It's not often that small-business owners will side with Wal-Mart. But when the U.S. Supreme Court today disallowed Betty Dukes and about 1.5 million of her female colleagues to team up against the megastore for allegedly discriminating against women, a number of business owners sighed in relief.
The U.S. Chamber of Commerce, which had filed two amicus briefs with the Supreme Court in support of Wal-Mart, overwhelmingly applauded the Supreme Court's decision, which will likely carry vast consequences for future businesses facing other class-action suits.
"This is without a doubt the most important class action case in more than a decade," Robin Conrad, executive vice president of the U.S. Chamber of Commerce’s National Chamber Litigation Center, said in a statement. "Too often the class action device is twisted and abused to force businesses to choose between settling meritless lawsuits or potentially facing financial ruin."
Although the Supreme Court's ruling did not determine whether Wal-Mart had discriminated against its female employees, it did say that the company's current and former employees could not proceed as a class. That ruling disagreed with a previous court decision, which moved to widen the standard for certifying class actions -- and some say, open the door to ever more class actions suits.
Of course, facing a class-action lawsuit is hardly a credible threat for many small businesses, as their balance sheets -- and by extension, a plaintiff's prospects for future settlements -- are typically limited. But the decision could carry implications for any number of smaller companies that not only have employees but also supply consumers with goods and services.
"What it did was reaffirmed the rule of law that exists in the country on the proper means of bringing lawsuits. And it applies to everyone -- not just Wal-Mart's but the Joe's Groceries of the world," says R. Matthew Cairns is a defense attorney with Gallagher Callahan & Gartrell and president of The Voice of the Defense Bar, an international organization of defense attorneys and corporate counsel based in Chicago. "It's not the death knell for class actions, but it will certainly make class action lawyers think long and harder about how class action suits are made."
Will small businesses benefit from Wal-Mart's victory? Leave a comment and let us know.
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Comments:
Racism is dead. The false charges of racism. Very much alive.
" If millions of women are discriminated against by the same company, they should all be able to sue together." If it were true, you would be right. The plaintiff's argument was rejected because there would be no way for the plaintiff to prove or the employer to disprove that discrimination existed against 1.6 million employees.
I'm sorry but the last time I looked the Democratic party CONTROLLED more money than the Republicans. The result of a class action suit is that it shifts the burden of proof from the plaintiff to the defendent.. Constitutionally that is WRONG. The last time I looked the constitution still holds me innocent until PROVEN guilty. This decistion is affirming the equal protection of ALL citizens and not just the chosen few. Just for the record I am opposed to sexual discrimination in addition to racial and age discrimination.
Very interesting. I work for http://www.salespider.com which is a social network for small businesses, so this is an issue I am familiar with.
if you don't like your job get a better education and look elsewhere. Many people stop producing and become disruptive over time - this is not discrimination. If you are exceptional at what you do then you can write your own ticket and go anywhere. I want the best possible people that can take risk , make decisions and get things done. I do not want to be forced to hire someone because they came from country X or are Y color and Z sex. I want the best and brightest that will go the extra mile on my team. I could care about age, race, sex or anything else in my business
Boo! If businesses, large or small, did not discriminate there would be no need to sue. I'm for small businesses but also for the unprotected employees
This is nothing more than fascist propaganda. Few small businesses can affect the lives of millions of American women who have been underpaid and discriminated against by this giant billion dollar business, and discrimination against women is against the law, But,Wal Mart, like other huge corporations is on the good side of the right- wing supreme court - they basically dismantled our democracy by allowing corporations and the wealthy to buy elections anywhere anytime legally. It is sickening and so un American. If millions of women are discriminated against by the same company, they should all be able to sue together. This is taking away our protection as citizens, once again.