WASHINGTON —
The Supreme
Court on Monday agreed to hear an appeal in the biggest employment
discrimination case in the nation’s history, one claiming that Wal-Mart
discriminated against hundreds of thousands of women in pay and promotion. The
lawsuit seeks back pay that could amount to billions of dollars.
The question
before the court is not whether there was discrimination but rather whether the
claims by the individual employees may be combined as a class action. The
court’s decision on that issue will almost certainly affect all sorts of class-
action suits, including ones asserting antitrust, securities and, products
liability and other claims.
If nothing
else, many pending class actions will slow or stop while litigants and courts
await the decision in the case.
Brad
Seligman, the main lawyer for the plaintiffs, said in a telephone interview
after the court decision: “Wal-Mart has thrown up an extraordinarily broad
number of issues, many of which, if the court seriously entertained, could very
severely undermine many civil rights class actions. We welcome the court’s
review of this limited issue, and we’re confident that the core of our action
will go forward.”
In their
brief urging the justices to deny review, the plaintiffs had said Wal-Mart’s
objection to class-action treatment boiled down to the enormous size of the
class.
“Petitioner
returns repeatedly to the refrain that the certified class is very large, a
fact that is indisputably true but legally irrelevant,” the brief said. “The
class is large because Wal-Mart is the nation’s largest employer and manages
its operations and employment practices in a highly uniform and centralized manner.”
Wal-Mart,
which says its policies expressly bar discrimination and promote diversity, said the plaintiffs,
who worked in 3,400 different stores in 170 job classifications, cannot
possibly have enough in common to make class-action treatment appropriate.
In April, an
11-member panel of the United States Court of Appeals for the Ninth Circuit, in
San Francisco, ruled by a 6-to-5 vote that the class action could go forward.
Judge
Michael Daly Hawkins, writing for the majority, said the company’s policies and
treatment of women were similar enough that a single lawsuit was both efficient
and appropriate. He added that the six women who represent the class, four of
whom had left Wal-Mart, had claims typical of the other plaintiffs.
The size of
the proposed class was not an obstacle, Judge Susan P. Graber wrote in a
concurrence.
“If the
employer had 500 female employees, I doubt that any of my colleagues would
question the certification of such a class,” Judge Graber wrote. “Certification
does not become an abuse of discretion merely because the class has 500,000
members.”
That drew a
sharp dissent from Chief Judge Alex Kozinski. “Maybe there’d be no difference
between 500 employees and 500,000 employees if they all had similar jobs,
worked at the same half-billion square foot store and were supervised by the
same managers,” he wrote. “But the half-million members of the majority’s approved
class held a multitude of jobs, at different levels of Wal-Mart’s hierarchy,
for variable lengths of time, in 3,400 stores, sprinkled across 50 states, with
a kaleidoscope of supervisors (male and female).”
“They have
little in common but their sex and this lawsuit,” Judge Kozinski concluded.
In a second
dissent, Judge Sandra S. Ikuta said that allowing the case to go forward as a
class action would prevent Wal-Mart from presenting tailored defenses to
individual claims.
In their
briefs in the case, Wal-Mart Stores v. Dukes, No. 10-277, the two sides cited
the work of the court’s newest justices to the court. Wal-Mart twice relied on
an influential unsigned law review note that Justice Elena
Kagan wrote as a student at Harvard
Law School on class certification in employment discrimination suits.
The
plaintiffs responded by noting that Justice Sonia
Sotomayor had voted to certify an even larger class action in an
antitrust case involving eight million merchants when she was a judge on the
United States Court of Appeals for the Second Circuit, in New York. Wal-Mart
was a plaintiff in that class action.
Judge
Sotomayor acknowledged that the very fact of class certification provided the
plaintiffs with “leverage in settlement negotiations.”
“While the
sheer size of the class in this case may enhance this effect,” she added, “this
alone cannot defeat an otherwise proper certification.”
