Judge: Randall J. Sherman, Case: 2019-01081613, Date: 2022-07-22 Tentative Ruling

Plaintiff’s Motion for Approval of PAGA Settlement is granted.  The court specifically holds that it is interpreting Section 2.2 of the parties’ PAGA Settlement Agreement and Limited Release such that the aggrieved employees’ release does not include “any and all claims arising under the California Labor Code”, but rather, as the agreement provides, any and all claims arising under the California Labor Code to the fullest extent allowed by law, which includes, in the language of the Settlement Agreement, all claims for civil penalties under PAGA that were asserted or could have been asserted based on the facts alleged in the Second Amended Complaint, including the specific claims set forth in subsections (a) through (h) of Section 2.2 of the Settlement Agreement.  It is within the extent allowed by law to permit the release of the claims for (e) failure to reimburse necessary business-related expenses and (g) failure to pay all vested vacation pay, because those specific claims were included in plaintiff’s PAGA letter dated April 25, 2022, and were specifically alleged in plaintiff’s operative pleading, his Third Amended Complaint filed on July 6, 2022.  Amaro v. Anaheim Arena Management, LLC (2021) 69 Cal. App. 5th 521, 538; Villacres v. ABM Industries, Inc. (2010) 189 Cal. App. 4th 562, 586.  (The court would have preferred an amendment to the Settlement Agreement specifically deleting the quoted language above, and a reference to the Third Amended Complaint rather than the Second Amended Complaint, but since defendants apparently are unwilling to amend the Settlement Agreement, the court will approve the release language while expressing its specific interpretation of the release language.)  Plaintiff must submit an amended proposed Order consistent with this ruling.

The court concludes that the $513,290.50 PAGA settlement, as approved, is fair, adequate and reasonable, and approves the following specific awards:

● $171,079.72 to plaintiff’s counsel for plaintiff’s attorneys’ fees, as requested;

● $11,205.44 to plaintiff’s counsel for plaintiff’s attorney costs, the amount set forth in the table attached as Exhibit 1 to the Kluft Declaration (although counsel’s declaration asserts that the total costs incurred by plaintiff are $11,232.04);

● $1,500.00 to plaintiff Steve Nguyen as an enhancement award, as requested;

● $9,250.00 to the Administrator, Phoenix Settlement Administrators, as requested;

● $240,191.50, which is 75% of the remaining balance of $320,255.34, to the LWDA as its share of PAGA penalties; and

● $80,063.84, which is 25% of the remaining balance of $320,255.34, to the aggrieved employees as their share of PAGA penalties.

The court sets a Final Report Hearing for April 21, 2023 at 10:00 a.m., to confirm that distribution efforts are fully completed, including the distribution of uncashed aggrieved employee checks after 180 days to the State Controller’s Office Unclaimed Property Fund in the names of the applicable payees, that the Administrator’s work is complete, and that the court’s file thus may be closed.  The parties must report to the court the total amount that was actually paid to the aggrieved employees.  All supporting papers must be filed at least 16 days before the Final Report Hearing date.

Plaintiff is ordered to give notice of the ruling to the LWDA and to defendants.