Lundberg v. Federal Express Corporation

Background

Richard Lundberg brought this Fair Labor Standards Act (FLSA) case on his own behalf and on behalf of similarly situated people against Federal Express Corporation. The court was advised that the parties reached a settlement after a settlement conference before Magistrate Judge Parker. The order does not state the settlement’s terms or approve the settlement.

Legal standard

The court stated that parties may not privately settle FLSA claims without approval from the district court or the Department of Labor. The court must determine whether the proposed agreement is a fair and reasonable compromise of disputed issues. It must consider the totality of the circumstances, including the plaintiff’s possible recovery; the burdens and expenses the settlement would avoid; the parties’ litigation risks; whether the agreement resulted from arm’s-length bargaining between experienced counsel; and the possibility of fraud or collusion.

When a settlement includes attorney’s fees, the court must separately evaluate whether those fees are reasonable. The parties must provide a factual basis for any fee award, including contemporaneous billing records identifying each attorney’s date of work, hours spent, and work performed.

Order

Judge Vernon S. Broderick ordered the parties to provide the settlement terms within 30 days so the court could review whether they comply with the FLSA and reflect a fair and reasonable compromise. The parties must also submit a joint letter of no more than five pages discussing why the settlement is fair and reasonable, including information about the identified evaluation factors. If the agreement provides for attorney’s fees, the parties must submit supporting evidence and billing records. The order did not grant final approval of the settlement.