Thompson v. American Limousine Group, LLC

Background

Ernest Thompson, Alicia Campbell, Keisha Allen, Anthony DeAngelis, and Kofi Baning sued American Limousine Group, LLC, doing business as Addison Lee, individually and on behalf of similarly situated people. The order concerns the parties’ Final Settlement Agreement and Release and an addendum to that agreement.

The settlement addressed claims involving drivers who, according to company records, took company vehicles home and were not paid for commuting time. It also addressed drivers for whom amounts received from customers as potential gratuities were allegedly retained. The order certified two settlement classes covering specified drivers associated with American Limousine LLC, Flyte Tyme Worldwide Transportation, and Tristar Chauffeur Management Inc., subject to the dates, classifications, and exclusions stated in the order.

The court noted that American Limousine LLC filed a voluntary Chapter 11, Subchapter V bankruptcy case, identified as Case No. 21-10121, in the United States Bankruptcy Court in Newark, New Jersey. That bankruptcy court approved a reorganization plan. Under the plan, payments to unsecured creditors, including qualified class members, would be made on a pro rata basis from the debtor’s post-petition disposable income and would end on the specified payment-period deadline. The plan did not guarantee a minimum or specific payment toward the aggregate settlement amount.

Settlement Approval

The court granted final approval of the settlement. It found the agreement procedurally and substantively fair, reasonable, adequate, and not the product of collusion. The court relied on the parties’ arm’s-length negotiations, experienced counsel, two full-day mediations, the parties’ evaluation of the claims and defenses, and the response to notice.

The court found that the notice program complied with due-process requirements and was the best practicable notice under the circumstances. The order states that class members received information about the settlement, monetary relief, the allocation formula, and their rights to object or exclude themselves. No class member objected or opted out.

For settlement purposes only, the court found that the requirements for class certification under Federal Rule of Civil Procedure 23 were met. Those findings included numerosity, common legal or factual questions, typicality, adequate representation, predominance of common questions, and superiority of the class procedure for resolving the claims. The court confirmed Simpluris Inc. as the settlement administrator.

Fair Labor Standards Act Settlement

The Fair Labor Standards Act, or FLSA, is the federal wage-and-hour law under which the order separately approved the parties’ FLSA settlement. The court found that the FLSA settlement reflected a fair and reasonable compromise reached through good-faith, arm’s-length negotiations by experienced counsel.

Distribution and Judgment

The aggregate settlement amount was to be paid according to the bankruptcy reorganization plan and distributed on a pro rata basis through the escrow account, subject to the settlement agreement and the order. The settlement administrator was directed to calculate pro rata shares for qualified class members, the named plaintiffs’ service awards, and class counsel’s fees and costs as provided in the settlement and final approval order.

The order authorized initial and final distributions and up to five interim distributions if the parties agreed that an interim distribution was economically feasible. Only qualified class members who cashed their initial distribution checks could receive an interim distribution. The order states that amounts distributed could total up to $1,445,000, less applicable items such as appropriate expenses, but also states that the bankruptcy plan did not guarantee payment of the full aggregate settlement amount.

The settlement’s effective date was set at 30 days after the order if no party appealed, or the day after all appeals were finally resolved if an appeal occurred. The court retained jurisdiction to enforce the settlement and oversee distribution of settlement funds under the bankruptcy plan. Upon entry of the order, the litigation was dismissed with prejudice, and covered Rule 23 class members who did not exclude themselves and FLSA class members who opted into the lawsuit were permanently barred from pursuing or reopening claims released by the settlement.