Mongue v. The Wheatleigh Corporation

CourtDistrict Court, D. Massachusetts
DecidedApril 16, 2024
Docket3:18-cv-30095
StatusUnknown

This text of Mongue v. The Wheatleigh Corporation (Mongue v. The Wheatleigh Corporation) is published on Counsel Stack Legal Research, covering District Court, D. Massachusetts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mongue v. The Wheatleigh Corporation, (D. Mass. 2024).

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF MASSACHUSETTS

ARLETA MONGUE, ) Plaintiff, ) ) ) v. ) Civil No. 3:18-cv-30095-KAR ) ) THE WHEATLEIGH CORPORATION, ) L. LINFIELD SIMON, SUSAN SIMON, ) and MARC WILHELM, ) Defendants. )

MEMORANDUM AND ORDER ON PLAINTIFF’S MOTION FOR ATTORNEYS’ FEES AND EXPENSES AND SERVICE AWARD TO THE NAMED PLAINTIFF AND PLAINTIFF’S MOTION FOR FINAL APPROVAL OF CLASS ACTION SETTLEMENT (Dkt Nos. 171 & 173)

ROBERTSON, U.S.M.J. Plaintiff Arleta Mongue (“Plaintiff”), a former wait staff employee of the defendant The Wheatleigh Corporation (“Wheatleigh”), which was owned and/or operated by the remaining defendants L. Linfield Simon, Susan Simon, and Marc Wilhelm (collectively, “Defendants”), brings this class action alleging Massachusetts wage law violations on her own behalf and on behalf of other similarly situated wait staff employees. Plaintiff also asserted claims under the Fair Labor Standards Act (“FLSA”), 29 U.S.C. § 201 et seq., but she did not move for certification of a collective action as to those claims. The parties have consented to this court’s jurisdiction (Dkt. No. 14). See 28 U.S.C. § 636(c); Fed. R. Civ. P. 73. Presently before the court are two motions filed by Plaintiffs: Plaintiff’s Motion for Attorneys’ Fees and Expenses and Service Award to the Named Plaintiff (Dkt. No. 171) and Plaintiff’s Motion for Final Approval of Class Action Settlement (Dkt. No. 173). For the reasons stated herein, the court ALLOWS both motions. I. Relevant Procedural History and Facts On September 29, 2021, as amended by order dated October 12, 2021, this court granted Plaintiff’s motion for certification of her state law claims as to a class consisting of “all

individuals who worked as wait staff employees, service employees, or service bartenders for Defendants from May 7, 2017, to March 1, 2020, and were paid a Service Rate” (“the Class”), and appointed Jeffrey S. Morneau of Connor & Morneau LLP as class counsel (“Class Counsel”) (Dkt. Nos. 113, 117). On December 23, 2021, the parties reached a global settlement agreement, consisting of a $550,000 global settlement fund (“GSF”), encompassing this case and three separate wage and hour cases filed by three other individuals – Mark Brown (“Brown”), Christian Perreault Hamel (“Hamel”), and Mary Harris (“Harris”) (collectively, “the Individual Plaintiffs”) – all of whom were also represented by Class Counsel against the same Defendants.1 By late April 2022, Defendants and Brown, Hamel, and Harris had entered into agreements to

settle each of their cases for $8,103, $8,124, and $11,961, respectively, plus $60,000 in attorneys’ fees each, for a total of $180,000 in fees. Defendants attempted to renege on the settlement agreement with the Class, but this court granted a motion by Plaintiff to enforce it (Dkt. No. 155). Subsequently, based on a schedule set by the court, Plaintiff filed a motion for preliminary approval of the class action settlement, which the court granted over Defendants’ opposition (Dkt. Nos. 157, 163, 169). Pursuant to the proposed settlement, the $341,812 of the

1 Class Counsel filed a complaint on behalf of Brown, a former guest services manager, on April 11, 2018 (Case No. 3:18-cv-30056-KAR); Hamel, a former restaurant manager, on July 17, 2018 (Case No. 3:18-cv-30113-KAR); and Harris, a former housekeeping manager, on July 17, 2018 (Case No. 3:18-cv-30114-KAR) (referred to collectively as “the Individual Cases”). GSF remaining after settlement of the Individual Cases was to be allocated as follows: $243,918.80 to the Class for notice and tip pool violations, $92,893.20 in attorneys’ fees and costs for the Class Action, and $5,000 to Plaintiff as a service award. In the preliminary approval order, which provisionally appointed Plaintiff as class representative, the court conducted an exacting analysis before concluding that it would likely be able to find that the

proposed settlement is fair, reasonable, and adequate. The court did, however, express some reservation about the amount of the proposed attorneys’ fee award. The court noted that, while $92,893.20 in attorneys’ fees represents only 27.2% of the $341,812.00 going to settle the class claims – a figure which falls within the range of an appropriate percentage of the fund award (“POF”) – when one considers the additional $180,000 in attorneys’ fees Class Counsel would receive from the settlements with the Individual Plaintiffs, the total attorneys’ fees would be $272,893.20, or 49.6% of the total $550,000 GSF. Thus, this court indicated that it would closely scrutinize any motion for attorneys’ fees, which motion should include a lodestar analysis with appropriate accompanying documentation.

On September 6, 2023, in accordance with the court’s preliminary approval order, the Settlement Administrator sent notices of the proposed settlement to forty-three members of the Class. The court finds that the notices complied with the requirements of Fed. R. Civ. P. 23 and due process and: (i) fully and accurately informed members of the Class about the lawsuit and the settlement; (ii) provided sufficient information so that members of the Class could decide whether to accept the benefits offered, opt-out and pursue their own remedies, or object to the settlement; (iii) provided procedures for members of the Class to submit written objections to the settlement, to Class Counsel’s request for attorneys’ fees, costs, and a service award to Plaintiff, to appear at the fairness hearing, and to state objections to the settlement; and (iv) provided the time, date, and place of the fairness hearing. On December 7, 2023, the court held a fairness hearing regarding Plaintiff’s proposed class action settlement. Only four of the Class notices were undeliverable. No members of the Class opted out or objected to the proposed settlement.

II. Discussion A. Motion for Final Approval of Class Action Settlement Federal Rule of Civil Procedure 23(e) sets forth the requirements for approving a proposed class action settlement: [T]he court may approve [a settlement] only after a hearing and only on finding that it is fair, reasonable, and adequate considering whether:

(A) the class representatives and class counsel have adequately represented the class;

(B) the proposal was negotiated at arm’s length;

(C) the relief provided for the class is adequate, taking into account;

(i) the costs, risk, and delay of trial and appeal;

(ii) the effectiveness of any proposed method of distributing relief to the class, including the method of processing class- member claims;

(iii) the terms of any proposed award of attorney’s fees, including timing of payment; and

(iv) any agreement required to be identified under Rule 23(e)(3); and

(D) the proposal treats class members equitably relative to each other. Fed. R. Civ. P. 23(e)(2). In considering whether the relief provided is adequate, the court takes into account: the costs, risks, and delay of trial and appeal; the effectiveness of any proposed method of distributing relief to the class, including the method of processing class-member claims; and the terms of any proposed award of attorney’s fees, including timing of payment. Fed. R. Civ. P.

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Mongue v. The Wheatleigh Corporation, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mongue-v-the-wheatleigh-corporation-mad-2024.