Callari v. Blackman Plumbing Supply, Inc.
307 F.R.D. 67
E.D.N.Y2015Background
- Plaintiff Michael Callari, a former BPS assistant branch manager/inside sales rep, sued BPS and related defendants claiming overtime was improperly denied under the FLSA and NYLL.
- BPS classified assistant branch managers as salaried "executive" employees exempt from overtime; Plaintiff contends assistant managers and inside sales performed mostly sales work and were misclassified.
- The DOL investigated BPS, found overtime violations for certain salaried inside sales/HVAC counter employees for 2006–2008, and BPS entered a compliance agreement paying back wages; Callari refused the DOL settlement.
- The district court previously denied in part and granted in part summary judgment and granted conditional certification of an FLSA collective action (Judge Tomlinson) under the lenient "modest factual showing" standard.
- Plaintiff moved to certify an opt-out class under Rule 23(b)(3) for inside salespersons and assistant managers across BPS branches; defendants opposed, arguing duties varied by branch and many assistant managers had managerial duties.
- The court conducted the Rule 23 rigorous analysis and denied Rule 23 certification, finding lack of commonality, typicality, adequacy, and that predominance/superiority were not satisfied.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Commonality — whether class claims share questions capable of classwide resolution | BPS uniformly misclassified inside sales and assistant managers as exempt; common issues include classification and unpaid overtime | Duties and classifications varied by branch; no uniform policy exempting inside sales; evidence differs across branches | No commonality: only classification might be common, but Plaintiff failed to show a uniform exemption policy covering both groups |
| Typicality — whether Callari's claims represent class claims | Callari's status as assistant manager/inside sales makes his claim typical of class | Assistant managers were treated/classified differently than inside sales; Callari faces unique defenses about being properly classified as exempt | Not typical: Callari (assistant manager) subject to unique exemption defense not shared by non-exempt inside sales reps |
| Adequacy — whether Callari will fairly represent class | Callari will prosecute claims and protect class interests | Unique defenses toward Callari risk preoccupation and conflict, undermining adequacy | Not adequate: unique defenses threaten to divert focus and harm absent members' interests |
| Predominance & Superiority — whether common issues predominate and class is superior | Common legal questions (classification, overtime, willfulness) predominate and class adjudication is efficient | Individualized fact inquiries (primary duty, hours, branch discretion) will overwhelm common issues; individualized trials required | Fail predominance/superiority: individualized inquiries into duties and exemption overwhelm classwide proof; class action not superior |
Key Cases Cited
- Wal-Mart Stores, Inc. v. Dukes, 564 U.S. 338 (2011) (commonality requires a contention capable of classwide resolution)
- Amchem Prods., Inc. v. Windsor, 521 U.S. 591 (1997) (Rule 23(a) and (b)(3) requirements and superiority/practical considerations)
- Myers v. Hertz Corp., 624 F.3d 537 (2d Cir. 2010) (FLSA executive/administrative exemption inquiries are individualized; collective certification standard differs from Rule 23)
- Ramos v. Baldor Specialty Foods, Inc., 687 F.3d 554 (2d Cir. 2012) (NYLL follows FLSA exemptions analysis)
- Comcast Corp. v. Behrend, 569 U.S. 27 (2013) (predominance requires that common issues be amenable to classwide proof)
- Baffa v. Donaldson, Lufkin & Jenrette Sec. Corp., 222 F.3d 52 (2d Cir. 2000) (representative subject to unique defenses can defeat typicality/adequacy)
- Jacob v. Duane Reade, Inc., 289 F.R.D. 408 (S.D.N.Y. 2013) (certification permitted where uniform job descriptions and consistent duties supported classwide exemption analysis)