Filed: Mar. 23, 2012
Latest Update: Mar. 23, 2012
Summary: REPORT AND RECOMMENDATION GREGORY J. KELLY, Magistrate Judge. This cause came on for consideration, without oral argument, on the following motion: MOTION: JOINT STIPULATION OF DISMISSAL WITH PREJUDICE (Doc. No. 13) FILED: March 13, 2012 _______________________________________________________ THEREON it is RECOMMENDED that the motion be GRANTED . Plaintiff and Defendant jointly move the Court to dismiss this Fair Labor Standards Act (the "FLSA") case with prejudice (the "Motion"
Summary: REPORT AND RECOMMENDATION GREGORY J. KELLY, Magistrate Judge. This cause came on for consideration, without oral argument, on the following motion: MOTION: JOINT STIPULATION OF DISMISSAL WITH PREJUDICE (Doc. No. 13) FILED: March 13, 2012 _______________________________________________________ THEREON it is RECOMMENDED that the motion be GRANTED . Plaintiff and Defendant jointly move the Court to dismiss this Fair Labor Standards Act (the "FLSA") case with prejudice (the "Motion")..
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REPORT AND RECOMMENDATION
GREGORY J. KELLY, Magistrate Judge.
This cause came on for consideration, without oral argument, on the following motion:
MOTION: JOINT STIPULATION OF DISMISSAL WITH
PREJUDICE (Doc. No. 13)
FILED: March 13, 2012
_______________________________________________________
THEREON it is RECOMMENDED that the motion be GRANTED.
Plaintiff and Defendant jointly move the Court to dismiss this Fair Labor Standards Act (the "FLSA") case with prejudice (the "Motion") pursuant to Rule 41(a)(1), Federal Rules of Civil Procedure. Doc. No. 13. The parties state that "Plaintiff will receive full and complete compensation for her alleged claims under the [FLSA] without compromise. . . ." Doc. No. 13 at 1.
In Lynn's Food Stores, Inc. v. United States Department of Labor, 679 F.2d 1350, 1352-53 (11th Cir. 1982), the Eleventh Circuit addressed the means by which an FLSA settlement may become final and enforceable:
[t]here are only two ways in which back wage claims arising under the FLSA can be settled or compromised by employees. First, under section 216(c), the Secretary of Labor is authorized to supervise payment to employees of unpaid wages owed to them. . . . The only other route for compromise of FLSA claims is provided in the context of suits brought directly by employees against their employer under section 216(b) to recover back wages for FLSA violations. When employees bring a private action for back wages under the FLSA, and present to the district court a proposed settlement, the district court may enter a stipulated judgment after scrutinizing the settlement for fairness.
Thus, unless the parties have the Secretary of Labor supervise the payment of unpaid wages owed or obtain the Court's approval of the settlement agreement, the parties' agreement is unenforceable. Id.; see also Sammons v. Sonic-North Cadillac, Inc., No. 6:07-cv-277-Orl-19DAB, 2007 WL 2298032 at *5 (M.D. Fla. Aug. 7, 2007) (noting that settlement of FLSA claim in arbitration proceeding is not enforceable under Lynn's Foods because it lacked Court approval or supervision by Secretary of Labor). Before approving an FLSA settlement, the court must scrutinize it to determine if it is "a fair and reasonable resolution of a bona fide dispute." Id. at 1354-55. If the settlement reflects a reasonable compromise over issues that are actually in dispute, the Court may approve the settlement. Id at 1354.
In determining whether the settlement is fair and reasonable, the Court should consider the following factors:
(1) the existence of collusion behind the settlement;
(2) the complexity, expense, and likely duration of the litigation;
(3) the stage of the proceedings and the amount of discovery completed;
(4) the probability of plaintiff's success on the merits;
(5) the range of possible recovery; and
(6) the opinions of counsel.
See Leverso v. SouthTrust Bank of Ala. Nat. Assoc., 18 F.3d 1527, 1531 n. 6 (11th Cir. 1994); Hamilton v. Frito-Lay, Inc., No. 6:05-cv-592-Orl-22JGG, 2007 WL 328792 at *2-3, (M.D. Fla. Jan. 8, 2007). The Court should be mindful of the strong presumption in favor of finding a settlement fair. Cotton v. Hinton, 559 F.2d 1326, 1331 (5th Cir. 1977).1
This case involved disputed issues of FLSA coverage, which constitutes a bona fide dispute. Doc. Nos. 1. The parties are represented by independent counsel who are obligated to vigorously represent their clients. Doc. Nos. 1. In the Motion, the parties state that Plaintiff is receiving full compensation on her FLSA claims without compromise. Doc. No. 13 at 1.
Lynn's Food Stores, 679 F.2d at 1354-55, requires a court to determine whether a plaintiff's compromise of his or her claims is fair and reasonable. When, as in this case, Plaintiff does not compromise her claims, the settlement is necessarily a "fair and reasonable resolution of a bona fide dispute over FLSA provisions." Id. at 1354. Thus, the Court "need not scrutinize the settlement further to consider whether the payment to [plaintiff's] attorney, the hourly rate claimed by [plaintiff's] attorney, or the costs claimed by [plaintiff's] attorney are reasonable." See Granger v. Water Sports Mgmt., Inc., No. 6:08-cv-1283-Orl-31KRS, 2009 WL 1396286 at *2 (M.D. Fla. May 18, 2009).
Accordingly, the undersigned RECOMMENDS:
1. The Motion be GRANTED (Doc. No. 13) only to the extent that the Court finds the parties' settlement is fair and reasonable; and
2. The Court dismiss the case with prejudice and direct the Clerk to close the case.
Failure to file written objections to the proposed findings and recommendations contained in this report within fourteen (14) days from the date of its filing shall bar an aggrieved party from attacking the factual findings on appeal. If the parties have no objection to this Report and Recommendation, they may promptly file a joint notice of no objection.
RECOMMENDED.
