Jacqueline Conners v. Gusano's Chicago Style Pizzeri
779 F.3d 835
8th Cir.2015Background
- Conners, a former server, filed an FLSA collective action alleging illegal tip pooling; other former employees opted in.
- After suit began, Gusano’s Pizza implemented identical arbitration agreements for current employees, including an opt-out procedure and a memorandum explaining arbitration would prevent joining Conners’ collective action if not opted out.
- Former-employee plaintiffs moved to enjoin defendants from enforcing the arbitration agreements against potential opt-in employees and sought other relief; the district court held a hearing and entered a temporary injunction prohibiting enforcement of the agreements against any employees who chose to join the action.
- Gusano’s Pizza appealed the injunction under 28 U.S.C. § 1292(a)(1), challenging the district court’s authority to enjoin agreements that bind only current employees.
- On appeal the Eighth Circuit considered (1) whether the injunction was immediately appealable and (2) whether the former-employee plaintiffs had Article III standing to seek an injunction against agreements that did not bind them.
- The Eighth Circuit concluded the order was appealable as an injunction but that the former employees lacked Article III standing to enjoin arbitration agreements that covered only current employees; it vacated the injunction and remanded.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Appellate jurisdiction under 28 U.S.C. § 1292(a)(1) | District court’s order was a temporary injunction preventing arbitration and thus immediately appealable | Order merely controlled litigation conduct and was nonappealable | Court: Order had injunctive effect and was immediately appealable under § 1292(a)(1) (Nordin/Gulfstream framework) |
| Article III standing to enjoin arbitration covering only current employees | Conners and other former employees suffered a concrete injury: increased litigation costs and curtailed collective-action rights if current employees are forced into individual arbitration | Former employees lack a personal, imminent injury traceable to the arbitration agreements that apply only to current employees | Court: Former employees lacked standing because no current employees had joined or were shown likely to join at the time; they cannot assert putative plaintiffs’ rights (following Summers and Genesis Healthcare) |
Key Cases Cited
- Kreditverein der Bank Austria Creditanstalt fur Nieder-oesterreich und Bergenland v. Nejezchleba, 477 F.3d 942 (8th Cir. 2007) (discussing appellate jurisdiction questions)
- Gulfstream Aerospace Corp. v. Mayacamas Corp., 485 U.S. 271 (1988) (orders with practical injunctive effect are immediately appealable)
- Carson v. American Brands, Inc., 450 U.S. 79 (1981) (same principle on injunctive effect and appealability)
- Nordin v. Nutri/System, Inc., 897 F.2d 339 (8th Cir. 1990) (orders denying arbitration treated as injunctive and immediately appealable)
- McLaughlin Gormley King Co. v. Terminix Int’l Co., 105 F.3d 1192 (8th Cir. 1997) (distinguishing nonappealable orders controlling litigation conduct)
- Summers v. Earth Island Inst., 555 U.S. 488 (2009) (standing requires concrete, imminent injury traceable to defendant and redressable by court)
- Warth v. Seldin, 422 U.S. 490 (1975) (standing requires personal stake in the outcome)
- Davis v. FEC, 554 U.S. 724 (2008) (prospective-injury standing requires injury that is real and immediate)
- Steger v. Franco, Inc., 228 F.3d 889 (8th Cir. 2000) (standing assessed as of complaint filing)
- Park v. Forest Serv. of U.S., 205 F.3d 1034 (8th Cir. 2000) (standing for injunctive relief requires showing of real and immediate threat)
- Genesis Healthcare Corp. v. Symczyk, 569 U.S. 66 (2013) (plaintiff in FLSA collective action may not assert unnamed putative plaintiffs’ claims to overcome mootness or standing)
