Tip Class Action Peter Lagorio Hal Levitte Drazan Lapic Boston MA

"BostonCoach has agreed to pay more than $1 million to settle a class-action lawsuit over its alleged failure to remit tips to drivers who transported its customers through affiliated transportation companies. The Everett limousine service, a subsidiary of Boston’s Fidelity Investments, billed its customers an 18 percent service charge, in addition to the cost for rides. Lawyers for the drivers, who did not receive any of the money, argued the charge is the equivalent of a tip under Massachusetts’ tips law. The drivers in question worked for companies that handled overflow rides for Boston Coach on a contract basis in Massachusetts. “Under the tip statute, it should have been distributed to the actual drivers who did the jobs, regardless of whether they were direct employees of Boston Coach or employees of another company that provided services on behalf of Boston Coach,” said Peter Lagorio, the Boston attorney who filed the Suffolk Superior Court lawsuit in 2006 on behalf of drivers Zvonko Bozic, Indira Haler and Drazan Lapic. The proposed settlement would cover the period from Sept. 8, 2004, through July 1, 2007. More than 600 Massachusetts drivers are expected to receive compensation under the deal, which still requires final court approval. Drivers have until Sept. 30 to file their claims. “The value of each individual claim will be initially valued at $18 per ride that can be verified,” Lagorio said. “But, depending on how many claims that are filed, the actual dollar value that people will get may be less than that.” The proposed $1 million-plus settlement first will be reduced by $320,500 in lawyers’ fees and expenses. Boston Coach, which does business in 450 cities worldwide and took in revenue of $169 million last year, has denied liability, according to the proposed settlement. “We think the resolution of this matter will bring closure and be in the best interests of all involved,” said Lisa Allen, Boston Coach’s senior vice president of marketing. A court hearing on the fairness of the proposed settlement is set for July 18 at the Suffolk County Superior Courthouse."