GONZALO P. CURIEL, District Judge.
Before the Court is a motion for class certification filed by Plaintiff Tanya Rosenberg ("Plaintiff"). (ECF No. 42.) Also before the Court is Defendant Renal Advantage's ("Defendant" or "Renal Advantage") motion to strike the declaration of Valerie Berkowtiz. (ECF No. 48.) For the reasons stated below, the Court
On September 15, 2011, Defendant removed the civil action from state court. (ECF No. 1.) On November 15, 2011, Plaintiff filed an amended class action complaint. (ECF No. 14, "FAC".) On October 12, 2012, the case was transferred to the undersigned judge. (ECF No. 41.) On November 2, 2012, Plaintiff filed a motion to certify the class. (ECF No. 42, "Pl. Mtn"). Defendants filed an opposition to Plaintiff's motion and moved to strike the declaration of Valerie Berkowitz. (ECF Nos. 46, 48, "Def. Opp.".) Plaintiff filed a reply to Defendant's opposition, and also opposed Defendant's request to strike. (ECF Nos. 52, 53.) On May 31, 2013, the Court held a hearing on the pending motions.
Plaintiff Tanya Rosenberg brings this class action complaint against her former employer Defendant Renal Advantage, Inc. on behalf of Registered Dieticians ("RDs") who were employed by the Defendant. Plaintiff was employed by Renal Advantage as a Registered Dietician from October 2004 through September 2010.
Defendant Renal Advantage is a provider of outpatient dialysis services and operates approximately 45-50 renal dialysis centers, commonly referred to as "Care Centers," throughout the state of California. (Pl. Mtn, "Statement of Facts" at 5-6). The Care Centers perform in-center hemo-dialysis and other related services to patients with stage 5 chronic kidney disease. (
The FAC contains the following five causes of action: (1) unfair competition in violation of Cal. Bus. & Prof. Code §§ 17200 et seq., (2) failure to pay overtime compensation in violation of Cal. Labor Code §§ 510, 1194 and 1198, (3) failure to provide accurate itemized wage statements in violation of Cal. Labor Code § 226, (4) failure to pay overtime compensation in violation of 29 U.S.C. § 201, et seq., and (5) violation of the Private Attorneys General Act as provided under Cal. Labor Code § 2698 et seq. Plaintiff seeks class certification as to the first three state law based causes of action.
Plaintiff alleges the RD job duties are outside the scope of the professional, administrative, or executive exemptions as provided by California law. Plaintiff claims the RD tasks were primarily day-to-day non-exempt production activities, and Defendant improperly misclassified all RDs as "exempt" and "salaried" employees.
Plaintiff describes the RDs as part of a broader production team of other medical professionals. The RDs utilize a defined skill set to review, plan and develop patient diets and offer patients education on nutrition and dietetics. Plaintiff alleges RDs do not provide "traditional" direct medical services to patients, render opinions or make any medical diagnosis. Rather, the RDs plan and develop patient diets in accordance with the orders given by the attending physician and RDs advice is subject to the physician's limitations.
The RDs allegedly worked eight to nine hours each workday or between two to five hours in overtime each week. Plaintiff claims as a result of the misclassification she and all other RDs were wrongfully denied overtime compensation, meal breaks and rest periods in violation of California labor laws, California Unfair Competition Law, and the Fair Labor Standards Act. Plaintiff also alleges RDs were not provided accurate itemized wage statements.
According to the Plaintiff's job description, Renal Advantage requires all Registered Dietitians possess specific qualifications. (Pl. Mtn, Ex. 7.) The RD must have a bachelor degree in Nutrition/Dietetics, must be a registered dietitian with the American Dietetic Association, and licensed in the practice of nutrition and dietetics. (
The job description provided to RDs by Renal Advantage identifies seven essential job responsibilities for the Registered Dietitians, which are broken down by percentage of time spent on each task. (
Federal Rule of Evidence 702 requires that a testifying expert be "qualified as an expert by knowledge, skill, experience, training, or education." Fed.R.Evid. 702. When faced with a proffer of expert testimony, a district court must determine whether the testimony is both reliable and relevant.
Defendant moves to strike the expert statement of Valerie Berkowitz. (Dkt. No. 48.) Defendant argues the Berkowitz declaration is deficient because it was not signed under penalty of perjury, and therefore fails to comport with 28 U.S. § 1746 and Local Civ. R. 1-1(e)(7). (
The Court finds Ms. Berkowitz is sufficiently qualified to provide expert testimony. Under Ninth Circuit law, an expert may be qualified through either practical training or academic experience.
Ms. Berkowitz testimony is sufficiently reliable and relevant. "When evaluating specialized or technical expert opinion testimony, `the relevant reliability concerns may focus on personal knowledge or experience.'"
Here, Ms. Berkowitz reviewed relevant testimony and declarations and Renal Advantage policies which resulted in an opinion that the RDs act more like vocational employees. (Berkowitz Decl. at 2.) The fact that Ms. Berkowitz may rely on her own personal experience, rather than on the nuances of the Renal Advantage procedures, does not ultimately render her opinion unreliable. Moreover, Ms. Berkowitz statement appears to be a reasonable opinion that speaks directly to the threshold issue regarding the RDs job classification as exempt employees. As such, the opinion is also relevant to the class action proceedings.
The fact that Ms. Berkowitz did not sign her statement under penalty of perjury does not render the opinion inadmissible. As Plaintiff points out, the declaration complies with each requirement under Fed. R. Civ. P. 26(a)(2) for expert testimony.
For these reasons, the Court finds the expert opinion of Ms. Berkowitz is admissible. Accordingly, the Court
Plaintiff bases her motion for class certification on Rule 23(a) and Rule 23(b)(3).
"The class action is an exception to the usual rule that litigation is conducted by and on behalf of individual named parties only. In order to justify a departure from that rule, a class representative must be a part of the class and possess the same interest and suffer the same injury as the class members."
Rule 23 contains two sets of requirements. First, "[r]ule 23(a) ensures that the named plaintiffs are appropriate representatives of the class whose claims they wish to litigate. The Rule's four requirements—numerosity, commonality, typicality, and adequate representation—effectively limit the class claims to those fairly encompassed by the named plaintiff's claims."
Rule 23(b)(3) provides:
When considering class certification under Rule 23, "`sometimes it may be necessary for the court to probe behind the pleadings before coming to rest on the certification question,' and that certification is proper only if `the trial court is satisfied, after a rigorous analysis, that the prerequisites of Rule 23(a) have been satisfied.'"
Rule 23(a)(1) requires that "the class [be] so numerous that joinder of all members is impracticable." Fed. R. Civ. P. 23(a)(1). The numerosity requirement does not impose set limits, but requires courts to examine the specific facts of each case.
In the motion to certify the class, Plaintiff identified 87 putative class members that Defendant admitted to employing as Registered Dietitians. (Pl. Mtn at 14.) Defendant argues there are only 62 putative class members because certain RDs were part-time employees or paid hourly. (Def. Opp. at 7.) Defendant asserts 25 RDs are non-exempt, non-salaried employees and therefore should not be considered part of the putative class. (
The Court agrees with Plaintiff. In an employment law class action, current employees are generally less willing to sue their employer individually out of fear of retaliation.
Rule 23(a)(2) requires Plaintiff to demonstrate that "there are questions of law or fact common to the class." Fed. R. Civ. P. 23(a)(2). To show commonality, class members must have "suffered the same injury."
The core dispute in this case is whether the RDs were misclassified as exempt employees under the California Professional Exemption. This exemption applies to an employee (a) who is licensed or certified by the State of California and is primarily engaged in the practice of one of the recognized professions [including] medicine; (b) who is primarily engaged in an occupation commonly recognized as a learned or artistic profession; (c) who regularly exercises discretion and independent judgment in the performance of exempt duties; and (d) earns a monthly salary equivalent to no less than two times the state minimum wage for full-time employment. 8 Cal. Code Regs. §§ 11040 at §1(A)(3)(a)-(d). To be engaged in a learned or artistic profession, an employee must primarily engage in "[w]ork requiring knowledge of an advanced type in a field or science or learning customarily acquired by a prolonged course of specialized intellectual institution and study" and work that "is predominantly intellectual and varied in character (as opposed to routine mental, manual, mechanical or physical work).
The parties agree on two of the four professional exemption requirements. The parties do not dispute RDs employed by Defendant are licensed by the State of California and RDs were compensated on a salary basis at two times the statutory minimum. (Pl. Mtn at 19; Ex. 16, Def. Resp. to Interrogatories No.8.) The parties vigorously disagree as to whether RDs are part of a "learned" profession according to the statute and whether the RDs exercised independent judgment. The varied evidence regarding these two requirements is significant.
Plaintiff bases her showing that RDs were misclassified on state law which regulates the practice of Registered Dietitians and Defendant's "uniform policies and systematic practices." (Pl. Mtn at 11,15.) First, Plaintiff relies on California Bus. & Prof. Code § 2586, which provides, in pertinent part, a registered dietitian:
Pursuant to this law, Plaintiff asserts RDs may only provide nutritional advice in accordance with a physician's referral, authorization or approval. As such, RDs are constrained from exercising independent judgment or discretion outside these legal parameters. Plaintiff points to Defendants policies that prohibit RDs from "accepting, writing transcribing or altering patient medication orders . . . Registered Dietitians may enter diet orders in the patient's electronic medical record
However, Plaintiff ignores the language of § 2586 which authorizes RDs to "develop nutritional and dietary treatments" that will meet the "desired objectives" of the referring health care provider. Section 2586 does not, as a matter of law, limit the autonomy of RD's or prevent the exercise of independent judgment. As such, § 2586 fails to provide sufficient proof to resolve the question whether RDs exercise independent judgment.
Plaintiff also relies upon the RD job description, testimony by proposed class representative Tanya Rosenberg and declarations by select RDs who are current or former employees of Defendant Renal Advantage. The RD job description, stated in full above, outlines seven broad essential responsibilities of the RDs. The RD declarations provide a few salient common allegations: the RDs worked between 45-50 hours per week; RDs were classified as exempt employees and did not receive overtime wages; RDs followed standardized procedures to perform their job duties; RDs had limited ability to advise patients without orders by the attending physician; RDs wage statements included only days, not hours, worked. (Pl. Mtn, Exs. 5-8, Decls. of Colucci, Griffin, Sotto, and Koo.) Plaintiff asserts this evidence further supports the conclusion that attending physicians made all final decisions regarding patient care and RDs were relegated to menial tasks that did not require independent judgment. As such, Plaintiff asserts she can show through common evidence that the RDs were misclassified as exempt employees.
Defendant argues there is insufficient common evidence to show on a classwide basis the RDs were misclassified as exempt. Defendant relies on testimony that shows RDs have different job duties across the Care Clinics, and each RD carries out their job differently depending on their own experience, the needs of the Care Center, and the needs of the patient. (Def. Opp. at 4, 14.) As such, the determination of the threshold issue would require individualized inquiries. For example, Defendants contend some RDs have testified the job description accurately reflects the time spent on required tasks. (Def. Opp., Ex. 42-6 (Griffin Decl.); Ex. 42-8 (Koo Decl.); Ex. 42-7 (Soto Decl.).) Other RDs have testified that their duties deviated from the job description. (Def. Opp., Ex. 46-5 (Pontillo Decl.).) Defendant also points out the varying level of discretion used by the RDs. Some RDs stated they performed their duties in accordance with the orders given by the physician, while others directly advised patients without consulting the attending physician, veered away from Renal Advantage policies to craft their own diet plans and dosage protocols, and often times did not require physician approval for diet orders. (Def. Opp. at 15-16.)
The Court finds there is insufficient commonality to satisfy the threshold issue of the professional exemption. This inquiry must be resolved by examining the actual work performed by the employees.
Plaintiffs have failed to identify any other form of common proof to establish that the RDs have been misclassified under the professional exemption. Ultimately, dissimilarities regarding how the RDs perform their job duties prevent a showing that common questions and answers drive the resolution of the litigation on this threshold issue. As such, the Plaintiff have failed to satisfy Rule 23(a)(2).
The Court must determine whether "the claims or defenses of the representative parties are typical of the claims or defenses of the class." Fed.R.Civ.P. 23(a)(3). "[R]epresentative claims are `typical' if they are reasonably co-extensive with those of absent class members; they need not be substantially identical."
Here, Plaintiff's claim and the class claims lack sufficient interrelation. Plaintiff and putative class members are all current or former Registered Dietitians employed by Defendant Renal Advantage. The typicality of the claims stop there. The variation among the RDs tasks and job performance in addition to hours worked among RDs tends to show each claim is atypical. The focus of the proposed class is to determine whether the RDs were properly classified as exempt employees, and if not, then if they were denied benefits under California law. Given that the putative class members do not have similar experiences, Plaintiff has failed to satisfy the typicality prong.
The final hurdle interposed by Rule 23(a) is that "the representative parties will fairly and adequately protect the interests of the class." Fed.R.Civ.P. 23(a)(4). "To determine whether the representation meets this standard, we ask two questions: (1) Do the representative plaintiffs and their counsel have any conflicts of interest with other class members, and (2) will the representative plaintiffs and their counsel prosecute the action vigorously on behalf of the class?"
Defendant argues Plaintiff lacks standing to claim injunctive relief and lacks standing to pursue claims not disclosed to her bankruptcy trustee. (Def. Opp. at 8.) Plaintiff responds that she has adequate standing to bring a claim for injunctive relief because a former employee may bring this claim under California labor law. Plaintiff further asserts her bankruptcy proceeding was discharged on July 9, 2009, and she did not file her claim until one year after the discharge. (Pl. Reply at 7-8.)
As part of her claim for violation of the Unfair Competition Law ("UCL"), Plaintiff seeks declaratory and injunctive relief restraining Defendant from "engaging in any unlawful and unfair business practices in the future." (FAC ¶ 61.)
Defendants argue Plaintiff lacks standing to bring a claim for injunctive relief because she is a former employee, and therefore cannot show she would benefit from any injunctive relief. Defendant relies on a Ninth Circuit decision in which a former employee did not have standing to claim injunctive relief under Title I of the American Disabilities Act.
Plaintiff argues that under Cal. Bus. & Prof. Code §17203, she may assert a claim for injunctive relief. Plaintiff relies on
The Court finds Plaintiff may bring a claim for equitable relief under the UCL. In
Here, Plaintiff seeks declaratory and injunctive relief under the UCL due to Defendant's alleged wrongful denial of overtime wages. Depending on the outcome of the litigation, the Court at this time refrains from limiting the ability to craft equitable remedies under the UCL that would address the alleged unfair business practice of Defendants.
Due to the pending bankruptcy proceeding, Plaintiff has failed to show that she is an adequate class representative. Legal claims that accrued before the filing of the bankruptcy petition are property that becomes part of the bankruptcy estate.
Plaintiff filed Chapter 7 bankruptcy on March 31, 2009 and the claim was discharged on July 7, 2009. (Def. Opp. at 8;
Plaintiff cites
Here, the Court does not have assurances as in
To satisfy Rule 23(b)(3), "common questions must `predominate over any questions affecting only individual members," and class resolution must be superior to other available methods for the fair and efficient adjudication of the controversy.'"
On April 5, 2013, Plaintiff filed a 97-page "Notice of Supplemental Authority and Response to Defendants' Notices of Supplemental Authorities." (Dkt. No. 57.) In the Memorandum of Points and Authorities, Plaintiff points the Court to several class action cases, including the Supreme Court decisions in
Defendant objects to the filing of the declaration as untimely and prejudicial. (Dkt. No. 59.) Defendants argue the declaration was submitted over four months following Plaintiff's response briefing in violation of the Court-ordered briefing schedule and only two weeks prior to the original hearing date. (
The Court agrees with Defendant. Plaintiff never sought leave to amend the motion for class certification, nor sought leave for an enlargement of time to file additional expert testimony. The Court frowns upon Plaintiff's filing of critical expert testimony, essential to the Court's review of class certification, under the guise of a "Notice of Supplemental Authority." The expert testimony has little relevance to the case law provided in the Notice, despite the reference to the Comcast decision. As the Defendant did not have an opportunity to oppose Mr. Nutten's declaration and submit counter evidence, the Court is not able to fully and properly evaluate the methodology. The Court will not consider the Nutten declaration for purposes of the pending motion.
Ultimately, Plaintiff's inability to show common proof of hours worked on a classwide basis prevents Plaintiff from establishing liability for claims of unpaid overtime wages and denial of meal breaks. To show Defendant's liability as to unpaid overtime wages, Plaintiffs must show the RDs worked overtime hours. Cal. Lab. Code § 510 (West)("Any work in excess of eight hours in one workday and any work in excess of 40 hours in any one workweek . . . shall be compensated at the rate of no less than one and one-half times the regular rate of pay for an employee.")(italics added). To prove liability as to denial of meal breaks, Plaintiff must show the RDs worked more than five hours on any day and Defendant denied them a meal break. Cal. Lab. Code § 512 (West)("An employer may not employ an employee for a work period of more than five hours per day without providing the employee with a meal period of not less than 30 minutes."). There is no common proof of hours worked for all the RDs without resorting to individualized inquiries. As such, the Court finds that common questions fact as to hours worked do not predominate. The Court would have to resort to a series of mini-trials to determine hours worked for each class member. Accordingly, class action is not the superior method to fairly and efficiently adjudicate these claims, and Plaintiff has failed to satisfy Rule 23(b)(3).
Plaintiff failed to meet each requirement of Rule 23(a) and also failed to show predominance and superiority required by Rule 23(b)(3). For these reasons, the Court hereby