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