Bias Suit Against Home Depot Can Proceed

The U.S. Supreme Court on Monday refused to derail a huge class-action lawsuit that accuses home-improvement retailer Home Depot of illegal job bias against women in 10 Western states.

The justices, without comment, let stand rulings that force Home Depot to defend itself in a two-stage litigation.

An initial trial will determine whether the retailer discriminated in virtually every aspect of its employment decision-making--including hiring, initial job placement, training, promotions and compensation.

If any discrimination is found, a second trial would focus on individual compensation and relief for individual plaintiffs.

Lawyers for Atlanta-based Home Depot contend that the lawsuit wrongly was certified as a class action encompassing about 217,000 women--17,000 current and former employees and about 200,000 applicants.

Company shares rose $1.125 to close at $55.75 on the New York Stock Exchange.

The company’s Supreme Court appeal said the two-stage litigation violates its 7th Amendment right to a jury trial by splitting into two trials the issue of liability.

The appeal said class-action certification should not be allowed if “follow-up juries” will be required to reconsider issues already decided by a different, “common issues” jury.

The federal lawsuit was filed in San Francisco on behalf of women in 10 states that make up Home Depot’s West Coast division--California, Arizona, Colorado, Idaho, Nevada, New Mexico, Oregon, Texas, Utah and Washington.

Home Depot has 130 stores in those states, and 9,000 of its 26,000 employees at those stores are women.

U.S. District Judge Susan Illston certified the lawsuit as a class action in 1995, and the U.S. 9th Circuit Court of Appeals upheld her ruling in September.

Nationally, Home Depot operates more than 460 stores in 35 states and employs about 95,000 people.

The company currently is defending itself against two other sex-bias lawsuits, one in Louisiana and one in New Jersey. Neither of those cases has yet been certified as a class-action lawsuit.