1st Precedential Decision from California Appellate Court: Striking a Claim Based on Manageability

In recent news, a California appellate court ruled that trial courts have “inherent authority” to strike claims under California Private Attorneys General Act (PAGA) if they won’t be manageable at trial. This is the first precedential decision on this particular issue from a California court.

The Case: Wesson v. Staples The Office Superstore, LLC

The Court: Court of Appeals of California

The Court No.: B302988

The Plaintiff: Wesson v. Staples

Fred Wesson filed a PAGA claim on behalf of himself and 345 other employees alleging that he and the other employees were misclassified as exempt from overtime.

The Trial Court’s Decision: Wesson v. Staples

The defendant, Staples The Office Superstore, LLC, moved to strike the PAGA claim citing that it would be “unmanageable” and therefore constitute a violation of its due-process rights. The claims were made based on the number of employees the plaintiff was attempting to represent in combination with the general nature of the claim’s allegations. While arguing that the claim was unmanageable, the defendant insisted that in order to show the employees were properly classified, individualized proof would be necessary and that based on this requirement, the case could “not be fairly and efficiently litigated.” The plaintiff responded by arguing that the trial court wasn’t authorized to strike the PAGA claim on grounds of manageability and that, even if they did have the authority, the PAGA claim was manageable. The trial court granted the defendant’s motion to strike the PAGA claim.

On Appeal: Wesson v. Staples

Considering the procedural quagmire associated with PAGA claims, many argue that courts should strike any claims that would be unmanageable at trial. In some cases, trial courts have agreed. In other cases, trial courts disagree. However, the Wesson decision is the first time a California Court of Appeal has issued any published authority on this issue. The appellate court, drawing upon courts’ inherent authority to manage litigation, held that courts do have the authority to ensure PAGA claims can be “fairly and efficiently tried” and that when necessary, courts may strike unmanageable claims. The appellate court also held that, in the matter of the Wesson claim specifically, the trial court did not abuse its discretion in striking the claim based on the grounds that it was unmanageable.

The Repercussions of the Appellate Court’s Decision: Wesson v. Staples

The appellate court’s decision is particularly interesting considering that the fact that PAGA claims do not have to meet class action requirements means that PAGA claims generally present more manageability concerns than a class action. The appellate court did also note that a court finding a claim to be unmanageable would not necessarily result in striking the claim as the court should first attempt to resolve manageability problems by altering trial schedules, limiting the scope of the claim, etc. A published California Court of Appeal decision endorsing the ability to strike unmanageable PAGA claims will likely increase the number of California employers filing motions to strike, and subsequently, increase the number of California workers seeking class action certification in response to employment law violations.

If you have questions regarding filing a class action or how employment law protects California employees from discrimation, harassment, wage and hour violations and more, get in touch with Blumenthal Nordrehaug Bhowmik DeBlouw LLP. Experienced employment law attorneys are ready to assist you in various law firm offices located in San Diego, San Francisco, Sacramento, Los Angeles, Riverside, and Chicago.