April 2010

Guolee and Scharg Defeat FLSA Class Action Claim

Chicago shareholder Terrence Guolee and associate Ari Scharg recently obtained the dismissal of a developer of a condominium project and one of its principals from a class action lawsuit filed in the Northern District of Illinois Federal District Court under the federal Fair Labor Standards Act (FLSA), 29 U.S.C. § 201. In the case, the plaintiffs alleged that Q&H's clients assumed responsibilities for payment of a contractors' employees during the construction project following problems that arose on the project with the general contractor and one of its subcontractors. Through early investigation and aggressive use of the threat of sanctions under Federal Rule of Civil Procedure 11, plaintiff counsel was forced to drop his claims against Terrence and Ari's clients.

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