Belt v. Emcare, Inc.

299 F. Supp. 2d 664, 2003 U.S. Dist. LEXIS 24957, 2003 WL 23146062
CourtDistrict Court, E.D. Texas
DecidedDecember 18, 2003
Docket1:03-cr-00073
StatusPublished
Cited by34 cases

This text of 299 F. Supp. 2d 664 (Belt v. Emcare, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Belt v. Emcare, Inc., 299 F. Supp. 2d 664, 2003 U.S. Dist. LEXIS 24957, 2003 WL 23146062 (E.D. Tex. 2003).

Opinion

MEMORANDUM OPINION AND ORDER

DAVIS, District Judge.

This suit is proceeding under the Fair Labor Standards Act § 16(b), 29 U.S.C. § 216(b), as a nationwide collective action. On October 1, 2003 the Court approved a form of notice to be sent to all absent class members (Docket No. 50). Shortly before Plaintiff mailed the Court’s approved notice, Defendants sent their own, unapproved letter to absent class members. Thereafter, Plaintiff filed an Emergency Motion for Protective Order, Sanctions, and Corrective Notice (Docket No. 53). After considering the parties written submissions and oral argument, the Court GRANTS Plaintiffs motion and ORDERS sanctions and corrective notice consistent with this opinion. 1

BACKGROUND

This case is a “collective action” under the Fair Labor Standards Act (“FLSA”), similar to a class action prosecuted under Federal Rule of Civil Procedure 23. Plaintiff seeks to represent a class of Nurse Practitioners and Physician’s Assistants who were allegedly not paid overtime wages in violation of 29 U.S.C. § 207(a)(1). 2 A collective action, like a class action, prevents piecemeal litigation, inconsistent adjudications, and difficult res judicata issues. Donovan v. University of Texas at El Paso, 643 F.2d 1201, 1206-07 (5th Cir.1981). However, unlike a class action, absent class members will not participate in the recovery (or be bound by the judgment) unless they specifically opt into the class upon receiving notice of the pending action. 3 Cash v. Conn Appli *666 ances, Inc., 2 F.Supp.2d 884, 897 n. 32 (E.D.Tex.1997).

Throughout the substantial argument regarding the form of class notice, Defendants continually argued against allowing one party to have unrestricted access to the potential class members. For example, Defendants argued that the Court should deny Plaintiffs request for certain personal information regarding absent class members for fear that Plaintiff would “gain unrestricted access to potential plaintiffs and possibly influence their decisions whether to join this suit.” Defendants’ Joint Response Opposing Plaintiffs Motion to Approve Form of Notice, p. 6 (Docket No. 44). Similarly, Defendants also objected to the Court-approved notice appearing to be sent from Plaintiffs counsel. Defendants’ Joint Sur-Reply to Plaintiffs Motion to Approve Form of Notice, p. 2 (Docket No. 46). Additionally, Defendants objected to Plaintiffs proposed website containing additional information regarding the current action because the information contained therein had not been previously approved by the Court. Id. at

3.

Responding to counsels’ arguments, the Court crafted a form of notice incorporating proposals and suggestions from both Plaintiff and Defendants. After hearing argument and considering the parties’ submissions, the Court rejected Plaintiffs short, simple notice in favor of a longer, more complicated notice in light of Defendants’ concerns. Additionally, in response to Defendants’ concerns that Plaintiffs website might mislead absent class members, the Court granted Defendants notice and an opportunity to object to any substantive site changes. Although the Court denied Defendants’ request to be responsible for sending the notice and to have their contact information included in the notice, the Court conceded to many of Defendants’ other requests and ultimately ordered the parties to submit a joint agreed form of notice.

In spite of its own arguments against one party having unreviewed contact with absent class members and the Court’s efforts to create a notice fair to all parties, Defendants unilaterally mailed their own letter to the absent class members just before the Court’s sanctioned notice was to be sent. Defendant EmCare, with the assistance of its counsel, Ronald Manthey, drafted a letter to the absent class members presenting information regarding the suit. With no notice to the Plaintiff or to the Court, EmCare mailed this letter on or the day before it was to provide Plaintiff with the names and addresses of the potential class members to receive the Court-approved notice.

EmCare’s letter misrepresented many of the issues in this action in such a way as to discourage absent class members from joining the suit. For example, the letter suggested that the current action was an attack on the potential plaintiffs’ status as professionals. 4 Additionally, EmCare misrepresented the amount of damages available to the absent class members by ignor *667 ing recoverable liquidated damages and attorneys fees. The letter incorrectly represented that Plaintiff sought only the overtime due for a forty-hour workweek as reduced by attorney’s fees.

EmCare also tapped into fears and concerns perhaps held by many medical professionals. 5 First, EmCare, without any legitimate basis, equated this action with a medical malpractice suits despite the fact that it is a claim for unpaid wages. 6 Second, the letter’s overall tone tapped into the possibility of the medical community’s disfavor with the Plaintiffs’ bar. For example, the letter declared that “Ms. Belt has hired a plaintiffs lawyer to ask a court to award her money,” and that “some portion of the Court’s award presumably will be paid to the Plaintiffs attorney as fees.” Third, the letter suggested that this suit could endanger the potential class members’ job stability when, in connection with discussing damages and attorneys fees, it declared that “it is unclear how the Court’s rulings may impact clinical operations on a going forward basis.”

UNAPPROVED COMMUNICATIONS WITH POTENTIAL CLASS MEMBERS

As in Rule 23 class actions, courts have the authority to govern the conduct of counsel and parties in § 216(b) collective actions. Hoffmann-La Roche Inc. v. Sperling, 493 U.S. 165, 171, 110 S.Ct. 482, 107 L.Ed.2d 480 (1989). Moreover, a court’s authority to control counsels’ conduct in a § 216(b) collective action includes the authority to “manage the process of joining multiple parties in a manner that is orderly, sensible, and not otherwise contrary to statutory commands or the provisions of the Federal Rules of Civil Procedure.” Id. Indeed, because of the potential for abuses in collective actions, such as unapproved, misleading communications to absent class members, “a district court has both the duty and the broad authority to exercise control over a class action and to enter appropriate orders governing the conduct of counsel and parties.”

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Cite This Page — Counsel Stack

Bluebook (online)
299 F. Supp. 2d 664, 2003 U.S. Dist. LEXIS 24957, 2003 WL 23146062, Counsel Stack Legal Research, https://law.counselstack.com/opinion/belt-v-emcare-inc-txed-2003.