Myers v. Marietta Memorial Hospital

CourtDistrict Court, S.D. Ohio
DecidedSeptember 6, 2022
Docket2:15-cv-02956
StatusUnknown

This text of Myers v. Marietta Memorial Hospital (Myers v. Marietta Memorial Hospital) is published on Counsel Stack Legal Research, covering District Court, S.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Myers v. Marietta Memorial Hospital, (S.D. Ohio 2022).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF OHIO EASTERN DIVISION

LYNNETT MYERS, et al., : : Case No. 15-CV-2956 Plaintiffs, : : CHIEF JUDGE ALGENON L. MARBLEY v. : : Magistrate Judge Vascura MEMORIAL HEALTH SYSTEM : MARIETTA MEMORIAL HOSPITAL, : et al., : : Defendants. :

OPINION & ORDER This matter is before the Court on Plaintiffs’ Unopposed Motion for Final Class and Collective Action Settlement Approval (ECF No. 334), Plaintiffs’ unopposed Corrected Motion for Attorneys’ Fees (ECF No. 332), and the August 23, 2022, Fairness hearing concerning the same. Because the Settlement Agreement between parties (the “Agreement”) is fair, reasonable, and adequate in light of the factual, legal, practical, and procedural considerations raised by this suit, the Court CERTIFIES the class under the Fair Labor Standards Act, and APPROVES the proposed settlement, DISMISSING the FLSA and state-law wage claims in this action. The Court also AWARDS Plaintiffs’ attorney fees amounting to $750,000, 30% of the total settlement amount; litigation expenses and costs of $174,613.87; administrative costs of $25,000; and class representative awards totaling $45,000. I. BACKGROUND A. Litigation Plaintiffs Lynnett Myers, Carol Butler, and Arva Lowther, on behalf of themselves and all other persons similarly situated, initiated this lawsuit by filing a collective and class action complaint with the Court on October 29, 2015. (ECF No. 1.) Plaintiffs alleged that Defendant Memorial Area Healthcare d/b/a Memorial Health System (“Marietta”) engaged in employment practices that violated the Fair Labor Standards Act (“FLSA”), 20 U.S.C. § 201, et seq., and the Ohio Minimum Fair Wage Standards Act, Ohio Revised Code § 4111.01, et seq. Plaintiff requested opt-in class certification for FLSA violations under § 216(b) of the FLSA, and Federal Rule of

Civil Procedure 23 opt-out class certification for violations of their Ohio-law claim. (See id. ¶¶ 28, 35). On May 20, 2016, Plaintiffs filed their first Amended Complaint, adding claims for unjust enrichment on behalf of the entire Rule 23 class and violations of Ohio’s Prompt Pay Act (O.R.C. § 4113.15(A)) on behalf of an Ohio subclass. (ECF No. 33). The Amended pleading also added Defendants Marietta Memorial Hospital, and Selby General Hospital. (Id. at 1–2). The Court conditionally certified the collective action under FLSA on August 17, 2016. (ECF No. 42). On May 01, 2017, Plaintiffs filed their Second Amended Complaint to fix a typographical error in the name of one of the Defendants. (ECF No. 146). The Court subsequently certified the Rule 23

Class on September 11, 2017. (ECF No. 171). On April 13, 2018, Plaintiffs filed the operative Third Amended Complaint, solely to add two individual Defendants who worked for Memorial Health System: J. Scott Cantley, the Chief Executive Officer, and Eric Young, the Vice President and Chief Financial Officer. (ECF No. 216.) And on September 10, 2018, this Court granted Plaintiffs’ Motion to Amend Class Definition. (ECF No. 239). The parties participated in a Settlement Conference before the Court on September 2, 2021. (See ECF No. 297). Though the parties were unable to achieve a settlement then, they did so three weeks later. (See ECF 316). B. Settlement Agreement The Agreement seeks to resolve all FLSA and state-law wage claims in the suit. Under the Agreement, the parties agree to settle the case for $2,500,000.00, which includes deductions for attorney fees amounting to $750,000.00 (30% of the settlement amount), litigation expenses and costs of $174,613.87, $25,000 in administration costs, and class representative awards totaling $45,000, leaving a maximum net settlement fund of approximately $1,505,386 divided among

2,585 eligible participants. (ECF No. 325-1 at 9, 11); (ECF No. 334-2 at 6). Individual allocation was based on a multi-step damages analysis. First, Plaintiffs used Defendant’s timesheet data to determine the number of eligible shifts worked by Class and Collective members stemming from Defendants’ compensation system under the FLSA and any applicable state law. Next, based on that analysis, Plaintiffs sought to reimburse class members by paying them a fixed amount for each shift that they: (i) worked during their meal break; (ii) were subjected to an automatic meal deduction; and (iii) did not cancel their meal deduction. The amount per such applicable shift is $1.19. Upon making a claim, Plaintiffs verify the applicable number of shifts and pay each claimant the per applicable shift amount.1

Under the Agreement, any unused or unclaimed funds will be reallocated as follows: i. If after allocating the funds in the QSF [Qualified Settlement Fund] to make payments … there are funds remaining in the QSF, the Claims Administrator shall pay the balance of the QSF to Class Counsel as a full or partial payment of any attorney’s fees awarded by the Court. Any remaining funds shall be returned to Defendants. ii. Within 365 days of Effective Date, Defendants shall deposit into the QSF Account … the full award attorneys’ fees to Class Counsel as described in Section 3.2 to the extent Class Counsel have not already received full payment….

1 Those within the Collective Action do not need to make claims. Once they have opted-in, their recovery amount is calculated and sent to them without any additional action needed. (Id. at 10–11). As it stands, if the FLSA opt-in Plaintiffs recover at the same average rate as the Rule 23 class members (around $681 per claimant), approximately $1.24 million of the $2.5 million will revert to Defendant.2 C. Claims Process Consistent with the Court’s Amended Preliminary Approval Order (ECF No. 330), Class

Counsel mailed both the Hybrid and FLSA Notices of Settlement on May 6, 2022. (ECF No. 334- 2 at 2). The Notices—which includes a post-card and packet of information—provided potential Settlement Class Members information about the terms of the settlement, and informed them about the allocation of attorney fees, and explained their right to object or exclude themselves from settlement. (Id. at 6). The Notices also provided potential members information regarding the date, time, and place of the Fairness hearing. (Id.) (showing a sample of the Notices which provided a link to the administrator website further detailing the location of the Fairness hearing). Over the 90-day claims period, the Claims Administrator performed skip traces for alternative addresses, and re-mailed Notices of Settlement to any potential Settlement Class

Member whose Notice was returned as undeliverable. (Id. at 2). Of the 209 undelivered Notices, the Claims Administrator traced 183 notices and the Post Office provided new addresses for 26. Of those Notices, the Claims Administrator re-mailed 196 and the Post Office forwarded 11. (Id.). As of August 23, 2022, 20 were ultimately deemed undeliverable. (Id.). At the close of the claim period, 146 opted in to the FLSA Collective. (See ECF No. 159 at 1). Of the 2,585 eligible Rule 23 Settlement Class Members, no one requested exclusion from the Settlement (100% class inclusion). (ECF No. 334 at 3, 16.) Class Counsel have received no objections to the proposed Agreement. (Id.).

2 Plaintiffs’ counsel represented that the average amount paid to opt-in Plaintiffs would, in fact, be higher and would result in a lower amount retained by the Defendant. This estimate was unavailable at the time of the hearing. II. ANALYSIS A. Final Certification and Final Approval The Court has already certified the Rule 23 Settlement Class (See ECF No. 171), and conditionally certified the FLSA Collective (See ECF No. 42).

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Myers v. Marietta Memorial Hospital, Counsel Stack Legal Research, https://law.counselstack.com/opinion/myers-v-marietta-memorial-hospital-ohsd-2022.