Judge: Carolyn M. Caietti, Case: 37-2021-00052868-CU-OE-CTL, Date: 2023-11-17 Tentative Ruling

SUPERIOR COURT OF CALIFORNIA,

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HALL OF JUSTICE

TENTATIVE RULINGS - November 16, 2023

11/17/2023  10:30:00 AM  C-70 COUNTY OF SAN DIEGO

JUDICIAL OFFICER:Carolyn Caietti

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Civil - Unlimited  Other employment Motion Hearing (Civil) 37-2021-00052868-CU-OE-CTL STEELE VS LEGOLAND CALIFORNIA LLC [E-FILE] CAUSAL DOCUMENT/DATE FILED: Motion for Approval of Class Settlement, 06/06/2023

Plaintiffs Sierra Steele and Elijah Wilkinson's Motion for Final Approval of Class Action is GRANTED.

The settlement class is certified for purposes of settlement. The class action settlement is fair, adequate, and reasonable, including the Gross Settlement Amount of $6,000,000. Class Counsel is awarded $2,000,000 in attorney fees and litigation costs of $40,000. Plaintiffs' service award of $10,000 each and the PAGA award of $200,000 (75% to LWDA & 25% to Affected Employees) are approved. The Court also approves $60,000 in administration expenses to ILYM Group, Inc.. This leaves a net settlement amount for the Class of $3,680,000.

Discussion On February 15, 2023, Plaintiffs filed a First Amended Complaint, alleging wage and hour claims and a PAGA cause of action.

The parties participated in two mediations before David Rotman. The case settled after the second mediation. The Court granted preliminary approval of the settlement. (ROA 49 – Minute Order dated June 30, 2023; ROA 53 – Order After Hearing.) This motion seeks final approval of the parties' proposed $6,000,000 wage and hour class action and PAGA settlement on behalf of 'all individuals employed by Defendant in the State of California in a non-exempt position during the Class Period' with some exception for individuals who signed a severance agreement. (See, Agreement, at ¶ 1.5.) The class consists of 8,170 Class Members who worked 329,007 workweeks. Of the 8,170 notices sent, 358 remain undeliverable. There was one objection as to the amount of attorney fees, and three requests for exclusion. The average individual settlement share for each class member is approximately $450.10 with the highest payment at $3,009.26 and the lowest payment at $11.19. There are 3,911 PAGA employees and 110,724 PAGA pay periods. The average PAGA payment is $12.78 with the highest at $44.25 and the lowest at $0.45.

The Court finds the settlement to be fair, adequate and reasonable. (See, e.g., Dunk v. Ford Motor Co. (1996) 48 Cal.App.4th 1794, 1800-01; Cal. Rules of Ct. rule 3.769(g).) The reasonableness of the settlement is further demonstrated by the fact that there was only one objection to a portion of the proposed settlement.

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2992543  39 CASE NUMBER: CASE TITLE:  STEELE VS LEGOLAND CALIFORNIA LLC [E-FILE]  37-2021-00052868-CU-OE-CTL Plaintiffs request $2,000,000 in attorney fees and $40,000 in costs. A percentage method may be used to calculate a reasonable fee in a common fund case such as this. (Laffitte v. Robert Half Intern. Inc.

(2016) 1 Cal.5th 480, 503.) The requested attorney fees and litigation costs are reasonable. The reasonableness is confirmed when double checked against the lodestar, which results in a 3.9 multiplier. (Laffitte, at p. 504 [courts may, but are not required to, double check the reasonableness of a percentage fee through a lodestar calculation].) The Court considered the objection and the statement dated November 8, 2023, by Richard Chmielewski, who acknowledged the proposed fee is in the range of typical class action fees.

(Polites Decl., at Ex. B; ROA 60 – Declaration of Kyle Nordrehaug filed Nov. 15, 2023.) Class counsel obtained a good result on behalf of 8,170 class members. The settlement amounts to an estimated 66% of the reasonable value of the potential maximum damages at issue for the Class, assuming the amounts could be proven in full at trial, and an average payment of $450.10 to class members. Counsel bore the entire risk and cost of litigation (over $40,000) on a contingency basis. Although the litigation costs are higher than anticipated, Plaintiffs only request the amount agreed to and sought at the preliminary approval hearing. Based on the foregoing, Plaintiffs' requests for attorney fees and costs are approved.

The $60,000 in settlement administration costs sought for services provided by ILYM Group, Inc. is supported by the Declaration of Cassandra Polites, appears reasonable given the high number of class members and is approved.

Incentive payments to class representatives 'must not be disproportionate to the amount of time and energy expended in pursuit of the lawsuit.' (Cellphone Termination Fee Cases (2010) 186 Cal.App.4th 1380, 1395.) The court must also consider the 'risk to the class representative in commencing suit' and any 'notoriety and personal difficulties' he or she encounters as a result of the litigation. (Id., at p. 1394.) Plaintiffs invested considerable time and effort assisting with the prosecution of the action. Plaintiff Steele estimates she spent 40-50 hours on the case; Plaintiff Wilkinson estimates he spent 30-40 hours on the case. The incentive payment is reasonable, uncontested and appropriate to compensate Plaintiffs for their efforts.

The Court assessed Amaro v. Anaheim Arena Management, LLC (2021) 69 Cal.App.5th 521, 538 and found the class releases 'do not extend to claims that are beyond the scope of the allegations in the complaint' and are 'appropriately tethered to the complaint's factual allegations.' (Amaro, supra.) The PAGA portion of the settlement also appears fair, reasonable and adequate in terms of PAGA's purposes to remediate present labor law violations, deter future ones and to maximize enforcement of state labor laws. (Muniz v. Adecco USA, Inc. (2021) 72 Cal.App.5th 56, 77.) Plaintiffs provided the LWDA with notice of this case and the proposed settlement. (Blumenthal Decl., at ¶ 3(i).) For these reasons, the motion is GRANTED.

Concluding Orders The Court will: (i) set a status conference on September 7, 2024 at 9:30 a.m. and modify the proposed order to reflect the change in time.; and (ii) sign the proposed order. (ROA 58.) Plaintiffs are ordered to serve notice of the Court's signed order and this ruling on all parties, including the objector, by November 14, 2023.

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