Judge: Elaine Lu, Case: 21STCV00443, Date: 2025-05-27 Tentative Ruling
Case Number: 21STCV00443 Hearing Date: May 27, 2025 Dept: 9
Preliminary Approval of Class Action
Settlement
Department SSC-9
Hon. Elaine Lu
Enrique Briseno v. Three Hands Corporation
Case
No.: 21STCV00443
Hearing: May 27, 2025
[TENTATIVE] RULING
The Parties’ Motion for Preliminary Approval
of Class Action Settlement is GRANTED as the settlement is fair,
adequate, and reasonable.
The essential terms of the agreement are:
A.
The
Gross Settlement Amount (“GSA”) is $425,000, non-reversionary. (¶C.1)
B.
The
Net Settlement Amount (“Net”) is the GSA minus the following:
o Up to $148,750 (35%)
for attorney fees (¶C.2.b);
o Up to $20,000 for litigation costs (Ibid.);
o Up to $10,000 for a Service Payment to
the Named Plaintiff (¶C.2.a); and
o Up to $20,000 for settlement
administration costs (¶C.2.c).
C.
Defendants
will separately pay any and all employer payroll taxes owed on the Wage
Portions of the Individual Class Payments. (¶C.1)
D.
Plaintiff’s
release of Defendants from claims described herein.
The
Parties’ Motion for Final Approval of Class Action Settlement must be filed by {the Court requests that the
parties indicate -- either in submitting to this tentative ruling or at the
hearing on this motion -- the filing deadline they would like the Court to set}
and will be heard on {the Court will select a hearing date based on the filing deadline that
the parties select}.
Failure to file the Parties’ Motion for Final Approval of Class
Action Settlement by this deadline will result in a continuance of the final
approval hearing to the Court’s first available hearing date, which could be
months after the hearing date noted here.
Prior to filing the moving papers, Plaintiff must contact the court
staff for Department 9 to obtain a briefing schedule, which must be included in
the caption of the moving papers.
The
Parties’ Motion for Final Approval of Class Action Settlement must include a
concurrently lodged single document that constitutes a [Proposed] Order
and Judgment containing among other things, the class definition, full release
language, and names of the any class members who opted out.
Non-Appearance
Case Review is set for {the Court will select a non-appearance case review date based on the
filing deadline that the parties select}, 8:30 a.m.,
Department 9 re filing of Motion for Final Approval of Class Action Settlement.
BACKGROUND
Plaintiff
Enrique Briseno sues his former employer, Defendants Three Hands Corporation
and Lyneer Staffing Solutions, LLC, for alleged wage and hour violations.
Plaintiff seeks to represent a class of non-exempt employees who, at any time
during the period from July 11, 2016, through September 30, 2024: (1) were on
the payroll of Defendant Three Hands Corporation and worked for Defendant Three
Hands Corporation in California; (2) were on the payroll of Defendant Lyneer
Staffing Solutions, LLC and were assigned to work at Defendant Three Hands
Corporation’s facility located in Sylmar, California; and (3) were on the
payroll of Defendant Partners Personnel – Management Services, LLC and were
assigned to work at Defendant Three Hands Corporation’s facility located in
Sylmar, California.
On January
7, 2021, Plaintiff filed a wage-and-hour class action lawsuit against Defendant
alleging causes of action for: (1) Violation of California Labor Code §§ 510
and 1198 (Unpaid Overtime); (2) Violation of California Labor Code §§ 226.7 and
512(a) (Unpaid Meal Period Premiums); (3) Violation of California Labor Code §
226.7 (Unpaid Rest Period Premiums); (4) Violation of California Labor Code §§
1194 and 1197 (Unpaid Minimum Wages); (5) Violation of California Labor Code §§
201 and 202 (Final Wages Not Timely Paid); (6) Violation of California Labor
Code § 226(a) (Non-Compliant Wage Statements); (7) Violation of California
Labor Code §§ 2800 and 2802 (Unreimbursed Business Expenses); and (8) Violation
of California Business & Professions Code § 17200, et seq.
On March
3, 2022, the parties attended mediation before mediator Kelly Knight, which
eventually resulted in settlement via a mediator’s proposal on July 26, 2024. The
terms of settlement were finalized in the long-form Class Action Settlement
Agreement (“Settlement Agreement”), a copy of which is attached to the
Declaration of Douglas Han filed January 2, 2025 (“Han Decl.”) as Exhibit 2.
Pursuant
to the settlement, on September 12, 2024, Plaintiff filed a First Amended
Complaint that updated the “class” definition and added Defendant Lyneer
Staffing Solutions, LLC as a named defendant.
On
March 19, 2025, the Court called the matter of Plaintiff’s Motion for
Preliminary Approval of Settlement for hearing and continued the matter for the
parties to address certain issues regarding the inclusion of Partners Personnel
– Management Services, LLC in the settlement despite not being named in the
lawsuit.
On
March 21, 2025, Plaintiff filed a Doe Amendment that added Defendant Partners
Personnel – Management Services, LLC as a named defendant. On April 25, 2025,
Plaintiff’s Counsel filed an Amended Settlement Agreement to address remaining
issues related to the amended complaint. All references below are to the Amended
Settlement Agreement attached to the Supplemental Declaration of Douglas Han as
Exhibit 4.
Now
before the Court is the Motion for Preliminary Approval of the Settlement
Agreement.
SETTLEMENT CLASS DEFINITION
·
“Class” means all hourly-paid, non-exempt employees who, at any time during the
Class Period: (a) were on the payroll of Defendant Three Hands Corporation and
worked for Defendant Three Hands Corporation in the State of California; (b)
were on the payroll of Defendant Lyneer Staffing Solutions, LLC and were
assigned to work at Defendant Three Hands Corporation’s facility located at
13259 Ralston Avenue, Sylmar, California 91342; and (c) were on the payroll of Defendant
Partners Personnel – Management Services, LLC and were assigned to work at
Defendant Three Hands Corporation’s facility located at 13259 Ralston Avenue,
Sylmar, California 91342. (¶A.4)
·
“Class
Period” means the period from July 11, 2016, through September 30, 2024. (¶A.11)
·
“Participating
Class Member” means a Class Member who does not submit a valid and timely
Request for Exclusion from the Settlement. (¶A.25)
·
Class
Members and Workweeks: Based on a review of its records to date, Defendants
estimates there are a total of 1,139 Class Members who worked a total of 25,423
Workweeks during the Class Period. The breakdown is as follows: (a) 21
employees and 2,586 workweeks for Three Hands Corporation; (b) 829 employees
and 20,851 workweeks for Lyneer Staffing Solutions, LLC; and (c) 289 employees
and 1,986 workweeks for Defendant Partners
Personnel – Management Services, LLC. (¶D.1)
TERMS OF SETTLEMENT AGREEMENT
The essential terms are as follows:
E. The Gross Settlement Amount (“GSA”) is $425,000, non-reversionary.
(¶C.1)
F. The Net Settlement Amount (“Net”) ($226,250)
is the GSA minus the following:
o Up to $148,750
(35%) for
attorney fees (¶C.2.b);
o Up to $20,000 for litigation costs (Ibid.);
o Up to $10,000 for a Service Payment to
the Named Plaintiff (¶C.2.a); and
o Up to $20,000 for settlement
administration costs (¶C.2.c).
G. Defendants will separately pay any and all
employer payroll taxes owed on the Wage Portions of the Individual Class
Payments. (¶C.1)
H. There is no claim form requirement. (¶C.1)
I.
Individual Settlement Payment Calculation: Each
Participating Class Member will receive an Individual Class Payment calculated
by (a) dividing the Net Settlement Amount by the total number of Workweeks
worked by all Participating Class Members during the Class Period; and (b)
multiplying the result by each Participating Class Member’s Workweeks during
the Class Period. (¶C.2.d)
Non-Participating Class Members will not receive any Individual Class Payments.
The Administrator will allocate amounts equal to their Individual Class Payments
in the Net Settlement Amount for distribution to Participating Class Members on
a pro rata basis. (¶C.2.d.ii)
o Tax Allocation: Each Participating Class Member’s Individual
Class Payments will be allocated as follows: 20% as wages, 80% as interest and
penalties. (¶C.2.d.i)
J.
Response Deadline: “Response Deadline”
means forty-five (45) calendar days after the Administrator mails the Class
Notice to Class Members and shall be the last date on which Class Members may:
(a) fax, email, or mail Requests for Exclusion from the Settlement; or (b) fax,
email, or mail his or her Objection to the Settlement. Class Members to whom
Class Notices are resent after having been returned undeliverable to the
Administrator shall have an additional fourteen (14) calendar days beyond the
Response Deadline has expired. (¶A.31) The same deadlines apply to the
submission of workweek disputes. (¶G.6.a)
K. Funding of Settlement: Of the Gross
Settlement Amount, Defendant Three Hands Corporation will pay $125,000, and
Defendant Lyneer Staffing Solutions, LLC will pay $300,000. (¶C.1) Defendants
shall fund the Gross Settlement Amount and fund all employer payroll taxes owed
on the Wage Portion of the Individual Class Payments by transmitting the funds
to the Administrator no later than the Effective Date. (¶D.2)
o “Effective Date” means fourteen (14) calendar
days after both of the following have occurred: (a) the Court enters a Judgment
on its Order Granting Final Approval of the Settlement; and (b) the Judgment is
final. The Judgment is final as of the latest of the following occurrences: (i)
if no Participating Class Member objects to the Settlement, the day the Court
enters Judgment; (ii) if one or more Participating Class Members objects to the
Settlement, the day after the deadline for filing a notice of appeal from the
Judgment; or (iii) if a timely appeal from the Judgment is filed, the day after
the appellate court affirms the Judgment and issues a remittitur. (¶A.17)
L. Disbursement: Within fourteen (14) calendar
days after Defendants fully fund the Gross Settlement Amount, the Administrator
will mail checks for the Class Counsel Fees Payment, Class Counsel Litigation
Expenses Payment, Class Representative Service Payment, Administration Expenses
Payment, and Individual Class Payments. Disbursement of the Class Counsel Fees
Payment, Class Counsel Litigation Expenses Payment, and Class Representative
Service Payment shall not precede disbursement of Individual Class Payments. (¶D.3)
M. Uncashed Settlement
Checks: The
face of each check shall state checks that are not cashed within one hundred
eighty (180) calendar days after the date of mailing will be voided. (¶D.3.a) For
any Class Member whose Individual Class Payment check is uncashed and cancelled
after the void date, the Administrator shall transmit the funds represented by
such checks to the California Controller’s Unclaimed Property Fund in the name
of the Class Member, thereby leaving no “unpaid residue” subject to the
requirements of Code of Civil Procedure section 384, subd. (b). (¶D.3.c)
N. The settlement administrator will be CPT
Group, Inc. (¶A.2)
O. Notice of Final Judgment will be posted on the Settlement
Administrator’s website. (¶G.8.a)
P. Participating class members and the named
Plaintiff will release certain claims against Defendants. (See further
discussion below)
ANALYSIS OF SETTLEMENT AGREEMENT
1. Does a presumption of fairness exist?
1.
Was
the settlement reached through arm’s-length bargaining? On March 3, 2022, the parties
attended mediation before mediator Kelly Knight, which eventually resulted in
settlement via a mediator’s proposal on July 26, 2024. (Han Decl. ¶10.)
2.
Were investigation
and discovery sufficient to allow counsel and the court to act intelligently? Class Counsel represents that after
initiating the lawsuit, the Parties engaged in discovery. Plaintiff propounded
form interrogatories, special interrogatories, requests for admission, and
requests for production of documents. Defendant responded to the formal
discovery requests. The Parties then met and conferred and agreed to engage in
an informal exchange of information and eventually remotely attended mediation.
(Id. at ¶13.)
Prior to the mediation, Defendant
produced documents relating to the policies, practices, and procedures
regarding reimbursement of business expenses, paying hourly-paid and non-exempt
employees for all hours worked, and meal and rest breaks along with payroll and
operational policies. As part of Defendant’s production, Class Counsel reviewed
time records, pay records, and information relating to the size and scope of
the Class, as well as data permitting them to understand the number of
workweeks and pay periods within the Class Period. Putative class members were
also located and interviewed to attain an understanding of the extent and
frequency of the alleged day-to-day violations. (Id. at ¶14.)
3.
Is
counsel experienced in similar litigation? Yes. Class Counsel is experienced in class action
litigation, including wage and hour class actions. (Id. at ¶4, Exhibit 1.)
4.
What
percentage of the class has objected? This cannot be determined until
the fairness hearing. See Weil & Brown, Cal. Practice Guide: Civil
Procedure Before Trial (The Rutter Group 2014) ¶ 14:139.18, (“Should the court
receive objections to the proposed settlement, it will consider and either
sustain or overrule them at the fairness hearing.”).
CONCLUSION:
The settlement is entitled to a presumption of fairness.
2.
Is the settlement fair, adequate, and
reasonable?
1.
Strength
of Plaintiff’s case. “The
most important factor is the strength of the case for plaintiff on the merits, balanced against the amount offered in settlement.”
(Kullar v. Foot Locker Retail, Inc.
(2008) 168 Cal.App.4th 116, 130.) Here,
Class Counsel has provided information, summarized below, regarding the
estimated values of the class claims alleged:
Violation |
Maximum Exposure |
Realistic Exposure |
Rest Break Violations
|
$806,698.05 |
$70,586.08 |
Meal Break Violations |
$1,044,195.50 |
$127,913.95 |
Unpaid Wages
(Off-the-Clock) |
$529,116.19 |
$83,335.80 |
Unreimbursed
Expenses |
$113,900.00 |
$18,508.75 |
Wage Statement
Violations |
$1,721,250.00 |
$107,578.13 |
Waiting Time
Penalties |
$3,982,680.00 |
$248,917.50 |
Total |
$8,281,206.29 |
$681,224.93 |
(Han Decl. ¶¶34-49.)
2.
Risk, expense, complexity and likely
duration of further litigation. Given the nature of the class claims, the
case is likely to be expensive and lengthy to try. Procedural hurdles (e.g.,
motion practice and appeals) are also likely to prolong the litigation as well
as any recovery by the class members.
3. Risk of
maintaining class action status through trial. Even if a class is
certified, there is always a risk of decertification. (See Weinstat
v. Dentsply Intern., Inc. (2010) 180
Cal.App.4th 1213, 1226 (“Our Supreme Court has recognized that
trial courts should retain some flexibility in conducting
class actions, which means, under
suitable circumstances, entertaining successive motions on certification if the
court subsequently discovers that the propriety of a class action is not
appropriate.”).)
4. Amount offered in settlement. Plaintiff’s
counsel estimated Defendants’ maximum exposure at $8,281,206.29 and realistic
exposure at $681,224.93. Counsel obtained a $425,000 settlement amount. This is
approximately 5.1% of Defendants’ maximum exposure and 62.4% of Defendants’
realistic exposure which, given the uncertain
outcomes, is within the “ballpark of reasonableness.”
The settlement amount, after being reduced by
the requested deductions, leaves approximately $226,250 to be divided among
approximately 1,139 Class Members. Assuming full participation, the resulting
payments will average approximately $198.63 per Class Member.
5. Extent of discovery completed and stage
of the proceedings. As indicated above, at the time of the settlement,
Class Counsel had conducted sufficient discovery.
6. Experience and views of counsel. The
settlement was negotiated and endorsed by Class Counsel who, as indicated
above, is experienced in class action litigation, including wage and hour class
actions.
7. Presence of a governmental participant. This factor is not
applicable here.
8. Reaction of the class members to the
proposed settlement. The class members’ reactions will not be known until
they receive notice and are afforded an opportunity to object, opt-out and/or
submit claim forms. This factor becomes relevant during the fairness hearing.
CONCLUSION: The settlement can be
preliminarily deemed “fair, adequate, and reasonable.”
3.
Scope of the release
Release of Claims. Effective on the
date when Defendants fully fund the Gross Settlement Amount and fund all
employer payroll taxes owed on the Wage Portion of the Individual Class
Payments or the Effective Date, whichever is later, Plaintiff, Class Members,
and Class Counsel will release claims against all Released Parties as follows:
(¶E)
·
Release by Participating Class Members: All Participating
Class Members, on behalf of themselves and their former and present
representatives, agents, attorneys, heirs, administrators, successors, and
assigns, release the Released Parties from all claims that were alleged, or
could have been alleged, in the Operative Complaint and that occurred during
the Class Period. This includes, but is not limited to: (a) failure to pay
overtime wages; (b) failure to pay meal period premiums; (c) failure to pay
rest period premiums; (d) failure to pay minimum wage; (e) failure to pay wages
upon discharge; (f) failure to furnish compliant wage statements; (g) failure
to reimburse business expenses; (h) unfair competition; and (i) claims under
Labor Code sections 201, 202, 203, 204, 218.5, 218.6, 226, 226.7, 510, 512,
558.1, 1174, 1182.12, 1194, 1194.2, 1197, 1198, 2800, and 2802, and the
Industrial Welfare Commission Wage Orders, including, but not limited to, IWC
Wage Order No. 7, and claims under Business & Professions Code section
17200, et seq., that could have been sought based on all claims that were
alleged, or could have been alleged, in the Operative Complaint and that
occurred during the Class Period. Participating Class Members do not release
any other claims, including claims for vested benefits, wrongful termination,
violation of the Fair Employment and Housing Act, unemployment insurance,
disability, social security, workers’ compensation, or claims based on facts
occurring outside the Class Period. All Class Members who have not opted out
will be deemed to have acknowledged and agreed that the Released Class Claims
are disputed and that Labor Code section 206.5 is not applicable to their
Individual Class Payment. (¶E.2)
·
“Released Parties” means Defendants and their respective
past and present parents, subsidiaries, affiliates, predecessors, successors,
and assigns, and all their past and present stockholders, owners, members,
officers, directors, managers, employees, attorneys, insurers, agents,
representatives, and any and all other persons, firms, companies, corporations,
and partnerships which may have an interest in Defendants, and any other individual
for which liability could have been sought under Labor Code section 558.1. (¶A.29)
·
Named Plaintiff will also
provide a general release and CC § 1542 waiver. (¶E.1)
4.
May conditional class certification be
granted?
1.
Standards
A detailed analysis of the elements required
for class certification is not required, but it is advisable to review each
element when a class is being conditionally certified (Amchem Products, Inc. v. Winsor (1997) 521 U.S. 620, 622-627.) The
trial court can appropriately utilize a different standard to determine the
propriety of a settlement class as opposed to a litigation class certification.
Specifically, a lesser standard of scrutiny is used for settlement cases. (Dunk at 1807, fn 19.) Finally, the Court
is under no “ironclad requirement” to conduct an evidentiary hearing to
consider whether the prerequisites for class certification have been satisfied.
(Wershba at 240.)
2.
Analysis
a.
Numerosity. There
are approximately 1,139 Class Members. (Han Decl. ¶51.) This element is met.
b.
Ascertainability. The proposed class is defined above. The
class definition is “precise, objective and presently ascertainable.” (Sevidal v. Target Corp. (2010) 189
Cal.App.4th 905, 919.) The class members are identifiable from Defendant’s
records. (Han Decl. ¶51.)
c.
Community
of interest. “The
community of interest requirement involves three factors: ‘(1) predominant
common questions of law or fact; (2) class representatives with claims or
defenses typical of the class; and (3) class representatives who can adequately
represent the class.’” (Linder v. Thrifty
Oil Co. (2000) 23 Cal.4th 429, 435.)
As to commonality, Plaintiff asserts common issues of
fact and law predominate as to each of the claims. Plaintiff contends that all hourly-paid
or non-exempt persons employed by Defendant during the Class Period were
subject to the same or similar employment practices, policies, and procedures.
All the claims surround the alleged common schemes of: (a) failing to maintain
compliant meal and rest break practices; (b) failing to reimburse business
expenses; and (c) failing to fully and properly compensate employees for, inter
alia, all hours worked, overtime work, noncompliant breaks, and associated wage
statement and waiting time penalties. (Han Decl. ¶52.)
As to typicality, Plaintiff is a former employee of
Defendant. Plaintiff alleges that he and the Class Members were employed by the
same company and injured by the common policies and practices related to: (a)
noncompliant meal and rest breaks; (b) uncompensated off-the-clock work; (c)
unreimbursed business expenses; (d) untimely paid wages; and (e) inaccurate
wage statements. Plaintiff seeks relief for these claims and derivative claims
on behalf of the Class. (Id. at ¶53.)
As to adequacy, Plaintiff represents that he has
participated in the litigation and is aware of the risks and duties of serving
as class representative. (Declaration of Enrique Briseno ¶¶9-19.)
d.
Adequacy
of class counsel. As
indicated above, Class Counsel has shown experience in class action litigation,
including wage and hour class actions.
e.
Superiority. Given the relatively small size of the
individual claims, a class action appears to be superior to separate actions by
the class members.
CONCLUSION: The class may be
conditionally certified since the prerequisites of class certification have
been satisfied.
5.
Is the notice proper?
1.
Content
of class notice. The
proposed notice is attached as Exhibit A to the Settlement Agreement. Its
content appears to be acceptable. It includes information such as: a summary of
the litigation; the nature of the settlement; the terms of the settlement
agreement; the proposed deductions from the gross settlement amount (attorney
fees and costs, enhancement awards, and administration costs); the procedures
and deadlines for participating in, opting out of, or objecting to, the settlement;
the consequences of participating in, opting out of, or objecting to, the
settlement; and the date, time, and place of the final approval hearing.
The Notice will be distributed in English and
Spanish. (¶A.10)
2.
Method
of class notice. No
later than fourteen (14) calendar days after the Court grants Preliminary
Approval of the Settlement, Defendants will deliver their respective Class Data
to the Administrator, in the form of a Microsoft Excel spreadsheet. (¶G.4.a) Before
mailing Class Notices, the Administrator shall update Class Member addresses
using the NCOA. Using best efforts to perform as soon as possible, and in no
event later than fourteen (14) calendar days after receiving the Class Data,
the Administrator will send to all Class Members identified in the Class Data
the Class Notice via first-class USPS mail. (¶G.4.c)
No later than three (3) business days after
the Administrator’s receipt of any Class Notice returned by the USPS as
undelivered, the Administrator shall remail the Class Notice using any
forwarding address provided by the USPS. If the USPS does not provide a
forwarding address, the Administrator shall conduct a Class Member Address
Search, and remail the Class Notice to the most current address obtained. (¶G.4.d)
The deadlines for Class Members’ written
objections, challenges to Workweeks, and Requests for Exclusion will be
extended an additional fourteen (14) calendar days beyond the forty-five (45)
calendar days otherwise provided in the Class Notice for all Class Members
whose notice is remailed. (¶G.4.e)
3.
Cost
of class notice. As
indicated above, settlement administration costs are estimated not to exceed $20,000. Prior to the time of the final
fairness hearing, the administrator must submit a declaration attesting to the
total costs incurred and anticipated to be incurred to finalize the settlement
for approval by the Court.
6. Attorney fees and costs
CRC rule 3.769(b) states: “Any
agreement, express or implied, that has been entered into with respect to the
payment of attorney fees or the submission of an application for the approval
of attorney fees must be set forth in full in any application for approval of
the dismissal or settlement of an action that has been certified as a class
action.”
Ultimately, the award of attorney
fees is made by the court at the fairness hearing, using the lodestar method
with a multiplier, if appropriate. (PLCM
Group, Inc. v. Drexler (2000) 22 Cal.4th 1084, 1095-1096; Ramos v. Countrywide Home Loans, Inc.
(2000) 82 Cal.App.4th 615, 625-626; Ketchum
III v. Moses (2000) 24 Cal.4th 1122, 1132-1136.) Despite any agreement by
the parties to the contrary, “the court ha[s] an independent right and
responsibility to review the attorney fee provision of the settlement agreement
and award only so much as it determined reasonable.” (Garabedian v. Los Angeles Cellular Telephone Company (2004) 118
Cal.App.4th 123, 128.)
The question of whether Class Counsel is
entitled to $148,750 (35%) in attorney fees will be addressed at the
fairness hearing when class counsel brings a noticed motion for attorney fees. Class
counsel must provide the court with billing information so that it can properly
apply the lodestar method and must indicate what multiplier (if applicable) is
being sought as to each counsel.
Class Counsel should also be
prepared to justify the costs sought (capped at $20,000) by detailing how they were incurred.
7.
Incentive Award to Class Representative
The Settlement Agreement provides
for an enhancement award of $10,000 to the named Plaintiff. In
connection with the final fairness hearing, named Plaintiffs must submit a
declaration attesting to why he or she should be entitled to an enhancement
award in the proposed amount. The named Plaintiff must explain why he or she
“should be compensated for the expense or risk she has incurred in conferring a
benefit on other members of the class.” (Clark v. American Residential Services LLC
(2009) 175 Cal.App.4th 785, 806.) Trial courts should not sanction enhancement
awards of thousands of dollars with “nothing more than pro forma claims
as to ‘countless’ hours expended, ‘potential stigma’ and
‘potential risk.’ Significantly more specificity, in the form of quantification
of time and effort expended on the litigation, and in the form of reasoned
explanation of financial or other risks incurred by the named plaintiff, is
required in order for the trial court to conclude that an enhancement was
‘necessary to induce [the named plaintiff] to participate in the suit . . . .’”
(Id. at 806-807, italics and ellipsis
in original.) The Court will decide the issue of the enhancement award at the
time of final approval.
CONCLUSION AND ORDER
The
Parties’ Motion for Preliminary Approval of Class Action Settlement is GRANTED
as the settlement is fair, adequate, and reasonable.
The
essential terms of the agreement are:
A. The Gross Settlement Amount (“GSA”) is $425,000, non-reversionary.
(¶C.1)
B. The Net Settlement Amount (“Net”) is the GSA
minus the following:
o Up to $148,750
(35%) for
attorney fees (¶C.2.b);
o Up to $20,000 for litigation costs (Ibid.);
o Up to $10,000 for a Service Payment to
the Named Plaintiff (¶C.2.a); and
o Up to $20,000 for settlement
administration costs (¶C.2.c).
C. Defendants will separately pay any and all
employer payroll taxes owed on the Wage Portions of the Individual Class
Payments. (¶C.1)
D. Plaintiff’s release of Defendants from claims
described herein.
The Parties’ Motion for Final Approval
of Class Action Settlement must be filed by {the Court requests that the parties indicate -- either
in submitting to this tentative ruling or at the hearing on this motion -- the
filing deadline they would like the Court to set} and
will be heard on {the
Court will select a hearing date based on the filing deadline that the parties
select}. Failure
to file the Parties’ Motion for Final Approval of Class Action Settlement by
this deadline will result in a continuance of the final approval hearing to the
Court’s first available hearing date, which could be months after the hearing
date noted here. Prior to filing the
moving papers, Plaintiff must contact the court staff for Department 9 to
obtain a briefing schedule, which must be included in the caption of the moving
papers.
The Parties’ Motion for Final Approval
of Class Action Settlement must include a concurrently lodged single
document that constitutes a [Proposed] Order and Judgment containing among
other things, the class definition, full release language, and names of the any
class members who opted out.
Non-Appearance Case Review is set for {the Court will select a non-appearance
case review date based on the filing deadline that the parties select},
8:30 a.m., Department 9 re filing of Motion for Final Approval of Class Action
Settlement.
The Judicial
Assistant is to give notice to Counsel for Plaintiff who is ordered to give
further and formal notice to all parties and file proof of service of such
within 10 days.
IT IS SO
ORDERED.
DATED: May 27,
2025 ___________________________
Elaine
Lu
Judge
of the Superior Court