Morrison v. Columbus Family Health Care LLC

District Court, S.D. Ohio·Decided October 8, 2024·No. 2:22-cv-03460·Unknown

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF OHIO EASTERN DIVISION

MARY MORRISON, on behalf of herself and others similarly situated,

Plaintiff, Case No. 2:22-cv-3460

JUDGE EDMUND A. SARGUS, JR. v. Magistrate Judge Elizabeth Preston

Deavers COLUMBUS FAMILY HEALTH

CARE LLC,

Defendant.

OPINION AND ORDER This matter is before the Court on the parties’ Revised Joint Motion for Approval of FLSA Settlement Agreement. (Rev. Jt. Mot., ECF No. 31.) For the reasons stated below, the Revised Joint Motion is GRANTED. BACKGROUND Plaintiff Mary Morrison brought this action in September 2022, under the Fair Labor Standards Act (“FLSA”) and Ohio Minimum Fair Wage Standards Act (“OMFWSA”). (Compl., ECF No. 1.) Defendant Columbus Family Health Care LLC provides home healthcare services throughout Columbus, Ohio and the surrounding areas. (Id. ¶¶ 12–13.) Plaintiff alleges that Defendant failed to properly pay its Home Health Aides (“HHA”)—including Plaintiff—overtime compensation for time the HHAs spent traveling between clients. (Id. ¶¶ 28–44.) Plaintiff filed a “Pre-Discovery Motion for Conditional Class Certification and Motion for Court-Ordered Corrective Notice to Potential Opt-In Plaintiffs” (ECF No. 12), which this Court granted in part and denied in part (ECF No. 18). Plaintiff was authorized to send notice to potential opt-in plaintiffs, as well as corrective notice to certain potential opt-ins who had received purported settlement payments from Defendant. (Id.) Four opt-ins consented to join the suit (together with Plaintiff, “Plaintiffs”). (ECF Nos. 19, 20, 24.) On December 19, 2023, the parties notified the Court that they had reached a settlement. (ECF No. 27.) A little over a month later, they filed a Joint Motion, asking the Court to approve their Settlement Agreement, as well as the individual settlement payments to Plaintiffs, the

payment of attorneys’ fees and litigation expenses to Plaintiffs’ counsel, and to dismiss the lawsuit on the merits with prejudice. (Jt. Mot., ECF No. 29.) This Court denied the parties’ joint motion without prejudice and ordered the parties to file a revised joint motion with additional information. (ECF No. 30.) The Court instructed the parties to included additional information to evaluate whether the proposed Settlement Agreement is fair and reasonable, including what percentage of the calculated damages the proposed individual settlement payments reflect, an estimate of the unpaid overtime hours, and hourly rates. (Id. PageID 310–11, 314.) The parties subsequently filed a Revised Joint Motion, which included additional information, and asked the Court for the same relief as the Joint Motion. (Rev. Jt. Mot.) ANALYSIS

“As a general rule, employees’ claims under the FLSA are non-waivable and may not be settled without supervision of either the Secretary of Labor or a district court.” Gentrup v. Renovo Servs., LLC, No. 1:07-cv-430, 2011 WL 2532922, at *2 (S.D. Ohio June 24, 2011) (Black, J.) (citation omitted). To determine whether a proposed FLSA settlement is fair and reasonable, the Court considers: “(1) the risk of fraud or collusion behind the settlement; (2) the complexity, expense, and likely duration of the litigation; (3) the amount of discovery completed; (4) the likelihood of plaintiff’s success on the merits; and (5) the public interest in settlement.” Clevenger v. JMC Mech., Inc., No. 2:15-CV-2639, 2015 WL 12681645, at *1 (S.D. Ohio Sept. 25, 2015) (citations omitted). The Court must also “ensure that the distribution of the settlement proceeds is

equitable.” Feiertag v. DDP Holdings, LLC, No. 14-CV-2643, 2016 WL 4721208, at *6 (S.D. Ohio Sep. 9, 2016) (Marbley, J.) (citations omitted). I. Proposed Settlement is Fair and Reasonable The proposed settlement satisfies each of the Clevenger factors. A. No Indicia of Fraud or Collusion Exists There is no indicia of fraud or collusion. “Courts presume the absence of fraud or collusion unless there is evidence to the contrary.” Bailey v. Black Tie Mgmt. Co. LLC, No. 2:19-cv-1677,

2020 WL 4673163, at *2 (S.D. Ohio Aug. 12, 2020) (citation omitted). The proposed Settlement Agreement was achieved only after more than a month of arm’s-length and good-faith negotiations between the parties. (Rev. Jt. Mot. PageID 326; Dyer Decl., ECF No. 31-1 ¶ 34.) As such, there is no indicia of fraud or collusion, and this factor favors approval of the Settlement Agreement. B. Complexity, Expense, and Likely Duration of Continued Litigation Favor Approval The policy favoring the settlement of collective actions and other complex cases applies here. “[W]age and hour class/collective actions . . . are inherently complex, and settlement avoids the costs, delays, and multitude of other problems associated with them.” Carr v. Guardian Healthcare Holdings, Inc., No. 2:20-CV-6292, 2022 WL 501206, at *5 (S.D. Ohio Jan. 19, 2022). Without settlement, the parties would be made to engage in costly litigation, such as formal written discovery, depositions, dispositive motions, trial, and potential appeals. In contrast, this Settlement Agreement provides prompt and efficient relief to Plaintiffs. Therefore, this factor favors approval of the proposed Settlement Agreement. C. Investigation Allowed the Parties to Act Intelligently The parties engaged in sufficient investigation and analysis prior to negotiating the

Settlement Agreement. Specifically, Defendant produced Plaintiffs’ payroll records, timesheets, and client schedules. (Rev. Jt. Mot. PageID 327.) Both parties reviewed the discovery production and worked together to calculate Plaintiffs’ damages, allowing the parties to engage in good faith settlement discussions. (Id. PageID 327–28; Dyer Decl. ¶¶ 7–35.) The parties assert that they thoroughly researched and understood the legal and factual issues in the case. (Rev. Jt. Mot. PageID 327.) The Court finds that the parties engaged in sufficient investigation to act

intelligently, and therefore, this factor supports the proposed Settlement Agreement. D. Likelihood of Plaintiffs’ Success is Uncertain Counsel for the parties believe in the merits of their clients’ claims but “recognize that litigation entails uncertainty and risk in terms of costs, duration, and result.” (Rev. Jt. Mot. PageID 328.) Plaintiffs allege that Defendant did not pay them for travel time and overtime under the FLSA and OMFWSA. (Compl. ¶¶ 29, 30, 43, 44.) Defendant “disputes liability, contend [sic] that Plaintiffs were properly paid, and deny [sic] any and all wrongdoing.” (Rev. Jt. Mot. PageID 328.) Plaintiffs acknowledge the uncertainty of the outcome of their claims, including availability of liquidated damages, because the uncompensated drive time is difficult to prove and can only be estimated. (Id.) Because of the uncertainties surrounding this factor, it is neutral.

E. Public Interest Favors Settlement The “public interest is advanced by fair, reasonable, and adequate settlements.” Johnson v. Kestrel Eng’g, Inc., No. 2:15-CV-2575, 2016 WL 7655249, at *2 (S.D. Ohio Sept. 22, 2016). For the reasons above, the Court finds that this proposed Settlement Agreement is fair, reasonable, and adequate and therefore furthers the public interest. II. Distribution of Settlement Funds is Equitable In making their reasonableness determination, courts consider the percentage of the calculated damages estimate that the proposed individual settlement payments reflect. Smith v. SAC Wireless, LLC, No. 20-10932, 2022 WL 1744785, at *3 (E.D. Mich. May 31, 2022) (“The settlement allocation awards Plaintiffs direct cash payments of almost 81% of the alleged owed overtime wages on the three-year period or 182% of the alleged overtime wages over the two-year period. . . . after fees and costs this represents approximately 115% of the alleged overtime wages over the two-year period.”) (citations and quotations omitted); Yorba v.

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