Wren et al v. United CommTel, L.L.C. et al
Filing
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Order by Hon. James Donato denying without prejudice 50 Joint Motion for Approval of Settlement. (jdlc2, COURT STAFF) (Filed on 7/30/2014)
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UNITED STATES DISTRICT COURT
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NORTHERN DISTRICT OF CALIFORNIA
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CORNELIUS WREN, et al.,
Case No. 12-cv-06022-JD
Plaintiffs,
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v.
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UNITED COMMTEL, L.L.C.,
Defendant.
ORDER DENYING WITHOUT
PREJUDICE JOINT MOTION FOR
APPROVAL OF SETTLEMENT
Re: Dkt. No. 50
United States District Court
Northern District of California
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On Wednesday, July 30, 2014, the parties’ joint motion for approval of settlement and
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motion for entry of agreed judgment (Dkt. No. 50) came on for hearing. Defendant’s counsel
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failed to show up for the hearing. See Dkt. No. 52.
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As the Court advised plaintiffs’ counsel at the hearing, the parties’ joint motion is wholly
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inadequate. Despite the fact that the complaint contains class action allegations under FRCP 23,
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the motion for settlement approval makes no mention of the fate of the putative class members,
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nor does it explain why they will not be prejudiced by this settlement. The plaintiffs owe duties to
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the putative class, and an inquiry regarding their interests must be made even though a class has
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not been certified in this case at this point in time. See Diaz v. Trust Territory of the Pacific
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Islands, 876 F.2d 1401, 1408-11 (9th Cir. 1989).
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Plaintiffs have also brought collective action claims under the Fair Labor Standards Act.
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Though the joint motion pays lip service to the standard set forth in Lynn’s Food Stores v. United
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States, 679 F.2d 1350 (11th Cir. 1982), the motion is bereft of any detail that supports the bare
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conclusion that the proposed settlement here is a “fair and reasonable resolution of a bona fide
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dispute over FLSA provisions.” Dkt. No. 50 at 2-4.
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The parties have not come close to presenting an adequate motion. Among other
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problems, the joint motion does not provide sufficient information regarding the plaintiffs’ basis
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for recovery in this case, or how or why any such recovery is being discounted in this settlement.
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Moreover, the joint motion provides no information or analysis regarding “the number of overtime
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hours worked by each Plaintiff and information regarding the potential range of recovery for each
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Plaintiff.” McKeen-Chaplin v. Franklin American Mortgage Co., No. C 10-5243 SBA, 2012 WL
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662608, at *3 (N.D. Cal. Dec. 19, 2012) (citation omitted). Indeed, as was the case in McKeen-
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Chaplin, the parties “have not provided the Court with any specific information or analysis
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explaining how and why they arrived at the settlement amount,” nor have they “explained how
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United States District Court
Northern District of California
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they arrived at the specific amount allocated to each Plaintiff.” Id.
On the topic of allocation, the proposed settlement agreement purports to award to
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plaintiffs’ attorneys close to 60% of the recovery in this case. See Dkt. No. 50-1, Ex. A (allocating
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to Kennedy Hodges, LLP $1,201.95 out of every total monthly payment of $2,083.33 by
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defendant). The joint motion provides no information or analysis that shows why plaintiffs’
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attorneys are entitled to receive such an unusually high proportion of the settlement amount, nor
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have plaintiffs’ counsel submitted any contemporaneous time records setting forth the time
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actually expended by counsel on this case and the hourly rates charged. See McKeen-Chaplin,
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2012 WL 662608, at *5. Based on counsel’s performance so far, there is a serious question
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whether they should be awarded anything at all. In light of these many deficiencies, the Court also
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finds more than a little troubling the joint motion’s mention of “Defendants’ restaurants,” Dkt.
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No. 50 at 4, when this case has only one remaining defendant which is asserted to be a
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telecommunications company.
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Accordingly, as the Court advised plaintiffs’ counsel at the hearing, the parties’ joint
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motion to approve the settlement and to enter the agreed judgment is denied without prejudice.
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The parties are hereby given fourteen days, until August 13, 2014, to file a renewed motion that
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corrects the deficiencies identified in this order. If the parties fail to do so, the case will proceed to
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trial on November 5, 2014.
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This case was filed on November 27, 2012. The trial date will not be moved in the event
the parties are unable to adequately support their request for approval of a settlement.
IT IS SO ORDERED.
Dated: July 30, 2014
______________________________________
JAMES DONATO
United States District Judge
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United States District Court
Northern District of California
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