Judge: Lon F. Hurwitz, Case: 20-01136058, Date: 2023-08-11 Tentative Ruling
Final Accounting
OVERVIEW/ANALYSIS: This is a putative wage-and-hour class and PAGA action. On March 2, 2020, Plaintiffs Pete Homeres, Raul Becerra, Frank Hall, and Charles Peterson, on behalf of themselves and all other similarly situated (“Plaintiff”), filed the original Complaint alleging various Labor Code violations and a PAGA claim against Defendant Emcor Facilities Services, Inc. (“Defendant”). (ROA 2). The operative First Amended Complaint (“FAC”) was filed on May 26, 2020, alleging nine causes of action for (ROA 12):
1. Failure to Pay Wages for All Hours Worked;
2. Failure to Pay All Overtime Wages;
3. Failure to Permit Rest Periods;
4. Failure to Permit Meal Periods;
5. Failure to Indemnify Employees for Work Expenses;
6. Failure to Provide Accurate Itemized Wage Statements;
7. Failure to Timely Pay Wages Due;
8. Violation of Unfair Competition Law; and
9. Private Attorneys General Act (PAGA).
On February 17, 2023, the Court granted the Motion for Final Approval of Class Action Settlement. (ROA 273). The Order and Judgment of Final Approval of Class Action Settlement, Awarding Attorney’s Fees, Litigation Costs, and Service Payments was filed on March 6, 2023. (ROA 277). The Settlement provided as follows (ROA 220):
• Gross Settlement Amount - $1,250,000.00
• Attorneys’ fees - $416,250.00 (55% or $228,937.50 to Hadsell Stormer Renick & Dai, and 45% or $187,312.50 to Saacke Law Group)
• Litigation costs - $15,000.00
• Enhancements - $15,000.00 ($3,000.00 to each Named Plaintiff)
• Administration costs - $5,000.00
• LWDA - $15,000.00
The estimated average distribution to the 135 Class Members was $5817.00. (ROA 220).
Final Accounting was set for August 11, 2023. The Court ordered counsel to submit a final administrator’s report at least 10 calendar days prior to the hearing regarding the status of the settlement administration. (ROA 273). The final report had to include all information necessary for the Court to determine the total amount actually paid to the Class Members.
On August 3, 2023, counsel filed the Declaration of Jeffrey D. Johnson, the settlement administrator. (ROA 282). As a preliminary matter, it is noted that the declaration is untimely.
The administrator attests that on March 7, 2023, he received the settlement fund amount of $1,250,000.00, as well as $33,556.77 for the employer taxes. [Admin. Decl., ¶ 5.] On March 10, 2023, $431,250.00 was distributed to Class Counsel—$200,000.00 to The Saacke Law Group, and $231,250.00 to Hadsell Stormer Renick & Dai LLP. [Id. at ¶ 6.]
On March 13, 2023, the settlement checks were issued and mailed to 127 Class Members. Eight of the 135 Class Members were not issued checks because they received unrelated prior payments from Defendant in connection with an earlier individual settlement agreement. [Admin Decl., ¶ 7.] The total amount distributed to the Class Members was $701,750.00, of which a total of $86,272.20 was withheld from the individual settlement payments for standard employee-side payroll deductions—$68,855.15 for federal and $17,417.05 for state. [Ibid.] The same day, check for $3,000.00 were issued and mailed to each of the five Class Representatives as a Service Award. [Id. at ¶ 8.]
On March 13, 2023, the administrator issued a check for $15,000.00 to the LWDA for payment of PAGA penalties. [Admin. Decl., ¶ 9.] The same day, a check for $5,000.0 was issued to the administrator for fees and costs. [Id. at ¶ 10.] Wire transfers were made to the IRS for $100,554.10 and the EDD for $19,274.87 for all employer/employee federal and state standard payroll deductions, respectively. [Id., at ¶¶ 11 12.]
The administrator attests that Class Members have until September 9, 2023 (180 days after issuance) to cash their checks. [Admin. Decl., ¶ 13.] As of August 3, 2023, a total of 116 checks totaling $585,963.11 have been cashed, and 11 checks totaling $29,514.68 have not been cashed. [Id. at ¶ 14.] Once the check cashing period has expired, the amount of the uncashed settlement checks will be redistributed among the remaining Class Members. [Id. at ¶ 15.]
RULING:
The Final Accounting hearing is CONTINUED to 10/20/23, at 1:30 p.m. in Department CX103 so that the settlement administrator can file a declaration attesting to the disbursement of the settlement funds from the uncashed checks after expiration of the check cashing period.
Counsel must file the requisite 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.