Ingram v. Coca-Cola Co.

200 F.R.D. 685, 2001 U.S. Dist. LEXIS 8414
CourtDistrict Court, N.D. Georgia
DecidedJune 7, 2001
DocketNo. 1:98-CV-3679-RWS
StatusPublished
Cited by47 cases

This text of 200 F.R.D. 685 (Ingram v. Coca-Cola Co.) is published on Counsel Stack Legal Research, covering District Court, N.D. Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ingram v. Coca-Cola Co., 200 F.R.D. 685, 2001 U.S. Dist. LEXIS 8414 (N.D. Ga. 2001).

Opinion

ORDER

STORY, District Judge.

This case is before the Court on the motion of Settlement Class Representatives Ingram, Orton, Barton-Gibson and Eddings for final approval of the Settlement Agreement in this [687]*687action and certification of a Settlement Class of approximately 2200 African-American current and former salaried employees of The Coca-Cola Company. [302-1]. The Court, having conducted a Fairness Hearing and heard from the parties and the objectors, approves the settlement and certifies the Settlement Class for the reasons set forth in this Order.

Procedural History

This case originally was filed as an individual discrimination action against The Coca-Cola Company (“Coca-Cola”), and an Amended Complaint was filed on April 22, 1999, containing class action allegations and adding additional plaintiffs, including Ingram and Orton. The Amended Complaint alleged that Coca-Cola systematically discriminated in promotions, compensation, and performance evaluations against salaried African-American employees. Pursuant to 42 U.S.C. § 1981, the Amended Complaint sought relief for the class including injunctive relief, back pay, compensatory and punitive damages, and attorneys’ fees and costs. From April 22, 1999 until June 14, 2000, the parties engaged in extensive and highly contested discovery on class issues. In January 2000, plaintiffs filed a Second Amended Complaint, adding additional plaintiffs, including Barton-Gibson and Eddings, and adding class claims under Title VII of the Civil Rights Act of 1964.

Around the time that the Second Amended Complaint was filed, the Court ordered both sides to participate in non-binding mediation, without staying the litigation. Hunter R. Hughes was appointed by the Court to serve as the mediator. Mr. Hughes testified at the recent hearing that the parties engaged in vigorously contested settlement negotiations. Throughout the mediation, both sides continued with class discovery and the plaintiffs prepared their class certification motion. The parties ultimately reached a binding Settlement in Principle on June 14, 2001, the deadline for filing the class certification motion.

The parties were unable to reach agreement on the amount of back pay due the class and consented as part of the Settlement in Principle to participate in binding arbitration on back pay. A panel of neutral employment discrimination experts were to preside over the arbitration proceeding, and they would be assisted by a neutral labor economist. After reviewing the competing claims made by each side in light of prevailing law, the Panel issued a determination of the amount required for a make-whole back pay relief fund.

Following the conclusion of arbitration, the Court granted preliminary approval of the settlement, provisionally certified the Class Representatives and Class Counsel, and ordered notice to be sent to the class. Twenty-four individuals opted out of the class, and thirteen class members filed objections. Eleven objectors represented by the law firm of Gary, Williams, Parenti, Finney, Lewis, McManus, Watson & Sperando (“the Gary Objectors”) filed identical objections. Of the eleven Gary Objectors, four later withdrew their objections. On May 29, 2001, the Court held a hearing regarding the fairness of the Settlement Agreement. Parties and objectors were afforded the opportunity to present evidence and be heard prior to final approval of the settlement.

Settlement Terms

The settlement provides the following relief to the class. Programmatic relief is far-reaching. First, the Settlement Agreement (“the Agreement”) includes a Statement of Principle committing Coca-Cola to standards of excellence in “promoting and fostering equal opportunity.” Next, Coca-Cola’s Board of Directors is required to review and remain informed about the Company’s progress toward achieving diversity goals; the Board’s oversight responsibilities include considering the Company’s EEO performance in determining whether or not Company officers have met their business objectives. Third, the Agreement creates an outside, independent task force (“the Task Force”) to oversee Coca-Cola’s compliance with the terms of the settlement. The Task Force’s duties include evaluating the Compa-. ny’s existing human resources policies and practices, making recommendations for any necessary reforms and improvements of those policies and practices, monitoring [688]*688Coca-Cola’s practices for the duration of its four year term, investigating complaints, and issuing written reports on Coca-Cola’s progress in implementing the terms of the Settlement Agreement to the Board, Coca-Cola’s CEO, Class Counsel, the Court, and the public. The Task Force’s recommendations are binding on Coca-Cola unless the Company seeks and obtains judicial relief in a proceeding where it bears the burden of proof. The Task Force will have the services of Joint Experts, two industrial psychologists selected by the parties, who will review and critique Coca-Cola’s existing policies and practices and issue a written report. Fourth and finally, Coca-Cola will hire an Ombudsperson to oversee investigations of complaints of discrimination and retaliation. These programmatic terms likely exceed what this Court could have required the Company to undertake if the class had prevailed at trial.

Second, the monetary benefits ensure a guaranteed recovery to every class member averaging approximately $38,000. Specifically, Coca-Cola will make payments to class members from a Back Pay Fund of over $24 million and a Compensatory Damages Fund of approximately $59 million. These funds will be distributed pursuant to an allocation formula developed by the class’s expert, Dr. Janice Fanning Madden. A unique provision allows class members to decline their share of the determined back pay amount, opting to obtain an individual hearing before a United States Magistrate Judge. The class members requesting an individual hearing may keep them share of the Compensatory Damages Fund. In addition, the settlement creates a $10 million Promotional Achievement Award Fund that will pay bonuses to class members who obtain promotions over a ten year period. The settlement requires Coca-Cola to make pay equity adjustments to correct any existing race-based inequities, estimated by Class Counsel’s expert to cost approximately $43.5 million over ten years. Attorney’s fees and expenses of approximately $20.7 million are provided, and special compensation of the Class Representatives is included.

Discussion

There is a strong judicial policy in favor of settlement, in order to conserve scarce resources that would otherwise be devoted to protracted litigation. Bennett v. Behring Corp., 737 F.2d 982, 986 (11th Cir.1984). Particularly given the tremendous benefits this settlement provides to the class, there is every reason to avoid the substantial burden of further litigation. Indeed, preventing the class from obtaining reforms and compensation for years, if at all, would be inappropriate. This settlement also fulfills the policies and purposes underlying the civil rights statutes at issue in this litigation by strengthening equal opportunity and promoting model voluntary measures to improve the workplace. See Cotton v. Hinton, 559 F.2d 1326, 1331 (5th Cir.1977)1 (remarking that for Title VII cases, “the policy favoring settlement is even stronger in view of the emphasis placed upon voluntary conciliation by the Act itself’).

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200 F.R.D. 685, 2001 U.S. Dist. LEXIS 8414, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ingram-v-coca-cola-co-gand-2001.