Judge OKs pay settlement on lawsuit filed by limo drivers

A U.S. District Court judge has signed off on a settlement agreement on a class-action lawsuit filed by 13 Bell Transportation limousine drivers over whether the company paid them properly.

Judge Jennifer A. Dorsey approved the $3.85 million settlement that will result in members of the class receiving an average payment of $1,800, at least half of which will be taxed.

“We’re working with the third-party administrator to make the appropriate payments so we can move on,” said Bell Transportation President Brent Bell. “It’s been a long, expensive battle and we’re happy to put it behind us.”

The 13 drivers listed as plaintiffs — Anthony Lucas, Gregory Castello, Lillian Melton, Leavon Smith, Robert Greene, James Biggs, Larry Dutcher, William Sack, Donald Spearce, Merrill Clair, Bradley Edwards, Robert McCoy and Lisa Medford — will receive payments of between $2,500 and $22,500 based on their participation in the case.

Half of the settlement money received by eligible members of the class is being considered gross wages and will be taxed while the other half is considered nontaxable interest, liquidated damages and waiting-time penalties.

Attorneys for the drivers did not reply to inquiries about the number of eligible members of the class, but in March, 545 had been qualified from the 2,000 claim form mailings that had been distributed.

The settlement also awards $1.27 million, less administrative costs and expenses, to attorneys handling the case. The class was represented by two Reno labor attorneys, Jason Kuller and Mark Thierman.

Drivers who participated in the class were employed by four Bell subsidiaries, Bell Trans, Bell Limo, Presidential Limousine and Whittlesea-Bell, between Dec. 18, 2005, and Jan. 1, 2011.

The class action was filed on Dec. 18, 2008, alleging violation of the federal Fair Labor Standards Act. Bell and the drivers mediated the dispute in 2010 and 2011. After those mediations failed, the two sides discussed a settlement in 2012.

The proposed settlement class was initially divided into one covering claims arising from federal laws and a second involving potential violations of state laws, but the state claim eventually was dismissed.

The lawsuit said the company failed to pay regular wages, minimum wages and overtime wages for all hours worked, failed to pay wages due at the termination of employment and improperly withheld wages.

Throughout the process, the company has denied the allegations. Brent Bell said the company opted to settle to avoid “costly, disruptive and time-consuming litigation,” conceding that the company didn’t have the documentation necessary to disprove the allegations. Bell said the company has since refined its record-keeping system to avoid future problems.

“It came down to an evidence contest and a burden-of-proof issue,” Bell said. “We decided it was in our best interest to get out from under this dark cloud that was being cast over our business.”

Contact reporter Richard N. Velotta at rvelotta@reviewjournal.com or 702-477-3893. Follow him on Twitter @RickVelotta.