Facts

On September 1, 2006, plaintiff Cynthia Sotelo filed a putative class action against MediaNews Group, Inc. alleging that independent contractors and their helpers, substitutes, and volunteers who deliver newspapers for 27 home delivery publications throughout California were not independent contractors, but instead employees.

The size of the putative class was estimated to be substantially in excess of 5,000. The exact number could not be calculated and was not ascertainable due to the way the putative class was originally defined.

PLAINTIFFS' CONTENTIONS:
Lead plaintiffs alleged nine cause of action: fraud; concealment; violation of California minimum wage and overtime pay laws; failure to pay wages due at termination; failure to maintain records and provide accurate itemized wage statements; failure to provide meal breaks; failure to provide rest breaks; violation of Labor Code Section 2802; and violation of Business and Professions Code Section 17200.

Result

The class certification hearing was set for November 3, 2010. On November 2, the court issued a 21-page tentative order denying class certification. The class certification hearing was held on November 3, and on November 5, the court issued its final order upholding its tentative ruling and denying class certification for various reasons including: the proposed class is not ascertainable, common facts and issues do not predominate, plaintiffs failed to propose a manageable case management plan for moving the case forward as a class action.

Other Information

FILING DATE: Sept. 1, 2006. There are several class action cases currently pending in California against newspaper companies in which the status of independent contractor delivery operatives is being challenged, and the contractors are alleged to be employees. One such case went to trial in 2008 against The Orange County Register (Freedom Communications) and settled during trial for more than $30 million.