Ross v. Magnolia Flooring Mill, LLC

District Court, W.D. Arkansas·Decided October 6, 2021·No. 1:18-cv-01075·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT WESTERN DISTRICT OF ARKANSAS EL DORADO DIVISION

VINCENT ROSS, JUSTIN JACKSON, and DEVANTE FRANKLIN, Individually and on Behalf of All Others Similarly Situated PLAINTIFFS

v. Case No. 1:18-cv-1075

MAGNOLIA FLOORING MILL, LLC DEFENDANT

FINAL ORDER AND JUDGMENT

Before the Court is the parties’ Joint Motion for Final Approval of Class Action Settlement (“Final Motion”). ECF No. 25. Plaintiffs and Defendant have agreed, subject to Court approval, to settle this litigation pursuant to the terms and conditions stated in their Joint Stipulation of Settlement and Release (“Settlement Agreement”) filed with the Court on March 13, 2020. ECF No. 16-1. On June 23, 2021, the Court granted the parties’ Joint Motion for Preliminary Approval of Class Action Settlement and Notice to the Settlement Class. ECF No. 21. On September 23, 2021, the Court held a final approval hearing on the instant motion. ECF No. 26. The Court finds the matter ripe for consideration. I. FINDINGS OF FACT 1. On December 14, 2018, all named Plaintiffs filed the Original Complaint-Class and Collective Action (ECF No. 1) bringing claims against Defendant for violations of the Fair Labor Standards Act (“FLSA”), 29 U.S.C. § 201, et seq., and the Arkansas Minimum Wage Act (“AMWA”), Ark. Code Ann. § 11-4-201, et seq., for unpaid overtime wages. 2. On March 13, 2020, the parties filed a Joint Motion for Preliminary Approval of Class Action Settlement and Notice to the Settlement Class. ECF No. 16. The parties attached the Settlement Agreement to that motion. The parties sought to settle this matter through the class action procedures under Federal Rule of Civil Procedure 23. 3. On June 23, 2021, the Court granted the parties’ request for preliminary approval of the Settlement Agreement, the proposed Class for settlement purposes, and the proposed means

of providing notice to the settlement Class (“Preliminary Approval Order”). ECF No. 21. 4. As part of its Preliminary Approval Order, the Court conditionally certified for settlement purposes only a Class defined as follows: The “Settlement Class” or the “Class” consists of all current or former hourly-paid production employees who work or worked at the Magnolia Flooring manufacturing facility located in Hamburg, Arkansas, at any time between May 26, 2016, and January 19, 2018, and who earned a bonus in at least one week in which they worked more than forty hours. These individuals have been identified in Exhibit A (ECF No. 16-1, Exhibit A) to the Parties’ Settlement Agreement.

5. The Preliminary Approval Order appointed Josh Sanford of the Sanford Law Firm, PLLC, as Class Counsel. 6. The Preliminary Approval Order approved the Notice of Proposed Settlement and the Opt-Out Form contained in the Settlement Agreement, as well as the proposed manner for which class members could object to the proposed settlement upon notice. 7. The Preliminary Approval Order set a final approval hearing regarding the Settlement Agreement for September 23, 2021. The parties were directed to file a motion for final approval of all terms of the Settlement Agreement prior to the final fairness hearing. 8. On September 16, 2021, the parties filed their Final Motion for the Court’s approval of the terms of the Settlement Agreement. In support, the parties stated that after dissemination of the Notice of Settlement and Opt-Out Form to Class members, no member of the Class has submitted objections to the Settlement Agreement. The parties set forth extensive argument and authority as to the fairness of the Settlement Agreement. 9. The $21,638.25 Settlement Fund stipulated in the Settlement Agreement provides fair monetary relief to the Class. The $300.00 service awards to the three named Plaintiffs, for a total of $900, are appropriate. The remaining $20,738.25 is appropriately dispersed among the settlement class according to calculated unpaid overtime and liquidated damages, as detailed in

the Exhibit A of the Settlement Agreement. 10. Class Members who did not timely file and serve an objection in writing in response to the Notice of Settlement in accordance with the procedures set forth in the Settlement Agreement and mandated in the Preliminary Approval Order are deemed to have waived any such objection through any appeal, collateral attack, or otherwise. 11. At the Final Approval Hearing, the Court considered, among other matters described herein, (a) whether certification of the Settlement Class for settlement purposes only was appropriate under Rule 23 of the Federal Rules of Civil Procedure; (b) the fairness, reasonableness, and the adequacy of the Settlement Agreement; and (c) the fairness and reasonableness of Class Counsel’s request for fees and costs under applicable law. The Court

independently evaluated the pleadings, evidence, and testimony of Class Counsel and Defendant’s counsel, and also considered arguments that could reasonably be made against approval of the Settlement Agreement and Class Counsel’s request for fees and costs, even though such arguments were not actually presented to the Court by pleading or oral argument. 12. On the basis of the matters presented in this Lawsuit and the provisions of the Stipulation, the Court is of the opinion that the Proposed Settlement is a fair, reasonable, and adequate compromise of the claims against Defendant, pursuant to Rule 23 of the Federal Rules of Civil Procedure. In considering a number of factors, the Court finds that: a. The liability issues in this suit and the suitability of this suit for certification of a litigation class have been vigorously contested; b. This Settlement Agreement has the benefit of providing substantial benefits to Class Members now, without further litigation, under circumstances where the liability issues may still be vigorously contested among the Parties;

c. The Settlement Agreement is clearly a byproduct of adversary litigation between the Parties, and not a result of any collusion on the part of Class Counsel or Defendant; and

d. Class Counsel’s request for an award of reasonable fees and reimbursement of expenses is reasonable, fair, and in all respects consistent with the terms of the Stipulation.

Therefore, on the basis of the foregoing findings of fact and the oral findings of fact articulated at the Final Approval Hearing referenced herein, the Court hereby makes the following: II. CONCLUSIONS OF LAW 1. The Court has personal jurisdiction over the Plaintiffs, Defendant, and Class Members; venue is proper; and the Court has subject matter jurisdiction, including without limitation, jurisdiction to approve the Settlement Agreement, to grant final certification of the Class, to settle and release all claims arising out of the suit, and to enter this Final Order and Judgment and dismiss this suit on the merits and with prejudice. 2. The Court concludes that, for settlement purposes only, the Class meets all the requirements of Rule 23 of the Federal Rules of Civil Procedure

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Ross v. Magnolia Flooring Mill, LLC, (W.D. Ark. 2021).

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