Braun v. Wal-Mart, Inc., No. 19-CO-01-9790 (Minn. State Dist. 6/30/2008)
| Decision Date | 30 June 2008 |
| Docket Number | File No. 19-CO-01-9790 |
| Court | Minnesota District Court |
| Parties | Nancy Braun, Debbie Simonson, Cindy Severson, and Pamela Reinert, individually and on behalf of themselves and all others similarly situated, Plaintiffs, v. WAL-MART, INC., a Delaware Corporation, its WAL-MART Supercenters, WAL-MART Discount Stores, and SAM'S CLUB operating segments, Defendants. |
The above class action matter came on for a bench trial before the Honorable Robert R. King, Jr., Judge of District Court, at the Dakota County Judicial Center, Hastings, Minnesota, commencing on September 25, 2007, and continued from time to time thereafter until the completion of testimony on December 11, 2007. Both parties were ably represented by counsel. During the course of the trial, the following counsel made appearances on behalf of Plaintiffs: Justin Perl, Jonathan Parritz, Kai Richter, André LaMere, and Jennifer Benowitz of Maslon Edelman Borman & Brand, LLP; William Sieben of Schwebel Goetz & Sieben; and Rodney Bridgers and Nathan Axvig of Franklin D. Azar & Associates. The following counsel made appearances on behalf of Defendants: Neal Manne, Victoria Cook, Shawn Rabin, David Orozco, and Kalpana Srinivasan of Susman Godfrey, LLP; Jerry Blackwell of Blackwell Burke, P.A.; and James Kremer of Dorsey & Whitney, LLP.
The issues tried were limited to the following:
1. liability (whether rest breaks, meal breaks and off-the-clock violations occurred), and compensatory damages;
2. the number of statutory violations under Minnesota's Fair Labor Standards Act ("MFLSA");
3. whether the statutory violations were repeated or willful to justify the imposition of civil penalties under Minn. Stat. § 177.27, subd. 7;
4. liquidated damages under Minn. Stat. § 177.27, subd. 8;
5. whether Wal-Mart's alleged nonpayment of wages was "willful," so as to apply the applicable limitations period for three years under Minn. Stat. § 541.07(5); and
6. injunctive relief, except as set forth below; and
7. failure to keep accurate time records under Minn. Stat. § 177.30; Or. Certifying Class ¶ 36 (Nov. 3, 2003).
Other issues were bifurcated from the trial and reserved for later resolution, including but not limited to punitive damages, the amount of any civil penalties (up to $1,000 per statutory violation), the size of any award of attorneys' fees and costs under Minn. Stat. § 177.27, subd. 10, and the nature and scope of any injunctive relief regarding Wal-Mart's practice of unlawfully clocking its Minnesota hourly employees out from work one or two minutes after they clock in.
Prior to trial, the Court issued an Order limiting the parties to 60 witnesses and 100 hours of testimony per side. Or. Regarding Time to Present Case and No. of Witnesses. ¶ 2, 6 (October 24, 2006). During the course of the trial, Plaintiffs called 41 witnesses and presented more than 86 hours of testimony. Defendants called 52 witnesses and presented more than 73 hours of testimony. In addition, 1,184 exhibits were received into evidence.
On February 14, 2008, counsel for the parties submitted proposed findings of fact and conclusions of law. At the request of the Court, the parties also submitted data relating to Wal-Mart workers who worked as cashiers, and it was received.
On April 1, 2008, counsel for the parties appeared before the Court and presented closing arguments. Upon completion of these arguments, the case was taken under advisement by the Court.
Based upon all of the evidence adduced at trial, including the testimony of witnesses and the exhibits received into evidence, and upon all the files, records and proceedings, the Court makes the following:
FINDINGS OF FACT:
BACKGROUND
1. On September 10, 2001, Plaintiff Nancy Braun commenced the above-captioned class action. Plaintiffs Debbie Simonson, Cindy Severson and Pamela Reinert subsequently joined the action as named parties on April 26, 2002.
2. Wal-Mart is a Delaware corporation headquartered in Bentonville, Arkansas. Wal-Mart operates thousands of retail stores in the United States and across the world, under the names "Wal-Mart" and "Sam's Club."1
3. During the period from September 11, 1998 to January 31, 2004 (the "Class Period"), Wal-Mart expanded both the size of its operations in Minnesota and the number
of stores from 45 to 59. Several of these stores, including Wal-Mart's Hastings "Supercenter," are located in Dakota County. 2
4. During the Class Period, Wal-Mart's salaried management team responsible for operating its stores consisted of store-level managers (store managers, co-managers in some stores, and assistant managers), district managers with responsibility for several stores, regional vice presidents responsible for districts in Minnesota (and also a regional personnel manager and regional loss prevention manager for each region), divisional vice presidents responsible for Wal-Mart's Minnesota regions, and several other Home Office executives.3 Many of Wal-Mart's vice presidents and other Home Office executives testified at trial. In addition, the Court heard testimony from Wal-Mart's current and former Minnesota district managers and store managers in the field.
5. Wal-Mart's hourly management/supervisory team responsible for operating its stores primarily consisted of department managers and customer sales managers ("CSMs").
6. Plaintiff Nancy Braun (Braun) was an hourly employee at Wal-Mart's Apple Valley, Minnesota, store from March 1999 to May 2000. Tr. Transcr. 503:4-7 (Sep. 26, 2007). During her tenure at Apple Valley, Braun worked in the Domestics Department, in D & D, as a cashier, and later in the "Radio Grill," Wal-Mart's in-store eatery.4 Tr. Transcr. 476:14-477:24 (Sep. 26, 2007).
7. Plaintiff Deborah Simonson (Simonson) was an hourly employee at Wal-Mart's Brooklyn Park, Minnesota, store from April 2000 to May 2001. During her tenure at Brooklyn Park, Simonson worked as a cashier in the Lawn and Garden Department, as a CSM and as an assistant manager in the Jewelry Department. Tr. Transcr. 75:16-76:3, 166: 6-10 (Sep. 25, 2007).
8. Plaintiff Cindy Severson (Severson) was an hourly employee at Wal-Mart's stores in Brooklyn Park and Maple Grove, Minnesota. Severson was employed at the Brooklyn Park store from approximately August 2000 through August 2001, working at the customer service desk and as a backup cashier. Severson was employed at the Maple Grove store from approximately September through November 2001, working as a customer service associate. Tr. Transcr. 2444:3-11, 14-20, 2445:12-22, 2462:17-19 (Oct. 9, 2007).
9. Plaintiff Pamela Reinert (Reinert) was employed by Sam's Club from April 1997 to October 2000. She began her career at Wal-Mart as an hourly associate at the St Louis Park Sam's Club in April 1997 and worked as a cashier, floor associate, and personnel associate. In early 1998, she entered the Manager-in-Training program, and trained as a manager at the Fridley and White Bear Lake Clubs. After completing the training course, Reinert worked as an assistant manager, a salaried position, in the Fridley and Inver Grove Heights clubs. She left Sam's Club in October 1998 to take care of a terminally ill child and returned to the St. Louis Park club, as an hourly associate, from April 1999 until October 2000. During this time, she worked on the overnight crew, in merchandising, and as a cashier. Tr. Transcr. 185:17-186:24, 187:19-188:19, 189:12-190:4, 246:13-22, (Sep. 25, 2007), 314:25-315:7, 315:13-18, 315:24-316:5, (Sep. 26, 2007).
10. Plaintiffs brought this action under Minn. R. Civ. P. 23.01, on behalf of a class consisting of all current and former hourly employees of Wal-Mart in the state of Minnesota who worked off the clock without compensation and/or worked through all or part of a rest or meal break during the class period. Pls.' Fourth Amended Compl. ¶ 12 (Oct. 31, 2007).
11. In their Complaint, Plaintiffs asserted claims for breach of contract, unjust enrichment, quantum meruit, violations of MFLSA and its accompanying regulations, and punitive damages.5
12. Specifically, Plaintiffs alleged that Wal-Mart breached its contract with the Class and violated Minnesota law by (1) failing to provide the Class with sufficient and adequate rest breaks and meal periods; and (2) failing to pay the Class for "off-the-clock" work performed on behalf of Wal-Mart. In addition, Plaintiffs alleged that Wal-Mart violated MFLSA by failing to keep accurate records of time worked and failing to pay for rest breaks between 15 and 20 minutes in duration.
13. Wal-Mart denies these allegations and asserts, inter alia, that class members did not miss breaks and meals or skipped them voluntarily for reasons unrelated to demands of the workplace, and that if they worked off the clock they did so without Wal-Mart's constructive or actual knowledge.
14. On November 3, 2003, the Honorable Thomas R. Lacy certified the case as a class action, finding the claims asserted by Plaintiffs Braun, Simonson, Reinert and Severson to be typical of the class. Order Certifying Class Action ¶ 19 (Nov. 13, 2003). This Court partially denied Wal-Mart's motion to decertify the Class. Or. Re. Dfds.' Decertification and S.J. Mots. (Sep. 24, 2007).
15. Judge Lacy limited the Class Period to September 11, 1998 through January 31, 2004, subject to a conclusion by the trier of fact that the Defendants engaged in willful failure to pay wages in conjunction with employee compensation. Order Re: Notice to Class Members and Defs.' Mot. P.S.J. as to Stat. of Limitations. ¶ 2 (May 21, 2004). If no such conclusion is reached then the class period is to be from September 11, 1999 through January 31, 2004. Id., memo. 5.
SUITABILITY FOR CLASS TREATMENT (Witness Credibility)
16. Prior to trial, the Court advised the parties of its desire to hear live...
To continue reading
Request your trial