SKEVINGTON v. HOPEBRIDGE, LLC

CourtDistrict Court, S.D. Indiana
DecidedMarch 18, 2024
Docket1:21-cv-03105
StatusUnknown

This text of SKEVINGTON v. HOPEBRIDGE, LLC (SKEVINGTON v. HOPEBRIDGE, LLC) is published on Counsel Stack Legal Research, covering District Court, S.D. Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
SKEVINGTON v. HOPEBRIDGE, LLC, (S.D. Ind. 2024).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF INDIANA INDIANAPOLIS DIVISION JACQUELINE SKEVINGTON, ) ) Plaintiff, ) ) v. ) No. 1:21-cv-03105-JPH-MG ) HOPEBRIDGE, LLC, ) ) Defendant. ) ORDER ON JOINT MOTION FOR PRELIMINARY APPROVAL OF REVISED SETTLEMENT AGREEMENT AND OTHER ISSUES Plaintiff Jacqueline Skevington brought this suit on behalf of herself and those similarly situated, alleging that Hopebridge, LLC, violated the Fair Labor Standards Act (FLSA) and the Indiana Wage Payment Statute (IWPS) by failing to properly pay its Registered Behavioral Technicians (RBT) for short breaks that they took throughout the day. The parties have filed a joint motion asking the Court to: provisionally certify the Rule 23 Class for settlement purposes only pursuant to Federal Rule of Civil Procedure 23(b)(3); provisionally certify the FLSA Collective for settlement purposes only pursuant to 29 U.S.C. § 216(b); preliminarily approve the Settlement and Revised Class Action Settlement Agreement and Release ("Revised Agreement"); appoint Plaintiff's counsel as Class/Collective Counsel; approve the proposed Notice of Class/Collective Action Settlement and Fairness Hearing ("Settlement Notice"); and schedule the Fairness Hearing for the final approval of the Revised Agreement. Dkt. 37. Having considered the joint motion, notice, and the supporting materials, the Court GRANTS the joint motion but ORDERS the parties to submit by April 15, 2024, a supplemental filing addressing the impact of the reversion and "clear sailing" provisions on the fairness of the Revised Agreement. Dkt. [37]. I. Background

The parties originally filed a motion for preliminary approval of their class action settlement in May 2023. Dkt. 33. The Court denied that motion as presented because: (1) the class resolved the FLSA claims through an opt-out release instead of the statutorily required opt-in procedure; (2) the brief did not analyze whether the proposed class met the Rule 23(a) or 23(b)(3) factors; and (3) the parties did make a modest factual showing that Ms. Skevington and the FLSA collective action members were victims of a common plan or policy. Dkt. 36. In November, the parties submitted a revised joint motion to certify a class action and FLSA collective. Dkt. 37. The parties attached the Revised Agreement, dkt. 37-1, and the Class Action and Collective Action Notice of

Settlement, dkt. 37-2. The Revised Agreement would settle Plaintiff’s individual and class/collective claims under the Indiana Wage Payment Statute, I.C. § 22- 2-5-2 (“IWPS”) and the Fair Labor Standards Act of 1938, 29 U.S.C. §§ 201, et seq. (“FLSA”). For the IWPS claims, Rule 23 Class Members can choose to opt out of the class action portion of the Settlement. For the FLSA claims, by contrast, putative members of the FLSA Collective would have to opt into the FLSA portion of the Settlement. Dkt. 37-1 at 15–16 §§ 5.1, 5.4. The proposed settlement class/collective includes: All non-exempt, hourly-paid RBTs employed by Hopebridge, LLC at one or more of its locations in the United States at any time between December 28, 2019 and May 12, 2022.

Dkt. 37-1 at 4 (Revised Agreement §§ 1.15, 1.33). The class/collective action excludes any RBT who opted in as a plaintiff and is entitled to a recovery in the settlement reached in Myres et al. v. Hopebridge, LLC, Case No. 2:20-cv-5390- EAS-KAJ ("Myres"), filed in the United States District Court for the Southern District of Ohio. The individuals who are excluded from the Class because of their entitlement to a recovery in Myres are listed in Exhibit 1 to the Myres Collective Action Settlement Agreement and Release. Id. In the Revised Agreement, Hopebridge agrees to pay $326,493 to resolve this lawsuit without admitting any liability or wrongdoing. Dkt. 37-1 at 10, § 4.1. Class/Collective Counsel agrees to petition for a attorneys' fee award of no more than $78,666.67. Id. at 10, § 4.2. Defendant agrees to not oppose the request for attorneys' fees. Id. The Revised Agreement also contemplates a $5,000 service award to named Plaintiff Skevington. Id. at 11, § 4.3. After these costs and the Settlement Administrator's costs are deducted, the remaining amount will be split 80% to the Class and 20% to the FLSA Collective, with each of those percentages equally divided among the Class and FLSA Collective members, respectively. Id. at 11, § 4.5. If a class member opts

out of the class action or if a FLSA Collective member does not opt into the FLSA Collective, their share will revert to Hopebridge. Id. at 14 § 4.7(g). The parties state that there likely are approximately 6,360 putative members in the Class and Collective, and that each member likely has a maximum unpaid wage claim that is "far less than $50 per Class/Collective Member." Dkt. 38 at 2; 38-1 ¶ 14. In return for payment, the Class members agree to release "all wage and hour claims" under "IWPS, Article II, § 34a of the Ohio Constitution, or any

other applicable federal, state, or local wage and hour law, regulation, or rule (with the exception of the FLSA) . . . and any claims for liquidated damages, punitive damages, attorneys’ fees, costs, expenses, penalties, interest, settlement administration costs, and/or service awards based on and/or relating to any of the allegations asserted in this Litigation or Myres." Dkt. 37- 1 at 21–22, § 9.2. FLSA Collective Members agree to release "all claims under the FLSA . . . relating to unpaid and/or untimely payment of wages, overtime, or compensation of any kind, any related equitable claims, and any claims for

liquidated damages, punitive damages, attorneys’ fees, costs, expenses, penalties, interest, settlement administration costs, and/or service awards based on and/or relating to any of the allegations asserted in this Litigation or Myres.” Id. at 22, § 9.3. II. Applicable Law A. Rule 23 Class Action

Class actions were designed as “an exception to the usual rule that litigation is conducted by and on behalf of the individual named parties only.” Gen. Tel. Co. of the S.W. v. Falcon, 457 U.S. 147, 155 (1982). “Federal Rule of Civil Procedure 23 governs class actions.” Santiago v. City of Chicago, 19 F.4th 1010, 1016 (7th Cir. 2021). “Rule 23 gives the district courts broad discretion to determine whether certification of a class-action lawsuit is appropriate,” Arreola v. Godinez, 546 F.3d 788, 794 (7th Cir. 2008), and “provides a one-size- fits-all formula for deciding the class-action question,” Shady Grove Orthopedic Assocs., P.A. v. Allstate Ins. Co., 559 U.S. 393, 399 (2010).

A court's approval is required when "a class [is] proposed to be certified for the purposes of settlement." Also, courts must direct notice of a settlement class "in a reasonable manner to all class members who would be bound by the proposal." Fed. R. Civ. P. 23(e). A court is authorized to direct notice only if the court "will likely be able to (i) approve the proposal under 23(e)(2); and (ii) certify the class for purposes of the judgment on the proposal." Fed. R. Civ. P. 23(e)(1)(B).

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Bluebook (online)
SKEVINGTON v. HOPEBRIDGE, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/skevington-v-hopebridge-llc-insd-2024.