DEBRA M. BROWN, District Judge.
Before the Court is "Defendant's Motion to Reopen the Case and Enforce Settlement," Doc. #11; and the "Joint Motion for Approval of Settlement and Dismissal of the Case with Prejudice," Doc. #19.
On April 10, 2019, Natasha Johnson filed a complaint in the United States District Court for the Northern District of Mississippi against New Season f/k/a Colonial Management Group, LP d/b/a Metro Treatment of Mississippi, LP a/k/a DeSoto County Treatment Center. Doc. #1. The complaint seeks recovery of unpaid minimum wage compensation, overtime compensation, liquidated damages, and other relief under the Fair Labor Standards Act. Id. at 8-9. On May 6, 2019, New Season answered the complaint, denying the allegations. Doc. #4.
On June 7, 2019, New Season filed a "Notice of Settlement" stating that the parties had resolved this case. Doc. #9. Accordingly, on July 18, 2019, the Court closed this case. Doc. #10.
On September 13, 2019, New Season moved to reopen the case "and to enforce the settlement agreement between the parties" due to Johnson's "refusal to execute the full and complete release and waiver of claims despite the settlement agreement reached between the parties ...." Doc. #11 at 1. Johnson was granted a requested extension until October 11, 2019, to respond to the motion to reopen and enforce. Docs. #15, #17.
On October 11, 2019, Johnson filed a "Joint Notice of Settlement" stating that the parties resolved the dispute which is the subject of the motion to reopen and enforce and that they anticipate filing a joint motion to approve their settlement. Doc. #18. On November 1, 2019, a "Joint Motion for Approval of Settlement and Dismissal of the Case with Prejudice" was filed, with the parties' settlement agreement attached as an exhibit. Docs. #19, #19-1.
"The general rule establishes that FLSA claims ... cannot be waived. Accordingly, many courts have held that, in the absence of supervision by the Department of Labor or scrutiny from a court, a settlement of an FLSA claim is prohibited." Bodle v. TXL Mortg. Corp., 788 F.3d 159, 164-65 (5th Cir. 2015) (internal citations omitted) (collecting cases). Such courts, relying on reasoning set forth by the Eleventh Circuit in Lynn's Food Stores, Inc. v. United States, 679 F.2d 1350, 1355 (11th Cir. 1982), require that "the compromise reached [be] a fair and reasonable resolution of a bona fide dispute over FLSA provisions rather than a mere waiver of statutory rights brought about by an employer's overreaching." See, e.g., Kraus v. PA Fit II, LLC, 155 F.Supp.3d 516, 522-23 (E.D. Pa. 2016) (collecting cases) (internal quotation marks omitted). However, in Martin v. Spring Break '83 Products, LLC, 688 F.3d 247 (5th Cir. 2012), the Fifth Circuit "excepted ... from this general rule ... unsupervised settlements that are reached due to a bona fide FLSA dispute over hours worked or compensation owed." Bodle, 788 F.3d at 165.
"The primary difference between the Lynn's Food and Martin standards is the timing of the judicial scrutiny." Kraus, 155 F.Supp.3d at 528. While Martin allows a court to enforce a settlement after it has been executed, Lynn's Food holds "that ex ante judicial scrutiny of a private FLSA settlement is required." Id. at 528-29. Accordingly, where, as here, parties in the Fifth Circuit seek approval of a settlement, the Lynn's Food standard governs. See Heffernan Bryant v. United Furniture Indus., Inc., No. 1:13-cv-246, 2017 WL 639320, at *2 (N.D. Miss. Feb. 16, 2017) (applying Lynn's Food to joint motion for settlement); Alainz v. Maxum Petro. Operating Co., Inc., No. 15-cv-373, 2016 WL 6462206, at *1 (W.D. Tex. Oct. 31, 2016) (same). In such a situation, the "court must determine that the settlement is a fair and reasonable resolution of a bona fide dispute over FLSA provisions." Heffernan Bryant, 2017 WL 639320, at *2 (internal quotation marks omitted).
Under the bona fide dispute inquiry:
Collins v. Sanderson Farms, Inc., 568 F.Supp.2d 714, 719-20 (E.D. La. 2008). Notably, the "mere existence of an adversarial lawsuit" and "[t]he presence of attorneys representing FLSA ... plaintiffs" is insufficient, standing alone, to meet the bona fide dispute requirement. Id. at 720.
In support of the motion, the parties assert that there are "bona fide disputes between the Parties with respect to whether damages were available to Plaintiff under the FLSA and also the amount of damages, if any, that was available to Plaintiff under the FLSA." Doc. #20 at 3. The parties also represent that:
Id. Based upon these representations, the Court concludes that this action involves a bona fide dispute over the FLSA's provisions.
In FLSA collective actions, courts in this circuit have generally utilized the fairness factors applied to class actions brought under Rule 23 of the Federal Rules of Civil Procedure. See Heffernan Bryant, 2017 WL 639320, at *3 (collecting cases). These factors are "(1) the existence of fraud or 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 plaintiffs' success on the merits; (5) the range of possible recovery; and (6) the opinions of class counsel, class representatives and absent class members." Id. (quoting Reed v. Gen. Motors Corp., 703 F.2d 170, 172 (5th Cir. 1983)).
This Court has not found a case in the Fifth Circuit addressing the proper evaluation standard where, as here, the dispute involves only a single plaintiff. Courts in other circuits have applied varying approaches. Some courts have applied the class action factors even when a proposed settlement involves only a single plaintiff. See Duprey v. Scotts Co. LLC., 30 F.Supp.3d 404, 409-10 (D. Md. 2014) (applying class action factors where settlement agreement involved only single plaintiff); Wheeler v. Coastal Delivery, Inc., No. 6:15-cv-1017, 2015 WL 7007967, at *1-2 (M.D. Fla. Oct. 20, 2015) (same). Other courts have undertaken far simpler inquiries asking only whether the settlement is reasonable in light of the value of the plaintiff's claims. See Marfak v. Peretta, No. 10-cv-7785, 2011 WL 1758625, at *2 (S.D.N.Y. May 6, 2011) ("Given that there is documentary evidence that the plaintiff drove the company bus interstate and he may therefore be an exempt employee under federal overtime laws, the settlement amount to which the parties have agreed is reasonable and fair."); Morales v. PepsiCo, Inc., No. 11-6275, 2012 WL 870752, at *1 (D.N.J. Mar. 14, 2012) ("[T]he Court finds that the settlement reflects good faith negotiations between the parties as to the reasonable valuation of Plaintiff's underlying claims."). Out of an abundance of caution, the Court will apply both standards.
As the parties have jointly agreed to "fully compensate[] Plaintiff for the time she claims she worked over and above forty (40) hours in a workweek," along with liquidated damages and her attorneys' fees and costs, in order to "minimize future risks and litigation costs," the Court concludes that the settlement appears reasonable. Doc. #20 at 2, 4. In applying the Rule 23 factors, the Court finds the settlement is appropriate because (1) there is no evidence of fraud or collusion; (2) the proposed settlement matches the modest complexity of this FLSA action; (3) it is a relatively late stage of the proceedings (the case has been closed) and the parties have conducted their own informal discovery;
The proposed settlement represents a fair and reasonable resolution of the underlying dispute. Accordingly, the joint motion for approval and dismissal [19] is