Dolan v. Project Construction Corp.

725 F.2d 1263, 26 Wage & Hour Cas. (BNA) 984, 1984 U.S. App. LEXIS 26251
CourtCourt of Appeals for the Tenth Circuit
DecidedJanuary 20, 1984
DocketNo. 83-1704
StatusPublished
Cited by21 cases

This text of 725 F.2d 1263 (Dolan v. Project Construction Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dolan v. Project Construction Corp., 725 F.2d 1263, 26 Wage & Hour Cas. (BNA) 984, 1984 U.S. App. LEXIS 26251 (10th Cir. 1984).

Opinion

BOHANON, District Judge.

Beginning in March, 1980, the defendant-appellee began construction on a 226 Million Dollar natural gas processing plant located approximately fifteen miles northwest of Evanston, Wyoming. This plant was known as the Amoco-Whitney Canyon Project. To construct this facility, defendant Project Construction Corporation employed approximately 1,500 hourly employees on a daily basis until the work was substantially completed in December, 1982.

The plaintiffs herein were employed during the construction of the natural gas processing plant and allege that they were denied certain wages and overtime compensation pursuant to §§ 6 and 7 of the Fair Labor Standards Act (hereinafter FLSA), 29 U.S.C. §§ 206 and 207.1

Upon the filing of the complaint, plaintiff served upon the defendant a set of interrogatories including the following demand for information:

“State the name and last known address of each employee of the defendant who was employed by said defendant at the the Amoco-Whitney Canyon Project near Evanston, Wyoming and who was employed at said site within the last two years including the date of hire, date of termination, days and hours of each day worked, the wage paid said employee on each date of employment within the last two years or until terminated or laid off, the classification or job description of said employee, and said employee’s last known address. In lieu thereof, the defendant may produce copies of employment, payroll, and/or hourly time records which reflect the above information pursuant to the above rule.”

Plaintiffs’ First Set of Interrogatories.

Defendant immediately moved for a Protective Order in lieu of answering the interrogatories. Plaintiffs, meanwhile, moved for Leave to Give Notice to Class Members. Both of these motions were set before the federal magistrate pursuant to an Order of Reference by the district court.

During the hearing on the motions, the magistrate held that the power to authorize the sending of notice to putative plaintiffs in collective employee suits under the FLSA could not be inferred from Section 216(b), 29 U.S.C. § 216(b), which does not expressly provide for such notice. He therefore denied plaintiffs’ Motion for Leave to Give Notice.

Upon making the determination that notice could not be given, the magistrate held that no purpose would be served by the defendants’ response to the first set of interrogatories and consequently granted the protective order.

The plaintiffs sought review of the magistrate’s ruling before the district court and upon review of the record, the district court issued an Order Affirming the Magistrate.2

Pursuant to the provisions of 28 U.S.C. § 1292(b) plaintiffs-appellants present this interlocutory appeal from the district court order denying the sending of notice to po-

[1266]*1266tential plaintiffs in a collective action described in 29 U.S.C. § 216(b). We affirm.

Initially, this case must be distinguished from a class action under Rule 23 of the Federal Rules of Civil Procedure. Rule 23 provides that upon the establishment of a class a subsequent judgment binds all members of the class unless they have expressly opted out of the class action. Therefore, due to the res judicata effect of a class action under the provisions of Rule 23, notice to the putative class of the pend-ency of the action is required to protect the individual interests of the class members.

However, 29 U.S.C.A. § 216(b) (hereinafter § 216(b)) provides, inter alia:

“... An action to recover the liability prescribed in [this act] ... may be maintained ... by any one or more employees for and in behalf of himself or themselves and other employees similarly situated. No employee shall be a party plaintiff to any such action unless he gives his consent in writing to become such a party and such consent is filed in the court in which such action is brought....”

Therefore, the principal difference between a Rule 23 class action and a § 216(b) collective action is that the similarly situated employee must “opt-in” to be bound by a judgment in a § 216(b) suit. Correspondingly, § 216(b) fails to provide for mandatory notice to similarly situated employees since no individual rights are jeopardized by the FLSA procedures. See Price v. Maryland Casualty Co., 561 F.2d 609 (5th Cir.1977); LaChapelle v. Owens-Illinois, Inc., 513 F.2d 286 (5th Cir.1975).

While this court has never ruled on the procedural ramifications of § 216(b), the issue has been before other circuit courts. The Ninth Circuit in Kinney Shoe Corp. v. Vorhes, 564 F.2d 859 (9th Cir.1977), was the first circuit to examine the question of notice in the § 216(b) situation. Kinney held that neither the named plaintiffs, their counsel, nor the court has the power to provide notice to similarly situated employees. See also Partlow v. Jewish Orphans’ Home of Southern Cal., 645 F.2d 757 (9th Cir.1981).

The second circuit was the next to consider the issue of notice. In Braunstein v. Eastern Photographic Laboratories, Inc., 600 F.2d 335 (2nd Cir.1979) the court held that § 216(b) permitted court sponsored notice in appropriate cases.

Finally, the seventh circuit examined the issue and a third viewpoint on § 216(b) notices was formulated. In Woods v. New York Life Ins. Co., 686 F.2d 578 (7th Cir. 1982) the court ruled that plaintiffs and their counsel can communicate with prospective parties under terms and conditions prescribed by the court, but the notice must not bear the imprimatur of the court.

Two other circuits have been presented the issue but have declined to choose between the various judicial interpretations of § 216(b). See Haynes v. Singer Co., Inc., 696 F.2d 884 (11th Cir.1983); Thompson v. Sawyer, 678 F.2d 257 (D.C.Cir.1982).

This court is now presented with the issue and must formulate an opinion on the procedural scope of a § 216(b) action.

Historical Background

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Dolan v. Project Construction Corporation
725 F.2d 1263 (Tenth Circuit, 1984)

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725 F.2d 1263, 26 Wage & Hour Cas. (BNA) 984, 1984 U.S. App. LEXIS 26251, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dolan-v-project-construction-corp-ca10-1984.