300 F.R.D. 599
N.D. Ga.2014Background
- Plaintiff filed FLSA overtime claims on Feb 19, 2013 against Vital Recovery, Vital Solutions, and Shuler.
- Case conditionally certified as a collective action with 70+ opt-ins by Nov 15, 2013.
- Parties exchanged data during a discovery stay, seeking a possible settlement in Oct–Dec 2013.
- Defendants made Rule 68 offers of judgment to 69 plaintiffs on Dec 3, 2013; 25 accepted by Dec 20, 2013 subject to Lynn’s Food hearing.
- Plaintiff moves to nullify/strike 22 offers, contending they cover only one damages theory and lack supporting data.
- Court notes lack of documentation for bonus calculations and remaining two damage theories; schedules a Lynn’s Food review hearing.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Rule 68 offers in FLSA actions require Lynn's Food review. | Totenberg favors judicial scrutiny of settlements under Lynn's Food. | Rule 68 automatically enters judgment when accepted; no extra review required. | Offers subject to judicial scrutiny; not automatically binding without fairness review. |
| Whether the offers provided full relief across all damage theories. | Offers appear to cover only bonus damages; lacks data for off-the-clock and record-falsification theories. | Offers state full relief and include costs; documents show comprehensive settlement. | Record insufficient to confirm full relief for all theories; offers struck pending further review. |
| Whether to strike accepted and unaccepted Rule 68 offers due to lack of supporting data. | Need backup data and calculations for fair assessment of damages. | Provided spreadsheets but not raw data; argues fairness under Lynn's Food still possible. | Court grants partial nullification and strike of all offers; schedules further proceedings. |
Key Cases Cited
- Lynn's Food Stores, Inc. v. United States, 679 F.2d 1350 (11th Cir. 1982) (require court scrutiny of FLSA settlements for fairness)
- Nall v. Mal-Motels, Inc., 723 F.3d 1304 (11th Cir. 2013) (district court must approve reasonable compromise of FLSA claims)
- Delta Air Lines, Inc. v. August, 450 U.S. 346 (Supreme Court 1981) (Rule 68 offers of settlement promote settlement of litigation)