This was a class action alleging claims of misclassification brought under various provisions of the California Labor Code, as well as conversion and unfair competition, claiming that certain business bankers were misclassified.  Defendant U.S. Bank claimed that the employees were properly classified. In opposing class certification, U.S. Bank argued that individual issues predominated and thus class action relief was not appropriate.  The trial court disagreed and certified the class. During the trial, the trial court used a random sample of class members to testify to determine both class-wide liability and damages.  The trial resulted in a judgment of $15 million dollars.

The Court of Appeals, in a long complex ruling, held that the trial court’s trial management plan, which used sampling evidence to prove class liability, denied the employer due process by preventing it from defending against over 90% of class. The Court found the plan “was fatally flawed” and concluded that the bank was denied due process. The Court reversed the judgment and ordered the class to be decertified.

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