Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-azd-2_06-cv-01318/USCOURTS-azd-2_06-cv-01318-1/pdf.json

Nature of Suit Code: 710
Nature of Suit: Fair Labor Standards Act
Cause of Action: 29:201 Denial of Overtime Compensation

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WO

IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF ARIZONA

THOMAS HAND, a married man filing

individually and on behalf of all others

similarly situated; SHAHIN ADIBMEHR,

a single man filing individually and on

behalf of all others similarly situated;

JOSEPH COLE, a single man filing

individually and on behalf of all others

similarly situated; and MELANIE CARTE,

a single woman filing individually and on

behalf of all others similarly situated; 

 Plaintiffs,

vs.

DIONEX CORPORATION, a Delaware

Corporation;

 Defendant.

Case No. CV 06-1318-PHX-JAT

ORDER

The parties have filed a Joint Motion Requesting that the Court Reconsider Its Order

Re: Joint Motion to Approve Settlement Agreement and Dismiss Lawsuit (Doc. #51). The

Court entered an Order on October 16, 2007 dismissing the case pursuant to a stipulation

without approving the Settlement Agreement (Doc. #49). The parties ask this Court to

reconsider its October 16 Order and, pursuant to Lynn’s Food Stores, Inc. v. United States,

Case 2:06-cv-01318-JAT Document 52 Filed 11/13/07 Page 1 of 3
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679 F.2d 1350 (11th Cir. 1982), enter an Order that specifically approves the parties’

Settlement Agreement. The Court will grant the joint motion to reconsider.

In Lynn’s, the Eleventh Circuit held:

There are only two ways in which back wage claims arising

under the FLSA can be settled or compromised by Employees.

First, under section 216(c), the Secretary of Labor is authorized

to supervise payment to employees of unpaid wages owed to

them. An employee who accepts such a payment supervised by

the Secretary thereby waives his right to bring suit for both the

unpaid wages and for liquidated damages, provided the

employer pays in full the back wages.

The only other route for compromise of FLSA claims is

provided in the context of suits brought directly by employees

against their employer under section 216(b) to recover back

wages for FLSA violations. When employees bring a private

action for back wages under the FLSA, and present to the

district court a proposed settlement, the district court may enter

a stipulated judgment after scrutinizing the settlement for

fairness.

Lynn’s, 679 F.2d at 1352-53.

Normally, the Court does not rule on a private settlement negotiated between parties.

But because Plaintiffs filed a FLSA action against Defendant, the parties must seek approval

of their stipulated settlement in order to ensure the enforceability of the Settlement

Agreement. Id.; see also Thornton v. Solutionone Cleaning Concepts, Inc., 2007 WL 210586

*3 (E.D. Cal. Jan. 26, 2007). The Court may approve the settlement if it reflects a

“reasonable compromise over issues.” Lynn’s, 679 F.2d at 1354.

The Court has reviewed the proposed Settlement Agreement and finds that it does in

fact reflect a fair and reasonable resolution of the issues. Defendant strongly contested

liability under the FLSA; claiming the Plaintiffs were exempt employees. Further, even if

the Plaintiffs could have proven liability, they would have faced difficultly establishing that

each Plaintiff worked more than 40 hours per week or 8 hours per day. The parties also had

a bona fide dispute regarding the treatment under the FLSA of the time spent traveling to and

Case 2:06-cv-01318-JAT Document 52 Filed 11/13/07 Page 2 of 3
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from work. Finally, the proposed distribution to each Plaintiff is fair because the distribution

directly relates to each Plaintiff’s length of employment with Defendant. 

Because this particular case represents an exception to the normal rule that courts do

not rule on the merits of a privately negotiated settlement agreement, the Court will grant the

motion to reconsider and enter a new stipulated judgment of dismissal.

Accordingly,

IT IS ORDERED GRANTING the Joint Motion Requesting that the Court Reconsider

Its Order Re: Joint Motion to Approve Settlement Agreement and Dismiss Lawsuit (Doc.

#51).

IT IS FURTHER ORDERED VACATING the Court’s Order of October 16, 2007

(Doc. #49).

IT IS FURTHER ORDERED GRANTING the Joint Motion to Approve Settlement

Agreement and to Dismiss Lawsuit (Doc. #48). The Court finds that the Settlement

Agreement is a fair and reasonable resolution of a bona fide dispute over wages owed

pursuant to the federal Fair Labor Standards Act (the “FLSA”), and accordingly, the

Settlement Agreement is approved. 

IT IS FURTHER ORDERED that Plaintiff Thomas Hand’s claim for retaliation in

violation of the FLSA (Count II of the First Amended Complaint) is dismissed without

prejudice; and all other claims comprising this action are dismissed with prejudice.

IT IF FURTHER ORDERED that the Court shall retain jurisdiction over the parties

to enforce the Settlement Agreement. 

DATED this 9th day of November, 2007.

Case 2:06-cv-01318-JAT Document 52 Filed 11/13/07 Page 3 of 3