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Ninth Circuit Reverses Denial Of Class Certification In Disparate Impact Case

Class Action Fair Lending Disparate Impact Discrimination

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On April 24, the U.S. Court of Appeals for the Ninth Circuit reversed a district court’s denial of class certification in a disparate impact age discrimination case, holding that the court erred in considering merits issues when determining class certification. Stockwell v. San Francisco, No. 12-15070, 2014 WL 1623736 (9th Cir. Apr. 24, 2014). The case involves claims brought by a group of police officers on behalf of a putative class alleging workplace age discrimination in violation of the California Fair Employment and Housing Act. The class representatives allege that the city’s promotion policy had a disparate impact on employees over the age of 40. The district court denied the named plaintiffs’ motion to certify the class, holding that the claims failed to satisfy Rule 23(a)(2)’s commonality requirement because the named plaintiffs’ statistical analysis did not establish a general policy of discrimination under Wal-Mart Stores, Inc. v. Dukes, 131 S. Ct. 2541 (2011), and failed to demonstrate that the policy caused any resulting disparate impact. On appeal, the court determined that in considering the statistical analysis, the district court improperly relied on merits issues to reach its conclusion rather than focusing on whether the questions presented were common to the members of the putative class. The Ninth Circuit held that “the officers have identified a single, well-enunciated, uniform policy that, allegedly, generated all the disparate impact of which they complain,” and that “whatever the failings of the class’s statistical analysis, they affect every class member’s claims uniformly.” Further, the court held whether the policy caused the disparate impact is a single significant question of fact common to all class members. The court reversed the district court’s holding on commonality, and remanded for consideration of other class certification prerequisites, including predominance.