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  November 10, 2008
  Source:  WorkInjury.com
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CA/1:   Foot Locker Employee Class Settlement Set Aside

This newly-published case involved a class action settlement on behalf of employees of Foot Locker.

Initially, the issue centered around employees being required to buy certain shoes while working without being reimbursed.

This was amended to include the costs for other articles of clothing deducted from paychecks.

Finally, amendments were added to include reimbursement for break and meal times.

Following the settlement approval by the trial court, several parties objected on grounds that the trial court had not outlined in sufficient detail the potential range of values of the case should various subclasses of the employees prevail.

The First District agreed and set aside the settlement.

While making a point to emphasize that the settlement may indeed be reasonable, it said that there was no way to tell until the trial court set forth the chances of prevailing in sufficient detail. And before it could do that, certain additional discovery was required.

"The well-recognized factors that the trial court should consider in evaluating the reasonableness of a class action settlement agreement include 'the strength of plaintiffs' case, the risk, expense, complexity and likely duration of further litigation, the risk of maintaining class action status through trial, the amount offered in settlement, the extent of discovery completed and stage of the proceedings, the experience and views of counsel, the presence of a governmental participant, and the reaction of the class members to the proposed settlement.' [citations]"

In vacating the judgment, the Court permitted the objecting parties the right to additional discovery, after which the trial court could then best determine the probability of failure or success of the claims versus the potential recovery.

The Court stressed that deciding that a class settlement is fair does NOT mean the court has to decide the probable merits of the case. But...

"...the court must at least satisfy itself that the class settlement is within the "ballpark" of reasonableness. (citation) While the court is not to try the case, it is 'called upon to consider and weigh the nature of the claim, the possible defenses, the situation of the parties, and the exercise of business judgment in determining whether the proposed settlement is reasonable.'"

The case is Kullar v. Foot Locker.

To read the full opinion,

PLEASE CLICK HERE.