9th Circuit holds unambiguous class exclusion necessary to end American Pipe tolling: DeFries v. Union Pacific Railroad Company

In DeFries v. Union Pacific Railroad Company, (9th Cir.)           F.3d           (Jun. 17, 2024), the Court of Appeals for the Ninth Circuit held that “ambiguity about the scope of a putative or certified class should be resolved in favor of tolling” for bystander plaintiffs under American Pipe & Construction Co. v. Utah (1974) 414 U.S. 538.

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Defendant removed Plaintiff from duty in 2018 after he failed a color-blindness test. Plaintiff joined a putative class action filed by similarly affected employees. In August 2018, class counsel moved for a narrower class definition that may have excluded Plaintiff. The court certified the narrower class in February 2019, but the Eighth Circuit reversed certification in March 2020. Plaintiff then filed suit, but the district court granted summary judgment, ruling his complaint was untimely because tolling ended when class counsel moved for the narrower definition. Plaintiff appealed.

On appeal, the Ninth Circuit examined the purpose of American Pipe tolling and noted the split among district courts regarding when it ends. Considering Sawtell v. E.I. du Pont de Nemours & Co., Inc. (10th Cir. 1994) 22 F.3d 248 and Smith v. Pennington (4th Cir. 2003) 352 F.3d 884, the court held that to end tolling, a plaintiff’s exclusion from a revised class definition must be unambiguous. Ending tolling without unambiguous narrowing, the court reasoned, would have negative consequences. Analyzing the August 2018 proposed class definition, the court found it ambiguous but that the better reading included color-vision plaintiffs like DeFries. The Ninth Circuit reversed the summary judgment and remanded.

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