Plummer v. Chemical Bank

97 F.R.D. 486, 33 Fair Empl. Prac. Cas. (BNA) 547, 1983 U.S. Dist. LEXIS 18373, 31 Empl. Prac. Dec. (CCH) 33,499
CourtDistrict Court, S.D. New York
DecidedMarch 22, 1983
DocketNo. 80 Civ. 7364 (WCC)
StatusPublished
Cited by3 cases

This text of 97 F.R.D. 486 (Plummer v. Chemical Bank) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Plummer v. Chemical Bank, 97 F.R.D. 486, 33 Fair Empl. Prac. Cas. (BNA) 547, 1983 U.S. Dist. LEXIS 18373, 31 Empl. Prac. Dec. (CCH) 33,499 (S.D.N.Y. 1983).

Opinion

OPINION AND ORDER

CONNER, District Judge:

This is a purported class action on behalf of Black officials, managers, and professionals employed by defendant Chemical Bank (“Chemical”) in New York City, [487]*487brought pursuant to Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e et seq., and 42 U.S.C. § 1981. Plaintiff Roderick Plummer (“Plummer”) seeks Court approval, pursuant to Rule 23(e), F.R.Civ.P., of a consent decree entered into on December 13, 1982 (the “Consent Decree”) between his attorney Judith Vladeck (“Vla-deck”), assertedly on behalf of the purported class, and Chemical. Contemporaneously with that approval, Plummer requests that the Court certify the class described in the Consent Decree. See Rule 23(c)(1), F.R. Civ.P. While defendant Chemical supports Plummer’s motion, the other named plaintiffs, Raymond W. Armorer (“Armorer”) and Neville F. Caesar (“Caesar”),1 and a number of non-party class members oppose it.

In an Opinion and Order dated July 10, 1981,2 familiarity with which is presumed, this Court refused to approve an earlier consent decree (the “Prior Decree”) proposed by the parties.3 That decision was affirmed by the Court of Appeals for the Second Circuit, Plummer v. Chemical Bank, 668 F.2d 654 (2d Cir.1982), without prejudice to a renewed application in this Court after the parties supplemented the record and cured the defects that existed in the Prior Decree. Although the instant motion is accompanied by a far more extensive evidentiary record than existed previously, the Consent Decree contains many of the same failings that were inherent in the Prior Decree. Moreover, at the current time there is absolutely no support among the purported plaintiff class for the Consent Decree proffered to the Court, except for Vladeck’s efforts on behalf of her sole remaining class client, Plummer. Because these problems continue to raise doubts concerning the fairness of the proposed settlement, the motions for approval and certification are denied.

Discussion

Adequacy of class representation and the fairness of a compromise are questions of fact for the Court. Plummer, supra, 668 F.2d at 659. As noted in my earlier Opinion in this matter, the Court’s role in evaluating a proposed settlement is not to decide the merits of the controversy, but to determine whether the settlement is fair, reasonable and adequate from the perspective of absent class members. See 91 F.R.D. at 438. In making this determination,

[t]he court should consider the complexity, expense and likely duration of the litigation, the reaction of the class to the settlement, the stage of the proceedings and the amount of discovery completed, the risks of establishing liability, the risks of establishing damages, the risks of maintaining the class action through the trial, the ability of the defendants to withstand a greater judgment, the range of reasonableness of the settlement fund in light of the best possible recovery and the range of reasonableness of the settlement fund to a possible recovery in light of all the attendant risks of litigation.

Id.

The most important factor, however, is the strength of the plaintiffs’ case balanced against the terms of the settlement offer. Plummer, supra, 668 F.2d at 660.

With the following changes, the Consent Decree is virtually identical to the Prior Decree, previously rejected by the Court:

(1) Black employees who are no longer employed by the Bank are excluded from class membership.
[488]*488(2) The employment figures have been updated to current levels.
(3) An extra $100,000 has been added to the fund from which promotion payments are to be paid, bringing the total amount available to $400,000, no portion of which may revert to Chemical.
(4) The lump sum promotion payments have been increased from $1,500 to $2,500 for a Black employee who, when he is promoted has between 2 and 4 years of service exceeding the average; from $2,500 to $4,000 for a Black employee with between 4 and 5 years of excess service; from $3,500 to $6,500 for a Black employee with between 5 and 10 years of excess service; and from $4,500 to $10,-000 for a Black employee with 10 or more years of excess service.
(5) The jurisdiction of the Ombudsman has been specifically defined, and Chemical is now required to give class counsel notice of the person it has appointed to that position prior to public announcement of the appointment.
(6) The position of Special Master has been created. This person, who will be court appointed, is given discretion to review “any final decision of the Bank which is presented to the Special Master for consideration by any member of the class in any matter where there has been a recommendation by the Ombudsman.”
(7) The relief for the named plaintiffs has been changed somewhat. Plummer is still to receive the sum of $8,500, but is not guaranteed a promotion. He is, however, guaranteed enrollment in the Harvard Seminar Program if his work performance is satisfactory. Armorer is still to receive a payment of $10,000, and is guaranteed a promotion in November, 1983 contingent upon continued commendable performance.4 His promotion level is not, however, set forth as it was in the Prior Decree. Caesar, who is no longer represented by Vladeck, does not receive any relief beyond that afforded to all class members.
(8) The attorney’s fee for Vladeck’s firm has been changed to a reasonable amount to be fixed by the Court rather than a specified sum.
(9) There is no requirement that the members of the class be notified of the Consent Decree.

Despite the improvement these changes bring to the Consent Decree, they do not obviate the concerns this Court expressed in its Opinion and Order of July 10, 1981.

The initial, and most glaring, problem concerns the relief for named class members. While the Consent Decree goes a long way toward narrowing the wide gulf that existed in the Prior Decree between the relief for named plaintiffs and unnamed class members, there is still substantial disparity. Under the terms of the Consent Decree, Plummer and Armorer are to receive immediate cash payments as well as guarantees concerning future benefits. Relief under the Consent Decree for other class members is, however, wholly contingent upon future promotion or success under the grievance procedures. The parties have offered the Court no persuasive basis for this disparate treatment. Vladeck’s contentions that Plummer and Armorer are no longer receiving more than the amount that is contingently available to an individual class member and that the difference in the relief for them as opposed to other class members is de minimis do not answer the fundamental question of why the named class representatives should be treated any differently from the rest of the class.

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Related

Herman I. Taitt v. Chemical Bank
810 F.2d 29 (Second Circuit, 1987)
Plummer v. Chemical Bank
579 F. Supp. 1364 (S.D. New York, 1984)

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Bluebook (online)
97 F.R.D. 486, 33 Fair Empl. Prac. Cas. (BNA) 547, 1983 U.S. Dist. LEXIS 18373, 31 Empl. Prac. Dec. (CCH) 33,499, Counsel Stack Legal Research, https://law.counselstack.com/opinion/plummer-v-chemical-bank-nysd-1983.