709 F.3d 829 (9th Cir. 2013), 08-55483, Wang v. Chinese Daily News, Inc.

Docket Nº:08-55483, 08-56740.
Citation:709 F.3d 829
Opinion Judge:W. FLETCHER, Circuit Judge:
Party Name:Lynne WANG; Yu Fang Ines Kai; Hui Jung Pao, On Behalf of Themselves and All Others Similarly Situated; Lien Yi Jung; Yu Fang Kai; Chang Chingfang; Jeffrey Sun; Shieh-Sheng Wei; Yun Min Pao; Hiu Jung Lee; Chengyang Yan; Shiang Huang; Chih-Ming Sheu; Minh Vi-Huynh; Jenny Liu Hung, Plaintiffs-Appellees, v. CHINESE DAILY NEWS, INC., Defendant-Appellant
Attorney:Delia Barnett, Berkeley, CA; Cornelia Dai and Randy Renick, Hadsell Stormer Richardson & Renick, LLP, Pasadena, CA, for Appellees. Michael M. Berger, Benjamin G. Shatz, Yi-Chin Ho, and Andrew L. Satenberg, Manatt, Phelps & Phillips, Los Angeles, CA, for Appellant.
Judge Panel:Before: STEPHEN S. TROTT and WILLIAM A. FLETCHER, Circuit Judges, and CHARLES R. BREYER, District Judge.[*]
Case Date:March 04, 2013
Court:United States Courts of Appeals, Court of Appeals for the Ninth Circuit
 
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709 F.3d 829 (9th Cir. 2013)

Lynne WANG; Yu Fang Ines Kai; Hui Jung Pao, On Behalf of Themselves and All Others Similarly Situated; Lien Yi Jung; Yu Fang Kai; Chang Chingfang; Jeffrey Sun; Shieh-Sheng Wei; Yun Min Pao; Hiu Jung Lee; Chengyang Yan; Shiang Huang; Chih-Ming Sheu; Minh Vi-Huynh; Jenny Liu Hung, Plaintiffs-Appellees,

v.

CHINESE DAILY NEWS, INC., Defendant-Appellant.

Lynne Wang; Yu Fang Ines Kai; Hui Jung Pao, on behalf of themselves and all others similarly situated, Plaintiffs-Appellees,

v.

Chinese Daily News, Inc., Defendant-Appellant,

and

Lien Yi Jung; Yu Fang Kai; Chingfang Chang; Shieh-Sheng Wei; Yun Min Pao; Hiu Jung Lee; Chenyang Yan; Shiang L. Huang; Chih-Ming Sheu; Minh Vi-Huynh; Jenny Liu Hung; Jeffrey Sun, Plaintiffs.

Nos. 08-55483, 08-56740.

United States Court of Appeals, Ninth Circuit.

March 4, 2013

Argued and Submitted July 31, 2012.

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[Copyrighted Material Omitted]

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Delia Barnett, Berkeley, CA; Cornelia Dai and Randy Renick, Hadsell Stormer Richardson & Renick, LLP, Pasadena, CA, for Appellees.

Michael M. Berger, Benjamin G. Shatz, Yi-Chin Ho, and Andrew L. Satenberg, Manatt, Phelps & Phillips, Los Angeles, CA, for Appellant.

Appeal from the United States District Court for the Central District of California, Consuelo B. Marshall, Senior District Judge, Presiding. D.C. No. 2:04-cv-01498-CBM-JWJ.

Before: STEPHEN S. TROTT and WILLIAM A. FLETCHER, Circuit Judges, and CHARLES R. BREYER, District Judge.[*]

OPINION

W. FLETCHER, Circuit Judge:

Named plaintiffs filed a class action suit against defendant-appellant Chinese Daily News, Inc. (" CDN" ), alleging violations of the federal Fair Labor Standards Act (" FLSA" ), of California's Unfair Business Practices Law, and of the California Labor Code. The district court certified the FLSA claim as a collective action and certified the state-law claims as a class action. After a sixteen-day jury trial and a three-day bench trial, the district court entered judgment in favor of plaintiffs. On September 27, 2010, we affirmed the district court. On October 3, 2011, the United States Supreme Court vacated and remanded for reconsideration in light of its decision in Wal-Mart Stores, Inc. v. Dukes, ___ U.S. ___, 131 S.Ct. 2541, 180 L.Ed.2d 374 (2011). We now reverse the district court's certification of the plaintiff class under Federal Rule of Civil Procedure 23(b)(2), and we remand for the district court to reconsider its analysis under Rules 23(a) and 23(b)(3).

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I. Background

On March 5, 2004, Lynne Wang, Yu Fang Ines Kai, and Hui Jung Pao filed suit against CDN on behalf of current, former, and future CDN employees based in CDN's San Francisco and Monterey Park (Los Angeles) locations, claiming violations of the FLSA, 29 U.S.C. § 206 et seq., California's Unfair Competition Law, Cal. Bus. & Prof.Code § 17200 et seq., and California's Labor Code. Plaintiffs alleged that CDN employees were made to work more than eight hours per day and more than forty hours per week. They further alleged that they were wrongfully denied overtime compensation, meal and rest breaks, accurate and itemized wage statements, and penalties for wages due but not promptly paid at termination. They sought damages, restitution, attorneys' fees, and injunctive relief.

After plaintiffs narrowed the class definition to include only non-exempt employees at the Monterey Park facility, the district court certified the FLSA claim as a collective action. The district court certified the state-law claims as a class action under Rule 23(b)(2). Wang v. Chinese Daily News, Inc., 231 F.R.D. 602, 611 (C.D.Cal.2005). In the alternative, the district court held that the class could be certified under Rule 23(b)(3). Id. at 614.

The post-certification litigation proceeded in three stages. First, both sides sought summary judgment on the question whether CDN's reporters were eligible for overtime under the FLSA. The court granted summary judgment to plaintiffs, holding that CDN's reporters did not fall within the " creative professional exemption" and were thus eligible for overtime. Wang v. Chinese Daily News, Inc., 435 F.Supp.2d 1042, 1055 (C.D.Cal.2006); see 29 C.F.R. § 541.302(d). Second, the district court held a sixteen-day jury trial. The jury returned a special verdict awarding the plaintiff class over $2.5 million in damages. Third, the court held a bench trial on the remaining issues of injunctive relief, penalties, prejudgment interest, and restitution. It held that plaintiffs' injuries could be remedied by damages and denied plaintiffs' request for an injunction.

We affirmed. Wang v. Chinese Daily News, 623 F.3d 743 (9th Cir.2010). The Supreme Court granted certiorari, vacated our opinion, and remanded for reconsideration in light of Wal-Mart Stores, Inc. v. Dukes, ___ U.S. ___, 131 S.Ct. 2541, 180 L.Ed.2d 374 (2011). The parties submitted post-remand supplemental briefing, and we held oral argument.

II. Discussion

A party seeking class certification must satisfy the requirements of Federal...

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