Bonner v. Prairie Opportunity, Incorporated

District Court, N.D. Mississippi

Bonner v. Prairie Opportunity, Incorporated

Trial Court Opinion

THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF MISSISSIPPI ABERDEEN DIVISION

ALICE BONNER PLAINTIFFS on Behalf of Herself and Others Similarly Situated

VS. CAUSE NO.: 1:19-cv-171-SA-DAS

PRAIRIE OPPORTUNITY, INCORPORATED DEFENDANT ORDER GRANTING JOINT MOTION FOR APPROVAL OF FLSA SETTLEMENT AGREEMENT AND DISMISSAL OF ACTION WITH PREJUDICE

CAME BEFORE THIS COURT, Plaintiff Alice Bonner (hereinafter “Plaintiff” and/or “Bonner”) and Defendant Prairie Opportunity, Incorporated, (hereinafter “Defendant´ and/or “POI”), and who hereby jointly move the Court to approve the Settlement Agreement negotiated between the Plaintiff and Defendant and to dismiss this action with prejudice. In support of their request, the parties have jointly stated and agreed to the following: This is an action brought by Alice Bonner, a former accounts payable clerk, at Prairie Opportunity, Incorporated, a non-profit entity, for violation of the Fair Labor Standards Act of 1938, as amended,

29 U.S.C. §201

et seq. (“FLSA”), based upon Defendant's failure to properly reimburse her by providing overtime in kind as opposed to overtime pay. The Defendant denies the Plaintiff's allegations. It is the Defendant’s position is that the Plaintiff was properly compensated for any time worked in excess of 40 hours and denies that Plaintiff is entitled to any relief under the FLSA. I. The Terms of the Proposed Settlement The proposed settlement is a payment for $11,000. Out of that payment, the Plaintiff will receive $3,412.50 with half of that amount classified as wages from which taxes will withheld and for which the Plaintiff will receive a W-2 form. The other half will be classified as liquidated damages from which no taxes will be withheld and for which the Plaintiff will receive a Form 1099- MISC. As to attorneys' fees, costs, and expenses as follows: 1. Attorney fees pursuant to Contract with Plaintiff is $40% of $11,000 or $4,400.00;

2. Costs of $400.00 court filing fee, $125,00 process server fee, and $50.00 for postage and long distance calls; and 3. Expenses of $2,612.50 for expert witness fee for retention of Van Craft. As shown below, the Settlement Agreement is fair and reasonable and should be approved. II. Analysis of the Settlement Under the FLSA, an employee may settle a private lawsuit against an employer and release FLSA claims against that employer if the parties present the district court with a proposed settlement and if the court is finds that the settlement reflects “a reasonable compromise over issues,” and the relief is determined to be fair, reasonable and adequate. Lynn’s Food Stores, Inc. v. United States,

679 F.2d 1350

, 1353-54 (11th Cir. 1982). As noted in Lynn’s Food Stores:

“Settlements may be permissible in the context of a suit brought by employees under the FLSA for back wages because initiation of the action by the employee provides some assurance of an adversarial context. The employees are likely to be represented by an attorney who can protect their rights under the statute. Thus, when the parties submit a settlement to the court for approval, the settlement is more likely to reflect a reasonable compromise of disputed issues than a mere waiver of statutory rights brought by an employer's overreaching, if a settlement in an employee FLSA suit does reflect a reasonable compromise over issues, such as FLSA coverage or

2 computation of back wages that are actually in dispute, we allow the district court to approve the settlement in order to promote the policy of encouraging settlement of litigation.” Id. at 1354. In this case, the parties conducted an initial phase of class-related discovery. Then they entered into negotiations wherein they reached an amicable resolution of the claims made herein. Before entering negotiations, the parties understood Bonner’s job descriptions, time, pay, and

activity records, as well as the applicable law, regulations and case law. The parties have represented that they freely conferred with their counsel throughout this process. Counsel believe that this settlement is fair and reasonable given the strengths, weaknesses and risks associated with continued litigation. The parties affirm and agree that the settlement represents a fair and reasonable, arm’s length compromise of this litigation and not as a result of any collusion. Accordingly, after considering the Motion, the Court finds that the case is a fair and reasonable comprise of the action. The parties have provided extensive information regarding their respective positions relative to the Motion, the Court finds that the internal and external factors weigh in favor of approving the settlement as contemplated by the parties.

It is, therefore, ordered and adjudged that the Joint Motion for Approval of FLSA Settlement Agreement and Dismissal of Action with Prejudice is hereby approved and this case is hereby dismissed with prejudice with each party to be responsible for their individual costs. The Court retains jurisdiction over this case should the parties need to enforce the Settlement Agreement, if necessary.

3 SO ORDERED, this the 21st day of September, 2020.

/s/ Sharion Aycock UNITED STATES DISTRICT JUDGE

Approved:

/s/ W. Howard Gunn W. Howard Gunn, Esq. Attorney at Law 310 South Hickory Street Post Office Box 157 Aberdeen, MS 39730 Phone: 662-369-8533 Fax: 662-369-9844 [email protected] Counsel for the Plaintiff

/s/ C. Paige Herring C. PAIGE HERRING, MSB#10682 McAngus Goudelock and Courie, LLC Post Office Box 2955 Ridgeland, Mississippi 39158 Phone: 601-427-7537 Fax: 601-510-9525 [email protected]

Brian A. Hinton (MSB #99173) ANDERSON CRAWLEY & BURKE, PLLC Post Office Box 2540 Ridgeland, Mississippi 39158 Telephone: (601) 707-8800 Facsimile: (601) 707-8801 [email protected] Counsel for the Defendant, Prairie Opportunity, Inc. 4

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