A recent Ninth Circuit decision continues to emphasize how, post-Comcast, defendants should look for ways to characterize individualized issues as questions of liability, not questions of damages.

In Bowerman v. Field Asset Services, Inc., 2022 WL 2433971, — F.4th —- (Jul. 5, 2022), the plaintiffs alleged that the defendant willfully misclassified the plaintiffs as independent contractors, rather than employees, in order to avoid paying overtime compensation and indemnifying them for their business expenses.  Id. at *4.  The district court certified a class, believing that the defendant’s arguments against class certification only constituted an argument that individualized damages determinations defeated predominance.  See id.

The Ninth Circuit saw things differently.  According to the Ninth Circuit, individualized inquiries were necessary to determine which particular class members ever worked overtime or ever incurred business expenses.  Id.  In the process, the Ninth Circuit rejected the plaintiffs’ reliance on Leyva v. Medline Industries, Inc., 716 F.3d 510 (9th Cir. 2013), for the proposition that “[t]he presence of individualized damages cannot, by itself, defeat class certification under Rule 23(b)(3).”  Id. at 514.  Instead, the Bowerman court emphasized that while a question about “the calculation of damages” might not be enough to defeat class certification, a question about “the existence of damages in the first place” could do so.  See Bowerman, 2022 WL 2433971, at *8 (emphasis in the original).  And because the plaintiffs could not prove through common evidence that every class member had suffered damages caused by the defendant’s conduct without “excessive difficulty,” the Ninth Circuit held that a class could not be certified consistent with Comcast’s guidance that a class should only be certified if a case is “susceptible to awarding damages on a class-wide” basis.  Id. at *9 (citing Comcast Corp. v. Behrend, 569 U.S. 27, 32 n.4 (U.S. 2013)).

Bowerman therefore reminds defendants that they have two paths for turning what may at first glance appear to be individualized damages issues into certification-defeating obstacles.  First, defendants can argue how they are not challenging how damages are calculated, but whether damages even exist.  Second, defendants can argue that even if damages exist, class certification is still improper if determination of individualized damages would be “excessively difficult.”  Many lower courts have been reluctant to apply Comcast to accept this second argument.  But Bowerman offers a reminder that acceptance of the first argument remains universally solid.  

Photo of Gawon Go Gawon Go

Gawon Go is a litigation associate who represents a wide variety of clients in complex commercial litigation, including antitrust, contract, and intellectual property.

Photo of Andrew Soukup Andrew Soukup

Andrew Soukup has a wide-ranging complex litigation practice representing highly regulated businesses in class actions and other high-stakes disputes. He has built a successful record of defending clients from consumer protection claims asserted in class-action lawsuits and other multistate proceedings, many of which…

Andrew Soukup has a wide-ranging complex litigation practice representing highly regulated businesses in class actions and other high-stakes disputes. He has built a successful record of defending clients from consumer protection claims asserted in class-action lawsuits and other multistate proceedings, many of which were defeated through dispositive pre-trial motions.
Andrew is co-chair of the firm’s Class Action Litigation practice group.

Andrew has helped his clients achieve successful outcomes at all stages of litigation, including through trial and appeal. He has helped his clients prevail in litigation against putative class representatives, government agencies, and commercial entities. Representative victories include:

  • Delivered wins in multiple nationwide class actions on behalf of large financial companies related to fees, disclosures, and other banking practices, including the successful defense of numerous lenders accused of violating the Paycheck Protection Program’s implementing laws, which contributed to Covington’s recent recognition as a “Class Action Group Of The Year.”
  • Successfully defending several of the nation’s leading financial institutions in a wide variety of litigation and arbitration proceedings involving alleged violations of RICO, FCRA, TILA, TCPA, FCBA, ECOA, EFTA, FACTA, and state consumer protection and unfair and deceptive acts or practices statutes, as well as claims involving breach of contract, fraud, unjust enrichment, and other torts.
  • Successfully defended several of the nation’s leading companies and brands from claims that they deceptively marketed their products, including claims brought under state consumer protection and unfair deceptive acts or practices statutes.
  • Obtained favorable outcomes for numerous clients in commercial disputes raising contract, fraud, and other business tort claims.

Because many of Andrew’s clients are subject to extensive federal regulation and oversight, Andrew has significant experience successfully invoking federal preemption to defeat litigation.

Andrew also advises clients on their arbitration agreements. He has successfully helped numerous clients avoid multi-district class-action litigation by successfully enforcing the institutions’ arbitration agreements.

Clients praise Andrew for his personal attention to their matters, his responsiveness, and his creative strategies. Based on his “big wins in his class action practice,” Law360 named Mr. Soukup a “Class Action Rising Star.

Prior to practicing law, Andrew worked as a journalist.

Photo of Sonya Winner Sonya Winner

A litigator with three decades of experience, Sonya Winner handles high-stakes civil cases for clients in a wide range of industries, including banking, pharmaceuticals and professional sports. She has handled numerous antitrust and consumer disputes, many of them class actions, in state and…

A litigator with three decades of experience, Sonya Winner handles high-stakes civil cases for clients in a wide range of industries, including banking, pharmaceuticals and professional sports. She has handled numerous antitrust and consumer disputes, many of them class actions, in state and federal courts across the country.

Sonya’s cases typically involve difficult technical issues and/or complex legal and regulatory schemes. She is regularly able to resolve cases before the trial phase, often through dispositive motions. But when neither summary judgment nor a favorable settlement is an option, she has the confidence of her clients to take the case all the way through trial and on appeal. Her recent successes have included a cutting-edge decision rejecting a “true lender” challenge to National Bank Act preemption in a class action involving interest rates on student loans, as well as the outright dismissal of a putative antitrust claim against the National Football League and its member clubs asserting an unlawful conspiracy to fix cheerleader compensation.

Sonya has been recognized as a leading trial lawyer by publications like Chambers and the Daily Journal. She is chair of the firm’s Class Action Litigation Practice Group.