Pleasants v. Pilot Catastrophe Services, Inc.

CourtDistrict Court, S.D. Alabama
DecidedApril 30, 2024
Docket1:23-cv-00132
StatusUnknown

This text of Pleasants v. Pilot Catastrophe Services, Inc. (Pleasants v. Pilot Catastrophe Services, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pleasants v. Pilot Catastrophe Services, Inc., (S.D. Ala. 2024).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF ALABAMA SOUTHERN DIVISION

SONYA GLADNEY PLEASANTS, ) ) Plaintiff, ) ) vs. ) CIVIL ACTION NO. 23-00132-KD-MU ) PILOT CATASTROPHE SERVICES, ) INC., ) ) Defendant. )

ORDER This action is before the Court on Defendant Pilot Catastrophe Services, Inc.’s Amended Motion to Seal (doc. 37) and the Amended Joint Motion to Approve Settlement and Supporting Brief (doc. 38, under seal) (“Amended Joint Motion”) and the Confidential Settlement Agreement and General Release of Claims (under seal) (“Amended Settlement Agreement”) (doc. 38-1). Upon consideration, and for the reasons set forth herein, the Amended Motion to Seal is GRANTED,1 the Amended Joint Motion to Approve Settlement is GRANTED in part, and the Confidential Settlement Agreement and General Release of Claims is APPROVED with the modifications set forth herein. (See page 10). I. Background Plaintiff Sonya Gladney Pleasants brought this collective action complaint pursuant to the Fair Labor Standards Act, 29 U.S.C. § 201, et seq., against Pilot (doc. 1). Pleasants was employed by Pilot as an insurance claim adjuster since 2018. Her primary job duties included inspecting property damage caused by catastrophic events, assessing the costs of damage, and providing insurance carriers with damage estimates. Pleasants alleges that Pilot misclassified her

1 The initial Motion to Seal (doc. 33) is MOOT. and other “day rate” adjusters as salaried employees exempt from overtime requirements and violated the FLSA by failing to pay overtime compensation. Pilot filed a motion to compel arbitration pursuant to the arbitration provisions in Pleasants’ two employment agreements and moved to dismiss all class action claims and consolidated and/or collective action claims (doc. 25). Pleasants notified the Court that she did not oppose the motion (doc. 29). However, she incorrectly stated that Pilot “moved this court to arbitrate Plaintiff’s individual and class action claims ...” (Id) (emphasis). Instead, Pilot had moved to dismiss the class action claims. Pleasants was ordered to clarify whether she opposed dismissal of her class action claims and consolidated and/or collective actions claims (doc. 30). In response, the parties filed a Joint Status Report (doc. 31). They reported that Pleasants did not oppose dismissal of the class action claims and consolidated and/or collective actions claims. They also reported that after agreeing to arbitrate, the parties reached a settlement agreement in principle as to Pleasants’ claims under the FLSA (Id.). The parties requested sixty (60) days within which to finalize their agreement. The action was stayed (doc. 32). The parties filed the Settlement Agreement and General Release of Claims (doc. 34). However, the document contained certain disfavored provisions and the parties were given leave to amend (doc. 36). Also, Pilot was given leave to amend its motion to seal (Id.) This action is now before the Court on the Amended Joint Motion and the Amended Settlement Agreement (doc. 38) and Pilot’s Amended Motion to Seal (doc. 37). II. Amended Motion to Seal Pilot moves the Court to permanently seal the Amended Joint Motion and the Amended Settlement Agreement (doc. 37). As grounds, Pilot points out that the arbitration provisions in the two employment agreements generally require confidentiality and that the parties agreed to confidential arbitration for the FLSA claims. Pilot argues that even though the settlement was

2 reached before arbitration, it “was reached as a result of and in connection with an agreement to confidentially arbitrate” (Id., p. 4-5), and that in this context, the parties’ contractual interest in privacy and confidentiality outweighs the public’s interest or access to settlement agreements related to confidential arbitration. Pilot also argues that sealing the documents promotes the public policy of encouraging voluntary execution of private arbitration agreements.

Pilot also argues that the presumption that FLSA settlements should be available to the public is outweighed because there is no public interest in assuring fair wages “given the likelihood” Pleasants would receive little to no recovery if this action proceeded to trial. Pilot points to the parties’ assertion in the Amended Joint Motion that Pleasants would likely be judicially estopped from bringing this action. Pilot also asserts that the Amended Joint Motion should be sealed because it contains embarrassing information about Pleasants’ bankruptcy, with no benefit to the public. Pilot also asserts that neither the public interest nor the purpose of the FLSA would be served by public filing of the Amended Settlement Agreement and the Amended Joint Motion because that would encourage other nuisance lawsuits (Id., p. 2, 6).

In 2003, the district court in Stalnaker v. Novar Corp., explained as follows: “In most cases when the parties settle, the court does not examine or approve their agreements; the settlements are purely private contracts. However, when, as here, a settlement [must be] approved by a court, the settlement becomes part of the judicial record....

“There is a common-law presumption that judicial records are public documents. Nixon v. Warner Communications, Inc., 435 U.S. 589, 597, 98 S. Ct. 1306, 55 L.Ed.2d 570 (1978); Chicago Tribune Co. v. Bridgestone/Firestone, 263 F.3d 1304, 1311 (11th Cir. 2001).... [T]he presumption is based on the nature of democracy and the ‘citizen's desire to keep a watchful eye on the workings of public agencies.’ Nixon, 435 U.S. at 598, 98 S.Ct. 1306. A judge is ‘the primary representative of the public interest in the judicial process and is duty-bound therefore to review any request to seal’ any part of the record. For this reason, a 3 judge ‘may not rubber stamp a stipulation to seal the record.’ Citizens First Nat'l Bank of Princeton v. Cincinnati Ins. Co., 178 F.3d 943, 945 (7th Cir. 1999).

“The strength of the presumption of openness falls along a continuum, with the presumption being stronger for documents that ‘directly affect an adjudication’ than for documents, such as certain discovery materials, that ‘come within a court's purview solely to insure their irrelevance.’ United States v. Amodeo, 71 F.3d 1044, 1049 (2nd Cir. 1995); see also Chicago Tribune, 263 F.3d at 1311.

“And the presumption is surely most strong when the ‘right’ at issue is of a ‘private-public character,’ as the Supreme Court has described employee rights under the FLSA. Brooklyn Savings Bank v. O'Neil, 324 U.S. 697, 708, 65 S.Ct. 895, 89 L.Ed. 1296 (1945). This public character is based on ‘an intent on the part of Congress to protect certain groups of the population from substandard wages and excessive hours which endangered the national health and well-being and the free flow of goods in interstate commerce. The statute was a recognition of the fact that due to the unequal bargaining power as between employer and employee, certain segments of the population required federal compulsory legislation to prevent private contracts on their part which endangered national health and efficiency and as a result the free movement of goods in interstate commerce. To accomplish this purpose standards of minimum wages and maximum hours were provided.’ Id.

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Bluebook (online)
Pleasants v. Pilot Catastrophe Services, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/pleasants-v-pilot-catastrophe-services-inc-alsd-2024.