Judge: Lon F. Hurwitz, Case: 17-00909663, Date: 2024-04-05 Tentative Ruling

Status Conference re: Final Accounting

OVERVIEW/ANALYSIS: This is a putative wage-and-hour class and PAGA action. On March 16, 2017, Plaintiff Janet Arroyo, as an individual and on behalf of all other similarly situated (“Plaintiff”) filed the Complaint against Defendant AST Sportswear, Inc. dba Bayside Apparel Manufacturing, Inc. (“Defendant”) alleging six causes of action for (ROA 2):

1. Failure to Pay All Overtime Wages;

2. Minimum Wage Violations;

3. Meal Period Violations;

4. Rest Period Violations;

5. Waiting Time Penalties; and

6. Unfair Competition.

On August 30, 2017, pursuant to a stipulation of the parties, Plaintiff filed the operative First Amended Complaint (“FAC”) adding a cause of action for PAGA penalties. (ROA 49).

On March 26, 2019, the Court granted the Motion for Final Approval of Class and PAGA Settlement. (ROA 153). The Order Granting Final Approval was filed on May 3, 2019. (ROA 159). The Settlement provided as follows:

• Gross Settlement Amount - $900,000.00

• Attorneys’ fees - $300,000.00

• Litigation costs - $28,494.98

• Enhancements - $10,000.00 ($5,000 each)

• Administration costs - $12,000.00

• Employer payroll taxes - $13,038.74

• LWDA - $30,000.00

The total amount to be distributed to 271 Settlement Class Members was $519,943.33, including interest. (ROA 168).

A Status Conference re status of the settlement administration was set for March 1, 2022. (ROA 165). On February 3, 2022, the Settlement Administrator filed a declaration stating that the disbursement of the settlement funds to all 271 Class Members, the LWDA, Class Counsel for attorneys’ fees, and CPT Group, Inc. for administration costs was completed as of March 11, 2021. [Burns Decl. (ROA 168), ¶ 6.] A check was mailed to the California Employment Development Department for applicable State taxes totaling $9,841.29 on March 11, 2021. In addition, two wire transfers totaling $35,522.17 were sent to the Internal Revenue Service for the 940 and 941 federal tax payments. [Id. at ¶ 7.]

The check cashing period for the settlement checks expired on September 7, 2021. As of February 3, 2022, the Settlement Administrator reported that there were 32 uncashed checks totaling $29,797.01. The Settlement Administrator declared that he would attempt to locate those 32 Class Members prior to submitting a report to the State Controller’s Office Unclaimed Property Division in October 2022. If the Class Member contacted CPT, the check would be reissued. Any checks remaining uncashed by June 2023 would be remitted to the State’s Unclaimed Property Division. [Burns Decl., ¶¶ 8-11.]

On June 30, 2023, the Settlement Administrator filed a supplemental declaration. [Supplemental Declaration of Carole Thompson (ROA 178).] The Administrator declared that ultimately, there were 23 uncashed checks totaling $19,784.92. On June 15, 2022, the final remit report was submitted to the State Controller, and the unclaimed funds totaling $19,784.92 has been deposited into the California Unclaimed Property Fund in accordance with the terms of the Settlement Agreement. [Supp. Decl., ¶¶ 3, 4.]

RULING:

Since all distribution efforts are fully concluded, the final report is APPROVED and the Court’s file is closed. The Status Conference is ordered OFF CALENDAR.

The Court does not require any physical or remote appearance at the hearing scheduled for July 26, 2023.

Please inform the clerk by emailing her before 12:00 p.m. on the date of the hearing at CX103@occourts.org if both parties intend to submit on the tentative.