Duran v. U.S. Bank Nat’l Ass’n, No. A125557, 2012 WL 366590 (Feb. 6, 2012)

In a decision destined to have significant statewide ramifications, the California Court of Appeal for the First District reversed a trial court’s certification of a wage-hour class and determination of liability, concluding that the trial court had failed to follow “established statistical procedures” in adopting the trial management plan under which class-wide liability was determined by the testimony of only a relative handful of the class members.

Four current and former U.S. Bank Business Banking Officers (BBO) filed suit on behalf of themselves and all current and former BBOs within the relevant period, alleging that they had been misclassified as exempt outside sales people and therefore illegally deprived of overtime pay. After certifying the class, the trial court, over U.S. Bank’s strenuous objections, adopted a trial management plan in which a random sample of 20 (out of 260) class members would testify as representatives of the class, and the court would use this testimony to determine class-wide liability. After bench trials, the court awarded the class members $15 million in unpaid overtime and prejudgment interest, as well as $18 million in attorney’s fees.

Ellis v. Costco Wholesale Corp., 657 F.3d 970 (9th Cir. 2011)

In this appeal, Costco challenged the district court’s order granting class certification in an action in which Costco’s promotional practices were alleged to have discriminated against female employees. The district court’s order granting class certification preceded the United States Supreme Court’s opinion in Wal-Mart Stores v. Dukes, 131 S. Ct. 2541 (2011).