plaintiffs where based either on an unspecified "residual power," see 523 F.2d at 1077 n.3, or on Federal Rules of Civil Procedure 19-21, see 523 F.2d at 1078, 1079-80, additional points advanced by appellees here as well.
B. The Order to Produce
The Federal Rules of Civil Procedure endow district judges with broad, discretionary power to control discovery. See Fed.R.Civ.P. 26 & 33; Kamm v. California City Development Co., 509 F.2d 205, 209-10 (9th Cir. 1975); Heathman v. United States District Court for the Central District of California, 503 F.2d 1032, 1035 (9th Cir. 1974). Though basing the instant order to produce the requested employee lists on grounds and for purposes considered and disapproved in the preceding section would be improper, we cannot say that the district court would be entirely without a sustainable basis for its order. Cf., e. g., Burns v. Thiokol Chemical Corp., 483 F.2d 300, 306 (5th Cir. 1973) (in Civil Rights Act suit, statistics showing a past history of bi-racial employment discoverable as relevant despite absence of both "pattern or practice" claim and class allegation). We therefore vacate the order to produce the employee list for reconsideration in light of this opinion.
We are aware of only two cases holding to the contrary: Blankenship v. Ralston Purina Co., 62 F.R.D. 35, 39-41 (N.D.Ga.1973), and Laffey v. Northwest Airlines, Inc., 321 F.Supp. 1041, 1042-43 (D.D.C.1971). Blankenship was overruled in LaChapelle, supra, and in any event, as did the court in Paddison v. Fidelity Bank, 60 F.R.D. 695, 700 (E.D.Pa.1973), we decline to follow the minority view of Laffey