Morris v. Trugreen, Inc.
6:17-cv-01465
| M.D. Fla. | Jun 3, 2019Background
- Plaintiffs (five former TruGreen employees) sued under the FLSA for unpaid overtime; parties reached a settlement and sought court approval and dismissal with prejudice.
- The parties submitted an initial settlement; the Court rejected it for multiple impermissible provisions (overbroad general release, modification-by-writing clause, unilateral voiding language, unexplained no-reemployment clause, and lack of severability).
- The parties filed two revised agreements; the final Revised Agreement removed the contested modification language and addressed prior defects.
- Under the Revised Agreement, plaintiffs collectively receive $8,848.40 (specified by plaintiff) against substantially larger claimed amounts, reflecting a compromise of FLSA claims.
- Plaintiffs’ counsel will receive $16,303.20 in fees and costs (negotiated separately); defendant also agreed to pay $1,350 mediation cost.
- The magistrate judge reviewed the Revised Agreement under Lynn’s Food and related Eleventh Circuit and Middle District authorities and recommended approval and dismissal with prejudice.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the FLSA settlement is a fair and reasonable compromise of a bona fide dispute | Settlement resolves bona fide disputes and is fair given litigation uncertainty | Settlement is a fair compromise; parties negotiated with counsel | Approved: court found bona fide dispute and settlement fair and reasonable |
| Whether attorney's fees allocation is reasonable and tainted by contingency arrangement | Fees were negotiated separately and should not affect plaintiff recovery | Fees are reasonable and separately negotiated | Approved under Bonetti framework; court accepted separate negotiation and did not independently recalculate fees |
| Whether prior problematic contract provisions rendered settlement invalid | Plaintiffs revised Agreement to remove objectionable clauses | Defendant agreed to revised terms removing prior defects | Revised Agreement cured earlier defects (no-modification language removed); court accepted revisions |
| Whether case should be dismissed with prejudice after approval | Parties requested dismissal upon court approval | Defendant consented to dismissal if court approves settlement | Recommended dismissal with prejudice after approval |
Key Cases Cited
- Lynn's Food Stores, Inc. v. United States Dep't of Labor, 679 F.2d 1350 (11th Cir. 1982) (district court must scrutinize FLSA settlements for fairness and approve compromises only after review)
- Leverso v. SouthTrust Bank of Ala., Nat'l Assoc., 18 F.3d 1527 (11th Cir. 1994) (factors for evaluating settlement fairness)
- Silva v. Miller, [citation="307 F. App'x 349"] (11th Cir. 2009) (court must review reasonableness of counsel's fees in FLSA settlements to avoid reducing employee recovery)
- Bonetti v. Embarq Mgmt. Co., 715 F. Supp. 2d 1222 (M.D. Fla. 2009) (if fees are negotiated separately and settlement disclosures are adequate, court may approve without separate lodestar analysis)