Fenn v. Hewlett-Packard Company

Filing 76

MEMORANDUM DECISION AND ORDER granting 73 Motion for Preliminary Approval of Settlement Class, and Approval of the Proposed Notice of Settlement. Signed by Judge B. Lynn Winmill. (caused to be mailed to non Registered Participants at the addresses listed on the Notice of Electronic Filing (NEF) by (cjm)

UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF IDAHO

KAREN FENN, on behalf of herself and
others similarly situated,

Case No. 1:11-cv-00244-BLW
MEMORANDUM DECISION AND
ORDER

Plaintiff,
v.
HEWLETT-PACKARD COMPANY,
Defendant.

INTRODUCTION
The Court has before it Plaintiff’s Motion for Preliminary Approval of Settlement
Class, and Approval of the Proposed Notice of Settlement (Dkt. 73). The motion is
unopposed. The Court will grant the motion as explained below.
ANALYSIS
The Eleventh Circuit’s decision in Lynn’s Food Stores, Inc. v. United States, 679
F.2d 1350 (11th Cir. 1982) is widely accepted for the proposition that all FLSA
settlements must be approved by the Department of Labor or a court. A proposed
settlement which involves a compromise by an employee will be approved only after the
court determines that the settlement is a “fair and reasonable resolution of a bona fide
dispute over FLSA provisions.” Lynn’s Food Stores, Inc. v. United States, 679 F.2d 1350,
1354 (11th Cir. 1982). In this sense, settlement of an FLSA claim is similar to Rule 23
settlements.
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However, courts have also indicated that “[p]reliminary approval of a class action
settlement, in contrast to final approval, is at most a determination that there is what
might be termed ‘probable cause’ to submit the proposal to class members and hold a
full-scale hearing as to its fairness.” Davis, 775 F.Supp.2d at 607 (conditionally certifying
both a Rule 23 class and a collective action under the FLSA for settlement purposes
only); see also In re Traffic Executive Association–Eastern Railroads, 627 F.2d 631, 634
(2d Cir.1980). Thus, a proposed class action settlement should “be preliminarily
approved where it appears to be the product of serious, informed, non-collusive
negotiations, has no obvious deficiencies, does not improperly grant preferential
treatment to class representatives or segments of the class and falls within the range of
possible approval.” Id. (Internal citation omitted).
Here, the Court finds that it appears the proposed settlement is, in fact, the product
of serious, informed, non-collusive negotiations, has no obvious deficiencies, does not
improperly grant preferential treatment to class representatives or segments of the class,
and falls within the range of possible approval. The Court preliminarily finds that the
proposed settlement appears to be a fair and reasonable resolution of a bona fide dispute.
It appears that counsel have reasonably evaluated their respective positions, and that
settlement will likely avoid substantial additional costs to the parties. Accordingly, the
Court will preliminarily approve the settlement. However, the Court stresses that this is
“preliminary” approval, and the Court expects to conduct a fairness hearing before finally
approving the settlement. Accordingly,

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IT IS ORDERED:
1.

Plaintiff’s Motion for Preliminary Approval of Settlement Class, and

Approval of the Proposed Notice of Settlement (Dkt. 73) is GRANTED. This is not final
approval of the settlement.
2.

The proposed Stipulation and Settlement Agreement, Notice to Potential

FLSA Opt-Ins Regarding Pendency of a Collective Action, and Consent to Join
Settlement Form attached as exhibits to the Declaration of Carlos Leach in Support of
Plaintiff’s Motion for Preliminary Approval of Settlement (Dkt. 75) are hereby approved.
3.

CPT Group, Inc. is appointed as the settlement class Claims Administrator

with all costs associated with administration of the settlement class paid for separately by
the Defendant.
4.

Within ten (10) calendar days from the date of this Order, Defendant shall

furnish the Claims Administrator with a list of all Potential FLSA Opt-Ins and their last
known contact information.
5.

Within fifteen (15) calendar days from the Claims Administrator’s receipt

of the list of Potential FLSA Opt-Ins from the Defendant, the Claims Administrator will
send, via first class mail, the Court-approved Class Notice and Consent to Join Settlement
Form to each Potential FLSA Opt-In.
6.

Potential FLSA Opt-Ins may elect to opt into the Litigation and thus

become Settlement Class Members. Potential FLSA Opt-Ins who wish to exercise this
option and receive a Settlement Payment, must return the Consent to Join Settlement

MEMORANDUM DECISION AND ORDER - 3

Form by no later than the Notice Response Deadline as proven by a postmark on or
before the Notice Response Deadline or as proven by a receipt establishing that the
Consent to Join Settlement Form was delivered on or before the Notice Response
Deadline. The Notice Response Deadline is the date sixty (60) calendar days from the
date on which the Claims Administrator initially mails the Class Notice and Consent to
Join Settlement Forms to the Potential FLSA Opt-Ins.
7.

The Class Representative shall move the Court for entry of Final Judgment

no earlier than thirty (30) calendar days after the Notice Response Deadline, but no later
than forty-five (45) calendar days after the Notice Response Deadline. The parties shall
contact the Court when the motion is filed, and request a time for a fairness hearing.
8.

Class Counsel shall file a Motion for Approval of Fees/Costs and Service

Award no more than twenty (20) calendar days in advance of the Court’s entry of Final
Judgment.
9.

Defendant shall fund the amounts necessary for the class settlement checks

within twenty (20) calendar days of the written presentation of the amount owed into an
account designated by the Claims Administrator for payment of funds.
10.

Within fifteen (15) calendar days from the date Defendant has made

payment to the Claims Administrator, the Claims Administrator shall mail the settlement
checks.
11.

For purposes of the Order, the “Effective Date” means the latest of: (i) the

date of final affirmance on an appeal of the Final Judgment; (ii) the date of final

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dismissal, with prejudice, of the last pending appeal from the Final Judgment; of (iii) if
no appeal is filed, the expiration date of the time for filing or noticing of any form of
valid appeal from the Final Judgment.
12.

The Claims Administrator will disburse Court-approved attorneys’ fees and

costs, and Court-approved service awards within thirty (30) days of the Effective Date.
13.

Amounts of the Settlement fund that are unclaimed or that were allocated to

class members who do not opt-in to the settlement shall revert back to the Defendant.

DATED: December 21, 2012

_________________________
B. Lynn Winmill
Chief Judge
United States District Court

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