The United States Supreme Court refused to allow the case to proceed in a class-action capacity in Wal-Mart Stores, Inc. v. Dukes (2011). Its decision effectively ended the attempt by over 1.5 million women to pursue a class-action lawsuit against Wal-Mart on the grounds of gender discrimination in promotions and compensation.
What did the Supreme Court decide?
The Supreme Court reversed the judgment of the court below which had allowed the case to be heard on a class-action basis. It ruled that the plaintiffs had failed to meet the “commonality” requirement of Rule 23(a)(2) of the Federal Rules of Civil Procedure governing class-action suits.
What is “Commonality”
Commonality mandates that every putative class member necessarily possesses a common issue of fact or of lawone that may be resolved in the same way for every member of the group.
For a class action lawsuit, it is significant because
It allows a single trial to decide dispositive issues of all class members
It ensures that all of the plaintiffs are injured in the same way by the same practice or policy.
How did the court justify its ruling?
The majority opinion, written by Justice Antonin Scalia, explicitly established that:
There was no “common policy of discrimination”.
Wal-Mart lacked any company policy that was formally discriminatory towards women.
Instead, managers had some degree of autonomy to determine promotions and compensation at the local level.
The decentralization here would result in any discrimination being store-by-store and manager-by-manager, and not store-by-store and manager-by-manager universally.
Statistical and anecdotal evidence proved to be inadequate.
The plaintiffs provided statistics and individual narratives in order to establish a pattern of discrimination.
The court ruled that such evidence did not establish that all of the women in the class suffered the same injury from the same corporate policy.
You cannot write thousands of cases at once without having one general problem.
Since there was no one reason that each of the women was to be refused a promotion or raise, the Court held that these cases were to be addressed individually and not together in a whole group. Why This Matters The decision raised the bar that class-action lawsuits — and especially class-action suits against large, decentralized corporations — will be required to meet in the future. It will be more difficult to pursue systemic discrimination claims unless plaintiffs can point to a discrete, centralized policy that harmed all members of the class in the same way.
