Butler v. DirectSAT USA, LLC

307 F.R.D. 445, 2015 U.S. Dist. LEXIS 56173, 2015 WL 1959421
CourtDistrict Court, D. Maryland
DecidedApril 29, 2015
DocketCivil Action No. DKC 10-2747
StatusPublished
Cited by55 cases

This text of 307 F.R.D. 445 (Butler v. DirectSAT USA, LLC) is published on Counsel Stack Legal Research, covering District Court, D. Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Butler v. DirectSAT USA, LLC, 307 F.R.D. 445, 2015 U.S. Dist. LEXIS 56173, 2015 WL 1959421 (D. Md. 2015).

Opinion

MEMORANDUM OPINION

DEBORAH K. CHASANOW, District Judge.

This collective action was brought under the Fair Labor Standards Act (“FLSA”), 29 U.S.C. § 201 et seq., by Plaintiff Jeffry Butler (“Butler”) against Defendants Direct-SAT USA, LLC (“DirectSAT”), UniTek USA, LLC (“UniTek”), and UniTek Global Services, Inc. (“UGS”) (collectively “Defendants”). DirectSAT is a subsidiary of Uni-Tek and UGS, and provides satellite installation services to DirecTV customers throughout the country. Butler is a technician who previously installed, upgraded, and serviced DirecTV equipment at customer locations in Maryland, Virginia, and the District of Columbia. Butler brought this suit against Defendants for their alleged failure to pay overtime wages in violation of the FLSA and various state wage laws. As to the FLSA claim, Butler sought to represent a collective of all technicians employed by Defendants in Virginia, Maryland, and the District of Columbia. Conditional certification of the FLSA collective was granted on April 10, 2012. (ECF Nos. 65 and 66). Defendants filed a motion to decertify the collective on February 3, 2014, which was denied on September 18, 2014. (ECF Nos. 278 and 279). The collective presently consists of named Plaintiff Butler and twenty-five opt-in Plaintiffs (collectively “Plaintiffs”).1 On May 12, 2014, Defendants moved for summary judgment, which was granted in part and denied in part on October 16, 2014. (ECF Nos. 301 and 302). Shortly after issuance of the summary judgment opinion, this case was administratively closed because Defendants filed a notice of suggestion of bankruptcy. (ECF Nos. 311 and 312).

On March 17, 2015, Plaintiffs filed a motion to lift the bankruptcy stay, which is currently pending before the court. (ECF No. 315). Also pending and ready for resolution in this action are several motions that were filed prior to the administrative closing of this case, namely: (1) a motion for reconsideration of the July 6, 2011 order that dismissed Plaintiffs’ Maryland Wage Payment and Collection Law (“MWPCL”) claim (ECF No. 275); (2) a motion filed by Defendants for certification of an interlocutory appeal pursuant to 28 U.S.C. § 1292(b) of the undersigned’s September 18, 2014 order denying decertification (ECF No. 298); (3) a motion to set a trial date filed by Plaintiffs (ECF No. 310); and (4) several renewed motions to seal various exhibits that were filed in conjunction with the parties’ decertification and summary judgment motions (ECF Nos. 280, 299, 303, and 309). The issues have been briefed and the court now rules, no hearing being deemed necessary. Local Rule 105.6. For the following reasons, Plaintiffs’ motion to lift the bankruptcy stay and reopen this case will be granted. Plaintiffs’ motion for reconsideration of Butler’s MWPCL claim and their motion to set a trial date will be granted. Defendants’ motion for certification will be denied. Finally, the renewed motions to seal will be granted in part and denied in part.

I. Motion to Lift Bankruptcy Stay

Defendants filed a suggestion of bankruptcy on November 13, 2014, advising that UGS and “its affiliated debtors and debtors in possession” had filed a Chapter 11 petition and that the instant case was subject to an automatic bankruptcy stay pursuant to 11 U.S.C. § 362(a). (ECF No. 311). On the same date, the court issued an order administratively closing this case without prejudice [448]*448to Plaintiffs’ right to reopen it upon a showing of good cause. (ECF No. 312).

On March 17, 2015, Plaintiffs filed a “motion to lift the stay,” in which they indicate that the bankruptcy court handling Defendants’ Chapter 11 proceeding issued a confirmation order and plan of reorganization on January 5, 2015. (ECF No. 315). Plaintiffs note that pursuant to the bankruptcy judge’s order, the bankruptcy stay was lifted in this litigation as of the effective date of the reorganization plan, which was January 13, 2015, and Plaintiffs were granted permission to continue litigating their claims against Defendants. (ECF No. 315-1, at 58-61). Defendants did not respond to this motion, however, they had previously filed a notification on January 15, 2015, indicating that the Bankruptcy Court had confirmed their Chapter 11 plan of reorganization.

When a debtor files for bankruptcy protection, 11 U.S.C. § 362(a)(1) automatically stays “the commencement or continuation ... of a judicial, administrative, or other action or proceeding against the debtor that was ... commenced before the commencement of the case under this title.” The “chief purpose” of the automatic stay provision is “to allow for a systematic, equitable liquidation proceeding by avoiding a ‘chaotic and uncontrolled scramble for the debtor’s assets in a variety of uncoordinated proceedings in different courts.’ ” Safety-Kleen, Inc. v. Wyche, 274 F.3d 846, 864 (4th Cir.2001) (quoting Fidelity Mortgage Investors v. Camelia Builders, Inc., 550 F.2d 47, 55 (2d Cir.1976)). “Relief from the stay can be granted only by the bankruptcy court having jurisdiction over a debtor’s case.” Constitution Bank v. Tubbs, 68 F.3d 685, 691 (3d Cir.1995). “Unless relief from the stay is granted, the stay continues until the bankruptcy case is dismissed or closed, or discharge [of the debtor’s debts] is granted or denied.” Id. at 691-92 (citing 11 U.S.C. § 362(c)). In Chapter 11 bankruptcy proceedings, the bankruptcy court’s confirmation of the plan “discharges the debtor from any [dischargeable] debt[,]” unless otherwise provided for in the plan of reorganization. 11 U.S.C. § 1141(d)(1); see also U.S. v. White, 466 F.3d 1241, 1245-46 & 1245 nn. 7-8 (11th Cir.2006) (citing 11 U.S.C. §§ 362(c)(2) and 1141(d)(1)).

Here, the bankruptcy court confirmed Defendants’ Chapter 11 Plan of reorganization on January 5, 2015. In his confirmation order, the bankruptcy judge specifically addressed the Plaintiffs’ current suit:

With respect to the plaintiffs [] and any members or putative members of any class or subclass [] in the following litigations [including] Butler, et al v. DirectSat, USA, LLC, et al, 10 cv 2747 (District of Maryland) [,][ ] any stay or injunction imposed by this Confirmation Order, the Plan or any other Order of the Bankruptcy Court, as applicable, is immediately removed as of the Effective Date of the Plan and is lifted in order to permit Plaintiffs and all other parties to fully litigate their Claims and the Claims of the Class members[.]

(ECF No. 315-1 ¶ 72).

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307 F.R.D. 445, 2015 U.S. Dist. LEXIS 56173, 2015 WL 1959421, Counsel Stack Legal Research, https://law.counselstack.com/opinion/butler-v-directsat-usa-llc-mdd-2015.