California Supreme Court Limits Use Of Statistical Sampling In Class Actions

On May 29, 2014, the California Supreme Court issued its much-anticipated opinion in Duran v. U.S. Bank, vacating a $15 million judgment in a wage-hour class action where the court found liability based on a flawed statistical sampling.  Although the Court did not completely reject the use of statistical sampling to establish class-wide liability, it significantly limited the circumstances in which sampling is available.  Most importantly, the Court held that sampling may not be used when it deprives a defendant of its due process right to present affirmative defenses as to all class members.  It also reaffirmed plaintiffs’ burden of establishing manageability in order to certify a class, as well as the obligation of courts to decertify classes that prove to be unmanageable.

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