Norman v. BPR Brampton LLC

District Court, S.D. Georgia·Decided November 24, 2021·No. 6:20-cv-00095·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF GEORGIA STATESBORO DIVISION

DOYLE NORMAN,

Plaintiff, CIVIL ACTION NO.: 6:20-cv-95

v.

BPR BRAMPTON LLC,

Defendant.

O RDE R In this lawsuit, Plaintiff, who was employed by Defendant from January 2019 to September 2020, alleges that Defendant violated the Fair Labor Standards Act (“FLSA”) by failing to pay him overtime wages for time that he claims he worked in excess of forty hours in given workweeks. (Doc. 1, pp. 1–2.) In July 2021, the parties filed a Joint Motion for Court Review and Approval of Settlement Agreement and to Dismiss with Prejudice (hereinafter, the “Original Joint Motion”), seeking the Court’s review and approval of their “Settlement Agreement and Release of Claims” (hereinafter, the “Original Settlement Agreement”), (docs. 25, 25-1). After careful review of the proposed Settlement Agreement, the Court determined that the proposed Settlement Agreement was not fair and reasonable as written, and denied the Joint Motion, (doc. 25), without prejudice. Presently before the Court is the parties’ Second Joint Motion for Court Review and Approval of Settlement Agreement and to Dismiss With Prejudice (hereinafter, the “Joint Motion”), (doc. 28), in which the parties seek the Court’s review and approval of a revised version of their “Settlement Agreement and Release of Claims” (hereinafter, the “Revised Settlement Agreement”), (doc. 28- 1). After careful review of the Joint Motion and the Revised Settlement Agreement, the Court GRANTS the Joint Motion, (doc. 28). DISCUSSION Congress enacted the FLSA with the purpose of protecting workers from oppressive

working hours and substandard wages. Barrentine v. Arkansas-Best Freight Sys., Inc., 450 U.S. 728, 739 (1981). Because workers and employers often possess unequal bargaining power, Congress made the FLSA’s wage and hour limitations mandatory. Brooklyn Sav. Bank v. O’Neil, 324 U.S. 697, 706–07 (1945). Making the provisions mandatory meant eliminating the ability of workers and employers to negotiate an employment arrangement that falls short of the FLSA’s minimum employee protections. Barrentine, 450 U.S. at 740. Accordingly, the FLSA’s provisions are not subject to bargaining, waiver, or modification either by contract or settlement, save for two narrow exceptions. Lynn’s Food Stores, Inc. v. United States, 679 F.2d 1350, 1352–53 (11th Cir. 1982). The exception applicable here permits settlement when employees bring a private action for back wages under 29 U.S.C. § 216(b). Id. at

1353. In such an instance, the parties must present the proposed settlement to the court, and the court may approve it “after scrutinizing the settlement for fairness.” Id. “If a settlement in an employee FLSA suit does reflect a reasonable compromise over issues, such as FLSA coverage or computation of back wages, that are actually in dispute[,]” then the court may “approve the settlement in order to promote the policy of encouraging settlement of litigation.” Id. at 1354. The settlement can cover back wages, liquidated damages, reasonable attorney’s fees, and costs of the action. 29 U.S.C. § 216(b). I. Bona Fide Dispute In its prior Order, the Court determined that the present case presents a bona fide dispute. (Doc. 26, pp. 2–3.) The Court hereby incorporates by reference its analysis and determination on the issue that is contained in that Order. (Id.)

II. Fairness and Reasonableness of Settlement Agreement In the prior Order, the Court found that the proposed Original Settlement Agreement was not fair and reasonable as written for the following reasons: it contained a confidentiality provision, (id. at pp. 4–5); it contained a release provision that purported to release Defendant from non- FLSA claims, including claims “known and unknown,” (id. at pp. 5–6); and it contained an unenforceable provision permitting amendment, modification, and waiver of its terms without judicial approval, (id. at pp. 6–7). Additionally, the Court had not been provided with sufficient information regarding the calculation of the settlement proceeds (including the sum to be paid to Plaintiff and the sums to be paid to Plaintiff’s counsel), hindering the Court’s ability to adequately scrutinize the settlement. (Id. at pp. 7–11).

In the Second Motion, the parties advise that, through the Revised Settlement Agreement, they have “removed the confidentiality provision from the Settlement Agreement[;] . . . refined the release provision to include only a release of Plaintiff’s FLSA claim asserted in this action[; and have] . . . removed the ‘amendment, modification and waiver’ provision contained in the initial agreement.” (Doc. 28, p. 6.) The Court has reviewed the Revised Settlement Agreement and confirmed that the Revised Settlement Agreement does not contain the three problematic provisions identified by the Court. (See docs. 28-1, 28-2.) A. Analysis of Sums to be Paid The Court now turns to the fairness and reasonableness of the sums to be paid by Defendant to Plaintiff and to Plaintiff’s legal counsel. In the prior Order, the Court determined that it was unable to adequately scrutinize the Original Settlement Agreement because the parties had not

provided information about the range of Plaintiff’s possible recovery, had not provided any details about how they arrived at the specific sum that Defendant has agreed to pay Plaintiff, and had not demonstrated that the sum being paid as an attorney’s fee is reasonable and that the costs (for which Plaintiff’s attorney was being compensated) were all actually recoverable. The Revised Settlement Agreement provides that Defendant “will pay the total sum of Eleven Thousand Five Hundred and NO/100 Dollars ($11,500.00) (the ‘Settlement Proceeds’),” which shall be paid as follows: a. The sum of Six Thousand Four Hundred and Twenty-Two and 50/100 Dollars ($6,422.50) by check payable to [Plaintiff] . . .; and b. The sum of Five Thousand Seventy-Seven and 50/100 Dollars ($5,077.50) by check payable to [Plaintiff’s counsel’s firm] . . . . (Doc. 28-1, p. 2.)1 1. Sum to be Paid to Plaintiff One of the factors courts are charged with considering in determining whether a settlement is fair and reasonable is “the range of [the plaintiff’s] possible recovery.” Leverso v. SouthTrust

1 Confusingly, in the Joint Motion, the parties state that, “[p]ursuant to the settlement, Plaintiff is to receive the gross amount of Six Thousand One Hundred and Fifty-Four Dollars and Fifty-Four Cents ($6,154.54)” and, “[p]ursuant to Plaintiff’s contingency fee agreement with his counsel, Plaintiff’s counsel will receive Four Thousand Six Hundred ($4,600) in attorneys’ fees and Seven Hundred Forty-Five Dollars and Forty- Six Cents ($745.46) in costs” (for a total of $5,345.46 to be paid to Plaintiff’s counsel). (Doc. 28, p. 4 (emphasis supplied).) These figures do not correlate with the sums recited in the Revised Settlement Agreement; in fact, they match the sums that the Original Settlement Agreement indicated would be paid to Plaintiff and to his counsel. (See doc. 25-1, p. 2.) Apparently, the Joint Motion was not revised to reflect the changes that were made regarding the division of the $11,500.00 settlement proceeds. For purposes of this Order, the Court uses the figures actually stated in the Revised Settlement Agreement, which has been signed by both parties. (See docs. 28-1, 28-2.) Bank of Ala., Nat’l Assoc.,

Norman v. BPR Brampton LLC, (S.D. Ga. 2021).

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