Harney v. Speedway Superamerica, LLC
| Decision Date | 30 May 2008 |
| Docket Number | No. 07-3488.,07-3488. |
| Citation | 526 F.3d 1099 |
| Parties | Brian HARNEY, Brett Deboard and Darla Greiner, on behalf of themselves and all others similarly situated, Plaintiffs-Appellants, v. SPEEDWAY SUPERAMERICA, LLC, Defendant-Appellee. |
| Court | U.S. Court of Appeals — Seventh Circuit |
Ronald E. Weldy (argued), Weldy & Associates, Indianapolis, IN, for Plaintiffs-Appellants.
William R. Groth (argued), Fillenwarth, Dennerline, Groth & Towe, Indianapolis, IN, for Defendant-Appellee.
Before BAUER, FLAUM and WILLIAMS, Circuit Judges.
Plaintiffs brought a class action lawsuit against their employer, Speedway SuperAmerica LLC, alleging that the manner in which Speedway pays and forfeits its employees' bonuses violates Indiana's Wage Payment Statute and Wage Claims Statute. The district court granted summary judgment to Speedway, finding that Plaintiffs' bonuses did not constitute "wages" under Indiana law, and therefore the two statutes did not apply. At best, the district court held, the bonuses were a form of "deferred compensation," which were forfeited when Plaintiffs failed to meet the bonuses' condition of continued employment with Speedway. Plaintiffs now appeal the district court's grant of summary judgment to Speedway, claiming that the district court erred in determining that the bonuses were not "wages" under Indiana law, and that the retention element of Speedway's bonus programs violates Indiana law.
We have reviewed the issues addressed by the district court and have determined that it ruled appropriately and without error in granting Speedway's motion for summary judgment. Accordingly, we adopt the district court's thorough and well-reasoned order, dated September 13, 2007, as our own and affirm the judgment of the lower court on all counts. A copy of the district court's order is attached and incorporated herein.
Plaintiffs also move to certify certain questions of state law to the Indiana Supreme Court, and to stay this appeal pending a decision from the Indiana Supreme Court. Plaintiffs contend that there is no clear controlling precedent to guide the state law issues of (1) whether the Plaintiffs' bonuses constitute "wages" under Indiana law; (2) whether the retention element of Speedway's bonus programs violates Indiana law (, Indiana's Ten Day Rule) and is void as a matter of law; and (3) whether Speedway's bonuses constitute "present" or "deferred" compensation.
A case is appropriate for certification where it "`concerns a matter of vital public concern, where the issue is likely to recur in other cases, where resolution of the question to be certified is outcome determinative of the case, and where the state supreme court has yet to have an opportunity to illuminate a clear path on the issue.'" Plastics Eng'g Co. v. Liberty Mut. Ins. Co., 514 F.3d 651, 659 (7th Cir. 2008) (quoting Allstate Ins. Co. v. Menards, Inc., 285 F.3d 630, 639 n. 18 (7th Cir.2002)); see also Cir. R. 52; Ind. R.App. P. 64(A). Questions that are tied to the specific facts of a case are typically not ideal candidates for certification. Plastics Eng'g Co., 514 F.3d at 659. Thus, if certification would produce a fact bound, particularized decision lacking broad precedential significance, certification is inappropriate. Id. (citing Erie Ins. Group v. Sear Corp., 102 F.3d 889, 892 (7th Cir. 1996)).
This case hinges entirely on whether the Plaintiffs' bonuses were "wages" under Indiana law, since Indiana law makes clear that bonuses may be conditioned however an employer sees fit, and that these bonuses would at best be deferred compensation subject to forfeiture. Dove v. Rose Acre Farms, Inc., 434 N.E.2d 931, 934 (Ind.Ct.App.1982) (); Montgomery Ward & Co. v. Guignet, 112 Ind.App. 661, 45 N.E.2d 337, 339-40 (1942) (); Swift v. Speedway Superamerica LLC, 861 N.E.2d 1212, 1215-16 (Ind.Ct.App.2007), reh'g and trans. denied (concluding that these same bonuses were at best deferred compensation but were forfeited because employee had failed to meet the eligibility requirement of continued employment). So, we need only decide if certification is appropriate on the issue of whether Plaintiffs' bonuses constitute "wages" under Indiana law.
Our analysis in this case involves the interpretation of a specific bonus program of a single Indiana employer as applied to Plaintiffs' particular factual circumstances. It is difficult to see how the determination of these employees' personal circumstances could have a far-reaching precedential effect for others. As the district court's opinion makes clear, the Indiana Supreme Court has provided guidance on when bonuses constitute "wages" under Indiana law. Because Plaintiffs are merely seeking a determination that their bonuses constitute wages, this case is not appropriate for certification.
We affirm the district court's grant of summary judgment to Speedway and deny Plaintiffs' request for certification.
ATTACHMENT
UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF INDIANA
INDIANAPOLIS DIVISION
BRIAN HARTLEY, BRETT
DEBOARD, and
DARLA GREINER, on behalf
of themselves
AND ALL OTHERS SIMILARLY
SITUATED
Plaintiffs
vs
SPEEWAY SUPERAMERICA, LLC
Defendant
1:05-cv-1912-LJM-WTL
This cause is before the Court on Defendant's, Speedway SuperAmerica, LLC ("Speedway"), Motion for Summary Judgment (Docket No. 22). Plaintiffs, Brian Harney ("Harney"), Brett DeBord ("DeBord")1, and Darla Greiner ("Greiner") (these defendants collectively, "the Managers"), filed this lawsuit in state court before it was removed to this Court pursuant to the Class Action Fairness Act of 2005. The Managers seek to recover on behalf of themselves and all others similarly situated pursuant to Indiana's Wage Claims Statute (Indiana Code § 22-2-9-1 et seq.) and Wage Payment Statute (Indiana Code § 22-2-5-1 et seq.) for allegedly unpaid bonuses and wages.2 The parties have fully briefed the issues and this matter is now ripe for ruling.
For the reasons stated herein, the Court GRANTS Speedway's motion.
The Managers are all former employees of Speedway whose employment ceased on October 11, 2005. Harney began employment in April 2004, and was an assistant store manager at the time that he was fired. DeBord began employment in March 2001, and was also an assistant manager at the time he was fired. Greiner began employment on December 17, 1996. She was a store manager at the time that her employment ceased and, unlike the other two plaintiffs, she chose to quit her employment.
During their employment, the Managers were paid on a weekly basis. They were also eligible for certain bonuses under programs established by Speedway. The different potential bonuses were outlined in detail in Speedway's Operations Manual and depended on the employee's classification during a particular month and quarter. One of the bonus programs was the Store Manager Bonus Program, which permitted store managers to earn monthly bonuses based on monthly performance objectives for their individual stores. Managers would earn bonus credits that could later be converted to cash payments. The bonus was contingent on several factors, such as meeting sales and operation goals. In addition, in order to receive this type of bonus, a store manager had to be employed on the last day of the second month after the bonus credits were earned. Speedway reserved the right to "amend, suspend, terminate, or change" the program at any time. See Seidel Aff., Exs. A-B.
The second type of bonus program was the Associate/Lead Assistant Manager Bonus Program. Similar to the Store Manager Bonus, receiving this type of bonus had an employment requirement attached to it. Specifically, in order to receive this bonus, Speedway's policy required that an employee be employed as the associate/lead assistant manager on the first day of the month and employed at the end of the second month following the month in which the bonus was earned. Like the Store Manager Bonus Program, Speedway reserved the right to "amend, suspend, terminate, or change" the Associate/Lead Assistant Manager Bonus Program at any time. See Seidel Aff., Exs. D-E.
The third and final type of bonus program was the Customer Satisfaction Rewards Program. This type of bonus was paid on a quarterly basis to assistant managers based on monthly objectives for their individual stores. Like the Store Manager Bonus, an employee would receive credits that could later be converted for a cash payout. Bonus credits were earned monthly if the assistant manager was employed on the first day of the month in which the credits were earned. Further, each credit would be given the value of $1.00 if the employee was still employed by Speedway on the last day of the second month after the end of the calendar quarter. Like the other types of bonuses, Speedway reserved the right to "amend, suspend, terminate, or change" the Customer Satisfaction Rewards Program at any time. See Seidel Aff., Exs. F-G.
Calculations for each of these bonuses was completed by Speedways's corporate office and then reviewed by region, district, and store managers. According to Speedway, the process of calculating and reviewing the bonuses typically took more than ten calendar days to complete. Paychecks were then mailed to the stores on Wednesdays following the end of a pay period. The Managers contend that they were not paid these bonuses in a timely fashion under the Wage Payment and Wage Claims Statutes b...
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