Candace Nall v. Mal-Motels, Inc.
723 F.3d 1304
| 11th Cir. | 2013Background
- Nall worked for Mal-Motels (Mohammad Malik) 2005–2006 and again from Aug 2008; no accurate written hours records after Dec 2008 as Malik told her to stop using the time clock and paid a salary based on his reports
- Nall occasionally worked overtime but was not paid 1.5x hourly rate; Mal-Motels acknowledges some unpaid overtime but disputes hours and amounts
- Nall filed an FLSA lawsuit on Mar 29, 2010; Malik, acting without counsel, initially answered for himself and Mal-Motels; Mal-Motels’ answer was struck and a default entered against Mal-Motels
- In May 2010 Malik discussed settlement with Nall without her attorney; they signed two documents and Nall received cash; there was no written settlement agreement
- June 2, 2010 Nall’s pro se voluntary dismissal with prejudice was filed but later deemed ineffective; the district court then granted a settlement-approval/enforcement motion after an evidentiary hearing
- District court ultimately approved and dismissed the complaint with prejudice; Nall appeals claiming the settlement was improper and not a valid Lynn’s Food–style settlement to which FLSA protections apply
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does Lynn's Food apply to former employees negotiating FLSA settlements with employers? | Nall | Mal-Motels | Yes; Lynn's Food applies to former employees as well |
| Was the settlement approved a valid 'stipulated judgment' under Lynn's Food? | Nall | Mal-Motels | No; the judgment was not a true stipulated judgment because one side objected and counsel was not involved |
| Was the district court's approval enforcing the settlement proper given lack of attorney participation? | Nall | Mal-Motels | Improper; court should not have approved/enforced without Nall’s counsel |
| Should the district court have dismissed the case despite the settlement? | Nall | Mal-Motels | Remanded; dismissal with prejudice was incorrect |
Key Cases Cited
- Lynn's Food Stores, Inc. v. United States, 679 F.2d 1350 (11th Cir. 1982) (two routes to settlement: with DOL supervision or via court-approved settlement in employee suit)
- Brooklyn Sav. Bank v. O'Neil, 324 U.S. 696 (Supreme Court 1945) (limits on waiving liquidated damages; protects statutory wage rights to deter noncompliance)