McClurg v. Dallas Jones Enterprises Inc

CourtDistrict Court, W.D. Kentucky
DecidedJuly 10, 2025
Docket4:20-cv-00201
StatusUnknown

This text of McClurg v. Dallas Jones Enterprises Inc (McClurg v. Dallas Jones Enterprises Inc) 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
McClurg v. Dallas Jones Enterprises Inc, (W.D. Ky. 2025).

Opinion

UNITED STATES DISTRICT COURT WESTERN DISTRICT OF KENTUCKY OWENSBORO DIVISION

JOHNNY McCLURG, et al. Plaintiffs

v. Case No. 4:20-cv-201-RGJ-HBB

DALLAS JONES ENTERPRISES, INC. d/b/a CLAY’S TRUCKING, et al. Defendants

MEMORANDUM OPINION & ORDER Plaintiffs1 are truck drivers who allege that they worked overtime hours without due compensation. [DE 242-3 at 4565]. Now Plaintiffs and Defendants2 jointly move for preliminary approval of a settlement for a proposed class. [DE 242]. For the following reasons, the parties’ joint motion [DE 242] is GRANTED in part and DENIED in part. A final approval hearing is scheduled for October 23, 2025. [DE 243]. I. BACKGROUND Clay’s Trucking “provides trucking services, including the transportation of coal from mines to power plants and rail and barge loadouts.” [DE 242-3 at 4565]. Plaintiffs and the putative class members “are truck drivers who worked for Clay’s Trucking.” [Id.]. Plaintiffs allege that Defendants failed to pay truck drivers for overtime. [Id.]. Defendants maintain that the Motor Carrier’s Act exemption applies and that the truck drivers are not entitled to overtime

1 Original named plaintiff Johnny McClurg (“McClurg”) initiated this case as both a putative collective action under the Fair Labor Standards Act (“FLSA”) and a putative Rule 23 class action under the Kentucky Wages and Hours Act (“KWHA”). [DE 1 at 9–12; see also DE 84 at 1868–71]. Thereafter, 19 additional plaintiffs designated McClurg as their representative, chosen McClurg’s counsel as their own, and filed written consent per 29 U.S.C. § 216(b) to join the collective action. [E.g., DE 64-1]. 2 The original defendant is Dallas Jones Enterprises, Inc. d/b/a Clay’s Trucking (“Clay’s Trucking”). [DE 1]. In the course of this litigation, Dana Porter; Brock Porter; and Alfreda Jones, executrix of the estate of Dallas Jones, have become named defendants as well. [DE 84; DE 183; DE 196]. They are owners and managers of Clay’s Trucking. [DE 235-8 at 4466]. compensation. [Id. at 4571]. Alternatively, they assert that their decisions regarding overtime compensation were made in good faith. [Id. at 4589]. McClurg filed suit “on behalf of himself and all others similarly-situated” in December 2020. [DE 1 at 1]. The third amended complaint, like the original complaint, asserts both a FLSA claim as a collective action and a KWHA claim as a putative Rule 23 class action. [DE 84 at 1868–

71]. Consequently, this case has been litigated as a “hybrid” action. See Gilstrap v. Sushinati LLC, 734 F. Supp. 3d 710, 721 n.7 (S.D. Ohio 2024). In December 2021, the Court conditionally certified a FLSA collective.3 [DE 59]. In March 2024, Plaintiffs moved for Rule 23 class certification on the KHWA claim. [DE 212]. Defendants opposed the motion. [DE 222; DE 223]. After extensive litigation—including discovery, motion practice, and settlement efforts— the parties agreed to a second settlement conference with the Magistrate Judge. [See DE 242-3 at 4564]. There, they “reached an amicable resolution of the case.” [DE 229]. “[A]ll matters other than those relating to the anticipated settlement approval process are stayed.” [DE 232 at 4388]. The parties first jointly moved for settlement approval in August 2024. [DE 235]. Their

agreement maintained the “hybrid” nature of this case: it defined a “Settlement Collective and Class,” [DE 235-1 at 4404], which contained approximately 75 members entitled to settlement funds. [DE 235-8 at 4467]. But hybrid actions and settlements “present[] complex legal issues,” Does 1-2 v. Deja Vu Servs., Inc., 925 F.3d 886, 898 (6th Cir. 2019), because collective and class actions are “fundamentally different.” Genesis Healthcare Corp. v. Symczyk, 569 U.S. 66, 74 (2013). The Court therefore asked the parties to address several issues posed by their hybrid- settlement proposal, recognizing that the proposal well might have been “fair and reasonable in

3 The order conditionally certifying a FLSA collective was entered in December 2021. Since then, the Sixth Circuit has “reject[ed] [the] characterization of the notice determination as a ‘certification.’” Clark v. A&L Homecare & Training Ctr., LLC, 68 F.4th 1003, 1009 (6th Cir. 2023). The Court previously declined to reconsider its conditional-certification decision in light of Clark. [DE 209]. substance.” [DE 241 at 4512]; accord Gilstrap, 734 F. Supp. 3d 710; Askew v. Inter-Cont’l Hotels Corp., 620 F. Supp. 3d 635 (W.D. Ky. 2022). The Court also suggested that “restructuring a Rule 23 class-action settlement might obviate many of th[os]e issues . . . while still releasing claims— including FLSA claims—that arise from the same underlying facts.” [DE 241 at 4512]. At Plaintiffs’ request, the Court scheduled a status conference for June 26, 2025. [Id. at 4513].

In response to the Court’s order and concerns, the parties executed a “revised” agreement that would resolve this case with a straightforward Rule 23 class-action settlement. [See DE 242- 3 at 4566]. There are about 75 individuals in the settlement class, [DE 242-3 at 4566], which the parties define as “individuals who worked for Defendants as truck drivers for any period of time from December 7, 2015 to June 27, 2024,” including Plaintiffs. [DE 242-1 at 4521]. The settlement proposal includes a gross settlement amount of $480,000. [Id. at 4520]. The parties report that this revised settlement agreement is the only agreement made in connection with their proposal. [DE 242-3]. Several aspects of the parties’ settlement proposal were discussed at the June 26 status

conference. [See DE 243]. Regarding McClurg’s proposed service award of up to $15,000, [see DE 242-1 at 4527–28], counsel briefly described the steps that McClurg has personally taken in prosecuting this case. Additionally, the Court highlighted two potential issues with the parties’ proposed notice of settlement. [See DE 242-1 at 4535–40]; accord Fed. R. Civ. P. 23(c)(2)(B) (“[T]he court must direct . . . the best notice that is practicable under the circumstances.”). First, the proposed notice did not disclose, as required, “that a class member may enter an appearance through an attorney if the member so desires.” Fed. R. Civ. P. 23(c)(2)(B)(iv). Second, the proposed notice would have required any opting-out class member to mail “a written exclusion” to a Post Office box. [DE 242-1 at 4539]. An email option is generally preferable. See Duffy v. Mazda Motor of Am., Inc., No. 3:24-cv-388-BJB, 2025 WL 517608, at *5–6 (W.D. Ky. Feb. 17, 2025); cf. Fed. R. Civ. P. 23 advisory committee’s note to 2018 amendment (encouraging email notices). Pursuant to the Court’s instructions at the hearing, [see DE 243], the parties have submitted a revised proposed notice. [DE 244]. II. STANDARD

The claims of a “class proposed to be certified for purposes of settlement” may be settled “only with the court’s approval.” Fed. R. Civ. P. 23(e); see also Wayside Church v. Van Buren Cnty., Michigan, 103 F.4th 1215, 1222 (6th Cir. 2024). Under Rule 23(e), “class action settlement approval involves a three-step process”: (1) “preliminary approval of the proposed settlement,” (2) “notice of the settlement to all affected class members,” and (3) a “final approval hearing.” Garner Props. & Mgmt., LLC v. City of Inkster, 333 F.R.D. 614, 620 (E.D. Mich.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

General Telephone Co. of Southwest v. Falcon
457 U.S. 147 (Supreme Court, 1982)
Amchem Products, Inc. v. Windsor
521 U.S. 591 (Supreme Court, 1997)
Wal-Mart Stores, Inc. v. Dukes
131 S. Ct. 2541 (Supreme Court, 2011)
Everett Hadix, C. Pepper Moore v. Perry Johnson
322 F.3d 895 (Sixth Circuit, 2003)
Genesis HealthCare Corp. v. Symczyk
133 S. Ct. 1523 (Supreme Court, 2013)
Daniel Greenberg v. Procter & Gamble Company
724 F.3d 713 (Sixth Circuit, 2013)
Beattie v. CenturyTel, Inc.
511 F.3d 554 (Sixth Circuit, 2007)
Martha Vassalle v. Midland Funding LLC
708 F.3d 747 (Sixth Circuit, 2013)
William Whitlock v. FSL Management
843 F.3d 1084 (Sixth Circuit, 2016)
Jane Doe v. Deja Vu Consulting, Inc.
925 F.3d 886 (Sixth Circuit, 2019)
Bowling v. Pfizer
144 F. Supp. 3d 945 (S.D. Ohio, 2015)
Willis v. Big Lots, Inc.
242 F. Supp. 3d 634 (S.D. Ohio, 2017)
Young v. Nationwide Mutual Insurance
693 F.3d 532 (Sixth Circuit, 2012)
Thacker v. Chesapeake Appalachia, L.L.C.
259 F.R.D. 262 (E.D. Kentucky, 2009)
Calloway v. Caraco Pharmaceutical Laboratories, Ltd.
287 F.R.D. 402 (E.D. Michigan, 2012)

Cite This Page — Counsel Stack

Bluebook (online)
McClurg v. Dallas Jones Enterprises Inc, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcclurg-v-dallas-jones-enterprises-inc-kywd-2025.