Big Win for Plaintiffs in Dukes v. Wal-Mart

Walmart_1 Looks like a big win for the plaintiffs in the gigantic employment discrimination class action in Dukes v. Wal-Mart (a group of some 2 million former and current female employees have sued over lack of promotion opportunitie).  The 9th Circuit en banc, 6-5 with four separate opinions and 137 pages, affirmed class certification under Rule 23(b)(2) for some issues and remanded on others:

We affirm the district court’s certification of a Federal Rule of Civil Procedure 23(b)(2) class of current employees with respect to their claims for injunctive relief, declaratory relief, and back pay. With respect to the claims for punitive damages, we remand so that the district court may consider whether to certify the class under Rule 23(b)(2) or (b)(3). We also remand with respect to the claims of putative class members who no longer worked for Wal-Mart when the complaint was filed so that the district court may consider whether to certify an additional class or classes under Rule 23(b)(3).

The decision was written by Judge Hawkins, with a concurrence by Graber, one dissent by Ikuta and a separate dissent by Kozinski. The latter I am sure is fodder for a cert petition and I do believe this case is heading for a Supreme Court showdown.

Melissa Hart and I have written about how the social framework testimony of William Bielby was crucial, and properly admissible, in establishing the commonality and typicality prong for class certification.

Hat Tip: Rebecca Hamburg

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Civil Rights Enforcement Chief: “We Are Open for Business”

Thomas E. Perez, assistant attorney general for the civil rights division of the US Justice Department, had a clear and firm message when he visited Marquette University Law School on Friday: He’s aiming to do the job he has held since October energetically and thoroughly. 

That wouldn’t seem like a noteworthy statement, except for the political context of Perez’ situation and the controversies that attend many of the areas of enforcement in the civil rights division. 

Perez said he would prefer to be like “the proverbial Maytag man,” sitting around with no one needing his services. But that is hardly how he described the work load of his division. 

Perez spent almost all of his remarks, lasting about a half hour, defending the need for civil rights enforcement in today’s America and pointedly hitting the theme that the division is “open for business.”

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Should College Sports Revenue Be Taxed?

College basketball and football are big business — no one would deny that.  But should they be taxed like big business?  Although the NCAA and its member schools are tax-exempt not-for-proft organizations, such organization may nonetheless be taxed on “unrelated business income.”  So, the question is whether big-time college sports programs are related to the educational mission of the universities that host them.

Matt Mitten, James Musselman, and Bruce Burton argue “yes” in a new article — because sports programs advance a wide range of legitimate university objectives, sports revenues should retain their tax-exempt status.  Based on a number of case studies, they conclude that the benefits to universities of improved athletic programs may include “attracting high-quality faculty and students, generating donations and enrichment, reconfiguring [] campus identities, and enhancing institutional political clout.” 

Although Matt and his coauthors do not believe that tax law is the right way to reform college athletics, they recognize a need for changes to better protect student-athletes from exploitation.  They would promote reform through a new, conditional antitrust exemption for the NCAA and its members. 

Their article, entitled “Commercialized Intercollegiate Athletics: A Proposal for Targeted Reform Consistent with American Cultural Forces and Marketplace Realities,” was recenly published at 2 J. Intercollegiate Sport 202 as part of a symposium on tax law and athletic reform.  The abstract appears after the jump. 

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