South Bend federal judge rules on FedEx class action litigation

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A federal judge in South Bend has issued a significant 182-page opinion that holds FedEx drivers nationwide are independent contractors rather than employees entitled to back pay and full benefits.

U.S. Judge Robert Miller in the Northern District of Indiana made his decision Tuesday in the five-year-old In Re FedEx Ground Package System, Inc Employment Practices Litigation, MDL 1700, No. 3:05-MD-527, which is a series of multi-district litigation before him consisting of dozens of class-action cases filed by drivers in multiple states including Indiana. Judge Miller’s ruling tosses the claims that FedEx misidentified drivers’ employment status and owed them back pay, overtime, and other damages, though an appeal is likely before the litigation comes to a close.

Though the first individual FedEx cases addressing these issues began surfacing in 2001, the line of litigation obtained MDL centralization in 2005 and Judge Miller has been ruling on various nuances involved through the years. He largely granted class certification to many of the cases in March 2008 and some of the more significant happenings since then have come this year.

In his ruling this week, Judge Miller wrote that the “nationwide character” of this litigation makes it a truly unique set of cases, unlike anything that has appeared before him or in the cases cited by the parties.

Judge Miller found that the drivers are independent contractors in 20 of the 28 remaining group lawsuits, and the judge ruled in favor of FedEx on some claims in the other eight class-action cases.

The judge largely based his ruling on how each states’ laws dictate how employees should be classified, and in various ways that employment relationship turned on the degree of control the purported employer has over workers.

“FedEx doesn’t have the right to control the drivers’ means and methods of how they go about their work,” Judge Miller wrote. “FedEx’s results oriented controls don’t result in employee status.”

Judge Miller relied largely on his holding reached back in August in a FedEx case out of Kansas, where he ruled in the company’s favor and found it didn’t retain the “right to control” its drivers, but rather only offers “suggestions and best practices” and does not dictate delivery requirements.

Specific to the Indiana drivers’ claims, Judge Miller focused on Indiana Code §§ 22-2-6 and 22-2-4-4 concerning illegal deductions in wages as well as fraud statutes. The state statutes don’t define the term “employee,” and the parties agreed the court should interpret that term using Indiana’s common law test for employment status or a ten-factor analysis the Indiana Supreme Court has relied on in the past. The drivers cited a Fort Wayne newspaper’s suit ruled on by the Court of Appeals in 1995, but Judge Miller determined that caselaw isn’t controlling here because no one fact is dispositive and the totality must be considered. Relying on the Kansas decision rationale with the Hoosier statutes, Judge Miller held the Indiana drivers are independent contractors and ruled in favor of FedEx on all claims.

Judge Miller denied a motion by FedEx for a jury trial as moot.




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  1. If a class action suit or other manner of retribution is possible, count me in. I have email and voicemail from the man. He colluded with opposing counsel, I am certain. My case was damaged so severely it nearly lost me everything and I am still paying dearly.

  2. There's probably a lot of blame that can be cast around for Indiana Tech's abysmal bar passage rate this last February. The folks who decided that Indiana, a state with roughly 16,000 to 18,000 attorneys, needs a fifth law school need to question the motives that drove their support of this project. Others, who have been "strong supporters" of the law school, should likewise ask themselves why they believe this institution should be supported. Is it because it fills some real need in the state? Or is it, instead, nothing more than a resume builder for those who teach there part-time? And others who make excuses for the students' poor performance, especially those who offer nothing more than conspiracy theories to back up their claims--who are they helping? What evidence do they have to support their posturing? Ultimately, though, like most everything in life, whether one succeeds or fails is entirely within one's own hands. At least one student from Indiana Tech proved this when he/she took and passed the February bar. A second Indiana Tech student proved this when they took the bar in another state and passed. As for the remaining 9 who took the bar and didn't pass (apparently, one of the students successfully appealed his/her original score), it's now up to them (and nobody else) to ensure that they pass on their second attempt. These folks should feel no shame; many currently successful practicing attorneys failed the bar exam on their first try. These same attorneys picked themselves up, dusted themselves off, and got back to the rigorous study needed to ensure they would pass on their second go 'round. This is what the Indiana Tech students who didn't pass the first time need to do. Of course, none of this answers such questions as whether Indiana Tech should be accredited by the ABA, whether the school should keep its doors open, or, most importantly, whether it should have even opened its doors in the first place. Those who promoted the idea of a fifth law school in Indiana need to do a lot of soul-searching regarding their decisions. These same people should never be allowed, again, to have a say about the future of legal education in this state or anywhere else. Indiana already has four law schools. That's probably one more than it really needs. But it's more than enough.

  3. This man Steve Hubbard goes on any online post or forum he can find and tries to push his company. He said court reporters would be obsolete a few years ago, yet here we are. How does he have time to search out every single post about court reporters and even spy in private court reporting forums if his company is so successful???? Dude, get a life. And back to what this post was about, I agree that some national firms cause a huge problem.

  4. rensselaer imdiana is doing same thing to children from the judge to attorney and dfs staff they need to be investigated as well

  5. Sex offenders are victims twice, once when they are molested as kids, and again when they repeat the behavior, you never see money spent on helping them do you. That's why this circle continues