Sometimes "complex litigation" is about the complexity of the legal issues and not just the size of the pile of dollars

Greatsealcal100Most cases described as "complex litigation" involve some combination of numerous parties or very large amounts of money.  Sometimes, though, "complex litigation" is primarily about the difficult nature of legal issues or the passion with which opposing parties vie over a difficult policy having wide-reaching consequences.  Jonathan L. v. Superior Court (August 8, 2008) is one one such case.

Jonathan L. addresses, in part, whether home schooling is permissible in California.  The details of the Court's analysis are outside the core areas of coverage for this blog.  However, the obviously difficult time the Court of Appeal had with this decision is an opportunity to learn something about what it takes to prevail in such hotly contested waters.  The listing of Amici Curiae spans three pages.  The August 8, 2008 Opinion follows after rehearing was granted by the Court.  Regarding that procedural history, the Court said:  "We filed our original opinion on February 28, 2008, granting the petition on the bases that: (1) California statutory law does not permit home schooling; and (2) this prohibition does not violate the U.S. Constitution."

On rehearing, the Court reversed itself, concluding that home schooling is permissible in California (my daughter is in trouble now).  You don't see u-turns like that happen with any regularity in appellate practice.  If you have any spare time, I suggest that you take a look at the opinion for the insight it offers into a Court struggling to get a very difficult decision right.  In this instance, I think their hard work resulted in the correct outcome.

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Daily Journal includes column on weak economic analysis supplied in Brinker

Yesterday's Daily Journal (Wednesday, August 6, 2008) includes my article entitled "A Bad Meal Deal: ‘Brinker’ Gets the Incentive Question Wrong," in the Forum column.  Once again, thank you, Daily Journal.  Online access is by subscription only, so no link to the article is provided here.  The article focuses on the incomplete discussion of economic incentives that are used as a basis for justifying the outcome in Brinker.

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Legal Pad reports on California Labor Federation letter to Labor Commissioner

In a post entitled Bradstreet Riles Labor Unions.  High Court Ahead?, Legal Pad, a legal news blog, reported on the strong reaction from labor unions to Bradstreet's memo declaring Brinker to be "binding precedent."  The Complex Litigator's scoop on the response to Bradstreet's memo was featured prominently in Legal Pad's reporting.

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Study by wage & hour compliance training company finds massive problem with wage & hour compliance

For what it's worth, in a recent survey of more than 2,000 legal, ethics, and HR professionals, "60 percent of respondents reported that either their employees were not accurately reporting all hours worked, or they didn't know if they were. Additionally, more than 40 percent of respondents were not confident that their employees even knew how to file a wage and hour complaint . . . ." (August 5, 2008 Press Release.)  The catch to this study is that it was conducted by ELT, a company that provides online wage & hour/employment law compliance training.  But while there is at least a bias on the part of ELT, given its line of work, its conclusion is anecdotally supported by the comparatively high percentage of wage & hour class action filings (as against all other types).

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The Ninth Circuit makes history of a sort by reversing an employment case class certification denial

Ninth Circuit SealThese days, it seems as if the Ninth Circuit and its District Courts aren't operating from the same play book.  As has been discussed repeatedly in connection with Brinker Restaurant Corporation, et al. v. Hohnbaum, et al (July 22, 2008), District Courts have repeatedly made news with their decisions undermining wage & hour class actions.  In Brown v. Federal Express Corp., (C.D.Cal. 2008) ___ F.R.D. ___ [2008 WL 906517], a district court concluded that a claim of meal period violations was not amenable to class treatment because the court would be "mired in over 5000 mini-trials" to determine if such breaks were provided.  Another District Court opinion (White v. Starbucks Corp., 497 F.Supp.2d 1080 (N.D. Cal. 2007)) refused to hold that employers must ensure that their employees take meal breaks. The White v. Starbucks Corp. court guessed that the California Supreme Court, if deciding the issue, would require only that an employer offer meal breaks, without forcing workers to take those breaks.

Instead of joining with the district court, the Ninth Circuit has pushed in the opposite direction.  For example, in an unpublished opinion, the Ninth Circuit reversed a substantial portion of a District Court order denying class certification in a wage and hour class action entitled Sepulveda v. Wal-Mart Stores, Inc. Recently, the Ninth Circuit went a step further.  In Parra v. Bashas', Inc. (9th Cir. July 29, 2008) ___ F.3d ___, the Ninth Circuit made history (in the Circuit), when it reversed a denial of class certification in a wage & hour class action where the denial of certification was predicated on lack of commonality:

Although this circuit has, up to now, never reversed a district court finding that commonality was lacking in an employment suit, other circuits have. See, e.g., Forbush v. J.C. Penny Co., 994 F.2d 1101, 1106 (5th Cir. 1993); Cox v. Am. Cast Iron Pipe Co., 784 F.2d 1546, 1557 (11th Cir. 1986); Paxton v. Union Nat’l Bank, 688 F.2d 552, 561 (8th Cir. 1982).

(Slip op., at p. 9641.)  It's only a matter of time before all of this wage & hour employment law matter and anti-matter collide and destroy the planet.

[Via UCL Practitioner and Alaska Employement Law]

UPDATE:  The problem with the title of this post has been corrected.

UPDATE 2:  An astute reader points out that I was a bit sloppy with my labels in this post.  The case involves employment law claims (discrimination issues), which do not fall into the subset of employment law claims referred to as "wage & hour" cases.  As a very general proposition, many of the policies that govern "wage & hour" cases govern all employement law cases.  However, there are special policy considerations that govern matters like discrimination cases such that the distinction between "employment law" and "wage & hour" is not necessarily irrelevant.  I actually appreciate the correction because I strive for accuracy.

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BREAKING NEWS: California Labor Federation confronts Labor Commissioner over bias/haste in issuing Brinker memo

On July 30, 2008, this blog reported that the DLSE had already updated its enforcement materials in response to Brinker Restaurant Corporation, et al. v. Hohnbaum, et al (July 22, 2008).  The information now coming to light is significantly more troubling than a simple revision of DLSE enforcement materials.  In a July 25, 2008 Memorandum entitled Binding Court Ruling on Meal and Rest Period Requirements, Angela Bradstreet, the Labor Commissioner, described Brinker as a “binding court ruling,” without noting that Brinker is one of two decisions that interpret regulations governing meal breaks (the other being Cicairos v Summit Logistics, Inc. (2005) 133 Cal App.4th 949, which still stands as valid authority).

The California Labor Federation was none too pleased with the July 25, 2008 Memorandum.  In strongly-worded correspondence of July 30, 2008, the California Labor Federation took Ms. Bradstreet to task for what it persuasively described as a biased, pro-employer approach from the very regulatory body charged with enforcing employee-protective laws and regulations.  And by fortunate happenstance, I've stumbled across a copy of that correspondence (with attachments):

The correspondence can also be downloaded in pdf format here.  The letter is definitely worth reading.

Because of the significance of this issue, I intend to set this post so that, for at least the next week, it appears as the first post on The Complex Litigator (assuming nothing else demands top billing in that time).  So be sure to check below to see new posts.

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Review by Supreme Court denied in Bufil v. Dollar Financial Group, Inc.

Yesterday, the California Supreme Court denied review in Bufil v. Dollar Financial Group, Inc. (2008) 162 Cal.App.4th 1193.  Other commentators noted this denial as significant because Bufil contains language that appears to conflict with Brinker Restaurant Corp., et al. v. Hohnbaum, et al. (2008) ___ Cal.App.4th ___.  (See, e.g., Wage Law.)  While I find the Brinker connection of great interest, I find this denial most significant because it let stand a rather significant reduction in the impact of Alvarez v. May Dept. Stores Co. (2006) 143 Cal.App.4th 1223.  My initial post on Bufil discusses the Alvarez connection in painful detail.

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DLSE will immediately enforce Brinker decision, despite risk

Greatsealcal100Multiple sources are now reporting that the DLSE has already updated its materials to require hearing officers to follow Brinker Restaurant Corporation, et al. v. Hohnbaum, et al (July 22, 2008).  Reporting sources include California Labor & Employment Law Blog, What's New In Employment Law, and Wage Law.  Adding to the general coverage, Storm's California Employment Law blog has a brief but insightful obsevation about the fact that the DLSE's rush to implement pro-employer policies may ultimately harm them. 

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After reviewing the play, Sprint's "home run" declared a ground-rule double

On June 12, 2008, Sprint avoided liability when a California jury ruled in its favor in a trial involving the contentious issue of early termination fees (ETFs) in wireless service contracts.  In later commentary, this blog characterized that result as a "home run" for Sprint.  It turns out that such a declaration was premature.  Late Monday, issues of law decided by the Court did not go in Sprint's favor.  Sprint was ordered to refund almost $20 million to consumers that paid ETFs.  (David Kravetz, Sprint Ordered to Pay Millions in Early Termination Fee Flap (July 29, 2008) blog.wired.com.)

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Tillery makes case that class action suits are essential

Stephen Tillery is using the recent settlement of a nationwide class action settlement against Sears Roebuck and Co. to make the case that class actions are an essential tool for consumer protection.  (Stanford Schmidt, Lawyer makes case for class action suits (July 28, 2008) www.thetelegraph.com.)  The article is a quick read, but it offers specific examples of where governmental enforcement of consumer protection standards has failed, necessitating class actions as a private remedy for such failures.

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