Judge: Elaine Lu, Case: 23STCV12786, Date: 2025-05-20 Tentative Ruling
Case Number: 23STCV12786 Hearing Date: May 20, 2025 Dept: 9
Preliminary Approval of Class Action
Settlement
Department SSC-9
Hon. Elaine Lu
David Caravantes v. Gil & Roy Props, LLC, et al.
Case
No.: 23STCV12786
Hearing: May 20, 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 Settlement Agreement are:
· The Gross Settlement Amount (“GSA”) is $470,000, non-reversionary. (¶3.1.)
· The Net Settlement Amount (“Net”) is the GSA
minus the following:
o Up to $156,666.67 (33%)
for attorney fees (¶3.2.2);
o Up to $18,000 for litigation costs (Ibid.);
o Up to $10,000 for a Service Payment to
the Named Plaintiff (¶3.2.1);
o Up to $7,000 for settlement
administration costs (¶3.2.3); and
o Payment of $47,000 PAGA penalty (75%
or $35,250 to the LWDA; and 25% or $11,750 to the Aggrieved Employees). (¶3.2.5.)
· Defendants will separately pay any and all
employer payroll taxes owed on the Wage Portions of the Individual Class
Payments. (¶3.1.)
· Plaintiffs shall release 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
This
is a proposed employee wage and hour class action case. On June 5, 2023,
Plaintiff David Caravantes (“Plaintiff”) commenced this class action (“Action”)
by filing a complaint against Defendants Gil & Roy Studios, LLC dba Gil
& Roy Props and Defendant Modernica, Inc. (collectively “Defendants”) alleging
the following causes of action: (1) Failure to Pay Wages For All Hours Worked
At Minimum Wage in Violation of Labor Code Sections 1194 and 1197, (2) Failure
to Pay Overtime Wages for Daily Overtime Worked In Violation Of Labor Code
Section 510 and 1194, (3) Failure to Authorize or Permit Meal Periods In
Violation of Labor Code Sections 512 and 226.7, (4) Failure to Authorize or
Permit Rest Periods in Violation of Labor Code Section 226.7, (5) Failure to
indemnify employees for employment-related losses/expenditures in violation of
labor code section 2802, (6) Failure to Provide Complete and Accurate Wage Statements
in Violation of Labor Code Section 226, and (7) Unfair Business Practices, in
Violation of Business and Professions Code Sections 17200, et seq.
On
August 15, 2023, Plaintiff filed an action in the Los Angeles County Superior
Court under the Private Attorneys General Act of 2004 (PAGA) against the same
Defendants seeking civil penalties for alleged violations by Defendants (“PAGA
Action”).
On
February 27, 2024, Plaintiff filed a First Amended Complaint in the Action
(“Operative Complaint”) which added the claim from the PAGA Action to the
instant Action.
On August 20, 2024, the parties participated
in a full-day mediation with David Phillips, Esq. After
a full day of arm’s-length negotiations, the Parties reached an agreement which
was later memorialized in a Memorandum of Understanding. The terms of
settlement were finalized in the long-form Class Action and PAGA Settlement
Agreement and Class Notice (“Settlement Agreement”), a copy of which is attached
to the Declaration of Eric Naessig (“Naessig Decl.”) as Exhibit 1.
Now
before the Court is the Motion for Preliminary Approval of the Settlement
Agreement.
SETTLEMENT CLASS DEFINITION
·
“Class” means a person employed by Defendant in California and classified as an
hourly, non-exempt employee who worked for Defendant during the Class Period. (¶1.5.)
·
“Class
Period” means the period from June 5, 2019 through August 20, 2024. (¶1.12.)
·
“Aggrieved
Employee” means a person employed by Defendant in California and classified as
an hourly, non-exempt employee who worked for Defendant during the PAGA Period.
(¶1.4.)
·
“PAGA
Period” means the period from June 5, 2022 through August 20, 2024. (¶1.31.)
·
“Participating
Class Member” means a Class Member who does not submit a valid and timely
Request for Exclusion from the Settlement. (¶1.35.)
TERMS OF SETTLEMENT AGREEMENT
The essential terms are as follows:
·
The Gross
Settlement Amount (“GSA”) is $470,000, non-reversionary.
(¶3.1.)
o Escalator Clause: Based on its records,
Defendant estimates that, as of the date of this Settlement Agreement, (1)
there are 146 Class Members and 19,000 Total Workweeks during the Class Period
and (2) there were 95 Aggrieved Employees who worked 3,612 PAGA Pay Periods
during the PAGA Period. If the total number of Workweeks as of the end of the
Class Period exceeds the above figure by greater than 10% (exceeds 20,900),
then the Gross Settlement Amount shall increase pro rata based on the number of
additional Workweeks above 10% (i.e., if the number of Workweeks is 11% greater
than the above figure, then the Gross Settlement Amount shall increase by 1%). (¶8.)
·
The
Net Settlement Amount (“Net”) ($243,083.33)
is the GSA minus the following:
o Up to $156,666.67
(33%) for
attorney fees (¶3.2.2);
o Up to $18,000 for litigation costs (Ibid.);
o Up to $10,000 for Service Payment to
the Named Plaintiff (¶3.2.1);
o Up to $7,000 for settlement
administration costs (¶3.2.3); and
o Payment of $47,000 PAGA penalty (75%
or $35,250 to the LWDA; and 25% or $11,750 to the Aggrieved Employees). (¶3.2.5.)
·
Defendants
will separately pay any and all employer payroll taxes owed on the Wage
Portions of the Individual Class Payments. (¶3.1.)
·
There
is no claim form requirement. (¶3.1.)
·
Individual Settlement Payment Calculation: 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. (¶3.2.4.)
Non-Participating Class Members will not receive any Individual Class Payments.
The Administrator will retain amounts equal to their Individual Class Payments
in the Net Settlement Amount for distribution to Participating Class Members on
a pro rata basis. (¶3.2.4.2.)
o PAGA Payments: The Administrator will
calculate each Individual PAGA Payment by (a) dividing the amount of the
Aggrieved Employees’ 25% share of PAGA Penalties $11,750.00 by the total number
of PAGA Pay Periods worked by all Aggrieved Employees during the PAGA Period and
(b) multiplying the result by each Aggrieved Employee’s PAGA Pay Periods.
Aggrieved Employees assume full responsibility and liability for any taxes owed
on their Individual PAGA Payment. (¶3.2.5.1.)
o Tax Allocation: 10% of each Participating Class Member’s
Individual Class Payment will be allocated to settlement of wage claims (the
“Wage Portion”). The other 90% of each Participating Class Member’s Individual
Class Payment will be allocated to settlement of claims for interest and
penalties (the “Non-Wage Portion”). (¶3.2.4.1.) The Administrator will report
the Individual PAGA Payments on IRS 1099 Forms. (¶3.2.5.2.)
·
Response Deadline: “Response Deadline” means 60 calendar
days after the Administrator mails Notice to Class Members and Aggrieved
Employees, 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 Notice
Packets are resent after having been returned undeliverable to the
Administrator shall have an additional 14 calendar days beyond the Response
Deadline has expired. (¶1.43.) The same deadlines apply to the submission of
workweek disputes. (¶7.6.)
o Right to withdraw: If
the number of valid Requests for Exclusion identified in the Exclusion List
exceeds 10% of the total of all Class Members, Defendant may, but is not
obligated, elect to withdraw from the Settlement. (¶9.)
·
Funding
of Settlement: Defendant shall fully fund the Gross Settlement Amount,
and also fund the amounts necessary to fully pay Defendant’s share of payroll
taxes by transmitting the funds to the Administrator no later than 14 days
after the Effective Date. (¶4.3.)
o “Effective Date” means the date by when 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: (a) if no Participating
Class Member objects to the Settlement, the day the Court enters Judgment; (b)
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 if a
timely appeal from the Judgment is filed, the day after the appellate court
affirms the Judgment and issues a remittitur. (¶1.18.)
·
Disbursement:
Within 14 days after Defendant funds the Gross Settlement Amount, the
Administrator will mail checks for all Individual Class Payments, all
Individual PAGA Payments, the LWDA PAGA Payment, the Administration Expenses
Payment, the Class Counsel Fees Payment, the Class Counsel Litigation Expenses
Payment, and the Class Representative Service Payment. Disbursement of the
Class Counsel Fees Payment, the Class Counsel Litigation Expenses Payment and
the Class Representative Service Payment shall not precede disbursement of
Individual Class Payments and Individual PAGA Payments. (¶4.4.)
·
Uncashed Settlement Checks: The face of each
check shall prominently state the date (not less than 180 days after the date
of mailing) when the check will be voided. (¶4.4.1.) For any Class Member whose
Individual Class Payment check or Individual PAGA 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 California Code of Civil Procedure
Section 384, subd. (b). (¶4.4.3.)
·
The settlement
administrator will be ILYM Group, Inc. (¶1.2.)
·
Notice of Final Judgment
will be posted on the Settlement Administrator’s website. (¶7.8.1.)
·
The proposed settlement was
submitted to the LWDA on March 14, 2025. (Naessig Decl., ¶37, Exh. 2.)
·
Participating
class members and the named Plaintiffs 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 August 20, 2024, after
extensive informal discovery and data exchange, the Parties attended a
mediation session with David Phillips, Esq. After a full day of negotiations,
the Parties reached an agreement which was later memorialized in a Memorandum
of Understanding. (Naessig
Decl. ¶8.)
2.
Were
investigation and discovery sufficient to allow counsel and the court to act
intelligently? Class
Counsel represents that , the Parties engaged in extensive informal discovery
exchange where Plaintiff’s counsel and the expert of Plaintiff’s counsel
reviewed and analyzed the following: (1) time records; (2) pay records; (3)
information relating other size and scope of the class; (4) data permitting
Plaintiff to fully understand the nature and scope of the allegations in the
Complaint, including approximately 99.8% of time and wage records. (Id. at
¶9.)
3.
Is
counsel experienced in similar litigation? Yes. Class Counsel is experienced in class action
litigation, including wage and hour class actions. (Id. at ¶30.)
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 |
Meal Break Premiums
|
$613,548.00 |
Rest Break Premiums |
$2,359,800.00 |
Unpaid Wages |
$205,302.60 |
Unreimbursed
Business Expenses |
$57,000.00 |
Wage Statement
Violations |
$584,000.00 |
PAGA Penalties |
$361,200.00 |
Total |
$4,180,850.60 |
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. Plaintiffs’
counsel estimated Defendant’s maximum exposure at $4,180,850.60. Counsel
obtained a $470,000 settlement amount. This is approximately 11.2% of Defendant’s
maximum exposure which, given the uncertain outcomes,
is within the “ballpark of reasonableness.”
The $470,000 settlement amount, after reduced
by the requested deductions, leaves approximately $243,083.33 to be divided
among approximately 146 Class Members. Assuming full participation,
the resulting payments will average approximately $1,664.95 per Settlement
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 Defendant fully funds the entire Gross Settlement Amount and funds
all employer payroll taxes owed on the Wage Portion of the Individual Class
Payments, Plaintiff and Class Members will release claims against all Released
Parties as follows: (¶5)
·
Release by Participating Class Members: All Participating
Class Members, on behalf of themselves and their respective former and present
representatives, agents, attorneys, heirs, administrators, successors, and
assigns, release Released Parties from (i) all claims that were alleged, or
reasonably could have been alleged, based on the Class Period facts stated in
the Operative Complaint ,including, e.g., (1) failure to pay minimum wages, (2)
failure to pay overtime wages, (3) failure to provide meal periods, (4) failure
to provide rest breaks, (5) failure to indemnify employees for work-related
expenditures, (6) failure to provide accurate itemized wage statements, and (7)
unfair business practices.. Except asset forth in Section 5.2 of this
Agreement, 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. (¶5.1.)
·
Release by Aggrieved Employees: All Aggrieved Employees
are deemed to release, on behalf of themselves and their respective former and
present representatives, agents, attorneys, heirs, administrators, successors,
and assigns, the Released Parties from all claims for PAGA penalties that were
alleged, or reasonably could have been alleged, based on the PAGA Period facts
stated in the Operative Complaint, and the PAGA Notice. (¶5.2.)
o “PAGA Notice” means Plaintiff’s
June 5, 2023 letter to Defendant and the LWDA providing notice pursuant to
Labor Code section 2699.3, subd.(a). (¶1.33.)
·
“Released Parties” means: Defendants and their parents,
subsidiaries, directors, owners, shareholders, officers, and attorneys, past
and present, and each of them acting in concert with the foregoing. (¶1.41.)
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 146 Class Members. (Naessig Decl., ¶3.) 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 Defendants’
records. (Motion, p. 18:23-24.)
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, Counsel contends that many common
issues of law and fact unite the class. The common questions of law and fact
include, but are not limited to: 1) Whether Defendants failed to pay minimum
and overtime wages; 2) Whether Defendants failed to pay overtime wages; 3)
Whether Defendants failed to provide the Class Members meal and rest periods
and premium wages for missed meal and rest periods; 4) Whether Defendants
failed to reimburse necessary business expenditures; 5) Whether Defendants failed
to provide the Class Members complete and accurate wage statements; 6) Whether
Defendants violated Business and Professions Code section 17200. (Motion, p.
19:9-16.)
As to typicality, counsel contends that the claims of the
class representative are typical of the claims of the class members as a whole.
The named Plaintiff suffered the same alleged violations (e.g. failure to pay
minimum and overtime wages, failure to pay meal and rest period premium wages
for non-compliant meal and rest periods, failure to reimburse necessary
business expenditures, failure to pay timely wages during employment, failure
to provide complete and accurate wage statements, and failure to pay all wages
due upon separation of employment) as the class as a whole did and, thus, the
claims of the named Plaintiff fairly represents the claims of the class as a
whole. (Motion, p. 18:16-22.)
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 David Caravantes.)
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 translation if applicable. (¶1.11.)
2.
Method
of class notice. Not
later than 15 days after the Court grants Preliminary Approval of the
Settlement, Defendant will simultaneously deliver the Class Data to the
Administrator. (¶4.2.) No later than three (3) business days after receipt of
the Class Data, the Administrator shall notify Class Counsel that the list has
been received and state the number of Class Members, PAGA Members, Workweeks,
and PAGA Pay Periods in the Class Data. (¶7.4.1.)
Using best efforts to perform as soon as
possible, and in no event later than 14 days after receiving the Class Data,
the Administrator will send to all Class Members identified in the Class Data,
via first-class United States Postal Service (“USPS”) mail, the Class Notice
with Spanish translation, if applicable. Before mailing Class Notices, the
Administrator shall update Class Member addresses using the National Change of
Address database. (¶7.4.2.)
Not later than 3 business days after the
Administrator’s receipt of any Class Notice returned by the USPS as
undelivered, the Administrator shall re-mail 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 re-mail the Class Notice to the most current address obtained. The
Administrator has no obligation to make further attempts to locate or send
Class Notice to Class Members whose Class Notice is returned by the USPS a
second time. (¶7.4.3.)
The deadlines for Class Members’ written
objections, Challenges to Workweeks and/or PAGA Pay Periods, and Requests for
Exclusion will be extended an additional 14 days beyond the 60 days otherwise
provided in the Class Notice for all Class Members whose notice is re-mailed.
The Administrator will inform the Class Member of the extended deadline with
the re-mailed Class Notice. (¶7.4.4.)
3.
Cost
of class notice. As
indicated above, settlement administration costs are estimated not to exceed $7,000. Prior to the time of the final
fairness hearing, the claims 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 $156,666.67 (33%) 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 $18,000) by detailing how they were incurred.
7.
Incentive Awards to Class Representatives
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 Settlement
Agreement are:
·
The Gross
Settlement Amount (“GSA”) is $470,000, non-reversionary.
(¶3.1.)
·
The
Net Settlement Amount (“Net”) is the GSA minus the following:
o Up to $156,666.67
(33%) for
attorney fees (¶3.2.2);
o Up to $18,000 for litigation costs (Ibid.);
o Up to $10,000 for a Service Payment to
the Named Plaintiff (¶3.2.1);
o Up to $7,000 for settlement
administration costs (¶3.2.3); and
o Payment of $47,000 PAGA penalty (75%
or $35,250 to the LWDA; and 25% or $11,750 to the Aggrieved Employees). (¶3.2.5.)
·
Defendants
will separately pay any and all employer payroll taxes owed on the Wage
Portions of the Individual Class Payments. (¶3.1.)
·
Plaintiffs
shall release 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 20,
2025 ___________________________
Elaine
Lu
Judge
of the Superior Court