Dukes v. Wal-Mart, Inc.
Betty DUKES; Patricia Surgeson; Cleo Page; Deborah Gunter; Karen Williamson; Christine Kwapnoski; Edith Arana, Plaintiffs-Appellees, v. WAL-MART, INC., Defendant-Appellant; Betty Dukes; Patricia Surgeson; Cleo Page; Deborah Gunter; Karen Williamson; Christine Kwapnoski; Edith Arana, Plaintiffs-Appellants, v. Wal-Mart, Inc., Defendant-Appellee
Attorneys
Theodore J. Boutrous, Jr., (argued & briefed) Gibson, Dunn & Crutcher, Los Angeles, CA, for the defendant-appellant-cross-appellee., Brad Seligman (argued), Jocelyn D. Larkin, The Impact Fund, Berkeley, CA; Joseph M. Sellers, Christine E. Webber, Julie Goldsmith Reiser, Cohen, Milstein, Hausfeld & Toll, Washington, D.C.; Debra Gardner, Public Justice Center, Baltimore, MD; Irma D. Herrera, Debra A. Smith, Equal Rights Advocates, Steve Stemer-man, Elizabeth A. Lawrence, Davis, Co-well & Bowe, LLP, San Francisco, CA; Stephen Tinkler, Charles Firth, Tinkler & Firth, Merit Bennett, Merit Bennett, P.C., Santa Fe, NM, (briefed) for the plaintiffs-appellees-cross appellants.
Full Opinion (html_with_citations)
Opinion by Judge PREGERSON1 Dissent by Judge KLEINFELD.
ORDER AND OPINION
ORDER
The petition for panel rehearing is DENIED.
The panelâs Opinion and Dissent filed February 6, 2007, appearing at 474 F.3d 1214 (9th Cir.2007), are withdrawn. The new Opinion and Dissent are filed concurrently with this Order.
The petition for rehearing en banc is DENIED as moot. The parties may file a new petition for rehearing or suggestion for rehearing en banc as provided for by Federal Rule of Appellate Procedure 40.
OPINION
Plaintiffs filed a class action suit against Wal-Mart alleging sexual discrimination under Title VII of the 1964 Civil Rights Act. The district court certified the class with minor modifications to Plaintiffsâ proposed class. We have jurisdiction under 28 U.S.C. § 1292(e). For the reasons set forth below, we affirm the district court, concluding that it did not abuse its discretion when it certified the class.
BACKGROUND
Plaintiffsâ Third Amended Complaint, brought on behalf of six named plaintiffs and all others similarly situated, asserts claims against Wal-Mart for sex discrimination under Title VII of the 1964 Civil Rights Act. Plaintiffs allege that women employed in Wal-Mart stores: (1) are paid less than men in comparable positions, despite having higher performance ratings and greater seniority, and (2) receive fewer â and wait longer for â promotions to in-store management positions than men. Plaintiffs contend that Wal-Martâs strong, centralized structure fosters or facilitates gender stereotyping and discrimination, that the policies and practices underlying this discriminatory treatment are consistent throughout Wal-Mart stores, and that this discrimination is common to all women who work or have worked in Wal-Mart stores.
On April 28, 2003, Plaintiffs filed a motion to certify a nationwide class of women who have been subjected to Wal-Martâs allegedly discriminatory pay and promotions policies. The proposed class consists of women employed in a range of Wal-Mart positions â from part-time entry-level hourly employees to salaried managers â and is estimated to include more than 1.5 million women. The class seeks injunctive and declaratory relief, back pay, and punitive damages, but does not seek traditional âcompensatoryâ damages.
Plaintiffs proposed that the district court certify the following class pursuant to Federal Rule of Civil Procedure 23:
All women employed at any Wal-Mart domestic retail store at any time since December 26, 1998, who have been or may be subjected to Wal-Martâs challenged pay and management track promotions policies and practices.
Dukes v. Wal-Mart Stores, Inc. (âDukes Iâ), 222 F.R.D. 137, 141-42 (N.D.Cal.2004).
I. District Court Proceedings
On June 21, 2004, the district court issued an eighty-four-page order granting in part and denying in part Plaintiffsâ motion for class certification. See Dukes I, 222 F.R.D. at 187-88. With respect to Plaintiffsâ claims for equal pay, the district court granted Plaintiffsâ motion as to issues of alleged discrimination and all forms of requested relief. With respect to Plaintiffsâ promotion claim, the courtâs finding was mixed. The court certified the proposed class with respect to issues of alleged discrimination (including liability for punitive damages, as well as injunctive and declaratory relief); however, the court rejected the proposed class with respect to the request for back pay because data relating to the challenged promotions were not available for all class members. Both parties appealed.
II. The Appeal
Pursuant to Federal Rule of Civil Procedure 23(f), Wal-Mart appealed, contending that the district court erred by: (1) concluding that the class met Rule 23(a)âs commonality and typicality requirements; (2) eliminating Wal-Martâs ability to respond to individual Plaintiffâs claims; and (3) failing to recognize that Plaintiffsâ claims for monetary relief predominated over their claims for injunctive or declaratory relief. Plaintiffs cross-appealed, asserting that the district court erroneously limited the backpay relief for many of Plaintiffsâ promotion claims.
DISCUSSION
I. Standard and Scope of Review
We review a district courtâs decision regarding class certification for abuse of discretion. See Staton v. Boeing Co., 327 F.3d 938, 953 (9th Cir.2003). The district courtâs decision to certify a class is subject to âvery limitedâ review and will be reversed âonly upon a strong showing that the district courtâs decision was a clear abuse of discretion.â Armstrong v. Davis, 275 F.3d 849, 867 (9th Cir.2001) (citation omitted); see also Gonzales v. Free Speech Coal., 408 F.3d 613, 618 (9th Cir.2005) (âAbuse of discretion is âa highly deferential standard,â under which the appellate court cannot substitute its âview of what constitutes substantial justification for that of the district courtâ; rather, the review âis limited to assuring that the district courtâs determination has a basis in reason.â â (citation omitted)); Blyden v. Mancusi, 186 F.3d 252, 269 (2d Cir.1999) (âA district courtâs decision to certify a class is reviewed for abuse of discretion, and â[a] reviewing court must exercise even greater deference when the district court has certified a class than when it has declined to do so.â â (citation omitted)); Doninger v. Pac. Nw. Bell, Inc., 564 F.2d 1304, 1309 (9th Cir.1997) (â[Jjudgment of the trial court should be given the greatest respect and the broadest discretionâ (citation omitted)). A court abuses its discretion if it applies an impermissible legal criterion. See Molski v. Gleich, 318 F.3d 937, 946 (9th Cir.2003). Moreover, the district courtâs factual findings as to the applicability of Rule 23 criteria are entitled to the traditional deference given to such determinations. See Local Joint Executive
Rule 23 provides district courts with broad discretion to determine whether a class should be certified, and to revisit that certification throughout the legal proceedings before the court. See Armstrong v. Davis, 275 F.3d 849, 872 n. 28 (9th Cir.2001). If later evidence disproves Plaintiffsâ contentions that common issues predominate, the district court can at that stage modify or decertify the class, see Gen. Tel. Co. of Sw. v. Falcon, 457 U.S. 147, 160, 102 S.Ct. 2364, 72 L.Ed.2d 740 (1982) (âEven after a certification order is entered, the judge remains free to modify it in light of subsequent developments in the litigation.â), or use a variety of management devices to address the individualized issues that have arisen, see In re Visa Check/MasterMoney Antitrust Litig., 280 F.3d 124, 141 (2d Cir.2001); 1 Newberg on Class Actions § 4.26 at 4-91 to 4-97.
Our review is limited to whether the district court correctly selected and applied Rule 23âs criteria. See Bogus v. Am. Speech & Hearing Assân., 582 F.2d 277, 289 (3d Cir.1978); Waste Mgmt. Holdings, Inc. v. Mowbray, 208 F.3d 288, 295 (1st Cir.2000) (âAn abuse occurs when a court, in making a discretionary ruling, relies upon an improper factor, omits consideration of a factor entitled to substantial weight, or mulls the correct mix of factors but makes a clear error of judgment in assaying them.â). Thus, if Plaintiffs demonstrate that they meet Rule 23âs requirements, they should be allowed to pursue their action as a class. See Smilow v. Sw. Bell Mobile Sys., Inc., 323 F.3d 32, 40 (1st Cir.2003) (âThere is even less reason to decertify a class where the possible existence of individual damages issues is a matter of conjecture.â).
II. Class Certification and Rule 23
A district court may certify a class only if: â(1) the class is so numerous that join-der of all members is impracticable; (2) there are questions of law and fact common to the class; (3) the claims or defenses of the representative parties are typical of the claims or defenses of the class; and (4) the representative parties will fairly and adequately protect the interests of the class.â Fed.R.Civ.P. 23(a).
The district court must also find that at least one of the following three conditions are satisfied: (1) the prosecution of separate actions would create a risk of: (a) inconsistent or varying adjudications or (b) individual adjudications dispositive of the interests of other members not a party to those adjudications; (2) the party opposing the class has acted or refused to act on grounds generally applicable to the class; or (3) the questions of law or fact common to the members of the class predominate over any questions affecting only individual members, and a class action is superior to other available methods for the fair and efficient adjudication of the controversy. See Fed.R.Civ.P. 23(b).
The party seeking certification bears the burden of showing that each of the four requirements of Rule 23(a) and at least one requirement of Rule 23(b) have been met. See Zinser v. Accufix Research Inst., Inc., 253 F.3d 1180, 1186, amended, 273 F.3d 1266 (9th Cir.2001).
A. Rule 23(a)
The class in this case is broad and diverse. It encompasses approximately 1.5
1. Numerosity
Rule 23(a)(1) requires that the class be âso numerous that joinder of all members is impracticable.â Fed.R.Civ.P. 23(a)(1). Wal-Mart does not contest that numerosity is satisfied here, given that both parties estimate that the proposed class includes approximately 1.5 million women.
2. Commonality
Rule 23(a)(2) requires that âthere are questions of law or fact common to the class.â Fed.R.Civ.P. 23(a)(2). Commonality focuses on the relationship of common facts and legal issues among class members. See, e.g., 1 Herbert B. Newberg & Alba Conte, Newberg on Class Actions § 3:10 at 271 (4th ed.2002). We noted in Hanlon v. Chrysler Corp., 150 F.3d 1011 (9th Cir.1998):
Rule 23(a)(2) has been construed permissively. All questions of fact and law need not be common to satisfy the rule. The existence of shared legal issues with divergent factual predicates is sufficient, as is a common core of salient facts coupled with disparate legal remedies within the class.
The commonality test is qualitative rather than quantitative â one significant issue common to the class may be sufficient to warrant certification. See e.g., Savino v. Computer Credit, Inc., 173 F.R.D. 346, 352 (E.D.N.Y.1997), aff'd, 164 F.3d 81 (2d Cir.1998); see also 1 Newberg on Class Actions § 3:10 at 272-74. As the district court properly noted, âplaintiffs may demonstrate commonality by showing that class members have shared legal issues by divergent facts or that they share a common core of facts but base their claims for relief on different legal theories.â Dukes I, 222 F.R.D. at 145 (citing Hanlon, 150 F.3d at 1019).
The district court found that Plaintiffs had provided evidence sufficient to support their contention that significant factual and legal questions are common to all class members. After analyzing Plaintiffsâ evidence, the district court stated:
Plaintiffs have exceeded the permissive and minimal burden of establishing commonality by providing: (1) significant evidence of company-wide corporate practices and policies, which include (a) excessive subjectivity in personnel decisions, (b) gender stereotyping, and (c) maintenance of a strong corporate culture; (2) statistical evidence of gender disparities caused by discrimination; and (3) anecdotal evidence of gender bias. Together, this evidence raises an inference that Wal-Mart engages in discriminatory practices in compensation and promotion that affect all plaintiffs in a common manner.
Dukes I, 222 F.R.D. at 166. The court noted that Wal-Mart raised a number of challenges to Plaintiffsâ evidence of commonality but concluded that, in fact, most of these objections related not to the Rule 23(a) requirement of commonality but to the ultimate merits of the case and âthus should properly be addressed by a jury considering the meritsâ rather than a judge considering class certification. See id. We agree.
a. âSignificant Proofâ of a Corporate Policy of Discrimination
Plaintiffs presented four categories of evidence: (1) facts supporting the existence of company-wide policies and practices; (2) expert opinions supporting the existence of company-wide policies and practices; and (3) expert statistical evidence of class-wide gender disparities attributable to discrimination; and (4) anecdotal evidence from class members around the country of discriminatory attitudes held or tolerated by management. See Dukes I, 222 F.R.D. at 145. Wal-Mart contends that this evidence is not sufficient to raise an inference of discrimination.
(1) Factual Evidence
Plaintiffs presented evidence of: (1) uniform personnel and management structure across stores; (2) Wal-Mart headquartersâs extensive oversight of store operations, company-wide policies governing pay and promotion decisions, and a strong, centralized corporate culture; (3) consistent gender-related disparities in every domestic region of the company. Such evidence supports Plaintiffsâ contention that Wal-Mart operates a highly centralized company that promotes policies common to all stores and maintains a single system of oversight. Wal-Mart does not challenge this evidence.
(2) Expert Opinion
Plaintiffs presented evidence from Dr. William Bielby, a sociologist, to interpret and explain the facts that suggest that Wal-Mart has and promotes a strong corporate culture â a culture that may include gender stereotyping. Dr. Bielby based his opinion on, among other things, Wal-Mart managersâ deposition testimony; organizational charts; correspondence, memos, reports, and presentations relating to personnel policy and practice, diversity, and equal employment opportunity issues; documents describing the culture and history of the company; and a large body of social science research on organizational policy and practice and on workplace bias.
Dr. Bielby testified that by employing a âsocial framework analysis,â
Wal-Mart challenges Dr. Bielbyâs third conclusion as vague and imprecise because he concluded that Wal-Mart is âvulnerableâ to bias or gender stereotyping but failed to identify a specific discriminatory policy at Wal-Mart. Specifically, Wal-Mart contends that Dr. Bielbyâs testimony does not meet the standards for expert testimony set forth in Federal Rule of Evidence 702 and Daubert v. Merrell Dow Pharm., Inc. (âDaubert I â), 509 U.S. 579, 113 S.Ct. 2786, 125 L.Ed.2d 469 (1993), which held that a trial court must act as a âgatekeeperâ in determining whether to admit or exclude expert evidence.
Wal-Mart made an identical argument to the district court and the district court properly rejected it. Wal-Mart did not (and does not) challenge Dr. Bielbyâs methodology or contend that his findings lack relevance because they âdo[ ] not relate to any issue in the case,â Daubert, 509 U.S. at 591, 113 S.Ct. 2786, but challenges only whether certain inferences can be persuasively drawn from his data. Because Daubert does not require a court to admit or exclude evidence based on its persuasiveness, but rather, requires a court to admit or exclude evidence based on its scientific reliability and relevance, id. at 587-90, 113 S.Ct. 2786 (evidence is relevant if it has â âany tendency to make the existence of any fact that is of consequence to the determination of the action more probable or less probable than it would be without the evidenceâ â (citing Fed.R.Evid. 401), and relevance standard âis a liberal oneâ), testing Dr. Bielbyâs testimony for âDaubert reliabilityâ would not have addressed Wal-Martâs objections. It would have simply revealed what Wal-Mart itself has admitted and courts have long accepted: that properly analyzed social science data, like that offered by Dr. Bielby, may add probative value to plaintiffsâ class action claims. See Price Waterhouse v. Hopkins, 490 U.S. 228, 235-36, 255, 109 S.Ct. 1775, 104 L.Ed.2d 268 (1989) (considering similar evidence offered by expert social psychologist).
Accordingly, Wal-Martâs contention that the district court was required to subject Dr. Bielbyâs testimony to the Dau-bert test, simply because the conclusion he reached seemed unpersuasive absent certain corroborating evidence, is misplaced. See Daubert, 509 U.S. at 595, 113 S.Ct. 2786 (âThe focus, of course, must be solely on principles and methodology, not on the conclusions that they generate.â). While a jury may ultimately agree with Wal-Mart that, in the absence of a specific discriminatory policy promulgated by Wal-Mart, it is hard to believe, based solely on Dr. Bielbyâs social science analysis, that Wal-Mart engaged in actual gender discrimination, that question must be left to the merits stage of the litigation. At the class certification stage, it is enough that Dr. Bielby presented properly-analyzed, scientifically reliable evidence tending to show that a common question of fact â i.e., âDoes Wal-Martâs policy of decentralized, subjective employment decision making operate to discriminate against female employees?â â exists with respect to all members of the class.
(3) Statistical Evidence
It is well-established that commonality may be established by raising an inference of class-wide discrimination through the use of statistical analysis. See Candad, 191 F.3d at 292, overruled on other grounds by In re IPO, 471 F.3d at 39-42; see also Stastny v. S. Bell Tel. & Tel. Co., 628 F.2d 267, 278 (4th Cir.1980) (recognizing that statistical data showing comparable disparities experienced by protected employees may raise an inference of a policy or practice of discrimination).
Dr. Richard Drogin, Plaintiffsâ statistician, analyzed data at a regional level. He ran separate regression analy-ses for each of the forty-one regions
Here, Dr. Drogin explained that a store-by-store analysis would not capture: (1) the effect of district, regional, and company-wide control over Wal-Martâs uniform compensation policies and procedures; (2) the dissemination of Wal-Martâs uniform compensation policies and procedures resulting from the frequent movement of store managers; or (3) Wal-Martâs strong corporate culture. Because Dr. Drogin provided a reasonable explanation for conducting his research at the regional level, the district court did not abuse its discretion when it credited Dr. Droginâs analysis and concluded that his analysis supported Plaintiffsâ contention that Wal-Martâs corporate structure and policies led to a âpattern or practiceâ of discrimination.
Wal-Mart also contends that the district court erred by not finding Wal-Martâs statistical evidence more probative than Plaintiffsâ evidence because, according to Wal-Mart, its analysis was conducted store-by-store. However, contrary to Wal-Martâs characterization of its analysis, its research was not conducted at the individual store level. Dr. Joan Haworth, Wal-Martâs expert, did not conduct a store-by-store analysis; instead she reviewed data at the sub-store level by comparing departments to analyze the pay differential between male and female hourly employees.
Because the district court reasonably concluded that Dr. Droginâs regional analysis was probative and based on well-established scientific principles, because Wal-Mart provided little or no proper legal or factual challenge to it,
(4) Anecdotal Evidence
Circumstantial and anecdotal evidence of discrimination is commonly used in Title VII âpattern and practiceâ cases to bolster statistical proof by bringing âthe cold numbers convincingly to life.â Intâl Bhd. of Teamsters v. United States, 431 U.S. 324, 339, 97 S.Ct. 1843, 52 L.Ed.2d 396 (1977); see also Rudebusch, 313 F.3d at 517. Wal-Mart contends that the district court erred by concluding that the anecdotal evidence, presented by Plaintiffs in the form of 120 declarations, supported a finding of commonality.
In their declarations, the potential class members testified to being paid less than similarly situated men, being denied or delayed in receiving promotions in a disproportionate manner when compared with similarly situated men, working in an atmosphere with a strong corporate culture of discrimination, and being subjected to various individual sexist acts. The district court credited this evidence.
Wal-Mart contends that the district court erred because the 120 declarations cannot sufficiently represent a class of 1.5 million. However, we find no authority requiring or even suggesting that a plaintiff class submit a statistically significant number of declarations for such evidence to have any value. Further, the district court did not state that this anecdotal evidence provided sufficient proof to establish commonality by itself, but rather noted that such evidence provides support for Plaintiffsâ contention that commonality is present. See Dukes I, 222 F.R.D. at 166 (âThis anecdotal evidence, in combination with the other evidence previously discussed, further supports an inference that [Wal-Martâs] policies and procedures have the effect of discriminating against Plaintiffs in a common manner.â). Because the declarations raise an inference of common discriminatory experiences and are consistent with Plaintiffsâ statistical evidence, the district court did not abuse its discretion when it credited Plaintiffsâ anecdotal evidence.
b. Subjective Decision-Making
As discussed above, the district court found substantial evidence suggesting common pay and promotion policies among Wal-Martâs many stores. See
It is well-established that subjective decision-making is a âready mechanism for discriminationâ and that courts should scrutinize it carefully. Sengupta v. Morrison-Knudsen Co., 804 F.2d 1072, 1075 (9th Cir.1986). Wal-Mart is correct that discretionary decision-making by itself is insufficient to meet Plaintiffsâ burden of proof. The district court recognized this, noting that managerial discretion is but one of several factors that supported a finding of commonality. See Dukes I, 222 F.R.D. at 148-50 (âAnd while the presence of excessive subjectivity, alone, does not necessarily create a common question of fact, where, as here, such subjectivity is part of a consistent corporate policy and supported by other evidence giving rise to an inference of discrimination, courts have not hesitated to find that commonality is satisfied.â). Wal-Mart is incorrect, however, that decentralized, subjective decision-making cannot contribute to an inference of discrimination. Indeed, courts from around the country have found â[allegations of similar discriminatory employment practices, such as the use of entirely subjective personnel processes that operate to discriminate, [sufficient to] satisfy the commonality and typicality requirements of Rule 23(a).â Shipes, 987 F.2d at 316; see also supra note 4 and cases cited therein.
Plaintiffs produced substantial evidence of Wal-Martâs centralized company culture and policies, see Dukes I, 222 F.R.D. at 151-54, thus providing a nexus between the subjective decision-making and the considerable statistical evidence demonstrating a pattern of discriminatory pay and promotions for female employees, see id. at 154-65; see also Reid v. Lockheed Martin Aeronautics Co., 205 F.R.D. 655, 670-72 (N.D.Ga.2001) (recognizing that subjective decision-making may give rise to an inference of discrimination where there is evidence to provide a nexus between the subjective decision-making and discrimination). Therefore, for the reasons stated above, we find that the district court did not abuse its discretion when it held that Wal-Martâs subjective decision-making policy raises an inference of discrimination, and provides support for Plaintiffsâ contention that commonality exists among possible class members.
c. Conclusion
Plaintiffsâ factual evidence, expert opinions, statistical evidence, and anecdotal evidence demonstrate that Wal-Martâs female employees nationwide were subjected to a single set of corporate policies (not merely a number of independent discriminatory acts) that may have worked to unlawfully discriminate against them in violation of Title VII. Evidence of Wal-Martâs subjective decision making policies provide further evidence of a common practice of discrimination. Many other courts have reached the same conclusion based on similar evidence. See, e.g., Caridad, 191 F.3d at 286, overruled on other grounds by In re IPO, 471 F.3d at 39-42; Staton, 327 F.3d at 955; Shipes, 987 F.2d at 316; Cox, 784 F.2d at 1557; Segar, 738 F.2d at 1276. Accordingly, we conclude that the district court did not abuse its discretion in holding that the âcommonalityâ prerequisite to class certification was satisfied.
As an initial matter, Plaintiffs contend that Wal-Mart has waived a challenge to the district courtâs typicality finding by failing to offer specific objections to the district courtâs typicality finding. However, because Wal-Mart refers, somewhat obliquely, to the typicality factor in its opening brief and because typicality and commonality are similar and tend to merge, see Falcon, 457 U.S. at 157 n. 13, 102 S.Ct. 2364, we conclude that Wal-Mart did not waive its opportunity to challenge the district courtâs findings with regard to typicality.
a. Plaintiffsâ Claims Are Sufficiently Typical
Rule 23(a)(3) requires that âthe claims or defenses of the representative parties be typical of the claims or defenses of the class.â Fed.R.Civ.P. 23(a)(3). We stated in Hanlon that â[u]nder the ruleâs permissive standards, representative claims are âtypicalâ if they are reasonably coextensive with those of absent class members; they need not be substantially identical.â 150 F.3d at 1020. Some degree of individuality is to be expected in all cases, but that specificity does not necessarily defeat typicality. See Staton, 327 F.3d at 957.
Thus, we must consider whether the injury allegedly suffered by the named plaintiffs and the rest of the class resulted from the same allegedly discriminatory practice. See id. We agree with the district court that it did. Even though individual employees in different stores with different managers may have received different levels of pay or may have been denied promotion or promoted at different rates, because the discrimination they allegedly suffered occurred through an alleged common practice-âe.g., excessively subjective decision-making in a corporate culture of uniformity and gender stereotypingâtheir claims are sufficiently typical to satisfy Rule 23(a)(3).
b. Plaintiffsâ Representatives Are Sufficiently Typical of the Class
Typicality requires that the named plaintiffs be members of the class they represent. See Falcon, 457 U.S. at 156, 102 S.Ct. 2364. There is no dispute that the class representatives are âtypicalâ of the hourly class members, because almost all of the class representatives hold hourly positions. Instead, Wal-Mart contends that the class representatives are not typical of all female in-store managers because only one of six class representative holds a salaried management position, and she holds a somewhat low-level position.
However, because all female employees faced the same alleged discrimination, the lack of a class representative for each management category does not undermine Plaintiffsâ certification goal. See Hartman v. Duffey, 19 F.3d 1459, 1471 (D.C.Cir.
In addition, because the range of managers in the proposed class is limited to those working in Wal-Martâs stores, it is not a very broad class, and a named plaintiff occupying a lower-level, salaried, in-store management position is sufficient to satisfy the âpermissiveâ typicality requirement. Staton, 327 F.3d at 957 (recognizing that â[ujnder the ruleâs permissive standards,â plaintiffs are not required to offer a class representative for each type of discrimination claim alleged (quoting Hanlon, 150 F.3d at 1020)).
Because Plaintiffsâ claims and Plaintiffsâ representatives are sufficiently typical of the class, the district court acted within its discretion when it found that Plaintiffs satisfied the typicality prerequisite.
4, Adequate Representation
Rule 23(a)(4) permits certification of a class action only if âthe representative parties will fairly and adequately protect the interests of the class.â Fed.R.Civ.P. 23(a)(4). This factor requires: (1) that the proposed representative Plaintiffs do not have conflicts of interest with the proposed class, and (2) that Plaintiffs are represented by qualified and competent counsel. See Hanlon, 150 F.3d at 1020; see also Molski, 318 F.3d at 955.
Before the district court, Wal-Mart argued that Plaintiffs cannot satisfy this factor because of a conflict of interest between female in-store managers who are both plaintiff class members and decision-making agents of Wal-Mart. Relying on Staton, the district court recognized that courts need not deny certification of an employment class simply because the class includes both supervisory and non-supervisory employees. See Dukes I, 222 F.R.D. at 168; see also Staton, 327 F.3d at 958-59. We agree. Finally, because Wal-Mart does not challenge the district courtâs finding that Plaintiffsâ class representatives and counsel are adequate, we need not analyze this factor.
5. Conclusion
Based on the evidence before it, which the district court rigorously examined, see Falcon, 457 U.S. at 161, 102 S.Ct. 2364; Chamberlan v. Ford Motor Co., 402 F.3d 952, 962 (9th Cir.2005), we conclude that the district court did not abuse its discretion when it found that the Rule 23(a) elements were satisfied.
B. Rule 23(b)
As mentioned earlier, Plaintiffs moved to certify the class under Rule 23(b)(2), which requires that plaintiffs show that âthe party opposing the class has acted or refused to act on grounds generally applicable to the class, thereby making appropriate final injunctive relief ... with respect to the class as a whole.â Fed.R.Civ.P. 23(b)(2).
Rule 23(b)(2) is not appropriate for all classes and âdoes not extend to cases in which the appropriate final relief relates exclusively or predominantly to money damages.â Fed.R.Civ.P. 23(b)(2), Adv. Comm. Notes to 1966 amend., 39 F.R.D. 69, 102; see also Zinser, 253 F.3d at 1195 (âClass certification under Rule 23(b)(2) is appropriate only where the primary relief sought is declaratory or injunc-tive.â). In Molski we refused to adopt a bright-line rule distinguishing between incidental and nonincidental damages for the purposes of determining predominance because such a rule âwould nullify the discretion vested in the district courts through Rule 23.â Molski, 318 F.3d at 950. Instead, we examine the specific facts and circumstances of each case, focusing predominantly on the plaintiffsâ intent in bringing the suit. See id.; Kanter v. Warner-Lambert Co., 265 F.3d 853, 860 (9th Cir.2001); Linney v. Cellular Alaska Pâship, 151 F.3d 1234, 1240 n. 3 (9th Cir.1998). At a minimum, however, we must satisfy ourselves that: â(1) even in the absence of a possible monetary recovery, reasonable plaintiffs would bring the suit to obtain the injunctive or declaratory relief sought; and (2) the injunctive or declaratory relief sought would be both reasonably necessary and appropriate were the plaintiffs to succeed on the merits.â Robinson, 267 F.3d at 164, quoted with approval in Molski, 318 F.3d at 950 n. 15.
1. Wal-Martâs âUnrebuttedâ Evidence Does Not Undermine Plaintiffsâ Claim That Injunctive and Declaratory Relief Predominate
Wal-Mart first asserts that the district court âfailed to even evaluateâ Rule 23(b)âs requirement that the challenged conduct be generally applicable to the class. Wal-Mart maintains that its âunrebuttedâ statistics demonstrate that there is no evidence of pervasive discrimination that would justify injunctive relief and that, therefore, the âchallenged conductâ does not affect all members. However, Wal-Martâs contention is not persuasive. As explained above, Wal-Martâs evidence was rebutted by Plaintiffs to the extent that Plaintiffsâ evidence and theories remain viable at this pre-merits analysis stage. Further, the issue before us is whether Plaintiffsâ primary goal in bringing this action is to obtain injunctive relief; not whether Plaintiffs will ultimately prevail. See Molski, 318 F.3d at 950. Consequently, Wal-Mart cannot derive support from this argument.
2. The Size of Plaintiffsâ Damages Request Does Not Undermine Plaintiffsâ Claim That Injunctive and Declaratory Relief Predominate
Wal-Mart contends that monetary claims necessarily predominate because this case involves claims that may amount to billions of dollars. However, such a large amount is principally a function of Wal-Martâs size, and the predominance test turns on the primary goal of the litigation â not the theoretical or possible size of the damage award. As the district court stated,
[F]ocusing on the potential size of a punitive damage award would have the*1187 perverse effect of making it more difficult to certify a class the more egregious the defendantâs conduct or the larger the defendant. Such a result hardly squares with the remedial purposes of Title VIL
Dukes I, 222 F.R.D. at 171. Because Wal-Mart has not shown that the size of the monetary request undermines Plaintiffsâ claim that injunctive and declaratory relief predominate, we find that Wal-Martâs argument fails.
3. A Request for Backpay Does Not Undermine Plaintiffsâ Claim That In-junctive and Declaratory Relief Predominate
Wal-Mart asserts that Plaintiffsâ request for backpay weighs against certification because it proves that claims for monetary relief predominate. The district court reasoned that backpay âis recoverable as an equitable, make-whole remedy in employment class actions notwithstanding its monetary nature.â Dukes I, 222 F.R.D. at 170. Wal-Mart contends that the district court erroneously deemed backpay âequitableâ and erred by failing to recognize that backpay, whether âequitableâ or not, is still a form of monetary relief.
While the district court was correct in labeling back pay as an equitable remedy available under Title VII, see 42 U.S.C. § 1981a(a) (referencing 42 U.S.C. § 2000e-5(g)), any suggestion that back payâs status as an equitable remedy somehow prevents it from also being a form of monetary relief for purposes of Rule 23(b)(2) is incorrect. Back pay is certainly not of an âinjunctive nature or of a corresponding declaratory nature,â Fed. R. Civ. Proc. 28(b)(2), advisory committeeâs notes, and thus Plaintiffsâ request for back pay weighs against certification under Rule 23(b)(2), its equitable nature notwithstanding.
That a request for back pay weighs against Rule 23(b)(2) certification, however, does not mean that certification under this rule is improper whenever back pay is requested. If it did, then the principal category of cases contemplated by the advisory committee as being certifiable under Rule 23(b)(2) â i.e., âactions in the civil-rights field where a party is charged with discriminating unlawfully against a class,â Fed. R. Civ. Proc. 23(b)(2), advisory committeeâs notes â would no longer be eligible for (b)(2) certification unless the class members agreed to forego the back pay remedy Congress specifically made available to discrimination victims under Title VII. This non-sensical result would not only thwart legislative intent, but it would also put discrimination victims to the Hob-sonâs choice of having to settle for only a partial remedy in order to proceed as a class action or having to bear the enormous costs of an individual lawsuit in order to receive the make-whole âinjunction plus back payâ remedy authorized by Title VII. It is unlikely the Congress that approved both Rule 23(b)(2) and 42 U.S.C. § 1981a intended to put discrimination victims to such a choice.
Accordingly, while Plaintiffsâ request for back pay does weigh against class certification under Rule 23(b)(2), the district court did not abuse its discretion when it concluded, like many courts before it, that this discrimination class action was certifiable under Rule 23(b)(2) notwithstanding Plaintiffsâ prayer for back pay relief. See, e.g., Eubanks v. Billington, 110 F.3d 87, 92 (D.C.Cir.1997) (â[I]t is not uncommon in employment discrimination cases for the class ... to seek monetary relief in the form of back pay or front pay, [in addition to injunctive or declaratory relief, and still be certified under Rule 23(b)(2)]â). As Molski requires, we are satisfied that, âeven in the absence of a
4. A Request for Punitive Damages Does Not Undermine Plaintiffsâ Claim That Injunctive and Declaratory Relief Predominate
While Plaintiffs do not ask for compensatory damages in this case beyond the back pay just discussed, they do seek punitive damages to punish Wal-Mart for its allegedly âreckless disregard of the rights of its women employees to equal employment opportunity, and to deter similar misconduct by Wal-Mart and other large retailers in the future.â Dukes I, 222 F.R.D. at 170. Wal-Mart contends that Plaintiffsâ request for punitive damages is âwholly inconsistentâ with Rule 23(b)(2) certification. This view, however, has not been adopted by this circuit and, if adopted, would thwart congressional intent for the same reasons as discussed with respect to Plaintiffsâ request for back pay.
In addition, the district courtâs order contains a provision to allow Plaintiffs to opt-out of claims for punitive damages. See Dukes I, 222 F.R.D. at 173 (âAccordingly, notice and an opportunity to opt-out shall be provided to the plaintiff class with respect to Plaintiffsâ claim for punitive damages.â). Although there is no absolute right of opt-out in a rule 23(b)(2) class, âeven where monetary relief is sought and made available,â other courts have recognized that district courts should consider the possibility of opt-out rights. In re Monumental Life Ins. Co., 365 F.3d 408, 417 (5th Cir.2004); Jefferson v. Ingersoll Intâl, Inc., 195 F.3d 894, 898 (7th Cir.1999); see also Ticor Title Ins. Co., v. Brown, 511 U.S. 117, 121, 114 S.Ct. 1359, 128 L.Ed.2d 33 (1994) (suggesting that provisions allowing plaintiffs to opt-out of damages claims may be appropriate where plaintiffs move to certify a class bringing a claim for punitive damages). We note that a district courtâs discretion to include an opt-out pro
5. Class Certification May Not be Proper as to Class Members Who Were Not Wal-Mart Employees as of the Date Plaintiffsâ Complaint Was Filed
Wal-Martâs final contention is that, because a substantial number of the putative class members no longer work for Wal-Mart â and, thus, no longer have standing to seek injunctive or declaratory reliefâ injunctive and declaratory relief cannot possibly predominate over monetary relief for purposes of certifying this class under Rule 23(b)(2).
We agree with Wal-Mart to this extent: those putative class members who were no longer Wal-Mart employees at the time Plaintiffsâ complaint was filed do not have standing to pursue injunctive or declaratory relief. See Walsh v. Nev. Depât of Human Res., 471 F.3d 1033 (9th Cir.2006) (recognizing that former employees lack standing to seek injunctive relief because they âwould not stand to benefit from an injunction requiring the anti-discriminatory policies [to cease] at [their] former place of workâ); Am. Civil Liberties Union of Nev. v. Lomax, 471 F.3d 1010, 1015 (9th Cir.2006) (âWhen evaluating whether [the standing] elements are present, we must look at the facts âas they exist at the time the complaint was filed.â â (quoting Lujan v. Defenders of Wildlife, 504 U.S. 555, 569 n. 4, 112 S.Ct. 2130, 119 L.Ed.2d 351 (internal quotation marks omitted))). Under these circumstances, it is difficult to say that, âeven in the absence of a possible monetary recovery, reasonable plaintiffs [who lack standing to seek injunctive or declaratory relief] would [nonetheless] bring th[is] suit to obtain the injunctive or declaratory relief sought.â Molski, 318 F.3d at 950 n. 15 (quoting Robinson, 267 F.3d at 164).
This does not mean that the entire class must fall. Those putative class members who were still Wal-Mart employees as of June 8, 2001 (when Plaintiffsâ complaint was filed) do have standing to seek the injunctive and declaratory relief requested in the complaint, see Lomax, 471 F.3d at 1015, and we are satisfied that these putative class members would reasonably bring this suit to put an end to the practices they complain of âeven in the absence of a possible monetary recovery.â We are also satisfied that, if these plaintiffs ultimately succeed on the merits, an injunction or declaratory judgment preventing Wal-Mart from continuing to engage in unlawful gender-based employment discrimination âwould be both reasonably necessary and appropriate.â Molski, 318 F.3d at 950 n. 15 (quoting Robinson, 267 F.3d at 164). Moreover, for the reasons explained in Parts II.B.1-II.B.4, we are confident that the primary relief sought by these plaintiffs remains declaratory and injunctive in nature notwithstanding their request to also be âmade wholeâ in a monetary sense to the full extent provided for under Title VII. Accordingly, class certification under Rule 23(b)(2) was appropriate at least as to these plaintiffs.
We thus remand to the district court for a determination of the appropriate scope of the class in light of the above observation and in light of any evidence presented to it regarding which putative class members were still Wal-Mart employees as of June 8, 2001.
The parties agree that this is the largest class certified in history. The district court was cognizant of this when it concluded that the class size, although large, was not unmanageable. See Dukes I, 222 F.R.D. at 173. Indeed, the district court acknowledged that, âwhile courts possess wide discretion to flexibly respond to manageability issues that may arise during the course of a class action, see, e.g., Blackie v. Barrack, 524 F.2d 891, 906, n. 22 (9th Cir.1975), this Court must be confident that such issues will not be of such a magnitude as to defy its ability to oversee this case in a responsible and reasonable manner.â Dukes I, 222 F.R.D. at 173. After âgiv[ing] these matters considerable thought and deliberation,â the district court concluded that, with one minor exception,
To demonstrate the manageability of the class action, the district court outlined a trial plan based, in large part, on how other courts have handled similarly large and complex class action suits.
At this pre-merits stage, we express no opinion regarding Wal-Martâs objections to the district courtâs tentative trial plan (or that trial plan itself), but simply note that, because there are a range of possibilities â which may or may not include the district courtâs proposed course of actionâ that would allow this class action to proceed in a manner that is both manageable and in accordance with due process, manageability concerns present no bar to class certification here.
For example, in Hilao v. Estate of Ferdinand Marcos, 103 F.3d 767, 782-87 (9th Cir.1996), the district court employed the following procedure to determine the amount of compensatory damages due the plaintiffs in a large class action:
In all, 10,059 claims were received. The district court ruled 518 of these claims to be facially invalid, leaving 9,541 claims. From these, a list of 137 claims was randomly selected by computer. This number of randomly selected claims was chosen on the basis of the testimony of James Dannemiller, an expert on statistics, who testified that the examination of a random sample of 137 claims would achieve âa 95 percent statistical probability that the same percentage determined to be valid among the examined claims would be applicable to the totality of claims filed.â ...
The district court then appointed Sol Schreiber as a special master (and a court-appointed expert under Rule 706 of the Federal Rules of Evidence). Schreiber supervised the taking of depositions ... of the 137 randomly selected claimants....
Schreiber then reviewed the claim[s] ... [and] recommended that 6 claims of the 137 in the sample be found not valid.... Schreiber then recommended the amount of damages to be awarded to the 131 [remaining] claimants ....
Based on his recommendation that 6 of the 137 claims in the random sample (4.37%) be rejected as invalid, he recommended the application of a five-per-cent invalidity rate to the remaining claims.... He recommended that the award to the class be determined by multiplying the number of valid remaining claims ... by the average award recommended for the ... claims.... By adding the recommended awards ..., Schreiber arrived at a recommendation for a total compensatory damage award....
A jury trial on compensatory damages was [then] held.... Dannemiller testified that the selection of the random sample met the standards of inferential statistics, that the successful efforts to locate and obtain testimony from the claimants in the random sample âwere of the highest standardsâ in his profession, that the procedures followed conformed to the standards of inferential statistics, and that the injuries of the random-sample claimants were representative of the class as a whole. Testimony from the 137 random-sample claimants and their witnesses was introduced. Schreiber testified as to his recommendations, and his report was supplied to the jury. The jury was instructed that it could accept, modify or reject Schreib*1192 erâs recommendations and that it could independently, on the basis of the evidence of the random-sample claimants, reach its own judgment as to the actual damages of those claimants and of the aggregate damages suffered by the class as a whole.
The jury deliberated for five days before reaching a verdict. Contrary to the masterâs recommendations, the jury found against only two of the 137 claimants in the random sample. As to the sample claims, the jury generally adopted the masterâs recommendations, although it did not follow his recommendations in 46 instances. As to the claims of the remaining class members, the jury adopted the awards recommended by the master. The district court subsequently entered judgment for 135 of the 137 claimants in the sample in the amounts awarded by the jury, and for the remaining plaintiffs ... in the amounts awarded by the jury, to be divided pro rata.
Hilao, 103 F.3d at 782-84 (footnotes omitted).
On appeal, the Hilao court was presented with some of the same objections to its trial plan as Wal-Mart presents here.
While the district courtâs methodology in determining valid claims is unorthodox, it can be justified by the extraordinarily unusual nature of this case. â âDue process,â unlike some legal rules, is not a technical conception with a fixed content unrelated to time, place and circumstances.â Cafeteria and Restaurant Workers Union, Local 473 v. McElroy, 367 U.S. 886, 895, 81 S.Ct. 1743, 6 L.Ed.2d 1230 ... (1961)....
The interest of the [defendant] that is affected is at best an interest in not paying damages for any invalid claims.... The statistical method used by the district court obviously presents a somewhat greater risk of error in comparison to an adversarial adjudication of each claim, since the former method requires a probabilistic prediction (albeit an extremely accurate one) of how many of the total claims are invalid.... Hi-laoâs interest in the use of the statistical method, on the other hand, is enormous, since adversarial resolution of each class memberâs claim would pose insurmountable practical hurdles. The âancillaryâ interest of the judiciary in the procedure is obviously also substantial, since 9,541 individual adversarial determinations of claim validity would clog the docket of the district court for years. Under the balancing test set forth in Mathews [v. Eldridge, 424 U.S. 319, 96 S.Ct. 893, 47 L.Ed.2d 18 (1976),] and [Connecticut v.] Doehr[, 501 U.S. 1, 111 S.Ct. 2105, 115 L.Ed.2d 1 (1991)], the procedure used by the district court did not violate due process.
Hilao, 103 F.3d at 786-87 (footnote omitted).
Because we see no reason why a similar procedure to that used in Hilao could not be employed in this case,
CONCLUSION
For the reasons set forth above, we hold that the district court acted within its broad discretion in concluding that it would be better to handle this case as a class action instead of clogging the federal courts with innumerable individual suits litigating the same issues repeatedly. The district court did not abuse its discretion in finding the pleading requirements of Rule 23 satisfied, at least as to those Plaintiffs who were still Wal-Mart employees on June 8, 2001. Wal-Mart failed to point to any specific management problems that would render a class action impracticable in this case, and the district court has the discretion to modify or decertify the class should it become unmanageable. Although the size of this class action is large, mere size does not render a case unmanageable.
We deny Plaintiffs cross-appeal, because the district court did not abuse its discretion when it found that back pay for promotions may be limited to those Plaintiffs for whom proof of qualification and interest exists. Finally, we must reiterate that our findings relate only to class action procedural questions; we neither analyze nor reach the merits of Plaintiffsâ allegations of gender discrimination.
AFFIRMED.
. As the district court acknowledged, Dukes I, 222 F.R.D. at 143, although federal courts are no longer permitted to engage in âconditional certification,'' Fed. R. Civ. Proc. 23, advisory committee's notes (2003 amends.), district courts retain the authority to amend or decer-tify a class if, based on information not available or circumstances not anticipated when the class was certified, the court finds that either is warranted.
. Of course, we recognize that courts are not only âat liberty toâ but must "consider evidence which goes to the requirements of Rule 23 [at the class certification stage] even [if]
. For a description of the "social framework analysis,â see John Monahan and Lariy Walker, Social Science in the Law: Cases and Materials (4th ed.1998).
. As discussed further infra Part II.A.2.b, this court and many others have held that "delegation to supervisors, pursuant to company-wide policies, of discretionary authority without sufficient oversight ... gives rise to common questions of fact warranting certification of the proposed class.â Caridad v. Metro-North Commuter R.R., 191 F.3d 283, 286 (2d Cir. 1999), overruled on other grounds by In re Initial Public Offering Sec. Litig. (âIPOââ), 471 F.3d 24, 39-42 (2d Cir.2006). See, e.g., id.; Staton v. Boeing Co., 327 F.3d 938, 955 (9th Cir.2003) (rejecting argument that âdecision-
. Each region contains approximately 80 to 85 stores.
. Regression analyses, in general terms, provide estimates of the effect of independent variables on a single dependent variable. See Hemmings v. Tidymanâs, Inc., 285 F.3d 1174, 1183-84 & n. 9 (9th Cir.2002). The purpose of this methodology is to estimate the extent to which a particular independent variable (in this case, gender) has influenced the dependent variables of compensation and promotion. See id.; see also Rudebusch v. Hughes, 313 F.3d 506, 511-12 (9th Cir.2002). As long as the analyses include enough relevant non-discriminatory independent variables (e.g., education, experience, performance, etc.), the results will indicate whether any salary disparities are attributable to gender (thereby raising an inference of discrimination) or whether the disparities are attributable to other factors (and thereby refuting such an inference). See Hammings, 285 F.3d at 1183-84 & n. 9; see also EEOC v. Gen. Tel. Co. of Nw., Inc., 885 F.2d 575, 577 n. 3 (9th Cir.1989) ("A regression analysis is a common statistical tool ... designed to isolate the influence of one particular factor â [e.g.,] sex â on a dependent variable â [e.g.,] salary.â (citation omitted)).
.Specifically, Dr. Bendick compared, or âbenchmarked,â Wal-Mart against twenty other similar general merchandise retailers by comparing workforce data provided by the companies to the Equal Employment Opportunity Commission ("EEOCâ). Dukes I, 222 F.R.D. at 164. Dr. Bendick analyzed the data to determine the extent to which women in the relevant market sought promotion, so that an inference could be made that roughly the same percentage of women would have sought promotion at Wal-Mart if given the opportunity. See id. As Dr. Bendick explained, âThe logic in benchmarking is that, if retail chains comparable to Wal-Mart are successfully employing women at some rate, then women are presumably available, interested, and qualified to hold comparable positions at Wal-Mart at a similar rate.â See id.
. This means that Dr. Haworth ran separate regression analyses for: (1) each of the specialty departments in the store, (2) each grocery department in the store, and (3) the storeâs remaining departments. She did not run regression analyses to examine pay differential between male and female salaried employees.
. For example, although Wal-Mart maintains that the district court erred by not requiring Dr. Drogin to perform a "Chow testâ to determine whether data could be properly aggregated, we have not found a single case suggesting or requiring use of such a test.
. In addition to her sub-store analysis, Dr. Haworth conducted a survey of store managers. After reviewing the survey and its methodology, the district court concluded that the store manager survey was biased both "on its faceâ and in the way that it was conducted. Dukes II, 222 F.R.D. at 196-97 (noting that the survey's results "are not the 'product of reliable principles and methods,â and therefore are not the type of evidence that would be 'reasonably relied upon by expertsâ â (quoting Fed.R.Evid. 702, 703)). Dr. Haworthâs disaggregated analysis created pools too small to yield any meaningful results. Wal-Mart has not appealed this issue. Accordingly, this evidence is not properly before us. See Kohler v. Inter-Tel Tech., 244 F.3d 1167, 1179 n. 8 (9th Cir.2001) (recognizing that appellant waived a claim by failing to raise it in her briefs).
. Plaintiffs submitted declarations from each of the class representatives, as well as 114 declarations from putative class members around the country. See Dukes I, 222 F.R.D. at 165.
. Although the âcommonality and typicality requirements of Rule 23(a) tend to merge,â see Falcon, 457 U.S. at 157 n. 13, 102 S.Ct. 2364, each factor serves a discrete purpose. Commonality examines the relationship of facts and legal issues common to class members, while typicality focuses on the relationship of facts and issues between the class and its representatives. See 1 Newberg on Class Actions, § 3:13 at 317.
. The purported class need only satisfy one of Rule 23(b)âs prongs to be sustainable. See Zinser, 253 F.3d at 1186.
. Wal-Mart cites to two cases, Williams v. Owens-Illinois, Inc., 665 F.2d 918, 928-29 (9th Cir.1982), and Zinser, 253 F.3d at 1195, for the proposition that this circuit will not certify a class action that involves punitive damages. However, Williams and Zinser do not support Wal-Martâs contention. Rather, this court merely held that it was not an abuse of discretion to deny class certification based on the specific facts presented in those cases. See Williams, 665 F.2d at 929 (holding that damages requests were not incidental to the request for injunctive relief where requested compensatory damages were not clearly compatible with class injunctive relief); Zinser, 253 F.3d at 1195 (finding that a request for medical monitoring claims against manufacturer of pacemaker cannot be categorized as primarily equitable or injunctive per se because many state courts have recognized that medical monitoring relief is appropriate only as an element of damages after independent proof of liability).
. This one exception related to Plaintiffs' promotion claim. The district court determined that it would be unmanageable to fashion a remedy for the subset of the class for whom objective applicant data did not exist. See Dukes I, 222 F.R.D. at 183. We agree with the district court's analysis and resolution of this issue.
. The trial plan described by the district court involved two stages. In Stage I, Plaintiffs would attempt to prove that Wal-Mart engaged in a pattern and practice of discrimination against the class via its company-wide employment policies. If Plaintiffs were successful in this regard, they would also attempt to prove an entitlement to punitive damages, which would require proof that Wal-Mart's pattern and practice of discrimination "was undertaken maliciously or recklessly in the face of a perceived risk that defendant's actions would violate federal law.â Dukes I, 222 F.R.D. at 174. If Plaintiffs prevailed in Stage I, the case would move to Stage II, the remedy phase. The first task in Stage II would be to fashion class-wide injunctive relief. The second task would be to calculate and distribute the back pay award. As to Plaintiffs' promotional claim, a formula would be used to calculate the "lump sumâ in back pay that Wal-Mart owes to the class (a procedure similar to that employed in Domingo v. New England Fish Co., 727 F.2d 1429, 1444-45 (9th Cir.1984)). As to Plaintiffs' equal pay claim, the court would examine Wal-Martâs employment records to determine which class members were victims of this form of discrimination (and how much in back pay each is owed) to determine a second "lump sumâ owed by Wal-Mart. Dukes I, 222 F.R.D. at 174-186. A separate procedure would then be used to distribute these lump sums to those class members entitled to share in them â a stage in which Wal-Mart would no longer have an interest. Id. at 179 n. 49.
. The panel was favored with an extraordinary variety of amicus briefs that were both thoughtful and helpful to the panel in its deliberations.
. This section says that "[n]o order of the court shall require ... the payment to [a person] of any back pay, if such individual ... was refused employment or advancement or was suspended or discharged for any reason other than [unlawful] discriminationâ and that, "[o]n a claim in which an individual proves a violation under section 2000e-2(m) of this title and a respondent demonstrates that the respondent would have taken the same action in the absence of the impermissible motivating factor, the court ... shall not award damages.â Title VII, § 706(g)(2), codified at 42 U.S.C. § 2000e-5(g)(2).
. This statute says that the Federal Rules of Civil Procedure, including Rule 23 regarding class actions, "shall not abridge, enlarge or modify any substantive right. All laws in conflict with such rules shall be of no further
. Hilao was a 10,000+ plaintiff class action filed by Philippine nationals and their descendants who were allegedly victims of torture, summary execution, and "disappearanceâ at the hands of Ferdinand E. Marcos, the Philippinesâ former president.
. For example, the defendant in Hilao argued that the trial plan "violated its rights to due process because âindividual questions apply to each subset of claims, i.e., whether the action was justified, the degree of injury, proximate cause, etc.â â 103 F.3d at 785.
. We note that this procedure would allow Wal-Mart to present individual defenses in the randomly selected "sample cases,â thus revealing the approximate percentage of class members whose unequal pay or non-promotion was due to something other than gender discrimination. The "invalid claim rateâ revealed by this process would, as it did in Hilao, come very close to the invalid claim rate one would expect to find among the entire class.
. We do not suggest that this is the only conceivable way in which this class action could lawfully progress. Indeed, the district court may want to consider whether a more limited "test caseâ procedure similar to that employed in In re TMI Litig. Consol. Proceedings, 927 F.Supp. 834, 837 & n. 5 (M.D.Pa. 1996), would aid the parties in evaluating the strength of their respective claims.
And, of course, the option proposed by the district court may also remain viable; indeed, it appears that a number of circuits have approved of similar trial plans in discrimination cases. See, e.g., Segar, 738 F.2d at 1291 (explaining why a similar trial plan did not violate § 706(g)(2) of Title VII and commenting that, "[i]f effective relief for the victims of discrimination necessarily entails the risk that a few nonvictims might also benefit from the relief, then the employer, as a proven discriminator, must bear that riskâ); see also Shipes, 987 F.2d at 316-19; Catlett v. Mo. Highway & Transp. Comm'n, 828 F.2d 1260, 1266-67 (8th Cir.1987). We point to the Hi-lao procedure above solely because this circuit has already considered and approved of that procedure in a decision we are bound to follow.