SYLLABUS
(This syllabus is not part of the opinion of the Court. It has
been prepared by the Office of the Clerk for the convenience of the
reader. It has been neither reviewed nor approved by the Supreme Court. Please
note that, in the interests of brevity, portions of any opinion may not
have been summarized).
Iliadis v. Wal-Mart Stores, Inc. (A-69-2006)
Argued April 5, 2007 Decided May 31, 2007
ZAZZALI, C.J., writing for the Court.
In this appeal, the Court considers whether plaintiffs, hourly employees of defendant Wal-Mart
Stores, Inc., can maintain a state-wide class action alleging that Wal-Mart denied them
earned rest and meal breaks and forced them to work off-the-clock.
Wal-Mart operates forty-four Wal-Mart stores, one Wal-Mart Supercenter, and nine Sams Clubs in
New Jersey. A corporate-wide policy governing rest and meal breaks -- Wal-Mart Corporate
Policy PD-07 -- applies to all Wal-Mart hourly employees. Pursuant to that policy,
employees are entitled to paid rest periods based on the number of consecutive
hours in their shift. A shift of three to six hours merits one
uninterrupted, fifteen-minute paid break, and a shift exceeding six hours earns two such
breaks. The policy also entitles hourly employees to a supervisor-scheduled unpaid meal break
of thirty minutes for every shift in excess of six hours. Failure to
comply with the directives of Corporate Policy PD-07 subjects both supervisors and employees
to discipline.
Wal-Mart policy also requires accurate payroll records. According to its Associate Handbook, Wal-Marts
expectation is that employees always clock in when they are working. The Handbook
states that working off-the-clock is not only against Wal-Mart policy its against the
law. Nonetheless, if an employee works off-the-clock, Wal-Mart has established a protocol allowing
employees to submit documentation to correct discrepancies. The Associate Handbook, however, includes a
disclaimer, expressly stating that it is not a contract.
Plaintiffs contend that Wal-Mart systematically ignores and disregards these written policies. Wal-Mart, it
is claimed, provides financial incentives to store managers to increase store profits by
lowering store expenses. This environment allegedly has produced a work environment where Wal-Mart
regularly contravenes uniformly-declared policy, as well as statutory and regulatory law. According to
plaintiffs, that scheme and defendants gross understaffing has made off-the-clock work essentially mandatory.
In addition to obtaining certifications from current and former employees supporting their respective
contentions, both parties retained experts to substantiate their positions. Plaintiffs offered the report
of L. Scott Baggett, Ph.D., a consulting statistician, who analyzed shifts from seven
New Jersey Wal-Mart stores. He found a statistically significant deficiency in the quantity
and duration of earned breaks. Baggett also discovered a practice of shift editing
by management, such that pay for hours worked is minimized.
Baggetts report is consistent, in part, with the July 2000 findings of an
internal, nation-wide Wal-Mart audit. An internal report on the audit concluded that stores
were not in compliance with regulations concerning the allotment of breaks and meals.
Soon after, in February 2001, Wal-Mart altered its policy, no longer requiring employees
to clock in or out for their rest breaks. Wal-Mart asserts the change
was benignly instituted because employees were paid for their rest periods, undermining the
justification for documenting such breaks. Plaintiffs also submitted the report of a professor
at Emory University, who reviewed time and attendance data from New Jersey stores
and found a pervasive and consistent pattern of missed meal breaks and rest
breaks.
Wal-Mart countered with the report of Paul F. White, Ph.D., a specialist in
statistical analysis of employment practices, who criticized the findings and assumptions of plaintiffs
experts. White cited to what he claimed were methodological faults in the work
of plaintiffs experts. For example, White contended that Shapiros report discounted alternative, legitimate
explanations for missed breaks. In addition, White asserted that both Baggett and Shapiro
improperly assumed that a missed punch of the time clock equaled a missed
break.
The Law Division denied class status to plaintiffs, finding that manageability was the
impediment to certification. The court found that common questions did not predominate over
the host of individual issues raised by Wal-Mart. The Law Division also rejected
plaintiffs statistical analysis, finding that it would deny Wal-Mart its ability to challenge
the claims of individual class members and assert affirmative defenses. The trial court
also held that class members had an alternative, superior avenue for redress the
Wage Collection Division of the Department of Labor. Echoing the trial courts concerns,
the Appellate Division affirmed. This Court granted plaintiffs motion for leave to appeal.
HELD: The trial court abused its discretion in declining to certify the putative
class action. Common questions of law and fact predominate over individualized questions, the
class-action vehicle is superior to other methods of adjudicating this dispute, and the
trial courts manageability misgivings can be overcome.
1. New Jersey courts, as well as federal courts construing the federal class
action rule after which our
Rule 1:32-1 is modeled, have consistently held that
the class action rule should be liberally construed. Unitary adjudication through class litigation
furthers numerous practical purposes, including judicial economy, cost-effectiveness and convenience. It also helps
to equalize adversaries, a purpose that is even more compelling when the proposed
class consists of people with small claims. When one inflicts minor harm across
a dispersed population, the defendant is, as a practical matter, immune from liability
unless a class is certified. This Court has been hesitant to provide defendants
procedural shelter through restrictive reading of the class-action rule. (pp. 12-18)
2. A party seeking class certification first must establish that the four prerequisites
of
Rule 4:32-1(a) are satisfied. Here, the Law Division concluded that those requirements
were satisfied, and the parties do not challenge that finding. In addition, the
class applicant must also satisfy the requirements of one of the three alternative
types of class actions described in
Rule 4:32-1(b). The present appeal implicates
Rule
4:32-1(b)(3), which requires that questions of law or fact common to the members
of the class predominate over any questions affecting only individual members, and that
a class action is superior to other available methods for the fair and
efficient adjudication of the controversy. An examination of the predominance and superiority requirements
must include consideration of several factors, including the difficulties likely to be encountered
in the management of a class action.
R. 4:32-1(b)(3)(D). The trial court declined
to certify this class based on the manageability factor. (pp. 19-21)
3. The answer to the issue of predominance is found in a close
analysis of the facts and law. The core of the present dispute is
whether Wal-Mart engaged in a systematic and widespread practice of disregarding its contractual,
statutory, and regulatory obligations by refusing to provide earned rest and meal breaks
and by encouraging off-the-clock work. Essential to that issue are common questions, most
notably the meaning and significance of Wal-Marts corporate policies and the impact of
the Associate Handbook disclaimer and new employee orientation. Common evidentiary questions also surround
the expert reports of the parties, Wal-Marts internal audit, and Wal-Marts other business
records. The individualized defenses advanced by Wal-Mart do not foreclose a finding of
predominance. Class certification does not limit a defendants rights to pursue any defense
on any of a plaintiffs claims it merely permits litigation of common issues
on a class basis before litigation of individual issues. The Court is confident
that, on remand, the trial court and parties counsel can resolve the practical
challenges presented by this litigations individualized questions of law or fact. (pp. 22-31)
4. In addition to predominance, a party seeking certification is required to demonstrate
that class litigation is superior to other available methods. The class members lack
of financial wherewithal is an important factor in the superiority analysis. Because of
the very real likelihood that class members will not bring individual actions, class
actions are often the superior form of adjudication when the claims of the
individual class members are small. The Court finds that the Wage Collection Division
of the Department of Labor is an inferior forum for adjudication of this
controversy, primarily because of the nominal value of each class members claim. The
Court cannot ignore the reality that if the proposed class is not certified,
thousands of aggrieved employees will not seek redress for Wal-Marts alleged wrongdoing. Therefore,
the Court holds that class-wide resolution of the present controversy is superior to
other available methods for its fair and efficient adjudication. (pp. 32-35)
5. Manageability, a consideration that encompasses the whole range of practical problems that
may render the class action format inappropriate for a particular suit, is the
most hotly contested factor in analyzing predominance and superiority. Denial of class status
due to manageability concerns is disfavored and should be the exception rather than
the rule. A finding of unmanageability requires more than mere difficulty in trying
the case or the existence of novel challenges. Here, the Court is satisfied
that the likely manageability obstacles of the present litigation can be overcome. Courts
in California and Pennsylvania have conducted trials of similarly-pled, state-wide class actions against
Wal-Mart. Our trial courts are equally capable of managing such litigation. The Court
is confident that the Law Division will properly employ its broad, equitable authority
to craft remedies and procedures that address the concerns of the parties and
the peculiar problems of this class action. (pp. 35-40)
The judgment of the Appellate Division is
REVERSED, and the matter is
REMANDE D
for entry of an order certifying the class.
JUSTICE RIVERA-SOTO has filed a separate,
DISSENTING opinion, expressing the view that he
cannot find in this record a basis to support the majoritys conclusion that
the trial judge abused her discretion when she denied plaintiffs class certification application.
JUSTICES LaVECCHIA, ALBIN, WALLACE and HOENS join in CHIEF JUSTICE ZAZZALIs opinion. JUSTICE
RIVERA-SOTO has filed a separate, dissenting opinion. JUSTICE LONG did not participate.
SUPREME COURT OF NEW JERSEY
A-
69 September Term 2006
MICHELLE ILIADIS and ANGELA NELSON-CROXTON, individually on behalf of themselves and all others
similarly situated,
Plaintiffs-Appellants,
v.
WAL-MART STORES, INC., a Delaware Corporation, SAMS CLUB, an operating segment of Wal-Mart,
Inc., DERRICK ZIMMER and GLEN SPENCER,
Defendants-Respondents,
and
and presently unidentified JOHN DOES 1 through 10,
Defendants.
Argued April 5, 2007 Decided May 31, 2007
On appeal from the Superior Court, Appellate Division, whose opinion is reported at
387 N.J. Super. 405 (2006).
Judith L. Spanier, a member of the New York bar, argued the cause
for appellants (Hanlon & Niemann, attorneys; Ms. Spanier and Christopher J. Hanlon, of
counsel and on the briefs).
Michael K. Furey argued the cause for respondents (Riker, Danzig, Scherer, Hyland &
Perretti, attorneys; Mr. Furey and Sandi F. Dubin, on the briefs).
Mark Hanna submitted a brief on behalf of amicus curiae United Food and
Commercial Workers Union District Council of New York and Northern New Jersey (Davis,
Cowell & Bowe, attorneys).
David R. Kott submitted a brief on behalf of amicus curiae New Jersey
Business & Industry Association (McCarter & English, attorneys; Mr. Kott, Adam N. Saravay
and Edward J. Fanning, Jr., of counsel and on the brief).
CHIEF JUSTICE ZAZZALI delivered the opinion of the Court.
The named plaintiffs, former hourly employees of defendant Wal-Mart Stores, Inc., allege in
their class-action complaint that Wal-Mart, through centralized control over business operations, denied them
earned rest and meal breaks and forced them to work off-the-clock. In seeking
to represent a state-wide class of similarly-situated Wal-Mart hourly employees, plaintiffs claim that
defendant engaged in widespread conduct in contravention of published corporate policy, statutory law,
and administrative regulations. Citing concerns about the manageability of the litigation, the trial
court denied class certification to the proposed class of approximately 72,000 current and
former Wal-Mart employees. The Appellate Division affirmed.
In this appeal, we must determine whether the putative class of current and
former employees may be certified pursuant to Rule 4:32-1. We find that common
questions of law and fact predominate over individualized questions and that the class-action
device is superior to other available methods of adjudicating this dispute. We therefore
reverse and remand for the entry of an order certifying the class. By
allowing this manageable litigation to proceed, we permit a class of hourly, retail
employees to unite and -- on an equal footing with their adversary -
to seek relief for their small claims that arise from defendants alleged violation
of contractual promises, statutory enactments, and regulatory mandates.
I.
A.
Plaintiffs ask us to certify a class of all current and former hourly
employees of Wal-Mart (including Wal-Mart Stores, Supercenters and Sams Clubs) in the State
of New Jersey during the period May 30, 1996 to the present, (formatting
altered), a class consisting of approximately 72,000 workers. When deciding whether to certify
a class, we accord[] plaintiffs every favorable view of the complaint and record.
Riley v. New Rapids Carpet Ctr.,
61 N.J. 218, 223 (1972);
see also
Delgozzo v. Kenny,
266 N.J. Super. 169, 181 (App. Div. 1993) (accepting as
true all substantive allegations of party seeking certification).
Plaintiffs allege that Wal-Mart, in an effort to reduce labor costs and increase
profits, systematically declined to honor its contractual promises concerning rest and meal breaks.
Plaintiffs also maintain that Wal-Mart failed to compensate its employees for all time
worked by forcing employees to work through meal breaks, by locking employees in
retail stores after they had clocked out, and by coercing employees to work
off-the-clock. Premised on those allegations, the putative class advances nine causes of action:
(1) breach of implied-in-fact contract regarding missed rest and meal breaks; (2) breach
of implied-in-fact contract regarding off-the-clock work; (3) breach of unilateral contract regarding missed
rest and meal breaks; (4) breach of unilateral contract regarding off-the-clock work; (5)
breach of the covenant of good faith and fair dealing; (6) violation of
the New Jersey State Wage and Hour Law,
N.J.S.A. 34:11-56a to -56a30 (requiring
overtime pay); (7) violation of
N.J.A.C. 12:56.5.2 (mandating compensation for all hours worked);
(8) entitlement to restitution; and (9) unjust enrichment.
Defendant operates forty-four Wal-Mart stores, one Wal-Mart Supercenter, and nine Sams Clubs in
New Jersey. Wal-Mart,
2
007 Annual Report 63 available at http://walmartstores.com/Files/ 2007_annual_report.pdf [hereinafter Annual
Report]. Management within those stores is multi-layered, with numerous managers supervising hourly employees
who are categorized in approximately eighty-five different Wal-Mart job classifications and one hundred
Sams Club job classifications.
A corporate-wide policy governing rest and meal breaks -- Wal-Mart Corporate Policy PD-07
-- applies uniformly to all Wal-Mart hourly employees. Pursuant to that policy, employees
are entitled to paid rest periods based on the number of consecutive hours
in their assigned shift. A shift of three to six hours merits one
uninterrupted, fifteen-minute paid break, and a shift exceeding six hours earns two such
breaks. Each hourly employees immediate supervisor is responsible for scheduling rest breaks.
Corporate Policy PD-07 also governs meal breaks. That policy entitles hourly employees to
a supervisor-scheduled unpaid meal break of thirty minutes for every shift in excess
of six hours. If a rest or meal break is interrupted by work,
in addition to providing a substitute break, Wal-Mart policy requires the company to
compensate the affected employee for the time worked. Failure to comply with the
directives of Corporate Policy PD-07 subjects both supervisors and employees to discipline. In
fact, a former President and Chief Executive Officer of the Wal-Mart Stores Division
referred to Corporate Policy PD-07 as the LAW, stating that its mandates are
NOT optional.
Wal-Mart policy also requires accurate payroll records. No Wal-Mart Associate should perform work
for the Company without compensation, and failure to adhere to that rule may
warrant discipline. According to its Associate Handbook, Wal-Marts expectation is very clear:
Always clock in before beginning your work day and at other appropriate times
. . . Your hard work is appreciated, and we want to pay
you for this work. Remember, working off-the-clock is not only against Wal-Mart policy
its against the law. Always clock in when you are working Always! There
are no exceptions.
Nevertheless, if an employee works off-the-clock, Wal-Mart has established a protocol to ensure
appropriate compensation, allowing employees to submit documentation to correct discrepancies.
The foregoing policies are widely disseminated and communicated to employees through varied media.
For example, the policies are explained to new employees at their orientations and
reinforced in an Associate Handbook. However, that handbook includes a disclaimer, expressly stating
that it is not a contract.
Plaintiffs contend that Wal-Mart systematically ignores and disregards those written policies. Wal-Mart, it
is claimed, provides financial incentives to store managers to increase store profits by
lowering store expenses. This approach allegedly has produced a work environment where Wal-Mart
regularly contravenes uniformly-declared policy, as well as statutory and regulatory law. According to
plaintiffs, that scheme and defendants gross[] understaffing of its retail stores has made
off-the-clock work essentially mandatory, as evidenced by corporate e-mail encouraging store managers to
get volunteers to cut hours.
In addition to obtaining certifications from current and former employees supporting their respective
contentions, both parties retained experts to substantiate their positions. Plaintiffs first offered the
report of L. Scott Baggett, Ph.D., a consulting statistician, who analyzed 31,466 shifts
from seven New Jersey Wal-Mart stores. Baggett found a statistically significant deficiency in
the quantity and duration of earned breaks. Per pay period, Baggett noted that
ninety-three percent of employees suffered a shortfall in the length of their earned
breaks and eighty-five percent of employees experienced a deficiency in the number of
earned rest and meal breaks. Baggett then supplemented his report, finding that nearly
sixty-three percent of employees in the sample experienced at least five missed or
shortened breaks per pay period. Additionally, Baggett estimated that the members of the
proposed class suffered a deficiency of 1.3 million hours in earned rest periods
since 1996. In a word, [a]ssociates did not receive the rest break time
nor the meal time they earned.
Baggett also discovered a practice of shift editing by management. Specifically, when an
employee failed to punch out at the end of a shift, the employee
was credited with only a one-minute-long shift, regardless of the employees actual time
worked. Baggett recorded 250 management-edited one-minute shifts in his sample, leading him to
observe that [a] disproportionately large number of shifts are edited by Wal-Mart management
such that pay for hours worked is minimized.
Baggetts report is consistent, in part, with the July 2000 findings of an
internal, nation-wide Wal-Mart audit. Conducted over a week-long period, that audit of 127
Wal-Mart stores, including at least one New Jersey store, was distributed to senior
officials including regional vice presidents. The internal report concluded that [s]tores were not
in compliance with company and state regulations concerning the allotment of breaks and
meals as 76,472 exceptions were noted.
See footnote 1
Soon after, in February 2001, Wal-Mart altered
its policy, no longer requiring employees to clock in or out for their
rest breaks. Although plaintiffs are suspicious of the policy shifts timing, Wal-Mart asserts
that the change was benignly instituted because employees were paid for their rest
periods, thereby undermining any payroll justification for documenting such breaks.
Plaintiffs also submitted the report of Martin M. Shapiro, Ph.D., a professor at
Emory University. His review of time and attendance data from New Jersey stores
revealed a pervasive and consistent pattern of missed meal breaks . . .
and . . . missed rest breaks. For example, he found that employees
who were logged out for payroll purposes were simultaneously logged on to cash
registers and training devices, indicating off-the-clock labor.
Wal-Mart countered with the report of Paul F. White, Ph.D., a specialist in
statistical analysis of employment practices, who criticized the findings and assumptions of Baggett
and Shapiro. White contended that Shapiros report disregarded structural differences between the analyzed
databases and discounted alternative, legitimate explanations for missed breaks. For example, White observed
that missed breaks are often voluntary and the result of personal circumstances, such
as an employees desire to leave work early for an appointment or familial
responsibilities. In addition, White asserted that both Baggett and Shapiro improperly assumed that
a missed punch of the time clock equaled a missed break. Because of
those methodological faults, White declared that Baggetts naïve approach ignore[d] reality and described
Shapiros conclusions as vague and unsubstantiated.
B.
The Law Division denied class status to plaintiffs, finding that manageability was the
impediment to certification. In view of that concern, the trial court held that
plaintiffs failed to satisfy the critical question whether their allegations met the predominance
and superiority requirements of Rule 4:32-1(b)(3). The court found that the litigations common
questions did not predominate over the host of individual issues raised by Wal-Mart,
issues premised on variations in the employee population. The court also rejected plaintiffs
statistical analysis, finding that the proffered expert reports did not resolve, or obviate
the need for resolution of, individual issues of injury and the quantum of
damages. Rather, the court found that plaintiffs statistical evidence would deny Wal-Mart its
ability to challenge the claims of individual class members and assert affirmative defenses:
The issue is whether Wal-Mart can be deprived of contesting issues regarding individual
employees. If the answer is no, which is what this [c]ourt believes, common
issues do not predominate.
The trial court also held that class members had an alternative, superior avenue
for redress -- the Wage Collection Division of the Department of Labor under
the Wage and Hour Law, N.J.S.A. 34:11-56a to -56a30. According to the Law
Division, that virtually cost free forum was superior to class litigation. The court
concluded that the overwhelming difficulty of managing this class action due to the
individual issues that must be addressed . . . [and] the fact that
employees have an inexpensive and efficient remedy, causes this [c]ourt to conclude that
[p]laintiffs have failed to satisfy either the predominance or the superiority requirements of
Rule 4:32-1(b)(3).
Echoing the trial courts concerns, the Appellate Division affirmed. The panel stated:
The trial court in this matter pointed out in its memorandum of decision
a number of factors that led to its determination in this regard, all
revolving around the courts view that individual factual determinations would have to be
made of the circumstances under which a particular employee missed a break or
worked off-the-clock. We are satisfied that the trial court was correct in this
regard.
[Iliadis v. Wal-Mart Stores, Inc.,
387 N.J. Super. 405, 418-19 (2006).]
We granted plaintiffs motion for leave to appeal,
188 N.J. 570 (2006), and
permitted the New Jersey Business & Industry Association (NJBIA) and the United Food
and Commercial Workers Union District Council of New York and Northern New Jersey
(UFCW) to submit amicus curiae briefs.
II.
According to plaintiffs, Wal-Mart has fostered, encouraged, and incentivized a corporate culture in
which published policies are systematically ignored, causing associates to work through promised breaks
and making off-the-clock work obligatory. Although plaintiffs acknowledge that differences exist among class
members, those individual issues, they argue, pale in comparison to Wal-Marts pervasive policy
of denying employees their earned breaks and compensation -- a policy that, according
to plaintiffs, is evident from Wal-Marts corporate documents and records. Plaintiffs also contend
that class litigation is superior to other forms of adjudication. Specifically, they assert
that the Wage Collection Division provides inferior and inadequate relief due to its
procedural strictures and its abbreviated two-year statute of limitations.
Conversely, Wal-Mart seeks an affirmance of the lower courts rulings. Wal-Mart argues that
the smorgasbord of individual issues presented by this dispute -- such as variations
in employee experiences, disparate orientations attended, employees legitimate reasons for foregoing breaks, and
the individualized nature of damages incurred, if any -- overwhelm the common questions
advanced by plaintiff. Wal-Mart also challenges plaintiffs expert reports, by labeling them as
vague and flawed, and contending that reliance on statistical extrapolation will prevent it
from fully exploring its defenses and challenging individual class members claims. In respect
of superiority, Wal-Mart maintains that the Law Division properly concluded that the Wage
Collection Division provides a superior, alternative forum to class litigation. That administrative forum,
according to defendant, permits aggrieved employees to seek redress in a cost-efficient manner.
As amicus, NJBIA contends that plaintiffs misconstrue precedent and that certification would unfairly
prejudice the rights of Wal-Mart and others doing business in New Jersey. Specifically,
NJBIA asserts that certification will adversely affect court dockets and encourage industry to
flee the State due to a perceived anti-business certification standard.
UFCW declares that [t]his case, perhaps more than any other imaginable set of
facts, requires class certification. Accordingly to UFCW, the need for certification is particularly
acute for low-paid retail workers[,] . . . many of whom are recent
immigrants, single parents, disabled, senior citizens or under-educated. UFCW further argues that the
Wage Collection Divisions procedural rules will make administrative relief difficult and taxing to
obtain for plaintiffs. Finally, UFCW contends that trial courts are capable of overseeing
the proposed class litigation, as demonstrated by the successful management of similar litigation
in California and Pennsylvania.
In addressing the question presented, we first discuss our States historical construction of
the class-action rule, the purposes of class litigation, and the requirements for class
certification. We then focus our attention on the predominance and superiority requirements and
determine whether the trial court abused its discretion in this matter. Finally, because
of its significance in this and other complex disputes, we separately consider the
manageability of the proposed class action.
III.
A.
The class action is an exception to the usual rule that litigation is
conducted by and on behalf of the individual named parties only.
Califano v.
Yamasaki,
442 U.S. 682, 700-01,
99 S. Ct. 2545, 2558,
61 L. Ed. 2d 176, 193 (1979). Governed in New Jersey by
Rule 4:32-1, the class
action is a joinder device in which a court authorizes a representative with
typical claims to sue on behalf of, and stand in judgment for, a
group of similarly-situated litigants. 1 Alba Conte & Herbert B. Newberg,
Newberg on
Class Actions § 1.1 at 2 (4th ed. 2002). The device was an invention
of equity that enabled litigation to proceed in suits where the number of
those interested in the subject of the litigation is so great that their
joinder as parties in conformity to the usual rules of procedure is impracticable.
Hansberry v. Lee,
311 U.S. 32, 41,
61 S. Ct. 115, 118,
85 L. Ed. 22, 27 (1940).
New Jersey courts, as well as federal courts construing the federal class action
rule after which our rule is modelled [sic], have consistently held that the
class action rule should be liberally construed.
Delgozzo,
supra, 266
N.J. Super. at
179 (collecting cases);
see also Varacallo v. Mass. Mut. Life Ins. Co.,
332 N.J. Super. 31, 45 (App. Div. 2000) (holding, in consumer context, that class
actions should be liberally allowed . . . under circumstances that would make
individual actions uneconomical to pursue). Accordingly, a class action should lie unless it
is clearly infeasible.
Riley,
supra, 61
N.J. at 225;
see also Esplin v.
Hirschi,
402 F.2d 94, 99 (10th Cir. 1968) ([I]f there is to be
an error made, let it be in favor and not against the maintenance
of the class action.),
cert. denied,
394 U.S. 928,
89 S. Ct. 1194,
22 L. Ed.2d 459 (1969).
When making certification determinations, the best policy is to interpret the class-action rule
so as to promote the purposes underlying the rule. 5 James W. Moore
et al.,
Moores Federal Practice Civil § 23.03 (3d ed. 1997). Unitary adjudication through
class litigation furthers numerous practical purposes, including judicial economy, cost-effectiveness, convenience, consistent treatment
of class members, protection of defendants from inconsistent obligations, and allocation of litigation
costs among numerous, similarly-situated litigants.
See, e.g.,
Crown, Cork & Seal Co. v.
Parker,
462 U.S. 345, 349,
103 S. Ct. 2392, 2395,
76 L. Ed. 2d 628, 633 (1983);
United States Parole Commn v. Geraghty,
445 U.S. 388,
403,
100 S. Ct. 1202, 1212,
63 L. Ed.2d 479, 494-95 (1980);
In re Cadillac V8-6-4 Class Action,
93 N.J. 412, 430 (1983).
The class action in New Jersey also helps to equalize adversaries, a purpose
that is even more compelling when the proposed class consists of people with
small claims. In such disputes, where the claims are, in isolation, too small
. . . to warrant recourse to litigation, the class-action device equalizes the
claimants ability to zealously advocate their positions.
In re Cadillac,
supra, 93
N.J.
at 435. That equalization principle remedies the incentive problem facing litigants who seek
only a small recovery.
Muhammad v. County Bank of Rehoboth Beach,
189 N.J. 1, 17 (2006),
certif. denied, __
U.S. __, __
S. Ct. __,
167 L. Ed.2d 763 (2007). In short, the class actions equalization function opens
the courthouse doors for those who cannot enter alone.
The class actions historic mission of taking care of the smaller guy has
been widely recognized.
See Marvin E. Frankel,
Amended Rule 23 From a Judges
Point of View,
32
Antitrust L.J. 295, 299 (1966) (quotation omitted). For example,
the United States Supreme Court observed that the drafters of the federal class-action
rule sought to vindicate the rights of groups of people who individually would
be without effective strength to bring their opponents into court at all.
Amchem
Prods., Inc. v. Windsor,
521 U.S. 591, 617,
117 S. Ct. 2231, 2246,
138 L. Ed.2d 689, 708-09 (1997) (quotation omitted). The Court continued:
The policy at the very core of the class action mechanism is to
overcome the problem that small recoveries do not provide the incentive for any
individual to bring a solo action prosecuting his or her rights. A class
action solves this problem by aggregating the relatively paltry potential recoveries into something
worth someones (usually an attorneys) labor.
[Ibid. (quotation omitted).]
See also Deposit Guar. Natl Bank of Jackson, Miss. v. Roper,
445 U.S. 326, 339,
100 S. Ct. 1166, 1175,
63 L. Ed.2d 427, 440
(1980) (Where it is not economically feasible to obtain relief within the traditional
framework of a multiplicity of small individual suits for damages, aggrieved persons may
be without any effective redress unless they may employ the class-action device.).
When one inflicts minor harm across a dispersed population, the defendant is, as
a practical matter, immune from liability unless a class is certified. Stephen C.
Yeazell, Civil Procedure 966 (5th ed. 2000). This Court, therefore, has been hesitant
to provide defendants procedural shelter through a restrictive reading of the class-action rule.
In Riley, supra, we observed:
If each victim were remitted to an individual suit, the remedy could be
illusory, for the individual loss may be too small to warrant a suit
or the victim too disadvantaged to seek relief. Thus the wrongs would go
without redress and there would be no deterrence to further aggressions.
[61 N.J. at 225.]
Accord In re Cadillac, supra, 93 N.J. at 435 (finding, in case where
individual claimants suffered modest damages, that without certification, wrongs would go without redress);
see also Philip Stephen Fuoco & Joseph A. Osefchen, Leveling the Playing Field
in the Garden State: A Guide to New Jersey Class Action Case Law,
37 Rutgers L.J. 399, 423-24 (2006) (arguing that New Jerseys class-action rule eliminates
any safe harbor for defendants who inflict small damages on diffuse population).
B.
To obtain class status, the party seeking certification must establish that the four
prerequisites of
Rule 4:32-1(a) are satisfied.
See footnote 2
Class certification is appropriate only if:
the class is so numerous that joinder of all members is impracticable, (2)
there are questions of law or fact common to the class, (3) the
claims or defenses of the representative parties are typical of the claims or
defenses of the class, and (4) the representative parties will fairly and adequately
protect the interests of the class.
[R. 4:32-1(a).]
Here, the Law Division concluded that those requirements were satisfied, and the parties
do not challenge that finding.
In addition to those general prerequisites, the class applicant must also satisfy the
requirements of one of the three alternative types of class actions described in
Rule 4:32-1(b). The present appeal implicates Rule 4:32-1(b)(3), which requires that: questions of
law or fact common to the members of the class predominate over any
questions affecting only individual members, and that a class action is superior to
other available methods for the fair and efficient adjudication of the controversy. (Emphasis
added).
In making the predominance and superiority assessments, a certifying court must undertake a
rigorous analysis to determine if the Rules requirements have been satisfied. Carroll v.
Cellco Pship,
313 N.J. Super. 488, 495 (App. Div. 1998) (quoting Gen. Tele.
Co. of the Sw. v. Falcon,
457 U.S. 147, 161,
102 S. Ct. 2364, 2372,
72 L. Ed.2d 740, 752 (1982)). That scrutiny requires courts
to look beyond the pleadings [to] . . . understand the claims, defenses,
relevant facts, and applicable substantive law. Ibid. (quotation omitted). Although class certification does
not occasion an examination of the disputes merits, Olive v. Graceland Sales Corp.,
61 N.J. 182, 189 (1972); see also Castano v. Am. Tobacco Co.,
84 F.3d 734, 744 (5th Cir. 1996) (noting unremarkable proposition that the strength of
a plaintiffs claim should not affect the certification decision), a cursory review of
the pleadings is nonetheless insufficient. The rigorous analysis requirement means that a class
is not maintainable merely because the complaint parrots the legal requirements of the
class-action rule. Yeazell, supra, at 969.
Accordingly, an examination of the predominance and superiority requirements -- the disputed issues
in this appeal -- must include consideration of the following factors:
the interest of members of the class in individually controlling the prosecution or
defense of separate actions;
the extent and nature of any litigation concerning the controversy already commenced by
or against members of the class; [and]
. . . .
the difficulties likely to be encountered in the management of a class action.
[R. 4:32-1(b)(3).
See footnote 3
]
The trial court found that factors (A) and (B) weighed in plaintiffs favor.
However, the trial court declined to certify the class based on the final
and most disputed factor: manageability. Therefore, we now consider the predominance and superiority
requirements, and then, because of their importance in the present litigation, we address
the manageability concerns raised by the trial court.
IV.
A.
To establish predominance, a class representative must demonstrate that the questions of law
or fact common to the members of the class predominate over any questions
affecting only individual members.
R. 4:32-1(b)(3). That inquiry tests whether the proposed class
is sufficiently cohesive to warrant adjudication by representation.
Amchem Prods., Inc.,
supra, 521
U.S. at 623, 117
S. Ct. at 2249,
138 L. Ed 2d at
712.
Some general principles guide us in this pragmatic assessment. Moore,
supra, § 23.45. First,
the number and, more important, the significance of common questions must be considered.
See Carroll,
supra, 313
N.J. Super. at 499 (Predominance is not, however, determined
by adding up the number of common and individual issues and determining which
is greater.). Second, a court must decide whether the benefit from the determination
in a class action [of common questions] outweighs the problems of individual actions.
In re Cadillac,
supra, 93
N.J. at 430. Third, predominance requires, at minimum,
a common nucleus of operative facts.
Id. at 431 (quotation omitted).
Notably, predominance does not require the absence of individual issues or that the
common issues dispose of the entire dispute.
See Strawn v. Canuso,
140 N.J. 43, 67 (1995),
superseded on other grounds by, L. 1995, c. 253 (codified
at
N.J.S.A. 46:3C-10),
as recognized in Nobrega v. Edison Glen Assoc.,
167 N.J. 520 (2001). Individual questions of law or fact may remain following resolution of
common questions.
Varacallo,
supra, 332
N.J. Super. at 31, 45. Predominance does not
require that all issues be identical among class members or that each class
member be affected in precisely the same manner.
See Fiore v. Hudson County
Employees Pension Commn,
151 N.J. Super. 524, 528 (App. Div. 1977).
B.
Mindful of those general principles, we heed our prior observation that the answer
to the issue of predominance is found . . . in a close
analysis of the facts and law.
In re Cadillac,
supra, 93
N.J. at
434. To conduct that analysis, we first must identify the relevant legal issues
in the present appeal.
First, plaintiffs allege breach of implied-in-fact contracts concerning rest and meal breaks and
off-the-clock work. Such contracts arise from promises implied by words and conduct in
light of the surrounding circumstances.
Wanaque Borough Sewerage Auth. v. Twp. of W.
Milford,
144 N.J. 564, 574 (1996). Implied-in-fact contracts are formed by conditions manifested
by words and inferred from circumstances, thus entailing consideration of factors such as
oral representations, employee manuals, and party conduct.
See Troy v. Rutgers,
168 N.J. 354, 365 (2001).
Second, the proposed class seeks recovery for breach of unilateral contracts, allegedly embodied
in the Associate Handbook. In a unilateral contract, one partys promise becomes enforceable
only on the performance of the other partys obligation.
Woolley v. Hoffmann-La Roche,
Inc.,
99 N.J. 284, 302 (1985). To recover, plaintiffs must establish that they
acted in accordance with the Associate Handbook -- if a trier of fact
deems it contractual -- and that Wal-Mart did not honor its promises.
Third, plaintiffs allege breach of the covenant of good faith and fair dealing,
a component of every contract,
see, e.g.,
Sons of Thunder, Inc. v. Borden,
Inc.,
148 N.J. 396, 420 (1997). Good faith entails adherence to community standards
of decency, fairness or reasonableness,
Wilson v. Amerada Hess Corp.,
168 N.J. 236,
245 (2001) (quotation omitted), and requires a party to refrain from destroying or
injuring the right of the other party to receive its contractual benefits,
Brunswick
Hills Racquet Club, Inc. v. Route 18 Shopping Ctr. Assocs.,
182 N.J. 210,
224-25 (2005) (quotation omitted). A plaintiff must also prove the defendants bad motive
or intention.
Id. at 225.
Fourth, the proposed class asserts violations of the Wage and Hour Law,
N.J.S.A.
34:11-56a to -56a30, which directs employers to compensate employees who work in excess
of forty hours a week with an overtime rate of 1 ½ times the
employees regular hourly wage.
N.J.S.A. 34:11-56a4. Uncertainty regarding damages does not foreclose such
claims. [D]amages need not be proved with precision where that is impractical or
impossible. . . . [M]ere uncertainty as to the amount will not preclude
recovery.
Mosley v. Femina Fashions, Inc.,
356 N.J. Super. 118, 128 (App. Div.
2002) (quotations omitted),
certif. denied,
176 N.J. 279 (2003).
Fifth, plaintiffs allege violation of
N.J.A.C. 12:56-5.2, which provides that all the time
the employee is required to be at his or her place of work
or on duty shall be counted as hours worked.
Finally, in addition to seeking restitution, the putative class seeks to disgorge Wal-Mart
of any benefits unjustly obtained. To establish a claim for unjust enrichment, a
plaintiff must show both that defendant received a benefit and that retention of
that benefit without payment would be unjust.
VRG Corp. v. GKN Realty Corp.,
135 N.J. 539, 554 (1994). That quasi-contract doctrine also requires that plaintiff show
that it expected remuneration from the defendant at the time it performed or
conferred a benefit on defendant and that the failure of remuneration enriched defendant
beyond its contractual rights.
Ibid.
In its answer, Wal-Mart advances thirty-four affirmative defenses. Those defenses, which are of
both a procedural and substantive nature, run the gamut from plaintiffs failure to
state claims upon which relief can be granted and their inability to comply
with applicable statutes of limitation to defenses focused on individual class members, such
as estoppel, waiver, and unclean hands.
C.
The core of the present dispute is whether Wal-Mart engaged in a systematic
and widespread practice of disregarding its contractual, statutory, and regulatory obligations to hourly
employees in this State by refusing to provide earned rest and meal breaks
and by encouraging off-the-clock work. Essential to that issue are other salient and
common questions, most notably the meaning and significance of Wal-Marts corporate policies concerning
breaks and off-the-clock work. The impact of the Associate Handbooks disclaimer and the
uniformity of new employee orientation also are prominent common questions.
A trier of fact may appropriately consider whether Wal-Mart promoted uncompensated work and
created a work environment where uniformly applicable policies were ignored as part of
a corporate-wide effort to reduce labor expenses. Related common questions include: the extent
of Wal-Marts corporate control over various aspects of its New Jersey retail stores,
such as scheduling, payroll, staffing, training, and compensation; the structure of the bonus
incentives provided to store managers; whether there was a practice of altering employee
time records; Wal-Marts constructive or actual knowledge of off-the-clock work and missed breaks;
and whether Wal-Mart understaffed its stores in expectation of off-the-clock work. Additionally, whether
Wal-Mart was enriched from its alleged conduct and, if so, whether such benefit
was unjust, are common questions.
Common evidentiary questions also surround the expert reports of Baggett, Shapiro, and White;
Wal-Marts July 2000 internal audit, recanted by a co-author; and Wal-Marts other business
records. Significant points of contention relate to reliability, admissibility, and credibility. Those questions
apply uniformly to all members of the proposed class. Although the weight and
merits of those reports and records are beyond our review here,
see Olive,
supra, 61
N.J. at 189, those evidentiary questions apply uniformly to the proposed
class members claims.
To be sure, as plaintiffs conceded at oral argument, resolution of those and
other common questions may not dispose of the litigation. Individual questions may yet
remain, such as: whether particular employees voluntarily missed rest and meal breaks; why
employees who worked off-the-clock did not avail themselves of the curative time-clock procedures;
how much time was worked off-the-clock; whether employees worked off-the-clock with the expectation
of compensation; and how much in damages employees suffered, if any. However, the
mere existence of remainder issues is insufficient to defeat class certification in New
Jersey,
see, e.g.,
Strawn,
supra, 140
N.J. at 67-69;
Varacallo,
supra, 332
N.J.
Super. at 45;
Fiore,
supra, 151
N.J. Super. at 529, and elsewhere,
see,
e.g.,
Sterling v. Velsicol Chem. Corp.,
855 F.2d 1188, 1196-97 (6th Cir. 1988)
(holding that remaining questions peculiar to individual members of class do not dictate
the conclusion that a class action is impermissible);
Cent. Wesleyan Coll. v. W.R.
Grace & Co.,
6 F.3d 177, 189-90 (4th Cir. 1993) (finding predominance and
certifying asbestos class action).
So too, the individualized defenses advanced by Wal-Mart do not necessarily foreclose a
finding of predominance. Although different factual situations may arise with respect to the
defenses as to different plaintiffs[, such] does not derogate from the fact that
the affirmative cause of action itself has the community of interests and of
questions of law or fact which justify the class action concept.
Branch v.
White,
99 N.J. Super. 295, 310 (App. Div.),
certif. denied,
51 N.J. 464
(1968). Our Appellate Division has stated: [i]t is true that possibly different factual
questions may come into play when the defense of waiver or other defenses
are raised as against individual members of the class. This is not a
bar to maintainability of the action as a class action.
Fiore,
supra, 151
N.J. Super. at 529.
The arguments advanced by Wal-Mart implicate our ruling in
In re Cadillac,
supra,
93 N.J. 412. That case concerned a state-wide class of 7,500 purchasers of
Cadillac automobiles with a specific engine.
Id. at 419. The customers alleged that
General Motors Corporation, knowing of common design defects, defrauded them into purchasing the
vehicles.
Ibid. General Motors urged decertification, arguing, as Wal-Mart does here, that individualized
questions predominated over common legal and factual contentions.
Ibid. Summarizing General Motors assertions,
Justice Pollock wrote:
GM vigorously contends that the engine is not defective and that diverse causes
unrelated to the design of the V8-6-4 engine are the source of the
common complaints. For example, it attributes the various problems of the individual owners
to defective parts, improper maintenance, alteration of the car, or intervening accidents. GM
asserts that the need to prove these numerous causes of engine failure would
necessitate thousands of mini-trials involving, among others, the issues of causation and damages
as to each car owner. Thus, GM contends that certification would prevent it
from pursuing defenses based on each cars individual characteristics and use by each
owner.
[Id. at 422-23.]
We rejected General Motors arguments and affirmed the class certification entered by the
trial court. We explained that General Motors misconstrue[d] the nature of class action
proceedings. Certification as a class action does not limit a defendants rights to
pursue any defense on any of a plaintiffs claims . . . [C]ertification
merely permits litigation of common issues on a class basis before litigation of
individual issues. Id. at 438.
In light of the record and consistent with In re Cadillac, we find
that plaintiffs here satisfied Rule 4:32-1(b)(3)s predominance requirement. In finding that common questions
predominate, however, we do not limit Wal-Marts defenses nor diminish its procedural safeguards
and rights. Rather, in defending itself, Wal-Mart may argue that employees voluntarily worked
through rest or meal breaks for myriad personal reasons, may contend that the
conclusions of Baggett and Shapiro are flawed, may question the credibility of the
July 2000 internal audit, and may advance any other relevant contentions. We are
confident that, on remand, the trial court and parties counsel can resolve the
practical challenges presented by this litigations individualized questions of law or fact.
D.
Finally, in respect of predominance, we reject Wal-Marts reliance on other state courts
decisions denying certification to similarly-pled, state-wide class-action lawsuits. Over twenty years ago, this
Court observed that different courts, even when presented with substantially similar, if not
identical, claims have reached divergent conclusions in deciding whether to certify a class
action.
In re Cadillac, 93
N.J. at 431. That observation is no less
true today, as other jurisdictions are divided on the question whether similarly-pled claims
by state-wide classes of former and current Wal-Mart employees are certifiable.
In any event, we are not bound by either view. Rather than count[]
cases for or against class certification,
Varacallo,
supra, 332
N.J. Super. at 44,
we are guided by our own independent examination of the facts, claims, and
defenses. Our rigorous analysis satisfies us that the present appeals common questions of
law or fact predominate over individualized questions.
V.
In addition to predominance,
Rule 4:32-1(b)(3) requires the party seeking certification to demonstrate
that class litigation is superior to other available methods for the fair and
efficient adjudication of the controversy. That requirement necessarily implies a comparison with alternative
procedures,
In re Cadillac,
supra, 93
N.J. at 436, and mandates assessment of
the advantages and disadvantages of using the class-action device in relation to other
methods of litigation. Moore,
supra, § 23.44. More specifically, our analysis demands (1) an
informed consideration of alternative available methods of adjudication of each issue, (2) a
comparison of the fairness to all whose interests may be involved between such
alternative methods and a class action, and (3) a comparison of the efficiency
of adjudication of each method.
In re Cadillac,
supra, 93
N.J. at 436
(quotation omitted).
The class members lack of financial wherewithal is an important factor in the
superiority analysis.
Saldana v. City of Camden,
252 N.J. Super. 188, 200 (App.
Div. 1991). The United States Court of Appeals for the Fifth Circuit declared
that a claims negative value is the most compelling rationale for finding superiority
in a class action.
Castano,
supra, 84
F.
3d at 748. Because of the
very real likelihood that class members will not bring individual actions, class actions
are often the superior form of adjudication when the claims of the individual
class members are small.
Weber v. Goodman,
9 F. Supp.2d 163, 170-71
(E.D.N.Y. 1998).
We recognize that, in this matter, putative class members may submit their claims
to the Wage Collection Division of the Department of Labor pursuant to the
Wage and Hour Law,
N.J.S.A. 34:11-56a to -56a30. However, we find that administrative
structure to be an inferior forum for the adjudication of this controversy.
First, and again, the nominal value of each class members claim counsels in
favor of class litigation and against adjudication before the agency.
See Varacallo, 332
N.J. Super. at 52 (rejecting disposition by Department of Banking as superior method
in disputes involving small sums). Plaintiffs are hourly employees of a retail store.
Independently, they lack the financial resources of their corporate adversary. The equalizing mechanism
of representative litigation allows them to adequately seek redress. As the United States
Supreme Court stated in
Phillips Petroleum Co. v. Shutts, a lawsuit filed by
a class of individuals with claims averaging $100, plaintiffs with small claims would
have no realistic day in court if a class action were not available.
472 U.S. 797, 809,
105 S. Ct. 2965, 2973,
86 L. Ed.2d 628, 641 (1985).
Second, the administrative framework may prove arduous for the aggrieved retail employees here.
The Wage Collection Division permits automatic removal to the Superior Court,
N.J.S.A. 34:11-66,
de novo review by the Superior Court,
N.J.S.A. 34:11-63, and introduction of additional
evidence on appeal without advance notice,
N.J.S.A. 34:11-65 -- procedures that favor parties
with greater resources and litigation experience.
Third, unitary adjudication is fair to defendant. Because Wal-Mart may defend itself against
plaintiffs allegations, its due process rights are not compromised. Moreover, through the class-action
device, Wal-Mart may resolve the claims of its current and former employees across
the State in an efficient manner that treats similarly-situated claimants consistently.
Finally, although not dispositive of the superiority question, claims filed in the Wage
Collection Division are subject to a two-year statute of limitations,
N.J.S.A. 34:11-56a25.1, as
opposed to the six-year statute of limitations applicable to contract claims,
N.J.S.A. 2A:14-1.
That distinction may procedurally bar numerous aggrieved former Wal-Mart employees from seeking relief.
At oral argument, Wal-Mart indicated that no claims similar to those pled in
this matter have been filed either in our courts or before the Department
of Labor. That fact suggests that aggrieved employees may not have sought individual
relief for a variety of reasons, including a lack of motivation to redress
their small claims, legitimate fears concerning employer retaliation, lack of resources, or a
sense of powerlessness when confronting their would-be corporate adversary.
We cannot ignore the reality that if the proposed class is not certified,
thousands of aggrieved employees will not seek redress for defendants alleged wrongdoing.
See
Carnegie v. Household Intl, Inc.,
376 F.3d 656, 661 (7th Cir. 2004) (The
realistic alternative to a class action is not . . . million[s of]
individual suits, but zero individual suits.),
cert. denied,
543 U.S. 1051,
125 S.
Ct. 877,
160 L. Ed. 772 (2005). As one court proclaimed, a negative
determination may sound the death knell of the action as one for a
class of persons or entities.
In re Sugar Indus. Antitrust Litig.,
73 F.R.D. 322, 356 (E.D. Pa. 1976). Therefore, we hold that class-wide resolution of the
present controversy is superior to other available methods for its fair and efficient
adjudication.
VI.
Manageability, a consideration [that] encompasses the whole range of practical problems that may
render the class action format inappropriate for a particular suit,
Eisen v. Carlisle
& Jacquelin,
417 U.S. 156, 164,
94 S. Ct. 2140, 2146,
40 L.
Ed.2d 732, 741 (1974), is the most hotly contested factor in analyzing
predominance and superiority. Conte & Newberg,
supra, § 4.32 at 269. Because of its
general significance and its particular relevance to the present appeal, we address this
concern separately.
Denial of class status due to manageability concerns is disfavored and, in view
of the public interest involved in class actions, should be the exception rather
than the rule.
In re Bristol Bay, Alaska, Salmon Fishery Antitrust Litig.,
78 F.R.D. 622, 628 (W.D. Wa. 1978) (quotation omitted);
see also Klay v. Humana,
Inc.,
382 F.3d 1241, 1272-73 (11th Cir. 2004) (finding manageability will rarely, if
ever, be in itself sufficient to prevent certification of a class);
Carnegie,
supra,
376
F.
3d at 661 ([C]lass action has to be unwieldy indeed before it
can be pronounced an inferior alternative . . . to no litigation at
all.). Complexity is an inherent trait of class litigation, and [m]any courts have
recognized . . . that potential management difficulties are not grounds for class
denial when justice can be done only through the class action device. Conte
& Newberg,
supra, § 4:32 at 277. In sum, courts should be careful not
to overemphasize management difficulty considerations when contrasted with judicial economy, small claims access,
and deterrence goals of the class device.
Id. § 4:45 at 336.
Although we acknowledge the difficulties inherent in managing this state-wide class action, a
finding of unmanageability requires more than mere difficulty in trying the case or
the existence of novel challenges.
See, e.g.,
Buford v. H&R Block, Inc.,
168 F.R.D. 340, 363 (S.D. Ga. 1996),
affd,
117 F.3d 1433 (11th Cir. 1997).
A court cannot simply close its doors to . . . litigants because
their actions present novel and difficult questions. Instead, the court and the parties
must use their ingenuity to conduct th[e] litigation in a manner which will
guarantee the rights of both sides.
In re Antibiotic Antitrust Actions,
333 F.
Supp. 278, 289 (S.D.N.Y. 1971).
This is not to suggest, however, that a class action may never be
denied due to manageability concerns. Rather, a trial court, in th