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CLASS ACTIONS

Wal-Mart Stores, Inc. v. Betty Dukes (10-277)

Oral argument: Mar. 29, 2011

Appealed from: United States Court of Appeals for the Ninth Circuit (Apr. 26, 2010)

PROCEDURE, CLASS ACTIONS, DISCRIMINATION, MONETARY RELIEF

Respondent Betty Dukes and other women have brought a Title VII employment discrimination case against Petitioner Wal-Mart Stores. The United States District Court for the Northern District of California certified a class action comprised of all women employed at any Wal-Mart store since December 26, 1998 who may have been or will be subjected to Wal-Mart’s allegedly discriminatory practices and policies. Wal-Mart appealed, challenging the class certification, but the United States Court of Appeals for the Ninth Circuit affirmed the district court’s ruling. Wal-Mart now appeals to the Supreme Court, arguing that the class certification does not meet the requirements of Federal Rule of Civil Procedure 23(a). Wal-Mart also claims that class certification was improper under Federal Rule of Civil Procedure 23(b)(2) because the employees primarily seek monetary compensation in the form of back pay, and Rule 23(b)(2) does not authorize certification of claims seeking monetary relief. On the other hand, the employees assert that they meet the requirements for class certification under Rule 23(a) because all female employees face the same Wal-Mart policies and share the common issue of discriminatory treatment under those policies. The employees further argue that class actions certified under Rule 23(b)(2) are not precluded from seeking monetary relief, and deny that back pay is a form of monetary compensation. The Supreme Court’s decision will affect the evidence required to bring an employment discrimination class action suit, the relief available to plaintiffs in a class action, and employers’ willingness to settle to avoid liability in class actions.

Shady Grove Orthopedic Associates, P.A. v. Allstate Insurance Company (08-1008)

Oral argument: Nov. 2, 2009

Appealed from: United States Court of Appeals for the Second Circuit (Nov. 19, 2008)

FEDERAL COURTS, ERIE DOCTRINE, CLASS ACTIONS, CHOICE OF LAW

Shady Grove Orthopedic Associates filed a class action lawsuit in federal court, arguing that Allstate Insurance Company violated New York law in failing to pay interest to policyholders. The district court dismissed the case on the grounds that New York law prevented a class action lawsuit in this context, and the Second Circuit affirmed. This case concerns the application of state law in federal court under the Erie Doctrine, particularly whether New York class action law applies in federal court and whether it conflicts with Rule 23 of the Federal Rules of Civil Procedure. Shady Grove argues that Rule 23 is the comprehensive class action rule for federal courts, and that New York law cannot undermine federal court procedure. Allstate claims that state law applies because plaintiffs would have different rights in state and federal court. The case will address Rule 23 and the ability of states to restrict class action lawsuits.

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