Camp Douglas Rescue, Inc. v. Klinge-West, Joni

Filing 4

ORDER Regarding Jurisdiction. Plaintiff has until May 30, 2017, to file a brief explaining why this court has subject matter jurisdiction over this action. Absent such a response, the court will dismiss this case. Signed by District Judge William M. Conley on 5/16/2017. (kwf)

IN THE UNITED STATES DISTRICT COURT
FOR THE WESTERN DISTRICT OF WISCONSIN
_________________________________________________________________________________
CAMP DOUGLAS RESCUE, INC.,
Plaintiff,

ORDER

v.

17-cv-358-wmc

JONI KLINGE-WEST,
Defendant.
_________________________________________________________________________________
Plaintiff Camp Douglas Rescue, Inc., has filed a complaint for declaratory judgment
“that the settlement agreement between Camp Douglas, Inc. and Joni Klinge-West
constitutes ‘a fair and reasonable resolution of a bona fide dispute,’ under the FLSA.”
(Compl. (dkt. #1) 9.) The executed settlement agreement is attached to the complaint.
(Id., Ex. C (dkt. #2-3).) The court recognizes that approval of an FLSA settlement is
required for it to be enforceable, though the circumstances typically involved a collective
action. See Walton v. United Consumers Club, 786 F.2d 303, 306 (7th Cir. 1986) (citing
Lynn’s Food Stores, Inc. v. U.S. Dep’t of Labor, 679 F.2d 1350, 1355 (11th Cir. 1982).
Moreover, the cases in which this court has reviewed settlement agreements arise out of an
actual case or controversy at the time the complaint was filed.
Here, the parties have already reached an agreement, resolving their dispute before
filing suit. Moreover, the settlement is with an individual claimant, raising a question as
to the need for court approval at all. While the court does not wish to discourage prelitigation settlements -- far from it -- the posture here does raise a concern as to whether
there is an actual case or controversy satisfying the jurisdictional requirements of Article
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III, Section II of the Constitution. See, e.g., Milwaukee Police Ass’n v. Bd. of Fire & Police
Comm’rs of City of Milwaukee, 708 F.3d 921, 930, 933 (7th Cir. 2013) (finding that plaintiff
lacked standing because the settlement agreement “waived any sort of relief this court could
grant her” and the fact that the case was brought as a declaratory judgment action is not
material because the “[p]arties cannot contract around the limitations of federal court
jurisdiction”). Accordingly, plaintiff has until May 30, 2017, to file a brief explaining why
this court has subject matter jurisdiction over this action. Absent such a response, the
court will dismiss this case.
Dated this 16th day of May, 2017.
BY THE COURT:
/s/
__________________________________________
WILLIAM M. CONLEY
District Judge

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