Howard v. McLucas

597 F. Supp. 1504, 36 Fair Empl. Prac. Cas. (BNA) 1196, 1984 U.S. Dist. LEXIS 21834, 35 Empl. Prac. Dec. (CCH) 34,872
District Court, M.D. Georgia·Decided November 20, 1984·No. Civ. A. 75-168-MAC, 79-66-MAC·Published·Cited by 3 cases

Opinion

OWENS, Chief Judge.

Introduction

Counsel for all parties to these consolidated lawsuits have agreed to settle their differences without a trial. The terms of this settlement are set forth in a Consent Decree filed with this court on June 15, 1984. Public notice of this settlement was provided. All persons who believed they might be affected by the settlement were instructed as to how they could make their concerns known to this court. Comments and objections by both class members (black employees at Warner Robins AFB) and non-class members (white employees at Warner Robins AFB, organized as the “Warner Robins Constitutional Rights Fund”) were heard by the court at a fairness hearing held on August 9, 1984. Counsel now requests this court to give final approval to the Consent Decree proposed in settlement of these cases.

The Court’s Role in Reviewing This Settlement

In every civil lawsuit the parties are permitted to discover the strengths and weaknesses of .their opponent’s case. With full knowledge of the merits of the case, the parties are encouraged to discuss the possibility of negotiating a mutually agreeable settlement. A settlement has many advantages. It avoids a lengthy trial which frequently causes hostility and ill will to develop between the parties. A trial drags personal affairs into public view; each side frequently accuses the other of lying. In the end, a stranger (the judge) steps in, adjudicates the parties’ differences, and orders a result that is not palatable to one side of the case. A settlement, on the other hand, creates an atmosphere of conciliation; the parties agree among' themselves — without outside interference — to a compromise in which each side receives a benefit. The plaintiffs usually receive relief which they agree is fair, but without the expense and delay of trial and appeals. The defendants usually agree to pay less than what a judge or jury might award, and receive the benefit of supervising their own conduct, as opposed to being forced to submit to the judgment of a court. This court can encourage but cannot compel parties to a lawsuit to settle their differences; both plaintiffs and defendants have an absolute right to insist upon a trial. However, while perhaps less obvious but equally as true, this court cannot prevent parties to a lawsuit from settling their differences without a trial if they so desire.

In a typical civil lawsuit this court is not called . upon to approve a settlement *1506 reached by the parties. Indeed, in most personal injury settlements the court is not even apprised of the amount of money the parties agree upon — the court is simply told that the parties have agreed to dismiss the case. This case, however, is different. Since the plaintiffs number in the thousands, this case has proceeded as a class action. Obviously, each and every one of the thousands of plaintiffs could not be consulted in the negotiations leading to a settlement. Because of a fear that the named plaintiffs or their attorneys might be too quick to settle a case to the detriment of the class members who could not participate in the negotiations, Congress enacted the following rule which governs the settlement of class action lawsuits:

(e) Dismissal or Compromise. A class action shall not be dismissed or compromised without the approval of the court, and notice of the proposed dismissal or compromise shall be given to all members of the class in such manner as the court directs.

Fed.R.Civ.P. 23(e). “Approval of the court” is to be granted if the settlement is basically fair to all concerned. This is why the court held a “fairness” hearing, and allowed both class members and non-class members to speak on the question of fairness. However, the court’s responsibility to approve or disapprove does not give this court the power to force the parties to agree to terms they oppose. The court must either approve or disapprove of the settlement as a whole, and as written by the parties. In this case, it was the parties, including the United States Air Force, who agreed to the 240 promotions and the monetary award to which many object. This court did not suggest either the 240 promotions or the monetary award and cannot compel either party to change either without a trial on the merits. The court’s only function is to assess the settlement’s basic fairness in light of all objections, under the standards discussed below. If the settlement is found to be a fair one, this court must approve it. This court is not empowered to force parties who choose to settle to go to trial.

The factors which this court must consider in deciding whether the settlement is fair have been firmly established by a long line of decided cases. These standards were set forth by Judge James C. Hill in a 1977 decision of the United States Court of Appeals for the Fifth Circuit:

“In determining whether to approve a proposed settlement, the cardinal rule is that the District Court must find that the settlement is fair, adequate and reasonable and is not the product of collusion between the parties. Young v. Katz, 447 F.2d 431 (5th Cir.1971).

“A threshold requirement is that the trial judge undertake an analysis of the facts and the law relevant to the proposed compromise. A 'mere boiler-plate approval phrased in appropriate language but unsupported by evaluation of the facts or analysis of the law’ will not suffice. Protective Committee v. Anderson, 390 U.S. 414, 434, 88 S.Ct. 1157, 1168, 20 L.Ed.2d 1 (1968).

“In addition to undertaking such an analysis, it is essential that the trial judge support his conclusions by memorandum opinion or otherwise in the record. An appellate court, in the event of an appeal, must have a basis for judging the exercise of the trial judge’s discretion. Protective Committee v. Anderson, supra.

“In determining the fairness, adequacy and reasonableness of the proposed compromise, the inquiry should focus upon the terms of the settlement. The settlement terms should be compared with the likely rewards the class would have received following a successful trial of the case. Protective Committee v. Anderson, supra. The relief sought in the complaint may be helpful to establish a benchmark by which to compare the settlement terms. See Norman v. McKee, 431 F.2d 769 (9th Cir.1970).

“In Title VII class actions, the District Court is particularly suited to perform this task since the trial judge is given broad discretion in the fashioning of the proper remedial relief to eliminate employment discrimination. See Albemarle Paper Co. *1507 v. Moody, 422 U.S. 405, 95 S.Ct. 2362, 45 L.Ed.2d 280 (1975).

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Howard v. McLucas, 597 F. Supp. 1504, 36 Fair Empl. Prac. Cas. (BNA) 1196, 1984 U.S. Dist. LEXIS 21834, 35 Empl. Prac. Dec. (CCH) 34,872 (M.D. Ga. 1984).

597 F. Supp. 1504 (Howard v. McLucas) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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