Davis v. Mar-Jac Poultry AL, LLC

District Court, N.D. Alabama·Decided August 8, 2024·No. 6:18-cv-01433·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ALABAMA JASPER DIVISION

CURTIS DAVIS, et. al, )

) Plaintiffs, ) 6:18-cv-1433-LSC v. )

) MAR-JAC POULTRY, LLC, ) Defendant. ) )

) MEMORANDUM OF OPINION There are two Motions before the Court: a Joint Motion for Approval of the Stipulated Settlement Agreement, Declaratory Judgment and Permanent Injunction (Doc. 184) and Plaintiffs’ Petition for Attorneys’ Fees, Costs, and Expenses (Doc. 190.) The Court begins with the motion to approve the class settlement and will then turn to the fee petition. I. JOINT MOTION FOR APPROVAL OF THE STIPULATED SETTLEMENT AGREEMENT, DECLARATORY JUDGMENT, AND PERMANENT INJUNCTION

This has been a long and hard-fought employment discrimination lawsuit, which is now coming to a close. Both sides have notched wins and losses. Specifically, the Court has entered Orders denying Defendant Mar-Jac Poultry AL, LLC (“Mar-Jac”)’s Motion for Summary Judgment, Motion to Strike Plaintiff’s Expert, and Motion to Strike Plaintiff’s Expert Report; denying Curtis Davis’s Motion for Sanctions, Motion to Strike Mar-Jac’s Supplemental Expert Report, and Motions for Certification of a Rule 23(b)(3) Class; and granting Davis’s Motion for

Certification of a Rule 23(b)(2) Injunctive Class. (Doc. 122; Doc. 131; Doc. 183.) After the Court issued its third Opinion on the class certification issue (Doc. 183), reaffirming certification of a Rule 23(b)(2) class and denial of a Rule 23(b)(3) class,

the Parties gave notice that a settlement had been reached on both the class claims and Davis’s individual claims. The Parties now stipulate that judgment should be entered in favor of Plaintiffs. (Doc. 184.) They ask the Court to enter the injunctive and declaratory relief attached in their Stipulated Final Judgment and Permanent

Injunction, in favor of Plaintiff Curtis Davis and the class he represents and against Defendant Mar-Jac Poultry AL, LLC (“Mar-Jac”). (Doc. 184-2.) Federal Rule of Civil Procedure 23(e) requires court approval of a class action

settlement and describes the procedure. When a settlement is binding on the class, a court must conduct a final fairness hearing prior to approving the settlement, and a court must determine whether directing notice of the proposed settlement to class members is justified. Fed. R. Civ. P. 23(e)(1)(B), (2). However, as this proposed

settlement is non-binding, a final fairness hearing is not required. Fed. R. Civ. P. 23(e)(B)(2). Additionally, because the proposed settlement is non-binding, the Court further finds that notice is unnecessary, in terms of Rule 23(e) or due process.1 See Juris v. Inamed Corp., 685 F.3d 1294, 1317 (11th Cir. 2012) (explaining the notice

provisions of Rule 23 “are meant to protect the due process rights of absent class members”); see also Battle v. Liberty Nat’l Life Ins. Co., 770 F. Supp. 1499, 1520 (N.D. Ala. 1991) (explaining that the due process concerns in the notifying class

members are to ensure that the named plaintiffs and class counsel will not serve their own interests, or compromise the interests or legal rights of class members). But regardless of whether a class settlement is binding or non-binding, a district court may only approve it upon finding that the settlement “is fair, adequate

and reasonable and is not the product of collusion between the parties.” Bennett v. Behring Corp., 737 F.2d 982, 986 (11th Cir. 1984) (quoting Cotton v. Hinton, 559 F.2d 1326, 1330 (5th Cir. 1977)). In making this determination, district courts have

1 In general, when the proposed class settlement derives from Rule 23(b)(2), rather than Rule 23(b)(3), notice will often be less essential. As noted in the comments to the 2003 Amendments to Rule 23, for a Rule 23(b)(2) class, a court “may decide not to direct notice after balancing the risk that notice costs may deter the pursuit of class relief against the benefits of notice.” Advisory Committee Notes on Rules, 2003 Amendments. Further, courts have decided not to direct notice in Rule 23(b)(2) classes when “there is cohesiveness or unity in the class and the representation is effective,” Exum v. Nat’l Tire & Battery, No. 9:19-cv-80121, 2020 WL 1670997, at *7 (S.D. Fla. Apr. 6, 2020) (quoting 7B Fed. Prac. & Proc. Civ. § 1793 (3d ed.), the “members were too numerous,” or “where class members could be or were notified by other means.” Exum, 2020 WL 1670997, at *7 (collecting cases). Accordingly, even if the class settlement was binding, notice would not be required because there is cohesion in this class, as all class members were rejected for employment by Mar-Jac allegedly for racially discriminatory reasons, and Davis has provided representation to that end; the estimated number of class members is over 2,000 individuals; and many class members will receive notice as a result of Mar-Jac’s commitment to review the employment of every non-Hispanic applicant from 2016 to now and reconsider their application and to physically post a “Notice to All Employees,” explaining its anti-discrimination policy and the remedial hiring process (Doc. 184-2). traditionally considered the following factors: “(1) the likelihood of success at trial; (2) the range of possible recovery; (3) the point on or below the range of possible

recovery at which a settlement is fair, adequate, and reasonable; (4) the complexity, expense, and duration of the litigation; (5) the substance and amount of opposition to the settlement; and (6) the stage of proceedings at which the settlement was

achieved.” Bennett, 737 F.2d at 986. Further, in considering whether the proposed settlement satisfies the “fair, adequate and reasonable” standard, “the trial court is entitled to rely upon the judgment of experienced counsel for the parties.” Cotton, 559 F.2d at 1330.

The Court has reviewed the parties’ proposed settlement (Doc. 184-2) and believes it is not a product of collusion. “Where the parties have negotiated at arm’s length, the Court should find that the settlement is not the product of collusion.

Further, where the case proceeds adversarially, this counsels against a finding of collusion.” Saccoccio v. JP Morgan Chase Bank, N.A., 297 F.R.D. 683, 692 (S.D. Fla. 2014) (citations omitted). Here, the settlement was negotiated at arm’s length and was the product of nearly six years of discovery and intense litigation before this

Court. (Doc. 184 at 2.) Counsel participated in four mediations to eventually obtain this settlement. (Doc. 194-1; Doc. 197-2.) It is therefore clear that the settlement was not the product of collusion. Further, the proposed settlement is “fair, adequate and reasonable” under the Bennett factors. First, in terms of the likelihood of success at trial, there is no

guarantee of success for either the disparate treatment or the disparate impact claim, particularly considering the parties’ conflicting evidence and dueling experts. As to the range of possible recovery and the point on or below the range of possible recovery at which a settlement is fair, adequate, and reasonable,2 the proposed

declaratory judgment and permanent injunction is robust and provides for the top end of the range of possible recovery. The proposed injunction, which will expire after four years, provides for: changes in Mar-Jac’s recruitment and advertising;

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Davis v. Mar-Jac Poultry AL, LLC, (N.D. Ala. 2024).

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