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On her own behalf and on behalf of the proposed class, the accountant sought backpay, money damages, and injunctive relief prohibiting the corporation from continuing its discriminatory ways and requiring affirmative steps to remedy past discrimination. The potential class amounted to 500 people. The accountant moved the court to certify the class.
A Latina accountant, currently employed by a corporation, initiated a class action lawsuit in federal court on behalf of a class of current Latino employees and previous job applicants who were not hired, totaling 500 class members. The accountant claimed that the employees and applicants had been victimized by discriminatory policies and practices of the corporation, in both hiring and promotion.
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In determining whether to treat the case as a class action, the court should consider the following factors:
(i) the interest of individual control;
(ii) the extent and nature of litigation elsewhere on the same subject;
(iii) the desirability of having the whole package in this court; AND
(iv) the difficulties in managing the class action.
Rule 23 lays out FIVE requirements of a class action, including that the case must:
(i) be so large that joinder of all members is impracticable;
(ii) contain common questions of law or fact shared by the class;
(iii) have claims or defenses from the named representatives that are typical of those in the class;
(iv) have representatives that fairly and adequately protect the interests of the class; AND
(v) meet the definition of one of the THREE TYPES of classes enumerated under 23(b), including cases where:
a single action is necessary to avoid inconsistent outcomes or impairment of absent members' interests;injunctive or declaratory relief is necessary in response to a defendant's actions or inactions; ORcommon questions of fact or law among the members prevail over individual members' issues.D is correct. In determining whether to certify the class under FRCP 23, the court is likely to find that there are potential conflicts between those who never were hired, but now might be, and those who are already hired. The possibility of hiring more Latino employees to compensate for past discrimination in the application process might leave less money available for salaries and promotions of existing employees. As such, there would likely be differing interests among the two sub-groups—those already employed and those seeking to be newly-hired.
A is incorrect. The numerosity of class members is one factor in determining whether class certification is appropriate, but it is not the only factor. The risk of conflicts of interest will be enough to prevent the court from certifying this class.
B is incorrect. There are common questions of law and fact, including whether the company had policies and practices of discriminating against Latino employees and applicants in both hiring and promotions. However, this factor is not enough to certify a class that is likely to have significant conflicts of interest among the 500 members.
C is incorrect. The fact that there are 500 class members would actually support the court's decision to certify, not count against it. However, the court should nevertheless deny class certification because of the above-mentioned likelihood for conflicts among members.