McDonald v. Freight Systems Inc
ORDER re Court approval of any settlement in this Fair Labor Standards Act case. The Court asks the parties to submit their joint motion to approve the proposal by 11 July 2013. Signed by Judge D. P. Marshall Jr. on 6/28/13. (kpr)
IN THE UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF ARKANSAS
KEVIN C. McDONALD
FREIGHT SYSTEMS INC.
Counsel has asked Chambers informally whether Court approval of any
settlement in this Fair Labor Standards Act case is necessary. The Court
believes it is. This is an open question in the Eighth Circuit. But the betterreasoned precedent reflects the propriety of the Court "scrutinizing the
settlement for fairness." Lynn's Food Stores, Inc. v. United States, 679 F.2d 1350,
1353 (11th Cir. 1982); compare Martin v. Spring Break '83 Productions, LLC, 688
F.3d 247 (5th Cir. 2012). This Court, speaking through other Judges, has
followed Lynn's Food Stores. E.g., Hollomon v. AT&T Mobility Services, LLC,
4:11-cv-600-BRW, NQ 15,2012 U.S. Dist. Lexis 66158 (E.D. Ark. 11 May 2012);
Brown v. L&P Industries, No. 5:04-cv-379-JLH, NQ 47, 2005 U.S. Dist. Lexis
39920 (E.D. Ark. 21 Dec. 2005).
Given the disparate bargaining power between employers and
employees, Court approval ensures that the parties' proposed agreement is
"a reasonable compromise of disputed issues [and not] a mere waiver of
statutory rights brought about by an employer's overreaching." Lynn's Food
Stores, 679 F.2d at 1354. Absent extraordinary circumstances, moreover, any
settlement will not be sealed or kept confidential. Delock v. Dewitt, No. 4:11cv-520-DPM, NQ 70 at 3-4 (E.D. Ark. 16 Nov. 2012). The Court looks forward
to getting the parties' joint motion to approve the proposal by 11 July 2013.
D.P. Marshall Jr.
United States District Judge
28 June 2013
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