Blanco v. Xtreme Drilling and Coil Services, Inc.

CourtDistrict Court, D. Colorado
DecidedJuly 17, 2020
Docket1:16-cv-00249
StatusUnknown

This text of Blanco v. Xtreme Drilling and Coil Services, Inc. (Blanco v. Xtreme Drilling and Coil Services, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Blanco v. Xtreme Drilling and Coil Services, Inc., (D. Colo. 2020).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLORADO Chief Judge Philip A. Brimmer Civil Action No. 16-cv-00249-PAB-SKC JOSE BLANCO, on behalf of himself and all similarly situated persons, Plaintiff, v. XTREME DRILLING AND COIL SERVICES, INC., a Texas corporation, Defendant.

ORDER

This matter is before the Court on the Joint Motion for Final Approval of Class Action Settlement [Docket No. 58]. The Court has jurisdiction pursuant to 28 U.S.C. §1331. I. BACKGROUND This case arises out of a wage dispute. Defendant is an oilfield drilling company. Docket No. 1 at 2, ¶ 5. Plaintiff claims that he and other similarly situated employees of defendant were not paid full compensation for overtime hours worked and

failed to receive paid rest breaks required by state law. Id. at 2-3, ¶ 7. Plaintiff filed a class action complaint on February 2, 2016. Id. Plaintiff asserts claims for violation of the Colorado Wage Claim Act, Colo. Rev. Stat. § 8-4-101, et seq., the Colorado Minimum Wage Act, Colo. Rev. Stat. § 8-6-101, et seq., and breach of contract. Id. at 4-5, ¶¶ 10-24. On March 8, 2017, the Court granted defendant summary judgment on plaintiff’s Colorado Wage Claim Act Claim. Docket No. 24. On March 29, 2019, the parties filed a joint motion for preliminary approval of a class action settlement. Docket No. 48. Acting with the consent of the parties, Magistrate Judge S. Kato Crews granted the motion on March 8, 2020 and approved the parties’ plan to disseminate notice of the settlement to the class members. Docket No. 52. On

May 26, 2020, the parties moved for final approval of the class action settlement, including an award of attorney’s fees and costs to plaintiff’s counsel. Docket No. 58. The Court held a final fairness hearing on June 19, 2020. Docket No. 60. II. FINAL APPROVAL OF CLASS ACTION SETTLEMENT A. Overview of the Settlement Agreement The proposed settlement agreement defines the settlement class as:

all non-exempt drilling employees of [defendant] who were based in Colorado, worked at any time between February 2, 2013 and January 24, 2019, and who received additional payments for bonuses, [o]il-based mud payments, training pay, or per diems that were not included in the calculation of such employee’s regular rate of pay. Docket No. 48-1 at 1, ¶ II.A. Under the proposed settlement agreement, defendant agrees to pay a total of $850,000.00. Id. at 5-6, ¶ IV.E.1. The settlement funds are to be distributed as follows: (1) service award of 24,000.00 to plaintiff; (2) payments to class counsel of up to 38 percent of the settlement amount, which equals $323,000; (3) payment of class members’ payroll taxes; and (4) pro rata payments to settlement class members of all remaining funds based on a formula set out in the settlement agreement to be calculated by the settlement administrator. Id. at 5-7, ¶ IV.E. B. Notice to the Settlement Class Under Rule 23(e)(1), a district court approving a class action settlement “must 2 direct notice in a reasonable manner to all class members who would be bound by the proposal.” Fed. R. Civ. P. 23(e)(1). Rule 23(c)(2)(B) provides, in relevant part, that for “any class certified under Rule 23(b)(3), the court must direct to class members the best notice that is practicable under the circumstances, including individual notice to all

members who can be identified through reasonable effort.” Fed. R. Civ. P. 23(c)(2)(B). In addition to the requirements of Rule 23, the Due Process Clause also guarantees unnamed class members the right to notice of a settlement. DeJulius v. New England Health Care Emps. Pension Fund, 429 F.3d 935, 943-44 (10th Cir. 2005). However, due process does not require that each class member receive actual notice to be bound by the adjudication of a representative action. Id. Instead, the procedural rights of absent class members are satisfied so long as “the best notice practicable under the

circumstances [is given] including individual notice to all members who can be identified through reasonable effort.” In re Integra Realty Resources, Inc., 262 F.3d 1089, 1110 (10th Cir. 2001) (citation omitted). Thus, “[t]he legal standards for satisfying Rule 23(c)(2)(B) and the constitutional guarantee of procedural due process are coextensive and substantially similar.” DeJulius, 429 F.3d at 944. The Court finds that the parties complied with the notice plan that was approved by the Court in its ruling on the parties’ motion for preliminary approval of the class action settlement. See Docket No. 52 at 5-6. The settlement administrator mailed a

notice of preliminary approval to each of the 349 settlement class members. Docket No. 58-1 at 2, ¶ 5. Fifty-eight of those mailings were undeliverable; the settlement administrator conducted further research and re-mailed the notice to forty-eight class 3 members. Id., ¶ 6. Seven of those mailings were returned as undeliverable. Id. In total, seventeen class members did not receive notice. Id. Consistent with its prior order, the Court finds that the parties made reasonable efforts to identify and provide notice to all class members who would be bound by the

settlement. See Fed. R. Civ. P. 23(e)(1) (requiring court to “direct notice in a reasonable member to all class members who would be bound by the proposal”); Tennille v. W. Union Co., 785 F.3d 422, 438-39 (10th Cir. 2015) (finding that mailing of settlement notice to addresses updated through post office’s change-of-address database was sufficient under Rule 23 and due process); DeJulius, 429 F.3d at 944 (noting that due process inquiry “focuses upon whether the district court gave the best notice practicable under the circumstances including individual notice to all members

who can be identified through reasonable effort” (internal quotation marks omitted)). Moreover, the notice itself contained information regarding the nature of the lawsuit, the definition of the class, class members’ anticipated recovery under the settlement, the amount of attorneys’ fees and costs sought, and a summary of the class members’ legal rights, including the right to object or exclude themselves from the settlement. See Docket No. 48-1 at 13-17; see also Fed. R. Civ. P. 23(c)(2)(B) (describing information to be included in notice). The notice also directed class members to a phone number to call for additional information regarding the settlement. See Docket No. 48-1 at 17;

see also Tennille, 785 F.3d at 437 (finding that “notice satisfied due process by informing class members of several ways they could obtain information about the claims that they would be releasing if they joined the settlement”). 4 Based on the foregoing, the Court is satisfied that the notice provided to class members met the requirements of Rule 23(e) and due process. C. Analysis of Rule 23 Factors1

Rule 23(e) provides that a proposed settlement may only be approved after a “finding that it is fair, reasonable, and adequate.” Fed. R. Civ. P. 23(e)(2).

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Bluebook (online)
Blanco v. Xtreme Drilling and Coil Services, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/blanco-v-xtreme-drilling-and-coil-services-inc-cod-2020.