Warsame v. Metropolitan Transportation Network, Inc.

Background

The court considered Plaintiff’s unopposed motion for final approval of a settlement. The parties had consented to the magistrate judge’s jurisdiction under 28 U.S.C. § 636(c) and Federal Rule of Civil Procedure 73. The court stated that it had jurisdiction over the litigation and the parties.

The settlement concerned a Minnesota Rule 23 class and a Fair Labor Standards Act collective action involving wage claims under the Minnesota Fair Labor Standards Act and the Minnesota Payment of Wages Act. The court had preliminarily approved the proposed settlement, conditionally certified the class and collective action for settlement purposes, appointed class counsel, approved the notice process, and scheduled a final approval hearing.

Settlement class and notice

The court finally certified, for settlement purposes, the following group: all people who worked as school bus drivers for Metropolitan Transportation Network, Inc. at any time from June 5, 2017, through July 7, 2021.

The court determined that 624 people met that definition. The preliminary approval order had counted 625 people, but Plaintiff’s counsel reported that one person appeared twice on the class list under different identification numbers, so that person’s awards were combined into one record.

The court found that the parties distributed the settlement notices in the previously approved form and manner and that the notice was sufficient. None of the 624 eligible settlement class members objected. Three requested exclusion. Notices to 17 people remained undeliverable after tracing, telephone outreach, and remailing; two of those 17 also had a text message returned as undeliverable.

Fairness finding and settlement terms

The court reaffirmed that the settlement was fair, reasonable, and adequate under Rule 23(e)(2). The total settlement was $257,500. After attorneys’ fees and costs, the class representative’s service award, and a $50 minimum allocation per person, eligible settlement class members were expected to recover 99.25% of their alleged unpaid wages and 13% in liquidated damages for a three-year statutory period.

Each eligible settlement class member would receive a settlement check. Under the order, cashing the check would constitute joining the action and settlement, accepting the settlement’s terms, and releasing covered federal and Minnesota wage claims against the defendant and specified related parties for the period from June 5, 2017, through July 7, 2021. The released subjects included overtime, minimum wage, breach of contract to pay wages, recordkeeping, hours of work, liquidated damages, and related attorneys’ fees and costs. People who did not cash their checks would not release claims and would retain any rights they might have to bring or continue their own lawsuit.

The order contains two different check-cashing periods: one paragraph states that checks must be cashed within 55 days of issuance, while the timeline later states that eligible members have 90 days from issuance. The order directs the parties to file a stipulation for dismissal within 55 days after the check-cashing period ends. Claims of people who did not timely cash their checks would be dismissed without prejudice, while claims asserted in this action by people who cashed their checks and were subject to the release would be dismissed with prejudice.

Fees, costs, and service award

The court approved $85,833.33 in attorneys’ fees for Nichols Kaster, PLLP, finding the request fair and reasonable. The award represented 33.33% of the total settlement. The court also approved $5,425 in litigation costs and $11,000 in administration costs, as well as a $2,500 service award for Noridin Warsame.

Individual exclusions and dismissals

The parties attempted to exclude plaintiffs in a separate District of Minnesota case from the settlement class list. Mohamed Adan was inadvertently included because he had two employee identification numbers, one of which was removed, reducing the class count from 625 to 624.

Mohamed Adan, Ruby Ross-Jayeola, and Elizabeth Schmit were dismissed without prejudice after submitting written exclusion requests. The order also states that Ross Nova did not work as a school bus driver during the relevant period and withdrew, and that Mark Turner did not work for the defendant and did not respond to efforts to verify employment. Ross Nova and Mark Turner were dismissed without prejudice.

Ruling

Judge Elizabeth Cowan Wright granted Plaintiff’s unopposed motion for final approval of the settlement. The order dismissed any claims not otherwise resolved without prejudice and without taxation of costs, and retained exclusive and continuing jurisdiction to supervise, implement, interpret, and enforce the order and settlement agreement. The order stated that it was not an admission, concession, or presumption by or against any released party, Plaintiff, or class or collective member.