O'Bryant v. ABC Phones of North Carolina, Inc.

CourtDistrict Court, W.D. Tennessee
DecidedOctober 28, 2021
Docket2:19-cv-02378
StatusUnknown

This text of O'Bryant v. ABC Phones of North Carolina, Inc. (O'Bryant v. ABC Phones of North Carolina, Inc.) is published on Counsel Stack Legal Research, covering District Court, W.D. Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
O'Bryant v. ABC Phones of North Carolina, Inc., (W.D. Tenn. 2021).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF TENNESSEE WESTERN DIVISION

) JACOB O’BRYANT and MARK ) BRANDON BAKER, individually ) and on behalf of all others ) similarly situated, ) ) No. 19-cv-02378-SHM-tmp Plaintiffs, ) ) v. ) JURY DEMAND ) ABC PHONES OF NORTH CAROLINA, ) INC. d/b/a VICTRA, f/d/b/a A ) WIRELESS, ) ) Defendant.

ORDER

Before the Court is the June 11, 2021 Joint Motion for Final Approval of Amended Settlement Agreement (the “Motion for Final Settlement Approval”). (ECF No. 98.) That motion is brought by Plaintiffs Jacob O’Bryant and Mark Baker (collectively, “Plaintiffs” or “Named Plaintiffs”) and Defendant ABC Phones of North Carolina, Inc., d/b/a VICTRA, f/d/b/a A Wireless (“VICTRA”). Also before the Court is Plaintiffs’ June 11, 2021 Unopposed Motion for Approval of Attorneys’ Fees and Costs and Class Representative Service Awards (the “Motion for Attorney’s Fees, Costs, and Service Awards”). (ECF No. 99.) The Court held a fairness hearing on July 1, 2021, at which it heard arguments by counsel. No one appeared in opposition. For the following reasons, the Motion for Final

Settlement Approval is GRANTED. The Motion for Attorney’s Fees, Costs, and Service Awards is GRANTED. I. Background

This dispute arises from VICTRA’s alleged failure to pay overtime compensation to certain employees. On June 10, 2019, Named Plaintiffs, individually and on behalf of all other “similarly-situated” individuals, filed a collective action lawsuit against VICTRA. (ECF No. 1.) On September 9, 2019, Plaintiffs filed a First Amended Complaint and Joint Motion for Settlement Approval. (ECF Nos. 12, 14.) On July 3, 2020, Plaintiffs filed a Joint Motion for Approval of First Amendment to Settlement and Release Agreement. (ECF No. 58.) The Court denied the motion. (ECF No. 66.) On August 11, 2020, Plaintiffs filed their Second Amended Complaint, which is the operative complaint. (ECF No. 67.) The Second Amended Complaint alleges that VICTRA violated the Fair Labor Standards Act, 29 U.S.C. § 206 (the “FLSA”), when it 1) failed to pay managers and non-managers for overtime work, and 2) failed to include commission payments when calculating “regular rates” for managers and non-managers. (ECF No. 67.) On August 14, 2020, the Parties submitted a Joint Motion for Settlement Approval - Preliminary Approval of Amended Settlement, which included an amended settlement agreement (the

“Amended Settlement”). (ECF No. 71.; ECF No. 71-1). The Amended Settlement establishes a $1,400,576.40 fund for Opt-In Plaintiffs (the “Total Maximum Settlement Amount”).1 (ECF No. 71-1 at 929.) Recovery for an individual Opt-In Plaintiff is a function of the number of days worked by the individual Opt-In Plaintiff compared to the aggregate number of days worked by the relevant sub-collective (i.e., managers or non-managers). (ECF No. 71-1 at 937-39.2) The Total Maximum Settlement Amount does not include service awards to the Named Plaintiffs, attorney’s fees, or the Administration Fee. (ECF No. 71-1 at 929.) A clear sailing provision covers attorney’s fees and expenses up to $442,250.00. (ECF No. 71-1 at 940; Draft Hr’g

Tr. 19:18-22.) Court-approved attorney’s fees and expenses are not included in the Total Maximum Settlement Amount. (ECF No. 71-1 at 941.) Unapproved attorney’s fees and expenses are distributed to the collective. (ECF No. 71-1 at 941.) On October 15, 2020, the Court entered an Order Accepting and Granting the Conditional Certification Stipulated Motion

1 Capitalized terms, otherwise undefined, carry the meaning ascribed to them in the Amended Settlement. 2 Pincites in ECF documents refer to the PageID number. (ECF No. 87.) In accordance with the Parties’ stipulations, the Court conditionally certified the following collective: Current and former non-exempt employees of Defendant VICTRA who worked as store managers and non-manager retail employees who worked in any Defendant VICTRA- owned store in the United States at any time between June 10, 2016, and August 7, 2020.

On December 22, 2020, the Court granted preliminary approval of the Amended Settlement (the “Preliminary Approval Order”). (ECF No. 94.) The Court conditionally approved the Amended Settlement as fair, reasonable, and adequate and found that the Notice to the class fully satisfied the requirements of due process and provided the best notice practicable under the circumstances to all Potential Opt-in Plaintiffs. (Id. at 1522.) The Court directed the parties to send Notices to the collective. (Id. at 1510, 1522.) On January 19, 2021, the Settlement Administrator mailed Notices and Consent Forms to each of the 21,354 Potential Opt- In Plaintiffs. (ECF No. 98 at 1541.) The Notice advised Potential Opt-In Plaintiffs that they could submit a Consent Form by April 19, 2021 (the “Opt-In Deadline”). (Id.) The Settlement Administrator took additional steps to locate Potential Opt-In Plaintiffs where initial Notices were returned undelivered. (Id. at 1541.) The Settlement Administrator ultimately delivered Notices to approximately 96% of Potential Opt-In Plaintiffs. (Id. at 1542.) The Settlement Administrator received 3,750 valid Consent Forms submitted on or before the Opt-In Deadline. (Id.) It received another 59 Consent Forms after the Opt-In Deadline, which the Parties agreed to accept.

(Id.; ECF No. 109 at 5514.) The Parties properly filed 3,809 Consent Forms with the Court before the Final Approval Hearing on July 1, 2021. (ECF No. 109; ECF Nos. 101-08.) Approximately 17% of Potential Opt-In Plaintiffs opted in. (ECF No. 98 at 1551.) Under the Amended Settlement formula, total recovery amounts to $480,767.50, excluding attorney’s fees, costs, and service awards. (ECF No. 109 at 5515.) The average recovery is $126.15 per Opt-In Plaintiff, with a minimum recovery of $25.00 and a maximum recovery of $1,088.43. (Id.) Plaintiffs seek $442,250.00 in attorney’s fees and costs. (ECF No. 99 at 1587.) That figure includes approximately $11,000 in costs for filing fees, travel, mediation, legal

research, printing, and postage. (ECF No. 99-1 at 1592.) Plaintiffs’ Counsel submitted declarations that it had devoted approximately 500 hours to the matter at a blended $450 hourly rate. (ECF No. 99 at 1580.) Plaintiffs seek $10,000.00 for each Named Plaintiff. (Id. at 1575.) II. Jurisdiction

Plaintiffs allege violations of the FLSA. The Court has subject matter jurisdiction over FLSA claims under the general grant of federal question jurisdiction in 28 U.S.C. § 1331. III. Standard of Review

A. Standard for Final Approval of FLSA Collective Action Settlements Section 216(b) of the FLSA permits an employee to recover unpaid overtime compensation by suing an employer “in behalf of himself or themselves and other employees similarly situated.” 29 U.S.C. § 216(b). The FLSA’s overtime compensation provisions are “mandatory and, except as otherwise provided by statute, are generally not subject to being waived, bargained, or modified by contract or by settlement.” Kritzer v. Safelife Solutions, LLC, No. 2:10-cv-0729, 2012 WL 1945144, at *5 (S.D. Ohio May 30, 2012) (citing Dillworth v. Case Farms Processing, Inc., No. 5:08-cv-1694, 2010 WL 776933, at *5 (N.D. Ohio Mar. 8, 2010), and Brooklyn Sav. Bank v. O’Neil, 324 U.S. 697 (1945)). There are two ways in which claims for back wages arising under the FLSA can be settled or compromised. See Lynn’s Food Stores, Inc. v. United States, 679 F.2d 1350, 1352-53 (11th Cir. 1982).

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O'Bryant v. ABC Phones of North Carolina, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/obryant-v-abc-phones-of-north-carolina-inc-tnwd-2021.