Dolan v. FedEx Ground Package System, Inc.

Background

Philip Dolan sued FedEx Ground Package System, Inc. (FedEx) and Josemite IV, Inc. The lawsuit arose from Dolan’s employment as a driver for Josemite IV, which had contracted with FedEx for package delivery. Dolan alleged violations of California law involving overtime and minimum wages, premium pay for missed meal and rest periods, penalties related to separation pay and wage statements, and reimbursement of business expenses. He asserted eight California statutory claims and sought to represent a class of people employed by Josemite IV in pickup, delivery, or similar positions.

On March 8, 2021, Dolan and Josemite IV executed a settlement agreement and general release. The agreement released Josemite IV and FedEx from claims based on events occurring on or before the release date, expressly including claims related to this lawsuit and Dolan’s work for Josemite IV and FedEx. It also stated that Dolan waived any right or ability to represent or participate in a class, collective, or multiparty action based on those claims involving a released party.

Motion and analysis

FedEx moved for summary judgment, arguing that the release barred Dolan’s individual and class claims and that he had waived his ability to represent a class or participate in a class action. Dolan filed a statement of non-opposition. The court explained that summary judgment is appropriate when there is no genuine dispute about a material fact and the moving party is entitled to judgment as a matter of law.

The court stated that, when a plaintiff settles and releases the claims in the action, no live case or controversy remains and the court lacks subject-matter jurisdiction to reach the merits. It found that the agreement indisputably settled Dolan’s claims against FedEx and specifically included the claims asserted in this lawsuit. Because Dolan could no longer assert his individual claims, he also could not serve as a class representative. The court further found that he had not retained a financial stake in the class claims and had expressly waived participation in a class action.

The court noted that no class had been certified. Therefore, Dolan’s individual settlement did not prevent other potential class members from bringing a lawsuit or seeking class certification, and the ruling affected only the named plaintiff.

Disposition

The court granted FedEx’s motion for summary judgment. The motion was brought only on behalf of FedEx. The court requested a stipulation of dismissal for Josemite IV by October 29, 2021. If the stipulation was not filed, the court stated that it would dismiss the claims against Josemite IV without prejudice for failure to prosecute and then enter judgment in favor of FedEx. The order itself did not state that the claims against Josemite IV were dismissed at that time.