California and Texas couldn’t be more different. Today’s court ruling adds to that long list of differences. The appeals court ruling says exotic dancers can’t pursue a class-action lawsuit against the Houston-area strip club.
This is a vastly different stance from how things work in California, which tends to err on the side of everyone being an employee, including porn stars and strippers.
Stacey Kibodeaux, who uses the stage name Illusion, filed the suit in Galveston federal court in January 2020 on behalf of herself and other exotic dancers at the Heartbreakers Gentlemen’s Club at 3200 Gulf Freeway.
Kibodeaux alleged that she and other dancers at the club were classified as independent contractors and denied traditional wages and that the club forced her and her coworkers to pay illegal fees for taking the stage, among other things.
Two years later, U.S. Magistrate Judge Andrew Edison ruled that the lawsuit should be granted collective action status and include anyone who worked as a dancer at Heartbreakers between Oct. 27, 2017, and Oct. 27, 2020, broadening the potential damages if Kibodeaux prevails.
On Tuesday, though, the 5th U.S.Circuit Court of Appeals ruled the district court was wrong so that anyone who danced during that time span be notified of the suit because those dancers had signed agreements with the club that any disputes be handled by arbitration and not joint lawsuits, court documents show.
“This was not merely an erroneous exercise of discretion… it was wrong as a matter of law. Because the district court clearly and indisputably erred, mandamus relief is appropriate,” the court wrote.
Kibodeaux’s lawyer, Jarrett L. Ellzey, said he planned to request that the full court hear the appeal on the dancers’ class-action status, and he is confident the court will grant the full bench hearing.
He said the ruling was confusing because the circuit court had previously denied Heartbreaker’s first request to appeal Edison’s ruling appeal on the same grounds.
Attorneys for the Heartbreakers Gentlemen’s Club said they were very pleased with the ruling, noting that it “was by no means easy to come by.”
“The form of appellate relief that our clients secured is very rarely granted and ultimately took nearly 18 months to obtain,” said attorney William X. King. He said the legal team is also pleased with a decision by the federal magistrate to dismiss dancers’ claims that they were owed money for overtime and the time they “chose to spend preparing themselves for their work.”
King said as far as Kibodeaux’s case, “Our clients look forward to asking a jury of ordinary citizens to decide who should prevail at trial.”