Alvarez v. Keystone Plus Construction Corporation
2014 U.S. Dist. LEXIS 50303
| D.D.C. | 2014Background
- Plaintiffs allege Keystone underpaid overtime on the LK Downing project (Jun 2012–Oct 2012) by crediting workers with “tools” instead of time-and-a-half.
- The class is defined narrowly as all non-exempt LK Downing project workers who worked >40 hours in a workweek during the period, identified from Keystone records totaling 47 members.
- Court previously granted preliminary and final approvals for a settlement and certified the class for settlement purposes only.
- Settlement provides 1.37x the overtime shortfall to each class member, apportioned as half wages and half liquidated damages, plus $500 to each named plaintiff and $14,000 to Class Counsel.
- The settlement notice informed members of their rights, opt-out options, and the amount due; checks are to be managed with cy pres if uncashed.
- The Court conducted a fairness hearing and determined the settlement was fair, reasonable, and adequate under Rule 23(e).
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the class satisfies Rule 23(a) and (b)(3) for settlement certification | Alvarez argues numerosity, commonality, typicality, adequacy, predominance, and superiority. | Keystone contends the defined class is cohesive and common issues predominate, and settlement is superior. | Yes; the class satisfies Rule 23(a) and (b)(3) for settlement purposes. |
| Whether the settlement is fair, reasonable, and adequate under Rule 23(e) | Settlement provides prompt relief and proportionate recovery considering risks of trial. | Settlement is fair given potential defenses and uncertainties of proving willfulness and damages. | Yes; the settlement is fair, reasonable, and adequate. |
| Whether the attorney’s fees provision is fair and proper | Fees were integrated into the settlement and should reflect reasonable compensation. | Fees must be scrutinized to avoid reciprocal impact on class recovery. | Yes; the fee provision is fair and reasonable given hours, rates, and court-approved process. |
| Whether the process and notice to class satisfied due process | Notice was clear, comprehensive, and allowed opt-out/objection; notice was mailed to last known addresses. | Notice procedure was adequate to inform members and secure participation. | Yes; notice complied with due process and informed participation. |
Key Cases Cited
- Amchem Prods., Inc. v. Windsor, 521 U.S. 591 (Sup. Ct. 1997) (settlement class certification requires careful balance of interests and final approval standards)
- Cohen v. Chilcott, 522 F. Supp. 2d 105 (D.D.C. 2007) (class certification and settlement considerations in the District of Columbia)
- In re Vitamins Antitrust Litig., 305 F. Supp. 2d 100 (D.D.C. 2004) (court’s review of reasonableness of settlements and attorney’s fees in complex actions)
- In re Vitamins Antitrust Litig., 209 F.R.D. 251 (D.D.C. 2002) (predominance and superiority in class actions involving antitrust claims)
- Pigford v. Glickman, 182 F.R.D. 341 (D.D.C. 1998) (class actions; framework for evaluating settlement fairness and adequacy)
