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ARTICLE · 14 FEBRUARY 2012

Dukes V. Wal-Mart: Some Closed Doors And Open Issues - Part 2

The U.S. Supreme Court's opinion in Wal-Mart Stores, Inc. v. Dukes is likely to change the class action landscape for the foreseeable future.

United StatesEmployment and HR

A. The Ninth Circuit Reverses Course: Ellis v. Costco

Among the post-Dukes decisions, the case that most clearly demonstrates Dukes' impact is the Ninth Circuit's decision in Ellis v. Costco.81 Decided by the same appellate court that affirmed the Dukes decision that was reversed by the Supreme Court, Ellis reflects the Ninth Circuit's understanding of how it must modify the standards governing class certification as a result of the Supreme Court's decision.

Similar to Dukes, the Ellis plaintiffs sought to represent a class of present and former female employees who were allegedly discriminated against on the basis of gender by Costco's promotional practices. The class was certified under Rule 23(b)(2) by the district court. On appeal, post-Dukes, the Ninth Circuit reversed. Finding that, at best, the standard for certification applied by the district court was unclear, the Ninth Circuit stated it was "tak[ing] this opportunity to clarify the correct standard."82

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