Rodgers v. United States Steel Corp.

70 F.R.D. 639, 12 Fair Empl. Prac. Cas. (BNA) 515
CourtDistrict Court, W.D. Pennsylvania
DecidedMarch 8, 1976
DocketCiv. A. No. 71-793
StatusPublished
Cited by11 cases

This text of 70 F.R.D. 639 (Rodgers v. United States Steel Corp.) is published on Counsel Stack Legal Research, covering District Court, W.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rodgers v. United States Steel Corp., 70 F.R.D. 639, 12 Fair Empl. Prac. Cas. (BNA) 515 (W.D. Pa. 1976).

Opinion

OPINION

TEITELBAUM, District Judge.

This protracted class action for racially-based employment discrimination is presently before the Court on defendants’ joint motion for leave to tender back pay, pursuant to the steel industry Consent Decrees of 1974, to “affected employees” at United States Steel’s Homestead Works.

One of some 250 steel-related facilities throughout the country affected by the Consent Decrees, the Homestead Works are the focus of the instant Title VII litigation. Among the minority workers at the plant who are eligible for back pay under the Decrees are some 600 black employees of the defendant company who comprise approximately one-half of the plaintiff class certified in the action before this Court.1 Pursuant to the terms of the Decrees, which provide for a broad reform of alleged discriminatory employment practices in the basic steel industry,2 those members of the [641]*641Rodgers class who accept the proposed back pay tender, like all other “Decree-affected” minority employees, must waive their claims to any further injunctive or monetary relief for discriminatory practices which were in existence prior to the date on which the Decrees were entered (April 12, 1974), and consequently will be excluded as class members in this suit. Accordingly, Judge Pointer has required that these defendants — like those in other forums where similar actions are pending — obtain local court approval of the tender and of a notice of rights and release form which would accompany it.3 Defendants now seek that approval.

Named plaintiffs vigorously oppose the tender and have moved this Court to enjoin it. They assert, inter alia, that both the back pay offer and the proposed form of notice of rights and release are inadequate.

After a full hearing on this matter, and careful consideration of plaintiffs’ objections, I will deny the injunction and approve the Homestead tender and the accompanying notice and release forms.

I

THE CONSENT DECREES

It is necessary at the outset to clearly delineate what is — or more accurately what is not — before the Court in this proceeding.

Despite plaintiffs’ apparent desire to obtain here an independent review of the Consent Decrees in their entirety, it is abundantly clear that a reconsideration by this Court of a nationwide settlement emanating from an action brought by the government in another forum, and of issues that have been duly considered and decided by Judge Pointer in the Federal District Court for the Northern District of Alabama and by the United States Court of Appeals for the Fifth Circuit, would constitute nothing less than a bald arrogation of power. In short, the Alabama Consent Decrees, in and of themselves, are not now and never have been before me.

I do not think Judge Pointer envisioned a different result when he required this Court’s approval of the tender sub judice. In my view, his directive that the tender should not be made at an affected plant until approval was obtained from those district courts where related private actions are pending was motivated by two factors: First, while Judge Pointer has endorsed the notice of rights and release which will accompany the back pay tender, that notice, where sent to members and potential members of a class action, must describe by way of an insert the present status and other characteristics of that action. Accordingly, there was (and is) a need for each affected court to approve the inserted description of the particular action before it.4 Second, I believe Judge Pointer required submission of the proposed tender to affected district courts as a matter of comity, extended in recognition of the fact that the tender, if accepted by execution of the release, would affect the status of actual and potential class members in pending cases. Certainly, Judge Pointer did not intend that each concerned district court throughout the country undertake a fresh and totally independent review of the legality and adequacy of the nationwide settlement embodied in the Decrees, and I have neither the right nor the temerity to accede to plaintiffs’ apparent request that this Court embark upon such a venture.

Accordingly, we start from the premise that the following issues have been litigated and decided in an appropriate forum, and are not before me in the instant proceeding:

[642]*6421. The adequacy of the amount of the total Consent Decree back-pay fund of $30,940,000.00;5
2. The method of distributing this amount among the blacks, Spanishsurnamed Americans and women who are “affected employees” under paragraph 18 of Consent Decree I (pro rata shares across the membership of particular seniority sub-classes);6
3. The adequacy of the injunctive relief provided by the Consent Decrees;7
4. The substantive legality of the release.8

RULE 23(e)

Plaintiffs also insist that the tender of back pay to eligible black employees at the Homestead Works who are members of the Rodgers class constitutes a settlement of that class action and is therefore directly governed by the requirements of Rule 23(e) of the Federal Rules of Civil Procedure. I do not agree (and so ruled at the hearing conducted on February 17-18,1976). While plaintiffs’ argument appeals at first blush to a natural wont to approach a unique question simply by fitting it neatly within a well-defined area of related legal principle, a brief consideration of Rule 23(e) reveals that neither its plain language nor its underlying rationale embraces the circumstances presented here.

By its terms,9 Rule 23(e) applies and is limited to the dismissal or compromise of a class action itself, Weight Watchers of Philadelphia v. Weight Watchers International, 455 F.2d 770, 773 (2d Cir. 1972), where application of its strictures is necessary to protect the rights of absentee or nonparty class members who may be bound or affected by a settlement of their claims by their class representatives. See, e. g., Greenfield v. Villager Industries, Inc., 483 F.2d 824 (3d Cir. 1973). See also Miller, “Problems of Giving Notice in Class Actions,” 58 F.R.D. 313, 330 (citing cases). In contrast, the Rule does not attach to direct settlements with individual class members which have no effect upon the rights of others. Weight Watchers of Philadelphia v. Weight Watchers International, supra at 775; American Finance System, Inc. v. Harlow, 65 F.R.D. 572 (D.Md.1974).

[643]*643It would seem apparent that the instant case falls within the latter category. The tender of back pay now at issue can in no way be deemed to constitute a settlement of the Rodgers class action itself. It is, rather, a compromise offer, made pursuant to a negotiated consent decree, to individual class members who are free to accept or reject it as they see fit.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Rivera-Platte v. First Colony Life Ins. Co.
173 P.3d 765 (New Mexico Court of Appeals, 2007)
Rivera-Platte v. First Colony Life Insurance
2007 NMCA 158 (New Mexico Court of Appeals, 2007)
Allstate Ins. Co. v. Chaple
774 So. 2d 742 (District Court of Appeal of Florida, 2000)
In Re Orlando Investors, L.P.
103 B.R. 593 (E.D. Pennsylvania, 1989)
In re Shell Oil Refinery
152 F.R.D. 526 (E.D. Louisiana, 1989)
Adams v. Lederle Laboratories
569 F. Supp. 234 (W.D. Missouri, 1983)
Oswald v. General Motors Corp.
594 F.2d 1106 (Seventh Circuit, 1979)
Stastny v. Southern Bell Telephone & Telegraph Co.
458 F. Supp. 314 (W.D. North Carolina, 1978)

Cite This Page — Counsel Stack

Bluebook (online)
70 F.R.D. 639, 12 Fair Empl. Prac. Cas. (BNA) 515, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rodgers-v-united-states-steel-corp-pawd-1976.