Athan v. United States Steel Corporation

CourtDistrict Court, E.D. Michigan
DecidedMarch 3, 2021
Docket2:17-cv-14220
StatusUnknown

This text of Athan v. United States Steel Corporation (Athan v. United States Steel Corporation) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Athan v. United States Steel Corporation, (E.D. Mich. 2021).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION

DAVID ATHAN, DARYL JACKSON, COREY PARKER, 17-CV-14220-TGB-DRG DENNIS SMITH, AND JOSH FLANNERY’, on behalf of OPINION AND ORDER themselves and all other persons APPROVING SETTLEMENT similarly situated, Plaintiffs,

UNITED STATES STEEL CORP.., Defendant.

The Parties, through their Joint Motion to Approve Settlement, have sought this Court’s approval of their settlement of Plaintiffs’ Fair Labor Standards Act (“FLSA”) claims and an order dismissing the case with prejudice and without further costs or fees beyond those in the settlement. At a hearing on the motion, the Court instructed Parties to file their Settlement Agreement on the docket with the monetary rewards redacted, as proposed by the Parties themselves. Settlement Agreement, Ex. 4, ECF No. 88; see ECF No. 81, PageID.2701 at n.4. Now that they have done so, for the reasons set forth, the Parties’ Motion is GRANTED.

1 As the personal representative of the Estate of Robert Flannery. See ECF No. 76.

I. BACKGROUND On December 29, 2017, Plaintiffs filed a Complaint and Jury Demand initiating this action on behalf of themselves and all other persons similarly situated, seeking damages for alleged violations of the Fair Labor Standards Act (“FLSA”). ECF No. 1. Plaintiffs asserted four claims: Count I: Violation of the Minimum Wage Provisions of the FLSA—Timely Payment. In this count, Plaintiffs sought liquidated damages for what they claimed were delayed payments of minimum wage when they purportedly “did not receive payment for all hours worked until subsequent pay periods,” (ECF No. 1, PageID.12); Count IT: Violation of the Overtime Provisions of the FLSA— Timely Payment. In this count, Plaintiffs sought liquidated damages for what they claimed were delayed payments of overtime when they purportedly “did not receive payment for all overtime hours worked until subsequent pay periods, in violation of the overtime wage requirement provision of 29 U.S.C. § 207(a),” (ECF No. 1, PageID.15); Count III: Violation of the Minimum Wage Provisions of the FLSA—Nonpayment. In this count, Plaintiffs sought unpaid minimum wage and liquidated damages for hours worked which they claimed were unpaid as of the filing of the Complaint, (ECF No. 1, PageID.17); and Count IV: Violation of the Overtime Provisions of the FLSA— Nonpayment. In this final count, Plaintiffs sought unpaid wages and liquidated damages for overtime wages which they claimed were unpaid as of the filing of the Complaint (ECF No. 1, PageID.19).

On February 4, 2019, in an Order resolving Defendant’s Motion to Dismiss Plaintiffs’ Second Amended Complaint, the Court dismissed Plaintiffs’ claims for delayed payment of minimum wage (Count I) and unpaid minimum wage (Count III). ECF No. 46. Plaintiffs’ claims for delayed payment of overtime (Count IT) and unpaid overtime (Count IV) were permitted to proceed. Id. The Parties next engaged in significant pre-conditional certification discovery—including document productions, written discovery, and depositions—aimed solely at determining the appropriateness of FLSA collective action conditional certification. Eventually, and based on that discovery, the Parties negotiated and submitted a Joint Stipulated Order of Conditional Certification, which was entered on March 18, 2019, conditionally certifying the following group of individuals pursuant to Section 216(b) of the FLSA, known as the “Conditional Collective Group”: All hourly employees in the Production and Maintenance Bargaining Unit at Great Lakes Works, including Zug Island and Dearborn, who during the time period February 14, 2016 through March 11, 2019 had a retro adjust inquiry or retro adjust lump sum to his or her paycheck for previously unpaid overtime as defined by the Fair Labor Standards Act. ECF No. 55, PageID.2348. Through the notice procedure agreed to by the parties and approved by the Court, 228 Plaintiffs opted into this lawsuit. The Parties then examined the payments received by each Plaintiff through a negotiated meet-and-confer process. ECF No. 81, PageID.2680-81.

Before further significant merits discovery on the entire group of opt-ins, the Parties agreed to attend mediation. In advance of mediation, they engaged in preliminary negotiations and exchanged competing methods for computing Plaintiffs’ potential damages. Thereafter, the Parties utilized an independent, experienced third party mediator to resolve this matter. Id. at PageID.2681-82. The Parties’ compromise has been memorialized in the Release and Settlement Agreement (the “Settlement Agreement”) they submitted to the Court for review. The Settlement Agreement provides, inter alia: monetary payments to the Plaintiffs representing a percentage of their claimed damages in light of the legal and factual issues; a service award to each of the Named Plaintiffs; reimbursement of certain litigation costs; and an attorneys’ fee to Plaintiffs’ Counsel. In exchange, Plaintiffs agree to release Defendant from all wage and hour claims and dismiss this case with prejudice. Id. at PageID.2688; see also Settlement Agreement, Ex. 4, ECF No. 83. The Parties stipulate that the negotiated voluntary compromise is appropriate because the Parties recognize the costs and their respective risks associated with proceeding with protracted, distracting, and expensive litigation on the various issues in contention. ECF No. 81, PageID.2683. The Parties have also asked the Court for permission to keep the settlement terms confidential, or at a minimum to keep the specific monetary figures in the settlement confidential. The Court held a hearing on this Motion on February 24, 2021.

II. STANDARD OF REVIEW Although the Sixth Circuit has never definitively answered the question of whether court approval is required for FLSA settlement agreements, district courts in our Circuit regularly find that the FLSA context counsels in favor of courts approving settlements. See, e.g., Steele v. Staffmark Investments, LLC, 172 F. Supp. 3d 1024, 1026 (W.D. Tenn. 2016) Gndicating that the Sixth Circuit’s holding in Runyan v. Nat'l Cash Register Corp., 787 F.2d 1039, 1042-43 (6th Cir. 1986) makes it likely that the Court would require approval of FLSA settlements); Arrington v. Mich. Bell Tel. Co., 2012 U.S. Dist. LEXIS 157362, *1 (E.D. Mich. Nov. 2, 2012) (citing Lynn's Food Stores, Inc. v. United States, 679 F.2d 1850, 1354 (11th Cir. 1982)). See also Alex Lau, Note, The FLSA Permission Slip: Determining Whether FLSA Settlements and Voluntary Dismissals Require Approval, 86 Fordham L. Rev. 227, 244 (2017). “Before this Court can approve the settlement of Plaintiffs FLSA claim, the Court must determine that the parties were engaged in a bona fide dispute and that the settlement is a fair and reasonable compromise of the issues presented.” Lakosky v. Discount Tire Co., Inc., 2015 WL 4617186, at *1 (E.D. Mich., July 31, 2015). A bona fide dispute has to do with whether some issue of the employer’s liability is “actually and reasonably in dispute.” Snook v. Valley Ob-Gyn Clinic, P.C., No. 14-CV- 12302, 2015 WL 144400, at *1 (E.D. Mich. Jan. 12, 2015). See also

O'Bryant v. ABC Phones of N. Carolina, Inc., No. 19-CV-02378-SHM- TMP, 2020 WL 7634780, at *7 (W.D. Tenn. Dec. 22, 2020).

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Bluebook (online)
Athan v. United States Steel Corporation, Counsel Stack Legal Research, https://law.counselstack.com/opinion/athan-v-united-states-steel-corporation-mied-2021.