Judge Glenda Sanders, Case 2021-01218096 2022-09-30 Tentative Ruling

Judge: Glenda Sanders, Case: 2021-01218096, Date: 2022-09-30 Tentative Ruling

1. Motion for PAGA Approval

2. Status Conference

Having reviewed the proposed Settlement Agreement, the proposed Notice and the accompanying papers, the Court has the following concerns:

1. Counsel must address the Miller v. Premier Automotive of Seaside, LLC case that is pending in Monterey Superior Court. What relationship do the claims in Miller, have to the claims in this case? What stage of the litigation is that case in?

2. Please provide the estimated maximum value of the claims being settled, as well as how much the claims were discounted for settlement purposes and the bases therefore.

3. Please provide a rough breakdown of attorney hours spent on the various categories of activities that comprise the lodestar. Copies of billing records are not necessary.

4. The court has significant concerns with the proposal to have Defendants administer the settlement rather than a third party administrator. This is concerning given that the substantial number of aggrieved employees (over 1,100). Further, the language of Par. 62 which potentially alleviates Defendants from all liability for issues with sending the Individual Settlement Payments is problematic. The court is inclined to require the use of a third party administrator.

5. The court is not aware that the Department of Industrial Relations Unclaimed Wages Fund is accepting unclaimed PAGA settlement funds. The court suggests that the uncashed checks instead be transmitted to the State Controller’s Unclaimed Property Fund.

6. Paragraph 55 of the Agreement allows for modification of the Agreement based on a writing signed by the Parties. Court approval is required for modifications to the Agreement.

7. The following need to be addressed in the Proposed Judgment so that the allegedly aggrieved employees have a fuller understanding of the essential terms and consequences of the settlement:

a. The Settlement Agreement needs to be referenced in the Judgment by the ROA number of the declaration to which it is attached.

b. A copy of the Notice must be attached to the Judgment as Exhibit 1.

c. A proposed date for the final accounting hearing must be included in the Proposed Judgment.

d. The Judgment needs to instruct the Plaintiff to submit a copy of the Judgment to the LWDA within ten calendar days after entry of the Judgment.

e. The Judgment needs to indicate that the court will retain jurisdiction pursuant to CCP §664.6.

The hearing on this Motion for Approval of PAGA Settlement and the Status Conference are continued to January 13, 2023 at 1:30 p.m. in Department CX101. It is not necessary for the parties to resubmit briefing which has already been filed with the Court. Supplemental declarations or other supplemental materials addressing the identified issues shall be filed no later than 14 calendar days prior to the continued hearing date. If a revised settlement agreement is submitted, a redlined version showing all changes, deletions, and additions must also be submitted electronically to the court.

January 13, 2023 is the earliest date available for a hearing of this type.

The court does not require any physical or remote appearance at the hearing scheduled for September 30, 2022.

If the parties need to address the court, they may do so on Wednesday, October 5, 2022 at 1:30 PM in Department CX 101 via Zoom. January 13, 2023 is the earliest date available for a hearing of this type.