WILLIAM H. STEELE, Chief District Judge.
This matter is before the Court on the plaintiffs' motion for class certification. (Doc. 58). The parties have filed briefs and evidentiary materials in support of their respective positions, (Docs. 52, 59, 67, 68, 73, 74),
According to the complaint, (Doc. 1), the seven named plaintiffs are African-Americans who are or were employed by the entity defendant ("the Board") as assistant principals.
The plaintiffs seek to represent a class defined as follows: "All present and former African-American employees of the School Board who, at any time since September 16, 2007, have held a certificate issued by the Alabama State Department of Education qualifying them to be a principal in Mobile County." (Doc. 58 at 2).
"The burden of proof to establish the propriety of class certification rests with the advocate of the class." Valley Drug Co. v. Geneva Pharmaceuticals, Inc., 350 F.3d 1181, 1187 (11
"For a district court to certify a class action, the named plaintiffs must have standing, and the putative class must meet each of the requirements specified in Federal Rule of Civil Procedure 23(a), as well as at least one of the requirements set forth in Rule 23(b)." Klay v. Humana, Inc., 382 F.3d 1241, 1250 (11
Rule 23(b) provides three routes to class certification, the second and third of which the plaintiffs invoke.
A class action may be maintained if Rule 23(a) is satisfied and if:
Fed. R. Civ. P. 23(b). The plaintiffs argue that class certification is appropriate under Rule 23(b)(2), Rule 23(b)(3), or by a combination of both.
Because it figures prominently in the plaintiffs' argument, the Court pauses to consider the contours of a pattern-or-practice theory in an employment discrimination context.
Pattern or practice is one of two theories available to a Title VII plaintiff to prove intentional discrimination. Cooper, 390 F.3d at 723. Under this theory, "the plaintiff must prove, normally through a combination of statistics and anecdotes, that discrimination is the company's standard operating procedure." Id. at 724 (internal quotes omitted). "A pattern or practice claim may be brought under § 1981 as well as Title VII, in which case Title VII's substantive rules inform the § 1981 rules of decision." Davis v. Coca-Cola Bottling Co., 516 F.3d 955, 965 n.17 (11
Title VII expressly authorizes the EEOC to bring a pattern or practice claim on behalf of a group. 42 U.S.C. § 2000e-6(a), (c). But "[a] pattern or practice claim ... may also be brought under Title VII as a class action...." Davis, 516 F.3d at 965. Such a claim may be brought as a class action under Section 1981 as well. Id. at 965 n.18.
In International Brotherhood of Teamsters v. United States, 431 U.S. 324 (1977), the government brought a pattern-or-practice claim under Section 2000e-6. The Supreme Court explained that such an action proceeds in two stages or phases. In "the initial, `liability' stage," the plaintiff attempts to show that "unlawful discrimination has been a regular procedure or policy followed by an employer...." Id. at 360. If that case is made and not rebutted by the employer, "a trial court may then conclude that a violation has occurred and determine the appropriate remedy." Id. at 361. The remedy sought determines the proceedings necessary to its award.
"Without any further evidence from the [plaintiff], a court's finding of a pattern or practice justifies an award of prospective relief," including an injunction against further violations. Teamsters, 431 U.S. at 361. But if "individual relief" is sought, "a district court must usually conduct additional proceedings after the liability phase of the trial to determine the scope of individual relief." Id. At this "second, `remedial' stage of trial," the "proof of the pattern or practice [established in the first phase] supports an inference that any particular employment decision, during the period in which the discriminatory policy was in force, was made in pursuit of that policy." Id. at 362. The plaintiff thus "need only show that an alleged individual discriminatee unsuccessfully applied for a job and therefore was a potential victim of the proved discrimination." Id.
The Teamsters paradigm is still the law, and it applies to class actions asserting a pattern or practice theory. Davis, 516 F.3d at 966.
"Civil rights cases against parties charged with unlawful, class-based discrimination are prime examples" of candidates for Rule 23(b)(2) certification. Amchem Products, Inc. v. Windsor, 521 U.S. 591, 614 (1997). The plaintiffs rely on this and similarly generic statements to argue that their class may be certified under subsection (b)(2). (Doc. 59 at 28-30). They ignore the Supreme Court's more recent ruling in Wal-Mart v. Dukes, 131 S.Ct. 2541 (2011), at their peril.
In Dukes, the High Court held that "claims for monetary relief may [not] be certified under" Rule 23(b)(2), "at least where (as here) the monetary relief is not incidental to the injunctive or declaratory relief." 131 S. Ct. at 2557. In Dukes, as here, the plaintiffs alleged a pattern or practice of discrimination under Title VII. Id. at 2552. As here, the Dukes plaintiffs sought back pay in addition to injunctive and declaratory relief but nevertheless requested certification under Rule 23(b)(2). Id. at 2547. The Supreme Court refused, concluding that the requested back pay relief was not incidental to the prospective relief. Id. at 2557.
Even prior to Dukes, the Eleventh Circuit recognized that "monetary relief ... is only available in a Rule 23(b)(2) class action if it is incidental to the requested injunctive or declaratory relief." Vega v. T-Mobile USA, Inc., 564 F.3d 1256, 1265 n.8 (11
Rule 23(b)(2), the Dukes Court ruled, "does not authorize class certification when each class member would be entitled to an individualized award of money damages," 131 S. Ct. at 2557, and a Title VII defendant in a pattern or practice case "is entitled to individualized determinations of each employee's eligibility for backpay." Id. at 2560. The Dukes Court acknowledged the staggered proceedings applicable to pattern or practice cases under Teamsters but did not consider the mere temporal priority of injunctive relief to justify deeming second phase determinations of back pay to be incidental under Rule 23(b)(2). Instead, the Court ruled as follows:
131 S. Ct. at 2561. The Board has asserted that "[a]ll employment decisions made by Defendant were made upon the basis of factors other than race." (Doc. 9 at 6). Under Dukes, the Board's entitlement to offer such proof on an individual basis dooms the plaintiffs' request for certification under Rule 23(b)(2).
Even prior to Dukes, the Eleventh Circuit recognized that, when compensatory damages are sought, certification under Rule 23(b)(2) is difficult if not impossible.
The two indispensable requirements for certification under Rule 23(b)(3) are predominance and superiority. The Court need not reach the second requirement because the first is not satisfied.
"In determining whether class or individual issues predominate in a putative class action suit, we must take into account the claims, defenses, relevant facts, and applicable substantive law...." Klay, 382 F.3d at 1254. The defenses to be considered include affirmative defenses. Sacred Heart Health Systems, Inc. v. Humana Military Healthcare Services, Inc., 601 F.3d 1159, 1176-77 (11
The point of this review is "to assess the degree to which resolution of the classwide issues will further each individual class member's claim against the defendant." Klay, 382 F.3d at 1254. "Common issues of fact and law predominate if they have a direct impact on every class member's effort to establish liability and on every class member's entitlement to injunctive and monetary relief." Id. at 1255 (internal quotes omitted). Ordinarily, "that individualized determinations are necessary to determine the extent of damages allegedly suffered by each plaintiff" is of itself "insufficient to defeat class certification under Rule 23(b)(3)." Id. at 1259. Instead, "[i]t is primarily when there are significant individualized questions going to liability that the need for individualized assessments of damages is enough to preclude 23(b)(3) certification." Id. at 1260. As another way of looking at the question of predominance, "if the addition of more plaintiffs to a class requires the presentation of significant amounts of new evidence, that strongly suggests that individual issues (made relevant only through the inclusion of these new class members) are important." Id. at 1255.
The plaintiffs identify the common question as whether the Board engaged in a pattern or practice of assigning principals based on race. (Doc. 59 at 32, 33). There are in addition, however, a number of individualized questions — addressing both liability and damages — that prevent this single common question from predominating.
As noted in Teamsters and Dukes, the existence of a pattern or practice of discrimination does not of itself entitle any particular plaintiff to back pay or other monetary relief. On the contrary, the Board "is entitled to individualized determinations of each employee's eligibility for backpay." Dukes, 131 S. Ct. at 2560. There are at least two steps in this process. First, each plaintiff must separately establish that he or she applied for a particular position or would have done so but for the Board's discriminatory practices. Teamsters, 431 U.S. at 367-68. This is a "difficult task," and it must be undertaken "with respect to each specific individual." Id. at 364, 371. Second, since proof of the pattern or practice supports an inference that any individual decision was the product of discrimination but does not conclusively resolve the issue, id. at 362, the Board may attempt to "demonstrate that the individual applicant was denied an employment opportunity for lawful reasons." Id.; accord Dukes, 131 S. Ct. at 2561. As the Teamsters Court observed, "[t]he court will have to make a substantial number of individual determinations in deciding which of the minority employees were actual victims of the company's discriminatory practices." 431 U.S. at 371-72.
As noted, the Board intends to offer such evidence. Indeed, the Board argues that its evidence of the reasons for the selection of a particular principal and for the non-selection of a particular class member will be unique for each, not only because each candidate is different but also because the relevant factors — including without limitation a school's student body, its faculty, and the community it serves — vary between schools and vary over time within a given school, as do outside agency requirements. (Doc. 67 at 14). The plaintiffs do not challenge this assertion, which suggests an almost endless procession of evidence, unique to each class member and to each decision, thereby amplifying the individual liability determinations that must be made.
The plaintiffs acknowledge that these are individual issues. (Doc. 73 at 15). However, pointing to Teamsters' staged analysis, they insist that these individualized questions are "not relevant to the issue of liability" for purposes of Klay's predominance analysis because they "cannot arise until after a finding of liability." (Id. at 14-15). The plaintiffs appear to believe that only the first stage under Teamsters concerns liability. But Teamsters' description of the first phase as the "liability stage" and of the second phase as the "remedial stage" does not magically convert all second-phase questions into damages issues. As noted, pattern or practice is a theory of intentional discrimination, and an employer cannot be liable to an individual under that theory without a finding of discrimination against that individual. Such a finding cannot be made until after the individual plaintiff has shown that he or she applied (or would have done so but for the unlawful practice) and until after the defendant has presented its evidence that the plaintiff was or would have been denied the position for non-discriminatory reasons. These questions are precursors to damages in the sense that all questions concerning liability are, but they are not "damages issues" any more than is the color of the traffic light in a personal injury case. The Dukes Court made this clear when it described the issues to be decided in the second phase as "liability for sex discrimination and the backpay owing as a result." 131 S. Ct. at 2561 (emphasis added).
In addition to these substantial individual issues concerning liability are the individual issues concerning damages. The complaint seeks compensatory damages for each class member. The plaintiffs identify these damages as including emotional distress. (Doc. 59 at 14 n.4). Their effort to recover such damages "must `focus almost entirely on facts and issues specific to individuals rather than the class as a whole,'" including "`how did [the discrimination] affect each plaintiff emotionally and physically at work and at home.'" Rutstein v. Avis Rent-A-Car Systems, Inc., 211 F.3d 1228, 1240 (11
Under Klay, upon which the plaintiffs rely, the single common issue they raise does not predominate. First, "[i]t is primarily when there are significant individualized questions going to liability that the need for individualized assessments of damages is enough to preclude 23(b)(3) certification," 382 F.3d at 1260 and this case presents both multiple significant individualized questions going to liability and multiple significant individualized assessments of damages. Second, the addition of each new plaintiff "requires the presentation of significant amounts of new evidence," id. at 1255, because each new plaintiff must introduce separate, individualized evidence that she applied for a position as principal at a predominantly white school (or that she would have applied but for the Board's discriminatory practice) and of the existence, length and severity of the emotional distress she has experienced as a result of the discrimination, and because the defendant will, for each new plaintiff, be entitled to present separate, individualized evidence as to why that plaintiff was not, or would not have been, selected for a particular position. Third, common issues predominate "if they have a direct impact on every class member's effort to establish liability and on every class member's entitlement to injunctive and monetary relief," id. at 1255 (emphasis added), but the existence of a pattern or practice of discrimination does not have a direct impact on each class member's entitlement to monetary relief, only the incidental impact of not precluding such relief.
The parties have cited no binding case addressing certification of a Title VII pattern or practice case under Rule 23(b)(3).
In Cooper, the plaintiffs brought suit under Title VII and Section 1981, alleging a pattern or practice of race discrimination. 390 F.3d at 702-03. The Eleventh Circuit found no abuse of discretion in the trial court's determination that the plaintiffs' evidence did not support the pattern-or-practice predicate of their claim. Id. at 719. But the Court went on to rule that, even had there been an abuse of discretion in this regard, certification under Rule 23(b)(3) was still properly denied because "the individual determinations on liability and damages necessary for the individual plaintiffs to succeed would require highly fact-specific inquiries concerning each plaintiff." Id. at 720, 722-23. Despite its vagueness, Cooper suggests that the mere existence of a pattern or practice does not satisfy the predominance inquiry even in a Teamsters scenario.
Two other Eleventh Circuit opinions have rejected certification under Rule 23(b)(3) when it was sought based on an overarching policy of discrimination. In Jackson v. Motel 6 Multipurpose, Inc., 130 F.3d 999 (11
The problem is similar under Title VII. While a pattern or practice established under Teamsters carries more evidentiary significance than one established in other contexts, as discussed above it does not of itself establish that the defendant discriminated against any particular person. Thus, before the defendant can be declared liable to any class member for monetary or other individual relief, the class member must, and the employer may (and here, will) introduce substantial additional evidence particular to that class member. Except for the burden of proof being shifted to the employer, this scenario is no different than it was in Jackson or Rutstein. The individual issues concerning damages tilt predominance even further away from the plaintiffs.
Several sister courts within the Circuit have reached similar conclusions. In Reid v. Lockheed Martin Aeronautics Co., 205 F.R.D. 655 (N.D. Ga. 2001), the plaintiffs alleged a pattern or practice of discrimination under Title VII and Section 1981. Id. at 657-58. The Court concluded that the common issue of the pattern or practice did not predominate over individual issues. Id. at 681-86. Like this Court, the Reid Court identified "[t]he true problem with certifying Plaintiffs' discrimination claims under Rule 23(b)(3) [as] not merely a question of relief but a question of liability itself." Id. at 684. "Claims of discrimination, in employment or elsewhere, depend heavily on the specific circumstances and conditions in which the victim finds himself or herself. An individual's qualifications, experience, and background for a particular job or contract must be considered in any case where discrimination is alleged. [citations omitted] Such individual issues are present in every employment discrimination claim regardless of the type of relief sought, although claims for damages certainly enhance such issues. This is especially true where the plaintiffs' claims involve allegations of discrimination in promotions ..., which are by their very nature extremely individualized and fact-intensive claims." Id.
The Reid plaintiffs, like the plaintiffs here, argued that the Teamsters presumption "renders predominant ... the common issue of Defendants' alleged pattern and practice of discrimination." 205 F.R.D. at 685. But, the Reid Court responded, cases employing Teamsters "almost uniformly" concern certification under Rule 23(b)(2), where the predominance of common or individual questions is immaterial. Id.
In Adler v. Wallace Computer Services, Inc., 202 F.R.D. 666 (N.D. Ga. 2001), the plaintiffs claimed a pattern or practice of sex discrimination in violation of Title VII. Id. at 669. The Court ruled that the defendant's "pattern and practice of discrimination may be relevant in a particular case, but it does not establish that the company discriminated against each member of the putative class." Id. at 672. "Individual issues still exist," including the requirement that each class member prove she experienced an adverse employment action and the defendant's "opportunity to show that the employee was refused a promotion, paid less, or terminated for a legitimate nondiscriminatory reason." Id. "These individual issues related to liability," id., and they "predominate over the one common issue noted by Plaintiffs — [the employer's] alleged pattern and practice of discrimination." Id. Moreover, "[t]he predominance problem here is compounded by the fact that the compensatory and punitive damages requested require individualized proof." Id. at 673.
In Faulk v. Home Oil Co., 186 F.R.D. 660 (M.D. Ala. 1999), the plaintiffs brought suit under Title VII asserting a pattern or practice of race discrimination. Id. at 661, 663. The Court refused certification under Rule 23(b)(3) despite this allegation, noting that "[q]uestions affecting individual members, such as how they were discriminated against and how it affected them individually, involve not merely `separate issues concerning damages,' but differences in whether individual members can prove their claims." Id. at 664. Moreover, "[e]ntitlement to recovery on the plaintiffs' claims for compensatory and punitive damages will come not merely from a finding of liability on the common issues, but from individualized proof of actual injury." Id.
For reasons already stated, the Court finds itself in agreement with its brethren in Reid, Adler and Faulk. The plaintiffs understandably cite none of these decisions. Instead, they present several trial court opinions from the District of Columbia, all for the proposition that predominance automatically exists any time a single issue or element of a claim may be established by common proof. Whatever the relative merits of such an approach, it is decidedly not the law of this Circuit.
The plaintiffs also offer the Supreme Court's recent opinion in Amgen, Inc. v. Connecticut Retirement Plans & Trust Funds, 131 S.Ct. 1184 (2013). According to the plaintiffs, Amgen stands for the proposition that, if the plaintiffs' failure to prove a threshold common issue would doom the lawsuit (as when the common issue is an essential element of the claim), the common issue necessarily predominates over subsequent individual issues. (Doc. 73 at 13-14). But Amgen says no such thing. The Amgen Court ruled only that, if the failure of the threshold common issue would end the lawsuit, individual issues generated by that failure cannot predominate because the failure of the lawsuit means they will never be reached. Id. at 1196.
Certification of Title VII pattern-or-practice class actions under Rule 23(b)(2) remains freely available, although the attractiveness to plaintiffs of this approach is diminished now that Dukes precludes the recovery of back pay or other individual monetary relief in such an action. As this case reflects, certification of a Title VII pattern-or-practice class action under Rule 23(b)(3) is extremely problematic. Whether these restrictions on the use of the class action vehicle in employment discrimination cases represent good policy is for others to debate; the Court's task is to apply Rule 23 in light of the governing principles. Having done so, the Court concludes that common issues do not predominate and that certification under Rule 23(b)(3) must therefore be denied.
The plaintiff proposes that the Court certify a class under Rule 23(b)(2) as to their claim for declaratory and injunctive relief and another class under Rule 23(b)(3) as to their claim for monetary relief. (Doc. 59 at 37). Since, as addressed in Part C, there can be no certification under Rule 23(b)(3), neither can there be certification under both that rule and Rule 23(b)(2).
The plaintiffs' briefing focuses on pattern or practice but contains isolated references to disparate impact. (Doc. 59 at 16, 21-22, 26, 34). The Court thus assumes that the plaintiffs seek certification based on a disparate impact theory.
"To prove disparate impact, a plaintiff must establish ... a specific, facially neutral employment practice...." Cooper, 390 F.3d at 716 (emphasis in original). The plaintiffs, however, identify no practice displaying these qualities. According to the plaintiffs, the Board selects principals based on the recommendation of the superintendent, with the superintendent recommending principals based on the racial composition of the student body and on the wishes of the Board member representing the area in which the school is located — with the African-American Board members insisting that African-Americans be named principals of predominantly African-American schools. (Doc. 59 at 5-6, 10-12). There is nothing remotely neutral about this practice; it is overtly racial.
"Although the trial court should not determine the merits of the plaintiffs' claim at the class certification stage, the trial court can and should consider the merits of the case to the degree necessary to determine whether the requirements of Rule 23 will be satisfied." Babineau v. Federal Express Corporation, 576 F.3d 1183, 1190 (11
Even had the plaintiffs identified a specific, facially neutral practice, the common issue of its disparate impact would not predominate over the individual issues still to be decided. After a disparate impact violation is established, in order to obtain individual relief a plaintiff must "sho[w] that he or she was within the class of persons negatively impacted by the unlawful employment practice," and "then the employer must be given an opportunity to demonstrate a legitimate nondiscriminatory reason why, absent the offending practice, the individual plaintiff would not have been awarded the job or job benefit at issue anyway." In re: Employment Discrimination Litigation, 198 F.3d 1305, 1315 (11
For the reasons set forth above, the plaintiffs' motion for class certification is