Katz v. DNC Services Corp.

275 F. Supp. 3d 579
CourtDistrict Court, E.D. Pennsylvania
DecidedSeptember 28, 2017
DocketCIVIL ACTION NO. 16-5800
StatusPublished
Cited by2 cases

This text of 275 F. Supp. 3d 579 (Katz v. DNC Services Corp.) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Katz v. DNC Services Corp., 275 F. Supp. 3d 579 (E.D. Pa. 2017).

Opinion

[581]*581ORDER—MEMORANDUM

C. Darnell Jones, II J.

AND NOW, this 28th day of September 2017, upon consideration of Defendant Pennsylvania Democratic Party’s (“PDP”) Motion to Strike the Consent Forms (Dkt No. 23), Plaintiffs Response (Dkt No. 31), Defendant PDP’s Reply (Dkt No. 36), and the representations made, by counsel at the in-persón.status hearing on July 31, 2017, it is hereby ORDERED as follows:

1. Within twenty (20) days of the filing of this Order, Plaintiffs counsel is ordered to revise its webpage consistent with the directives contained herein and submit for this Court’s approval, a curative notice that advises all opt-in plaintiffs of the website changes and the right of all said recipients to rescind their consent to opt-in.
2. To the extent that Defendant PDP wishes to assist in the, modification of the Swartz Swidler LLC web-page, Plaintiffs counsel is directed to work collaboratively with Defendant PDP to make the necessary revisions.

Relevant Background

Plaintiff Bethany Katz commenced the instant action on November 9, 2016, alleging violations by the Pennsylvania Democratic Party and DNC Services Corporation of the Fair Labor Standards Act and the Pennsylvania Minimum Wage Act. Plaintiff Katz alleges that she and others similarly situated were wrongfully designated as exempt employees under the FLSA and PMWA and denied overtime pay for workweeks that exceeded forty hours. Shortly after commencing this action, Plaintiff Katz’s counsel set up a web-page on its firm’s site through which counsel provided information about the lawsuit. The webpage featured a “Consent Form” that putative plaintiffs could complete to “join” the collective action. Around this time, Plaintiff Katz also shared an article about her lawsuit against the PDP and DNC on her personal Facebook account and encouraged any former DNC organizers to read the shared publication. Within days of filing the Complaint, Plaintiff Katz began submitting the “Consent Forms” of dozens of out of state opt-in plaintiffs.

On December 22, 2016, Defendant Pennsylvania Democratic Party filed the instant Motion to Strike the Consent Forms and Order Plaintiff and Plaintiffs Counsel to Cease and Desist All Solicitations of Putative Plaintiffs. After months of delays and additional filings, this Court held an in-person status conference on July 31, 2017 to discuss several outstanding motions, including that which the Court considers herein. Defendant PDP argues that Plaintiffs solicitation of putative plaintiffs usurps the authority of this Court to oversee notice of putative class members and misleads former DNC employees about the posture of this' case and their right to bring suit individually. Defendant PDP moves this Court to order Plaintiff and Plaintiffs counsel to cease and desist any further solicitations not authorized by this Court and to strike all Consent Forms filed before and after the filing of the instant Motion.

At present, nearly a year since the filing of this Motion, Plaintiff Katz has amended the Complaint twice, submitted upwards of thirty Consent Forms, and added six out of state Democratic parties as defendants. As yet, there has been no motion for conditional class certification.

Analysis

Under the FLSA, “an action ... may be maintained against any employer. . .in any Federal- or State court of competent jurisdiction by any one or more [582]*582employees for and [o]n behalf of himself or themselves and other employees similarly situated.” 29 U.S.C. § 216(b). The FLSA requires the written consent of all persons who seek to be a party plaintiff in any such action. Id. Following responsive pleadings and limited discovery, plaintiffs in a FLSA collective, action generally petition the court for conditional certification of a class of “similarly situated” employees. See generally, Siguenza v. Bayview Asset Mgmt., LLC, No. 14-5336, 2015 WL 3818739, 2015 U.S. Dist. LEXIS 78929 (E.D. Pa. June 17, 2015). Once the court makes a preliminary determination that a class should be conditionally certified, the parties generally work with the court to determine the means by which potential class members are noticed of the action. Id.

The power of the court to facilitate notice to putative class members is well established at the conditional certification stage. Hoffmann-La Roche, Inc. v. Sperling, 493 U.S. 165, 171, 110 S.Ct. 482, 107 L.Ed.2d 480 (1989) (“Because trial court involvement in the notice process is inevitable in cases with numerous plaintiffs where written consent is required by statute, it lies within the discretion of a district court to begin its involvement early, at the point of the initial notice, rather than at some later time.”). But Plaintiffs in the instant action have yet to move for conditional certification, and the Court in Hoffman-La Roche “did not reach the issue of the district court’s authority to manage pre-notice solicitations of potential claimants.” Maddox v. Knowledge Learning Corp., 499 F.Supp.2d 1338, 1342 (N.D. Ga. 2007). This Court could not' find and Defendant PDP fails to identify, binding precedent that guides the resolution of disputes over pre-certification solicitations of putative plaintiffs in FLSA collective actions. This- Court therefore errs on the side of less restriction and employs the general approach to limitations on party speech in the class action context.

Generally, “an order limiting communications between parties and potential class members should be based on a clear récord and specific findings that reflect a weighing of the need for a limitation and the potential interference with the rights of the parties.” Gulf Oil Co. v. Bernard, 452 U.S. 89, 101, 101 S.Ct. 2193, 68 L.Ed.2d 693 (1981). The result should be a “carefully drawn order that limits speech as little as possible.” Id. An acceptable limitation on communication between parties and putative class members is that which is “grounded in good cause and issued with a heightened sensitivity for [F]irst [A]mendment concerns.” Kleiner v. First Nat’l Bank, 751 F.2d 1193, 1205 (11th Cir. 1985).

District courts have held, and this Court agrees, that a need for limitation exists where counsel’s precertification statements are “factually inaccurate, unbalanced, or misleading.” Maddox, 499 F.Supp.2d at 1344; see Jones v. Casey’s Gen. Stores, 517 F.Supp.2d 1080, 1089 (S.D. Iowa 2007) (holding that Plaintiffs’ “one-sided, misleading communications with putative opt-in collective members .. .if permitted to continue, could easily have the effect of tainting the entire putative class and jeopardizing [the] entire litigation.”); see also Bobryk v. Durand Glass Mfg. Co., No. 15-5360, 2013 WL 5574504 *1, *3, 2013 U.S. Dist. LEXIS 145758 *1, *9 (D.N.J. Oct. 9, 2013) (“[T]he court agrees that the website still contains some misleading statements.. .Accordingly, the court orders Plaintiffs to modify the website to qualify or remove the concluso-ry language,”). This Court thoroughly reviewed both Plaintiff Katz’s Facebook post and the Swartz Swidler LLC webpage describing the action and purporting to provide an avenue for putative plaintiffs to [583]*583join the case.

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275 F. Supp. 3d 579, Counsel Stack Legal Research, https://law.counselstack.com/opinion/katz-v-dnc-services-corp-paed-2017.