Judge: Lynette Gridiron Winston, Case: 22STCV21531, Date: 2025-02-20 Tentative Ruling

Case Number: 22STCV21531    Hearing Date: February 20, 2025    Dept: 6

CASE NAME:  Ixchel Martinez Ocampo v. Chaparral Medical Group, Inc., et al. 

Plaintiff’s Motion for Preliminary Approval of Class Action Settlement 

TENTATIVE RULING 

The Court CONTINUES Plaintiff’s motion for preliminary approval of class action settlement for counsel to address the following: 

1.      The escalator clause at Settlement Agreement ¶9.2 provides Defendant with the option to “cut off the Class Period as of the date the workweeks increased by more than 10%.” However, the parties must resolve any uncertainty regarding the Class Period end date prior to preliminary approval being granted and notice being distributed. Based on current records, the parties and the administrator must review and verify the workweek total and confirm the end date of the Class Period, revise the Class Period definition if needed, and remove the period-shortening option from the escalator clause.

2.      Approval of the settlement of class claims is requested together with approval of non-class claims (such as claims under the Labor Code’s Private Attorney General Act (PAGA)). Discuss why the amount allocated to the non-class claims is fair to those affected. See Moniz v. Adecco USA, Inc. (2021) 72 Cal.App.5th 56, 77 (Moniz).

3.      How will the settlement be funded now that the time for the second installment payment has already passed? If an installment payment plan will still be followed, provide justification for this such as Defendants’ financial situation.

4.      Ensure the class members are issued payment at the same time or prior to payments to class counsel, the class representative, and the administrator. It is unclear from Settlement Agreement ¶¶8.4-8.7 whether payments to others may be issued prior to class members.

5.      Will class members who receive re-mailed notices be given an extended deadline to respond (i.e., opt-out, object, and dispute workweeks)?

6.      Explain how notice of any change of the date or location of the fairness hearing will be given.

7.      Amend Settlement Agreement ¶7.3 such that class members do not have to use specific language to request exclusion or explain why it is necessary that this specific procedure is sought. Further, allow class members to fax or email the administrator their requests for exclusion, objections, or disputes.

8.      The releases in Settlement Agreement ¶¶1.33, 1.35, and 11.1 include both Class and PAGA claims. Class cases which include a PAGA claim should have a separate release for the PAGA claim tied to the facts alleged in the notice given to the LWDA. The release of class claims should be limited to claims alleged or based on the facts alleged in the operative complaint and should not include PAGA claims.

9.      Amend Settlement Agreement ¶11.1 such that the release is effective after the settlement is fully funded or explain why the effective date as written is in the best interest of the class.

10.  Provide a copy of Plaintiff’s notice letter to the LWDA.

11.  In the case of re-mailed notices, provide a deadline for the re-mailings.

12.  If notice will be given in English only, explain why this is sufficient. 

            If the Settlement Agreement is modified pursuant to this checklist, please submit both a red-lined copy showing changes made as well as a final version signed by all parties and counsel. Do not submit an addendum in lieu of a full amended settlement agreement including all operative settlement terms. 

            Further, provide proof of submission of any modified proposed settlement agreement to the LWDA. (Lab. Code, § 2699, subd. (l)(2).) 

            Modify the notice to match any alterations to the Settlement Agreement.  

            Plaintiff is ordered to give notice of the Court’s ruling within five calendar days of this order.