Sandoz v. Cingular Wireless LLC

553 F.3d 913, 14 Wage & Hour Cas.2d (BNA) 577, 72 Fed. R. Serv. 3d 586, 2008 U.S. App. LEXIS 26425, 2008 WL 5341434
CourtCourt of Appeals for the Fifth Circuit
DecidedDecember 23, 2008
Docket08-30769
StatusPublished
Cited by163 cases

This text of 553 F.3d 913 (Sandoz v. Cingular Wireless LLC) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Sandoz v. Cingular Wireless LLC, 553 F.3d 913, 14 Wage & Hour Cas.2d (BNA) 577, 72 Fed. R. Serv. 3d 586, 2008 U.S. App. LEXIS 26425, 2008 WL 5341434 (5th Cir. 2008).

Opinion

PRADO, Circuit Judge:

In this case, we deal with the difficult question of when an employer can moot a purported collective action under the Fair Labor Standards Act (“FLSA”), 29 U.S.C. §§ 201-219, by paying an employee’s claim in full. In particular, we must consider the complex interplay between Federal Rule of Civil Procedure 68, which stipulates how a defendant can make an offer of judgment that would fully satisfy a plaintiffs claim, and the FLSA’s provision for collective actions under § 216(b). Because Plaintiff-Appellee Courtney Sandoz (“San-doz”) filed a motion to certify her collective action that, if timely and if granted, will relate back to when she initiated her lawsuit against Defendanb-Appellant Cingular Wireless (“Cingular”), 1 we vacate the district court’s judgment and remand for consideration of the timeliness, and, if necessary, the merits of Sandoz’s certification motion.

I. FACTUAL AND PROCEDURAL BACKGROUND

Sandoz worked for Cingular as a part-time retail sales consultant in Lafayette, Louisiana, from October 10, 2004, until she voluntarily resigned on October 5, 2005. On April 23, 2007, Sandoz brought suit against Cingular in Louisiana state court, alleging that the way in which Cingular paid its part-time employees for excess time worked violated the minimum wage provisions of the FLSA. See 29 U.S.C. § 206. In essence, Sandoz argues that Cingular’s accounting system resulted in paychecks that paid her less than the minimum wage for all of the hours she worked in certain weeks. She styled her case as an opt-in collective action under § 216(b) of the FLSA. See id. § 216(b). Sandoz served Cingular with the state court petition on July 27, 2007. On August 13, 2007, Cingular removed the case to the district court. Cingular filed its answer to San-doz’s petition on August 20, 2007.

On September 6, 2007, twenty-four days after removing the case to the district court and a little over a month after receiving Sandoz’s petition, Cingular made Sandoz an offer of judgment under Federal Rule of Civil Procedure 68 for $1,000, plus her reasonable attorneys’ fees. San-doz failed to accept the offer of judgment within ten days. See Fed.R.Civ.P. 68(a) (“If, within 10 days after being served, the opposing party serves written notice accepting the offer, either party may then file the offer and notice of acceptance, plus proof of service. The clerk must then enter judgment.”). Instead, Sandoz filed a motion to strike the reference to the offer of judgment. Cingular filed a motion to dismiss for lack of subject matter jurisdiction, asserting that the offer of judgment fully satisfied Sandoz’s claims. The district court denied Sandoz’s motion to strike and denied Cingular’s motion to dismiss. The court rejected Cingular’s argument that a make-whole offer to a named plaintiff alone in a collective action under *915 the FLSA divests the court of subject matter jurisdiction. However, the court granted Cingular’s motion to allow an interlocutory appeal pursuant to 28 U.S.C. § 1292(b). On June 5, 2008, about three weeks after the district court denied Cin-gular’s motion to dismiss, Sandoz filed a motion for certification of her collective action. This court granted Cingular’s motion to stay the district court’s proceedings and expedited the appeal.

II. JURISDICTION AND STANDARD OF REVIEW

This court has jurisdiction pursuant to 28 U.S.C. § 1292(b), as the district court certified for interlocutory appeal its order denying Cingular’s motion to dismiss. We review de novo a district court’s ruling on a motion to dismiss for lack of subject matter jurisdiction. See LeClerc v. Webb, 419 F.3d 405, 413 (5th Cir.2005).

III. DISCUSSION

A. Mootness

Under Article III of the U.S. Constitution, a federal court may adjudicate only “cases” or “controversies.” U.S. Const. art. III, § 2; see Warth v. Seldin, 422 U.S. 490, 498-99, 95 S.Ct. 2197, 45 L.Ed.2d 343 (1975). “Such a case or controversy must exist throughout the litigation; in other words, the case cannot be moot.” Samnorwood Indep. Sch. Dist. v. Tex. Educ. Agency, 533 F.3d 258, 264 (5th Cir.2008). Thus, “[i]f a case has been rendered moot, a federal court has no constitutional authority to resolve the issues that it presents.” Envtl. Conservation Org. v. City of Dallas, 529 F.3d 519, 525 (5th Cir.2008). A case becomes moot when “ ‘there are no longer adverse parties with sufficient legal interests to maintain the litigation’ or ‘when the parties lack a legally cognizable interest in the outcome’ of the litigation.” Id. at 527 (quoting Scruggs v. Lowman (In re Scruggs), 392 F.3d 124, 128 (5th Cir.2004) (per curiam)).

The issue in this appeal is whether a FLSA claim becomes moot when the purported representative of a collective action receives an offer that would satisfy his or her individual claim and no other plaintiffs have opted in to the collective action. Therefore, we must determine whether Sandoz represents only herself in this claim or if she also represents other similarly-situated employees in a FLSA collective action.

Section 216(b) of the FLSA provides, [a]ny employer who violates the provisions of [the FLSA] shall be liable to the employee or employees affected in the amount of their unpaid minimum wages, or their unpaid overtime compensation, as the case may be, and in an additional equal amount as liquidated damages .... An action to recover the liability prescribed in [this section] may be maintained against any employer (including a public agency) in any Federal or State court of competent jurisdiction by any one or more employees for and in behalf of himself or themselves and other employees similarly situated. No employee shall be a party plaintiff to any such action unless he gives his consent in writing to become such a party and such consent is filed in the court in which such action is brought.

29 U.S.C.

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553 F.3d 913, 14 Wage & Hour Cas.2d (BNA) 577, 72 Fed. R. Serv. 3d 586, 2008 U.S. App. LEXIS 26425, 2008 WL 5341434, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sandoz-v-cingular-wireless-llc-ca5-2008.