2nd Circ. Sides With Ahold In Ex-Peapod Drivers' Tip Suit

Law360 (March 5, 2020, 4:14 PM EST) -- Retail giant Ahold Delhaize beat a Second Circuit challenge Thursday to the dismissal of a suit from former Peapod drivers who said the Ahold-owned delivery service pocketed their tips, with the appeals court agreeing that Peapod's "delivery fees" didn't qualify as gratuities.

A three-judge panel rejected Ansy Belizaire and Anthony McAllister's appeal of a New York federal court's dismissal of their proposed class action against Peapod LLC, which delivers groceries from supermarkets like Stop & Shop Supermarket Co. LLC, which was also named as a defendant. While the former Peapod drivers said that a delivery fee customers pay was "purported to...

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