Green v. Platinum Restaurants Mid America LLC

CourtDistrict Court, W.D. Kentucky
DecidedApril 27, 2022
Docket3:14-cv-00439
StatusUnknown

This text of Green v. Platinum Restaurants Mid America LLC (Green v. Platinum Restaurants Mid America LLC) is published on Counsel Stack Legal Research, covering District Court, W.D. Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Green v. Platinum Restaurants Mid America LLC, (W.D. Ky. 2022).

Opinion

UNITED STATES DISTRICT COURT WESTERN DISTRICT OF KENTUCKY LOUISVILLE DIVISION

LAUREN GREEN, ET AL. Plaintiffs

v. Civil Action No. 3:14-cv-439

PLATINUM RESTAURANTS MID- Defendant AMERICA LLC D/B/A EDDIE MERLOT’S PRIME AGED BEEF AND SEAFOOD.

* * * * *

MEMORANDUM OPINION AND ORDER

Plaintiff Lauren Green, et al. (“Plaintiffs”) sued Defendant Platinum Restaurants Mid- America LLC d/b/a Eddie Merlot’s Prime Aged Beef and Seafood (“Defendant” and together with Plaintiffs, the “Parties”) seeking relief for alleged violations of Fair Labor Standards Act, 29 U.S.C. § 216(b) (“FLSA”). [DE 1]. Before the Court is the Parties’ Joint Motion for Preliminary Approval of Settlement Agreement (“Motion”). [DE 287]. The matter is ripe. For the reasons below, the Motion is GRANTED. I. BACKGROUND Plaintiffs brought this hybrid collective action and putative class action against Defendant under the FLSA. [DE 1]. Defendant owns Eddie Merlot’s Prime Aged Beef and Seafood Restaurant in Louisville Kentucky (“Eddie Merlot’s”). [DE 145]. The Named Plaintiffs are former or current Eddie Merlot’s servers, bartenders, or other tipped non-management employees who claim violations of the FLSA. [Id.] Judge Stivers conditionally certified a FLSA opt-in class consisting of all Servers, Cocktail Servers, and Bartenders that worked at Eddie Merlot’s within three years before the lawsuit was filed. [DE 63]. Judge Stivers allowed Plaintiffs’ allegations to proceed collectively: (1) that “they 1 were forced to participate in a ‘tip pooling’ agreement in which tips were shared with management and kitchen staff’”; (2) that “they were forced to perform non-tipped duties while being paid below minimum wage”; and (3) that they “were forced to work off the clock for certain periods of time.” [Id. at 945–46]. Potential plaintiffs had until April 29, 2016 to opt-in to the collective action by filing consent forms with the Court. [DE 68]. The Court then granted Plaintiffs’ motion for class

certification under Federal Rule of Civil Procedure 23. [DE 221 at 6165]. The Court defined the Rule 23 class as “[a]ll Servers, Cocktail Servers, and Bartenders employed by the defendant in its Louisville restaurant since it opened on January 6, 2011.” [Id.]. The Court also appointed Plaintiffs’ Counsel as Class Counsel under Rule 23(g). [Id.]. The Parties now move for preliminary approval of their settlement agreement (“Agreement”). [DE 287-1]. Defendants and Plaintiffs have reached a comprehensive settlement and seek preliminary approval of the Agreement, which applies to the Rule 23 class members and the individuals who opted-into this litigation pursuant to the FLSA. [Id.]. The Agreement will cover 217 individuals who are either part of the Rule 23 class action or FLSA collective action.

[Id. at 11242]. The Agreement includes a total settlement of $850,000.00 (“Total Settlement Amount”), which will cover all the individual payments to Plaintiffs and Class Counsel’s attorneys’ fees and costs. [Id.]. Of the Total Settlement Amount, Class Counsel will receive an award of $31,067.25, reflective of the fees and costs awarded to Class Counsel in the Court’s Order dated August 22, 2019. [Id.]. Class Counsel also requests an award as compensation for their efforts, not to exceed $318,932.75 from the Total Settlement Amount. [Id. at 11242–43]. To provide notice of the settlement, the Parties have prepared a Notice of Proposed Class and Collective Action Settlement and Fairness Hearing [DE 287-9] (“Notice”). The Notice explains

2 the nature of this action and the Agreement and will be mailed, along with the Opt-Out Statement [DE 287-10], to all members of the Rule 23 class. [Id.]. II. JOINT MOTION FOR PRELIMINARY APPROVAL OF THE AGREEMENT A. Standard of Review Class action suits may be settled only with court approval. Fed. R. Civ. P. 23(e). Approval

of a class action settlement involves two-stages: (1) “The judge reviews the proposal preliminarily to determine whether it is sufficient to warrant public notice and a hearing”; and (2) “If so, the final decision on approval is made after the hearing.” Ann. Manual Complex Lit. (Fourth) § 13.14 (2019); see also Thacker v. Chesapeake Appalachia, L.L.C., 259 F.R.D. 262, 270 (E.D. Ky. 2009) (referencing Tenn. Ass'n of Health Maint. Orgs., Inc. v. Grier, 262 F.3d 559, 565-66 (6th Cir. 2001)). “At the stage of preliminary approval, the questions are simpler, and the court is not expected to, and probably should not, engage in analysis as rigorous as is appropriate for final approval.” Spine & Sports Chiropractic, Inc. v. ZirMed, Inc., No. 3:13-CV-00489, 2015 WL 1976398, at *1 (W.D. Ky. May 4, 2015) (quoting Ann. Manual Complex Lit. § 21.662 (4th ed.)).

Courts apply a degree of scrutiny to proposed settlement agreements sufficient to avoid “rubber- stamp[ing]” a proposed settlement agreement, while still being “mindful of the substantial judicial processes that remain to test the assumptions and representations upon which the [proposed settlement agreement] are premised.” In re Inter-Op Hip Liab. Litig., 204 F.R.D. 330, 338 (N.D. Ohio 2001). To approve a proposed settlement, the court must determine whether it is “fair, reasonable, and adequate.” Whitlock v. FSL Mgmt., L.L.C., 843 F.3d 1084, 1093 (6th Cir. 2016). Rule 23(e) provides the court with factors to consider when making this determination. The Advisory Committee, in amending Rule 23(e), did not intend to displace factors developed by the circuit

3 courts in deciding whether to approve a proposed settlement agreement, but rather to “focus the court . . . on the core concerns . . . that should guide” the court’s determination. Federal R. Civ. P. 23(e) advisory committee’s note to 2018 amendment. The Sixth Circuit factors are also used to evaluate the reasonableness of settlements under the FLSA. Does 1–2 v. Déjà Vu Servs., Inc., 925 F.3d 886, 894–95 (6th Cir. 2019) (quoting citing Int'l Union, UAW, et al. v. Gen. Motors Corp.,

497 F.3d 615, 631 (6th Cir. 2007) (“UAW”)). This Court thus considers both the Rule 23(e) factors and the factors set forth by the Sixth Circuit. See Peck v. Air Evac EMS, Inc., No. CV 5:18-615- DCR, 2019 WL 3219150, at *5 (E.D. Ky. July 17, 2019). B. The Settlement is “Fair, Reasonable, and Adequate.” Because the Court has already certified the class, appointed class counsel, and approved the class representatives, [DE 221], its analysis here focuses on whether “giv[ing] notice is justified by the parties’ showing that the court will likely be able to . . . approve the proposal under Rule 23(e)(2).”1 Fed. R. Civ. P. 23(e)(1)(B). Because the parties’ showing satisfies the Rule 23(e)(2) and Sixth Circuit factors, the Court will likely be able to approve the Settlement as “fair,

reasonable, and adequate.” 1. Analysis Under Rule 23(e)(2).

Under the Rule 23(e)(2) factors, a settlement is “fair, reasonable, and adequate” if: (A) the class representatives and class counsel have adequately represented the class; (B) the proposal was negotiated at arm’s length; (C) the relief provided for the class is adequate, taking into account: (i) the costs, risks, and delay of trial and appeal;

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Bluebook (online)
Green v. Platinum Restaurants Mid America LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/green-v-platinum-restaurants-mid-america-llc-kywd-2022.