Judge: Lon F. Hurwitz, Case: 19-01064397, Date: 2023-08-11 Tentative Ruling

Final Accounting

OVERVIEW/ANALYSIS: This is a PAGA-only action. Defendant Hit Mobile, Inc. operates cellular phone retail stores that sell T-Mobile product and services throughout California. Plaintiff Nadia Ramirez was an unspecified non-exempt employee.

On April 17, 2019, Plaintiff filed her original Complaint against Defendant alleging several individual and class wage-and-hour claims. (ROA 2). On August 19, 2019, Defendant filed a motion to compel arbitration. (ROA 17). The motion was granted on September 20, 2019. (ROA 35.) On July 2, 2020, the Court granted Plaintiff’s request for dismissal of her individual and class action claims, without prejudice. (ROA 67).

On August 13, 2020, Plaintiff filed the operative First Amended Complaint (“FAC”) alleging individual and non-individual representative PAGA claims. (ROA 77). Plaintiff did not separately allege any wage-and-hour class claims in the FAC. Upon request of Defendant, the Court subsequently stayed the action on the PAGA claim pending the outcome of the arbitration. (ROA 130). Five months later, upon stipulation of the parties, the Court lifted the stay. (ROA 153, 159, 161).

On February 3, 2023, the Court granted the Motion for Approval of PAGA Settlement. (ROA 236). The Order was entered on February 21, 2023 (ROA 244), and the Notice of Entry of Judgment was filed on March 1, 2023 (ROA 248).

The Gross Settlement Amount of $235,000.00 was to be disbursed as follows:

• Attorney’s fees $78,333.33

• Litigation costs $14,800.47

• Administration costs $11,000.00

• LWDA $85,322.61 (75% of

net $130,866.20)

The remainder of $32,716.55 (25% of net amount of $130,866.20) was to be distributed to the PAGA Employees).

At the approval hearing, the Court approved the notice, but stated it should be revised to include the actual amounts paid to the LWDA and the PAGA Employees (instead of just the percentages). (ROA 236). The Final Accounting was set for August 11, 2023. The Court ordered the settlement administrator to file a declaration no later than 10 calendar days prior to the hearing to confirm that the distribution of funds had

been completed, including any distribution to the State Controller per the Settlement Agreement. (Ibid.) Counsel was advised to call the clerk and reschedule the hearing if distribution efforts were not complete by the hearing date. (Ibid.)

On August 3, 2023, the Settlement Administrator filed the requisite declaration. (ROA 250). The administrator attests that on March 28, 2023, Defendant made the initial deposit of $130,000.00 into the Qualified Settlement Fund, and on April 20, 2023, made an additional deposit of $105,000.00. [Admin Decl., ¶ 4.] The administrator further attests that 2,116 individuals were identified as Aggrieved Employees, and the total amount to be distributed to them was $32,729.05. [Id. at ¶ 3.]

On May 8, 2023, the administrator mailed the Notice Packet to all settlement group members. The same day, the administrator issued and mailed checks to each Aggrieved Employee. [Admin. Decl., ¶¶ 7, 8.] In addition, the administrator mailed the following checks: (a) $93,133.80 to Class Counsel for attorneys’ fees and litigation costs; (b) $98,187.15 to the LWDA; and (c) $10,950.00 to the administrator for administration costs. [Id. at ¶ 8.]

All settlement checks will be void after 180 days from the date of issue. Therefore, the check cashing deadline will be November 4, 2023. [Admin. Decl., ¶ 10.] As of August 3, 2023, 1,350 checks, totaling $14,492.18, remain uncashed. [Id. at ¶ 12.] Funds from the uncashed checks will be paid to the State Controller’s Office. [Id. at ¶ 13.]

RULING:

The Final Accounting hearing is CONTINUED to 12/8/23, at 1:30 p.m. in Department CX103 so that the settlement administrator can file a declaration attesting to the total number of uncashed checks and the disbursement of the settlement funds after the expiration of the check cashing period..

Counsel must file the requisite settlement administrator declaration no later than ten (10) calendar days prior to the continued hearing date.

Plaintiff to give notice of the Court’s ruling.

The Court does not require any physical or remote appearance at the hearing scheduled for August 11, 2023.