Ninth Circuit's Due Process Limit On Statutory Damages Not Likely To Significantly Impact PAGA Cases

• Jurisdiction: United States,Federal
• Author: Mr Jonathan Slowik and Gregory Knopp
• Law Firm: Akin Gump Strauss Hauer & Feld LLP
• Published date: 24 November 2022

In last month's decision in Wakefield v. Visalus, Inc., 51 F.4th 1109 (9th Cir. 2022), the 9th Circuit adopted a standard endorsed by other circuits for evaluating whether a statutory damages award comports with the Due Process Clause. Because Private Attorney Generals Act (PAGA) claims often expose defendants to large statutory damages awards, at first blush, the 9th Circuit's decision may appear to be welcome relief to employers. However, Wakefield is unlikely to have any meaningful impact in PAGA cases, because PAGA already imposes stricter limits on penalty awards than the Constitution.

In Wakefield, a case involving a $925 million award of statutory damages under the Telephone Consumer Protection Act (TCPA), the Court explained that "[t]he due process clauses of the Constitution ... set...