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Hobbs v. Tandem Environmental Solutions, Inc.
6:10-cv-01204
D. Kan.
Oct 4, 2012
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Background

  • Plaintiffs Hobbs and Martin sued defendants TANDEM ENVIRONMENTAL SOLUTIONS, INC. and Brad Duggins under the FLSA for unpaid wages and overtime.
  • The Court provisionally certified a collective action for Tesco office cleaners in Wichita who traveled between job sites and were not paid for travel time.
  • Zenner and Humbolt filed consents to opt in and are treated as party plaintiffs.
  • Following mediation, the parties sought court approval of a settlement and release agreement; the Court previously overruled a prior motion for approval because final certification was lacking.
  • Plaintiffs withdrew their request for collective action certification, acknowledging some members did not fit the class, and Marsh would be compensated under the settlement.
  • The Court ultimately approved the settlement and awarded attorney fees and costs, dismissing the case.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether the settlement of the FLSA claims is fair and reasonable Hobbs, Martin, Humbolt, Zenner argue for immediate relief and compromise in light of disputed claims. TESCO and Duggins contend the dispute is bona fide and a settlement is appropriate. Settlement approved as fair and reasonable.
Whether there is a bona fide dispute over travel-time wages Travel time constitutes unpaid wages/overtime under FLSA. Travel time disputed as not owed or partially compensated, and some claims barred by res judicata. Court finds a bona fide dispute exists and weighs settlement accordingly.
Whether attorney fees and costs are reasonable Request for $9,500 in fees and costs supported by lodestar figures. Rates and hours require adjustment; some rates reduced. Court reduces rates, approves $9,500 total fees and costs as reasonable.
Whether final collective action certification is warranted Court should finalize certification for the settlement to proceed. Withdrawal of certification due to ineligible or unlocatable members; no final certification. Court does not grant final collective action certification; settlement still approved.

Key Cases Cited

  • Lynn’s Food Stores, Inc. v. United States, 679 F.2d 1350 (11th Cir. 1982) (private negotiation not allowed; settlement must be fair and reasonable under FLSA)
  • Dees v. Hydradry, Inc., 706 F. Supp.2d 1227 (M.D. Fla. 2010) (courts assess settlements under FLSA with fairness considerations)
  • Collins v. Sanderson Farms, Inc., 568 F. Supp.2d 714 (E.D. La. 2008) (fairness factors and wage computation context in settlement)
  • Rosenbaum v. MacAllister, 64 F.3d 1439 (10th Cir. 1995) (Johnson factors guide fee assessment in FLSA settlements)
  • Johnson v. Georgia Highway Express, Inc., 488 F.2d 714 (5th Cir. 1974) (established factors for evaluating attorney fees in settlements)
  • Perdue v. Kenny A. ex rel. Winn, 559 U.S. 542 (2010) (guides lodestar adjustments in fee awards)
  • Wright v. U-Let-Us Skycap Serv., Inc., 648 F. Supp. 1216 (D. Colo. 1986) (Johnson factors and fee-setting framework used by court)
Read the full case

Case Details

Case Name: Hobbs v. Tandem Environmental Solutions, Inc.
Court Name: District Court, D. Kansas
Date Published: Oct 4, 2012
Docket Number: 6:10-cv-01204
Court Abbreviation: D. Kan.