McGhee v. Tesoro Refining & Marketing Company LLC

Background

Derek L. McGhee sued Tesoro Refining and Marketing Company LLC, Andeavor, Andeavor Logistics LP, and Does 1 to 100. He alleged claims involving unpaid wages for time worked, meal periods and meal-period wages, rest breaks, wages due at termination, and unfair business practices. His operative complaint sought certification of four classes of California employees: a minimum-wage class, a meal-period class, a rest-period class, and a waiting-time class.

The discovery dispute concerned McGhee’s request for statewide, pre-certification class-wide discovery relating to his rest-break and minimum-wage claims. He sought to interview potential class members and analyze payroll data. The defendants opposed the request, arguing in part that McGhee sought information from refineries where he had not worked and that were governed by different collective bargaining agreements.

Court’s analysis

The court explained that district courts have discretion to control discovery related to class certification. A plaintiff seeking such discovery must make an initial showing that the requirements for a class action may be satisfied or that the discovery is likely to support the class allegations. Discovery may be appropriate when it could resolve factual issues relevant to whether a class or subclasses exist and whether the case can proceed as a class action.

The court found that McGhee’s operative complaint adequately stated an initial case for class relief. It also noted that Judge White had already denied the defendants’ motion to dismiss and to strike the class allegations. The court rejected the defendants’ argument based on the collective bargaining agreements, citing Judge White’s earlier conclusion that compliance with those agreements did not determine whether the defendants also violated California law.

Ruling

The court granted the request to compel class-wide discovery as described in the two pending letter briefs. The order provided:

- McGhee’s meal-period discovery was limited to employees at the Carson facility where he worked. - McGhee was permitted statewide discovery concerning his rest-break and minimum-wage claims. - For both categories of discovery, McGhee was to receive contact information for putative class members, limited by the class definitions in the operative complaint. - McGhee was also to receive a 20% sample of randomized months, selected by him, of timecards and payroll data for all non-exempt employees within the class definitions.

The discovery was subject to the protective order in the case. McGhee was required to use the Belaire-West notification process when contacting putative class members. The order did not decide whether any class would ultimately be certified.