Lima v. International Catastrophe Solutions, Inc.

493 F. Supp. 2d 793, 2007 U.S. Dist. LEXIS 49087, 2007 WL 1880749
CourtDistrict Court, E.D. Louisiana
DecidedJune 27, 2007
DocketCIV.A. 06-6607
StatusPublished
Cited by28 cases

This text of 493 F. Supp. 2d 793 (Lima v. International Catastrophe Solutions, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lima v. International Catastrophe Solutions, Inc., 493 F. Supp. 2d 793, 2007 U.S. Dist. LEXIS 49087, 2007 WL 1880749 (E.D. La. 2007).

Opinion

ORDER AND REASONS

FALLON, District Judge.

Before the Court is the Plaintiffs’ Motion to Proceed as a Collective Action, for Tolling of the Statute of Limitations, for Court Authorized Notice, and for Disclosure of the Names and Addresses of the Potential Opt-in Plaintiffs (Rec.Doc. 60). For the following reasons, the motion is GRANTED in part and DENIED in part.

I. Background

The Plaintiffs bring this complaint on behalf of themselves and all others “similarly situated” against Defendants International Catastrophe Solutions, Inc. (“ICS”); PJ Services Catastrophe Solutions, Inc. (“PJ Services”); the president of ICS and PJ Services, Corey Pitts (“Pitts”); ICS subcontractor C.L.S. Construction & Labor Services, Inc. (“C.L.S.”); and C.L.S.’s president Flavio Burgos (“Burgos”) for alleged violations of the overtime wage provisions of the Fair Labor Standards Act, 29 U.S.C. §§ 201, et seq. (“FLSA”). In their complaint, filed September 27, 2006, the Plaintiffs, predominantly immigrants, state that they were recruited by the Defendants to work as manual laborers in the clean-up and restoration of various businesses along the Gulf Coast following Hurricane Ratrina. Specifically, the Plaintiffs state that Defendants PJ Services and ICS contracted with businesses to provide remediation and cleaning services. The Plaintiffs allege that they were recruited and hired by subcontractors utilized by PJ Services and ICS to perform the contract work. However, the Plaintiffs state that they remained joint employees at all relevant times of ICS and/or PJ Services and the subcontractor.

The Plaintiffs allege that they and others “similarly situated” were not paid proper overtime wage for their work in excess of forty hours per week. The *797 Plaintiffs now seek to maintain their case as a collective action as they believe the Defendants’ practice was uniform throughout their operation due to a centralized payroll and management system and similar experiences shared by other laborers with whom the Plaintiffs worked. They also seek approval of notice, disclosure of information by the Defendants, tolling of the statute of limitations, and extension of the opt-in period.

The Defendants deny liability for violations of FLSA’s overtime provisions. Additionally, in an opposition memorandum to the pending motion, Defendants ICS, PJ Services and Pitts (together, the “ICS Defendants”) object to the Plaintiffs’ proposed class definition as too broad. They also make objections to the notice form, dispute the method of notice distribution, and oppose a tolling of the statute of limitations and an extended opt-in period.

II. Certification of Collective Action

The FLSA affords workers the right to sue collectively on behalf of themselves and others “similarly situated” for violations of the Act’s minimum wage provisions and overtime protections. 29 U.S.C. § 216(b). “Unlike class actions governed by Rule 23 of the Federal Rules of Civil Procedure, in which potential class members may choose to opt out of the action, FLSA collective actions require potential class members to notify the court of their desire to opt-in to the action.” Anderson v. Cagle’s Inc., 488 F.3d 945, 950 n. 3 (11th Cir.2007) (citing 29 U.S.C. § 216(b)); Badgett v. Texas Taco Cabana, L.P., 2006 WL 2934265, at *1 (S.D.Tex. Oct.12, 2006). District courts are provided with discretionary power to implement the collective action procedure through the sending of notice to potential plaintiffs. Lentz v. Spanky’s Restaurant II, Inc., 491 F.Supp.2d 663, 667-68, 2007 WL 1628853, at *2 (5th Cir.2007) (citing Hoffmann-La Roche, Inc. v. Sperling, 493 U.S. 165, 169, 110 S.Ct. 482, 107 L.Ed.2d 480 (1989)). Notice must be “timely, accurate and informative.” Hoffm ann-La Roche, 493 U.S. at 172, 110 S.Ct. 482.

When making the “similarly situated” inquiry and determining whether notice should be given, district courts commonly follow the “two stage” Lusardi approach, described in detail in Mooney v. Aramco Services, Co., 54 F.3d 1207, 1213-14 (5th Cir.1995), overruled on other grounds by Desert Palace, Inc. v. Costa, 539 U.S. 90, 123 S.Ct. 2148, 156 L.Ed.2d 84 (2003). 1 Badgett, 2006 WL 2934265, at *1; see also Basco v. Wal-Mart Stores, 2004 WL 1497709, at *4 (E.D.La. July 2, 2004); Kaluom v. Stolt Offshore, Inc., 474 F.Supp.2d 866, 871 (S.D.Tex.2007) (citing “two stage” approach as favored procedure).

The first determination is made at the so-called “notice stage.” At the notice stage, the district court makes a decision-usually based only on the pleading and any affidavits which have been submitted whether notice of the action should be given to potential class members.
Because the court has minimal evidence, this determination is made using a fairly lenient standard, and typically *798 results in “conditional certification” of a representative class. If the district court “conditionally certifies” the class, putative class members are given notice and the opportunity to “opt-in.”
The second determination is typically precipitated by a motion for “decertification” by the defendant usually filed after discovery is largely complete and the matter is ready for trial. At this stage, the court has much more information on which to base its decision, and makes a factual determination on the similarly situated question. If the claimants are similarly situated, the district court allows the representative action to proceed to trial. If the claimants are not similarly situated, the district court de-certifies the class, and the opt in plaintiffs are dismissed without prejudice. The class representatives-i.e. the original plaintiffs-proceed to trial on their individual claims....

Mooney, 54 F.3d at 1213-14 (emphasis added) (internal citations and quotations omitted).

As this case is presently at the “notice stage,” the Court must make a decision whether conditional certification should be granted and whether notice of the action and right to opt-in should be given to potential class members.

At the notice stage, the plaintiff bears the burden of making a preliminary factual showing that at least a few similarly situated individuals exist. Badgett, 2006 WL 2934265, at *2;

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Bluebook (online)
493 F. Supp. 2d 793, 2007 U.S. Dist. LEXIS 49087, 2007 WL 1880749, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lima-v-international-catastrophe-solutions-inc-laed-2007.