SUPREME COURT OF THE UNITED STATES
_________________
No. 14–1146
_________________
TYSON FOODS, INC., PETITIONER
v. PEG
BOUAPHAKEO, et al., individually and on behalfof all others
similarly situated
on writ of certiorari to the united states
court of appeals for the eighth circuit
[March 22, 2016]
Justice Thomas, with whom Justice Alito joins,
dissenting.
Our precedents generally prohibit plaintiffs
from maintaining a class action when an important element of
liability depends on facts that vary among individual class
members. This case concerns whether and when class-action
plaintiffs can overcome that general rule by using representative
evidence as common proof of an otherwise individualized issue. Our
precedents resolve that question: Before class-action plaintiffs
can use representative evidence in this way, district courts must
undertake a rigorous analysis to ensure that such evidence is
sufficiently probative of the individual issue to make it
susceptible to classwide proof. The District Court did not satisfy
that obligation here, and its failure to do so prejudiced defendant
Tyson Foods at trial. The majority reaches a contrary conclusion by
redefining class-action requirements and devising an unsound
special evidentiary rule for cases under the Fair Labor Standards
Act of 1938 (FLSA), 29 U. S. C. §201
et seq.
I respectfully dissent.
I
“The class action is an exception to the usual
rule that litigation is conducted by and on behalf of the
individual named parties only.”
Comcast Corp. v.
Behrend, 569 U. S. ___, ___ (2013) (slip op., at 5)
(internal quotation marks omitted). Plaintiffs thus “must
affirmatively demonstrate [their] compliance” with Rule 23.
Wal-Mart Stores, Inc. v.
Dukes, 564 U. S. 338,
350 (2011) . Where, as here, a putative class seeks money damages,
plaintiffs also must satisfy the “demanding” standard of
predominance,
Comcast,
supra, at ___ (slip op., at
6), by proving that “questions of law or fact common to class
members predominate over any questions affecting only individual
members.” Fed. Rule Civ. Proc. 23(b)(3).
District courts must also ensure continued
compliance with Rule 23 throughout the case. When a district court
erroneously certifies a class, then holds a trial, reversal is
required when the record shows that improper certification
prejudiced the defendant. And an incorrect class certification
decision almost inevitably prejudices the defendant. When a
district court allows class plaintiffs to prove an individualized
issue with classwide evidence, the court relieves them of their
burden to prove each element of their claim for each class member
and impedes the defendant’s efforts to mount an effective
defense.
Here, the District Court misconstrued the
elements of the plaintiffs’ claims. And it failed to recognize that
one critical element of those claims raised an individual issue
that would predominate over any common issues. The court therefore
did not ask whether that individual issue was susceptible to common
proof. That error, at the class certification stage, then
prejudiced Tyson at trial. It was only at trial that the plaintiffs
introduced the critical evidence at issue in this case. They
introduced, as representative of the class, a study by the
plaintiffs’ expert, Dr. Kenneth Mericle. The District Court still
declined to consider whether this evidence was appropriate common
proof—even though the study showed wide variations among class
members on an important individual issue. These errors prejudiced
Tyson and warrant reversal.
A
The District Court erred at the class
certification stage by holding that the plaintiffs satisfied Rule
23’s predominance requirement. The plaintiffs alleged that Tyson
failed to adequately pay workers overtime for donning and doffing
protective gear, in violation of the Iowa Wage Payment Collection
Law, Iowa Code §91A.3 (2013). This Iowa law mirrors the
FLSA.[
1] An employer violates
these laws if it employs someone “for a workweek longer than forty
hours” and fails to adequately compensate him for the overtime. 29
U. S. C. §207(a)(1). Here, the plaintiffs could establish Tyson’s
liability to all class members only if: (1) the donning and doffing
at issue is compensable work; (2) all employees worked over 40
hours, including donning and doffing time; and (3) Tyson failed to
compensate each employee for all overtime.
The District Court should have begun its
predominance inquiry by determining which elements of the
plaintiffs’ claims present common or individual issues, and
assessed whether individual issues would overwhelm common ones. See
Halliburton Co. v.
Erica P. John Fund, Inc., 573
U. S. ___, ___ (2014) (slip op., at 14–15);
Erica P. John
Fund, Inc. v.
Halliburton Co., 563 U. S. 804, 809
(2011) . The plaintiffs’ claims here had one element that was
clearly individualized: whether each employee worked over 40 hours
without receiving full overtime pay. The amount of time that
employees spent on donning and doffing varied by person because
individuals take different amounts of time to don and doff the same
gear, and their gear varied. This issue was critical to determining
Tyson’s liability because some employees would not have worked over
40 hours per week without counting time spent on donning and
doffing. The critical issue for class certification thus was
whether the individualized nature of employees’ donning and doffing
times defeated predominance.
The District Court, however, certified a
3,344–member class without acknowledging the significance of this
individual issue, let alone addressing whether it was susceptible
to common proof. The court acknowledged that “[i]ndividual
questions may exist” and that Tyson was objecting to being “forced
to defend against
un common evidence” because the plaintiffs
had no common evidence establishing what gear all employees wore
“or how long [they] spend donning and doffing their [gear].” 564
F. Supp. 2d 870, 900, 909 (ND Iowa 2008). But, in the District
Court’s view, common issues predominated because the plaintiffs
could establish classwide liability just by showing that Tyson was
not paying any employee for the time it took to don or doff basic
gear.
Id., at 909; see
id., at 900, 904, 905
(similar).
The District Court thus did not give proper
consideration to the significance of variable donning and doffing
times. Establishing an FLSA violation across the entire class was
impossible without evidence that
each employee would have
worked over 40 hours per week if donning and doffing time were
included. But the District Court did not fully appreciate that this
was a critical individual issue that defined Tyson’s liability, and
it did not analyze, in any way, whether this issue was susceptible
to common proof. As a result, the District Court erred when it
certified the class.
B
It was only later at trial that the plaintiffs
introduced the critical evidence that they claimed could establish
all employees’ donning and doffing times on a classwide basis. This
evidence came from the plaintiffs’ expert, Dr. Mericle, who studied
how long certain Tyson employees took to don and doff various gear.
This was the “most important” evidence at trial.
Ante, at 5.
Without it, the plaintiffs almost certainly could not have obtained
a classwide verdict. But rather than showing that employees’
donning and doffing times were susceptible to classwide proof,
Mericle’s evidence showed that employees’ donning and doffing times
varied materially. Mericle’s evidence thus confirmed the
inappropriateness of class treatment.
Mericle used about 53 employees per donning- or
doffing-related activity to extrapolate averages for the
3,344–person class. By averaging the times that sample employees
spent per activity, Mericle estimated that all cut or retrim
department employees spent 18 minutes per day on uncompensated
activities (including donning and doffing), while kill department
employees averaged 21.25 minutes.
Mericle’s data, however, revealed material
variances in the amount of time that individual employees spent on
the same activities. Cut and retrim employees took between 0.583
minutes and over 10 minutes to don preshift equipment at their
lockers. Postshift doffing took one employee less than two minutes,
and another over nine minutes. Kill department employees had
similar variances. No two employees performed the same activity in
the same amount of time, and Mericle observed “a lot of variation
within the activity.” App. 387.
The plaintiffs’ trial evidence also showed that
variances in the amount of time that employees spent on donning and
doffing activities significantly affected the number of class
members who could assert overtime claims. The plaintiffs’ other
expert, Dr. Liesl Fox, added Mericle’s average times to individual
employees’ timesheets to determine which class members had overtime
claims. She discovered that 212 of the 3,344 class members had no
claims at all because they had not worked over 40 hours per week.
If Mericle’s averages even slightly overesti-mated average donning
and doffing times, another 282 class members would have no overtime
claims. If average donning or doffing times dropped from 18–21
minutes to 15 minutes, Fox stated, another 110 employees had no
overtime claims. According to Fox, incremental changes to donning
and doffing times mattered so much that her estimated damages
figure ($6.6 million) would be meaningless if the jury discounted
Mericle’s data at all. Yet the jury ultimately rejected that
damages figure—seemingly disagreeing that Mericle’s average times
reflected the amount of time that every class member spent donning
and doffing.
Because the District Court did not evaluate
Mericle’s and Fox’s evidence in its initial class certification
decision, it should have revisited certification when faced with
this evidence at trial. It declined to do so even after Tyson
objected to using this evidence to establish the amount of time all
class members spent donning and doffing. See 2011 WL 3793962 (ND
Iowa, Aug. 25, 2011) (rejecting decertification motion); 2012 WL
4471119 (ND Iowa, Sept. 26, 2012) (summarily denying post-trial
decertification). The court thus never made findings or analyzed
whether, under Rule 23(b)(3), Mericle’s study could be used as
common proof of an individual issue that would otherwise preclude
class treatment.
The District Court’s jury instructions did not
cure this deficiency. No instruction could remedy a court’s failure
to address why an individual issue was susceptible to common proof.
In any event, the court instructed the jury that “expert
testimony”—like Mericle’s—should get “as much weight as you think
it deserves.” App. 471. The court also let the jury rely on
representative evidence to establish each class member’s claim even
if the jury believed that employees’ donning and doffing times
varied considerably. See
ibid.
In sum, the plaintiffs at no time had to justify
whether the variability among class members here was too much for
representative evidence to fill the gap with common proof. Nor did
the District Court address whether Mericle’s study—which showed
significant variability in how much time employees spent on donning
and doffing—was permissible common proof. These errors created an
unacceptable risk that Tyson would be held liable to a large class
without adequate proof that each individual class member was owed
overtime. Before defendants can be forced to defend against a class
action, courts must be sure that Rule 23’s criteria are met. The
District Court’s failure to do so warrants reversal.
II
The majority reaches a contrary result by
erring in three significant ways. First, the majority alters the
predominance inquiry so that important individual issues are less
likely to defeat class certification. Next, the majority creates a
special, relaxed rule authorizing plaintiffs to use otherwise
inadequate representative evidence in FLSA-based cases by
misreading
Anderson v.
Mt. Clemens Pottery Co., 328
U. S. 680 (1946) . Finally, the majority points to Tyson’s
litigation strategy and purported differences from prior Rule 23
precedents. None of these justifications withstands scrutiny.
A
The majority begins by redefining the
predominance standard. According to the majority, if some
“ ‘central issues’ ” present common questions,
“ ‘the action may be considered proper under Rule 23(b)(3)
even though other important matters will have to be tried
separately, such as damages or some affirmative defenses peculiar
to some individual class members.’ ”
Ante, at 9
(quoting, 7AA C. Wright, A. Miller, & M. Kane, Federal Practice
& Procedure §1778, pp. 123–124 (3d ed. 2005; footnotes
omitted)).
We recently—and correctly—held the opposite. In
Comcast, we deemed the lack of a common methodology for
proving damages fatal to predominance because “[q]uestions of
individual damage calculations will inevitably overwhelm questions
common to the class.” 569 U. S., at ___ (slip op., at
7).[
2] If, as the majority
states, this case presents “no occasion” to announce “broad and
categorical rules governing the use of representative and
statistical evidence in class actions,”
ante, at 15, it
should most certainly not present an occasion to transform basic
aspects of the predominance inquiry.
B
The majority further errs in concluding that
the representative evidence here showed that class members’ claims
were susceptible to common proof. See
ante, at 8–15. As the
majority observes, representative evidence can be used to prove an
individual issue on a classwide basis if each class member, in an
individual action, could rely on that evidence to prove his
individual claim.
Ante, at 11. But that premise should doom
the plaintiffs’ case. Even testifying class members would seem
unable to use Mericle’s averages. For instance, Mericle’s study
estimated that kill department employees took an average 6.4
minutes to don equipment at their lockers before their shift—but
employee Donald Brown testified that this activity took him around
2 minutes. Others also testified to donning and doffing times that
diverged markedly from Mericle’s estimates. So Mericle’s study
could not sustain a jury verdict in favor of these plaintiffs, had
they brought individual suits.
According to the majority, this disparity
between average times and individual times poses no problem because
Anderson v.
Mt. Clemens Pottery Co., 328 U. S.
680 , allows plaintiffs to use such representative evidence as
common proof. See
ante, at 11–14. In the majority’s view,
Mt. Clemens established that (1) if the employer did
not record the time that employees spent on compensable work,
employees can use representative evidence to establish the
employer’s liability,
ante, at 11–12; and (2) employees
can use “the experiences of a subset of employees” to establish
“the experiences of all of them” if “each employee worked in the
same facility, did similar work[,] and was paid under the same
policy,”
ante, at 14.
The majority’s reliance on
Mt. Clemens is
questionable given that decision’s shaky foundations. Seventy years
ago,
Mt. Clemens construed the FLSA broadly to vindicate the
Court’s understanding of the FLSA’s “remedial” purposes. 328
U. S., at 687. Within a year, Congress rejected that
interpretation. Citing the “emergency” this Court had created by
spurring “excessive and needless litigation,” Congress repudiated
this Court’s understanding of what the FLSA meant by “work” and the
“workweek” and limited employees’ ability to sue collectively. 29
U. S. C. §§251(a)–(b); see
Integrity Staffing
Solutions, Inc. v.
Busk, 574 U. S. ___, ___ (2014)
(slip op., at 3–5) (noting repudiation in the Portal-to-Portal Act
of 1947);
Hoffmann-La Roche Inc. v.
Sperling, 493
U. S. 165, 173 (1989) (noting repudiation of representative
actions). Since then, this Court has decided many FLSA cases, but
has never relied on
Mt. Clemens to do so.[
3]
Putting these concerns aside, the majority today
goes beyond what
Mt. Clemens held. First,
Mt. Clemens
does not hold that employees can use representative evidence in
FLSA cases to prove an otherwise uncertain element of liability.
Mt. Clemens involved an employer’s alleged failure to pay
employees for time they spent walking to and from their work spaces
and on preshift preparatory activities. See 328 U. S., at
684–685. The Court held that the FLSA required employers to
compensate employees for those activities.
Id., at 690–692
(overruled by 29 U. S. C. §§252, 254). The employer was
thus presumptively liable to all employees because they all claimed
to work 40 hours per week. See Record in
Mt. Clemens, O.T.
1945, No. 342 (Record), pp. 10–11 (complaint). All additional
uncompensated work was necessarily unpaid overtime. That explains
why the Court “assum[ed] that the employee has proved that he has
performed work and has not been paid in accordance with the
statute.” 328 U. S., at 688.
Mt. Clemens also rejected the notion that
employees who had
already established the employer’s
liability had to prove damages using precise, employee-specific
records.
Id., at 687. Rather, if the employer failed to keep
records but its liability was certain, employees could use evidence
that “show[s] the amount and extent of that work as a matter of
just and reasonable inference.”
Ibid. The Court, however,
limited this holding to instances where the employer’s FLSA
violation was “certain,” as in
Mt. Clemens itself.
Id., at 688; see
ibid. (inference permissible “as to
the extent of the damages”).
Mt. Clemens does not justify
the use of representative evidence in this case, where Tyson’s
liability to many class members was uncertain.
Second, the majority misreads
Mt. Clemens
as “confirm[ing]” that when employees “worked in the same facility,
did similar work and w[ere] paid under the same policy,”
representative evidence can prove all of their claims.
Ante,
at 14.
Mt. Clemens said nothing about whether or why the
employees there shared sufficient similarities for their claims to
be susceptible to common proof. The
Mt. Clemens plaintiffs
were the local union and seven employees. See 328 U. S., at
684. They brought a representative action, a type of collective
action that allowed employees to designate a union to pursue their
claims for them. See §16(b), 52Stat. 1069; Record 7 (complaint).
Some 300 employees did so. See
Mt. Clemens Pottery Co. v.
Anderson, 149 F. 2d, 461 (CA6 1945); Record 33–41. The
District Court did not make findings about what made these
employees similar, instead reasoning that the FLSA’s broad
objectives supported a liberal approach to allowing class suits.
Record 29–32 (June 13, 1941, order). This Court also said nothing
about whether the employees suffered the same harm in the same
manner; that issue was not before it. In
Mt. Clemens’
aftermath, however, Congress eliminated representative actions,
like the one in
Mt. Clemens, that required too few
similarities among plaintiffs and allowed plaintiffs “not
themselves possessing claims” to sue.
Hoffman-La Roche,
supra, at 173.
Mt. Clemens thus offers no
guidanceabout what degree of similarity among employees suffices
for representative evidence to establish all employees’
experiences.
In any event,
Mt. Clemens did not accept
that the representative evidence there would be probative even were
the employees sufficiently similar. All
Mt. Clemens decided
was that the lack of precise data about the amount of time each
employee worked was not fatal to their case. 328 U. S., at
686–687. The Court then remanded the case, leaving the lower courts
to “draw whatever reasonable inferences can be drawn from the
employees’ evidence,” if any.
Id., at 693–694.[
4]
Mt. Clemens therefore does not
support the majority’s conclusion that representative evidence can
prove thousands of employees’ FLSA claims if they share a facility,
job functions, and pay policies. See
ante, at 14.
By focusing on similarities irrelevant to
whether employees spend variable times on the task for which they
are allegedly undercompensated, the majority would allow
representative evidence to establish classwide liability even where
much of the class might not have overtime claims at all. Whether
employees work in one plant or many, have similar job functions, or
are paid at the same rate has nothing to do with how fast they
walk, don, or doff—the key variables here for FLSA liability.
The majority suggests that
Mt. Clemens’
evidentiary rule is limited to cases where the employer breaches
its obligation to keep records of employees’ compensable work. See
ante, at 11–12. But that limitation is illusory. FLSA cases
often involve allegations that a particular activity is
uncompensated work. Just last Term, we re-jected class-action
plaintiffs’ theory that waiting in an antitheft security screening
line constitutes work. See
Integrity Staffing Solutions,
Inc., 574 U. S. at ___ (slip op., at 1). The majority thus
puts employers to an untenable choice. They must either track any
time that might be the subject of an innovative lawsuit, or they
must defend class actions against representative evidence that
unfairly homogenizes an individual issue. Either way, the
major-ity’s misinterpretation of
Mt. Clemens will profoundly
affect future FLSA-based class actions—which have already increased
dramatically in recent years. Erichson, CAFA’s Impact On Class
Action Lawyers, 156 U. Pa. L. Rev. 1593, 1617 (2008).
C
The majority makes several other arguments why
Mericle’s study was adequate common proof of all class members’
experiences. None has merit.
First, the majority contends that, because
Tyson’s trial defense—that Mericle’s study was unrepresentative or
inaccurate—was “itself common,” Tyson was “not deprive[d] . . . of
its ability to litigate individual defenses.”
Ante, at 12.
But looking to what defenses remained available is an unsound way
to gauge whether the class-action device prevented the defendant
from mounting individualized defenses. That Tyson was able to mount
only a
common defense confirms its disadvantage. Testifying
class members attested to spending less time on donning and doffing
than Mericle’s averages would suggest. Had Tyson been able to
cross-examine more than four of them, it may have incurred far less
liability. See
supra, at 9–10.
Second, the majority argues that Tyson’s failure
to challenge Mericle’s testimony under
Daubert v.
Merrell
Dow Pharmaceuticals, Inc., 509 U. S. 579 (1993) , left to
the jury any remaining questions about the value of this evidence.
Ante, at 14–15. But
Comcast rejected this argument.
Failing to challenge evidence under
Daubert precludes
defendants from “argu[ing] that [the] testimony was not
admissible,” but it does not preclude defendants from “argu[ing]
that the evidence failed to show that the case is susceptible to
awarding damages on a class-wide basis.”
Comcast, 569
U. S.
, at ___, n. 4 (slip op., at 5, n. 4)
(internal quotation marks omitted).
Finally, the majority’s attempts to distinguish
this case from
Wal-Mart are unavailing. See
ante, at
13–14.
Wal-Mart involved a nationwide Title VII class action
alleging that Wal-Mart’s policy of delegating employment decisions
to individual store managers let managers exercise their discretion
in a discriminatory manner. See 564 U. S., at 342. We held
that discretionary decisionmaking could not be a common policy
uniting all class members’ claims because managers presumptively
exercise their discretion in an individualized manner. See
id., at 355–356. Some may rely on performance-based
criteria; others may use tests; yet others might intentionally
discriminate.
Ibid. Because of this variability,
“demonstrating the invalidity of one manager’s use of discretion
will do nothing to demonstrate the invalidity of another’s.”
Ibid.
Moreover, the
Wal-Mart plaintiffs’
representative evidence—120 employee anecdotes—did not make this
individualized issue susceptible to common proof.
Id., at
358. Using 120 anecdotes to represent the experiences of 1.5
million class members was too far below the 1:8 ratio of anecdotes
to class members that our prior cases accepted.
Ibid. Thus,
this representative evidence was “too weak to raise any inference
that all the individual, discretionary personnel decisions are
discriminatory.”
Ibid.
The plaintiffs’ reliance on Mericle’s study
fails for the same reasons. Just as individual managers inherently
make discretionary decisions differently, so too do individual
employees inherently spend different amounts of time donning and
doffing. And, just as 120 employee anecdotes could not establish
that all 1.5 million class members faced discrimination, neither
can Mericle’s study establish that all 3,344 class members spent
the same amount of time donning and doffing. Like the 120 Wal-Mart
anecdotes, Mericle’s study—which used about 57 employees per
activity to extrapolate times for 3,344—falls short of the 1:8
ratio this Court deems “significant” to the probative value of
representative evidence. See
id., at 358.
III
I agree with the majority’s conclusion in Part
II–B that we should not address whether a class action can be
maintained if a class contains uninjured members. Given that
conclusion, however, I am perplexed by the majority’s readiness to
suggest, in dicta, that Tyson’s opposition to bifurcating the
proceedings might be invited error.
Ante, at 17. I see no
reason to opine on this issue.
* * *
I respectfully dissent.