Murphy v. City of El Cajon

CourtDistrict Court, S.D. California
DecidedAugust 19, 2019
Docket3:18-cv-00698
StatusUnknown

This text of Murphy v. City of El Cajon (Murphy v. City of El Cajon) is published on Counsel Stack Legal Research, covering District Court, S.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Murphy v. City of El Cajon, (S.D. Cal. 2019).

Opinion

1 2 3 4 5 6 7 UNITED STATES DISTRICT COURT 8 SOUTHERN DISTRICT OF CALIFORNIA 9 10 MIKE MURPHY and JOSEPH Case No.: 18cv0698 JM(NLS) PITTSLEY, on behalf of themselves and 11 all other employees similarly situated, ORDER ON JOINT MOTION FOR 12 APPROVAL OF SETTLEMENT Plaintiffs, AGREEMENT AND DISMISSAL OF 13 v. CASE WITH PREJUDICE 14 CITY OF EL CAJON, 15 Defendant. 16

17 Presently before the court is the parties’ Joint Motion for Approval of the Settlement 18 Agreement and Dismissal of Case with Prejudice, (Doc. No. 54). The court finds the 19 motion suitable for determination on the papers and without oral argument in accordance 20 with Civil Local Rule 7.1(d)(1). For the reasons set forth below, the court grants the motion 21 for approval of the settlement. 22 I. BACKGROUND 23 Defendant El Cajon (the “City’) is a charter city and municipal corporation that 24 employed Plaintiffs as sworn police officers. The lawsuit arises out of the City’s alleged 25 failure to correctly pay overtime to Plaintiffs as required under the Fair Labor Standards 26 Act (“FLSA”). 27 28 1 On April 9, 2018, Plaintiffs Mike Murphy and Joshua Pittsley filed a collective 2 action complaint against the City. (Doc. No. 1.) The complaint alleged the City failed to 3 correctly pay overtime to Plaintiffs as required by the FLSA because it failed to include 4 “all remuneration for employment paid to, or on behalf of, the plaintiffs in the regular rate 5 calculation.” (Id. at ¶ 13.) 6 From April 9, 2018 to November 1, 2018, thirty-four (34) individuals filed Consents 7 to Join the Action as Plaintiffs, (Doc. Nos. 3-33, 36, 39, 42, 44) with one plaintiff, Jeremiah 8 Larson, voluntarily dismissing his claim on January 30, 2019, (Doc. No. 49). 9 On May 8, 2018, Defendant filed an Answer to the Complaint. (Doc. No. 34.) On 10 July 16, 2018, the court issued a Scheduling Order regulating discovery and other pre-trial 11 proceedings. (Doc. No. 41.) 12 On November 14, 2018, Plaintiffs filed an amended complaint (“FAC”) which added 13 an allegation related to the City’s Cafeteria Benefit Plan (“CBP”). (Doc. No. 47 at 4.)1 On 14 November 28, 2018, Defendant filed an Answer to the FAC. (Doc. No. 48.) 15 On February 8, 2019, the City provided Plaintiffs with a settlement offer pursuant to 16 Federal Rule of Civil Procedure Rule 68. (Meyerhoff Decl. ¶ 9.) The City offered 17 Plaintiffs $9,134.80 for settlement, plus any costs incurred as of the date of the offer. The 18 $9,134.80 included offers of damages and liquidated damages to Mitchell Ferguson, 19 Kenneth Gray, Randall Gray, Tabitha Latinette and Joshua Pittsley and offer of $250 to all 20 other Plaintiffs that the City had determined were not owed any back pay under the FLSA. 21 (Id. at ¶ 9.) The offer was rejected by Plaintiffs. 22 On April 11, 2019, the parties held an in-person settlement meeting. (Conger Decl., 23 ¶ 7; Meyerhoff Decl. ¶ 10.) The parties reached an agreement that resolved the action 24

25 1 Under the CBP the City pays cash-in-lieu payments to the Plaintiffs if CBP allowance 26 exceeds the total cost of benefits. (FAC at 4.) The FAC alleges the City’s CBP was 27 sufficiently large as a percentage of the City’s total contributions, during each relevant year, that they could not lawfully be deemed incidental and therefore could not be excluded 28 1 related to the calculation and payment of compensation under the FLSA. (Id.) At the time 2 of settlement, no substantive motion practice had occurred. 3 On June 12, 2019, the parties filed a Joint Motion for Approval of Settlement 4 Agreement and Dismissal of Case with Prejudice. (Doc. No. 54.) Under the terms of the 5 settlement, each Plaintiff will receive the following payment for his or her respective 6 unpaid overtime compensation and damages: 7 Plaintiff Damages Payment 8 Allen Boyer $1,417.81 9 Melissa Calderon $2,917.24 10 Jonah Conley $575.37 11 Jonathan Corrao $2,293.23 12 Mitchell Ferguson $1,673.35 13 James Gallivan $1,630.49 14 Patrick Gomes $1,243.59 15 Kenny Gray $7,037.28 16 Randall Gray $3,751.80 17 William Guerin $1,552.44 18 Kenneth Harris $1,583.50 19 Benjamin Hogan $1,740.12 20 Travis Howard $1,344.62 21 Jeannine Johns $700.66 22 Gregory Johnson $500.00 23 James Juns $4,888.16 24 Jonathan Laroche $500.00 25 Tabitha Latinette $1,620.60 26 Ted Mansour $500.00 27 Timothy McFarland Jr. $2,469.64 28 1 Louie Michael $3,139.27 2 Mike Murphy $1,094.68 3 Joshua Pittsley $2,392.15 4 Michael Rosas $1,894.27 5 Jason Sargent $624.83 6 Jason Stacy $2,919.91 7 Brandon Stanley $1,256.25 8 Jeffrey Taylor $3,101.88 9 Andrew Van Woerkom $1,586.80 10 David Vojtaskovic, II $687.48 11 Jordan Walker $1,362.59 12 Justin White $500.00 13 Thomas Winslow $500.00 14

15 (Doc. No. 56 at 17-18.) The settlement results in a total payment amount of $61,000, with 16 the City paying an additional $30,000 in attorney’s fees and costs to the Law Offices of 17 Michael A. Conger for a total settlement amount of $91,000.2 (Id. at 9.) Each of the 33 18 Plaintiffs have signed an “Individual Settlement Agreement and Release.” (Id. at 19-51.) 19 II. LEGAL STANDARD 20 The FLSA establishes federal minimum-wage, maximum hour, and overtime 21 guarantees that cannot be modified by contract.” Genesis Healthcare Corp. v. Symczyk, 22 569 U.S. 66, 69 (2013). It authorizes individual suits and allows claims to be brought on 23 behalf of similarly situated individuals, which are frequently referred to as collective 24 25 26 2 The settlement agreement includes a provision that if Mr. Conger expends more than 20 27 hours of billable time on this action after April 11, 2019, the City shall pay him an additional $5,000 in attorney’s fees and costs, resulting in a total settlement amount of 28 1 actions. See Leuthold v. Destination Am., Inc., 224 F.R.D. 462, 466 (N.D. Cal. 2004); see 2 also Does v. Advanced Textile Corp., 214 F.3d 1058, 1064 (9th Cir. 2000). Unlike 3 traditional class actions brought under Rule 23 of the Federal Rules of Civil Procedure, 4 collective actions brought under the FLSA require that individual members “opt in” by 5 filing a written consent. See 29 U.S.C. §216(b).3 6 “Settlement of an FLSA claim, including a collective action claim, requires court 7 approval.” Kempen v. Matheson Tri-Gas, Inc., No. 15-cv660-HSG, 2016 WL 4073336, at 8 *4 (N.D. Cal. Aug. 1, 2016); see also Selk v. Pioneers Mem’l Healthcare Dist., 159 F. 9 Supp. 3d 1164, 1172 (S.D. Cal. 2016) (“claims for unpaid wages under the FLSA may only 10 be waived or otherwise settled if supervised by either the Secretary of Labor or a district 11 court.”). However, “a Court has a considerably less stringent obligation to ensure fairness 12 of the settlement in a FLSA collective action than a Rule 23 action because parties who do 13 not opt in are not bound by the settlement.” Millan v. Cascade Water Services, Inc., 310 14 F.R.D. 593, 607 (E.D. Cal. Oct. 8, 2015) (internal quotation marks omitted). Thus, 15 “[s]ettlements that reflect a fair and reasonable compromise of issues that are actually in 16 17 18 3 Although the Ninth Circuit has yet to directly address what constitutes the appropriate 19 procedure for “similarly situated,” the certification procedure for an FLSA collective action differs from a traditional class action, with district courts within this circuit generally using 20 an ad hoc two-tiered approach. First, at the “notice stage,” the court determines if the 21 plaintiffs are similarly situated, certifying the collective action for the limited purpose of sending notice of the action to potential class members.

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Murphy v. City of El Cajon, Counsel Stack Legal Research, https://law.counselstack.com/opinion/murphy-v-city-of-el-cajon-casd-2019.