Judge: Stephen P. Pfahler, Case: 22STCV05880, Date: 2024-02-06 Tentative Ruling

Case Number: 22STCV05880    Hearing Date: February 6, 2024    Dept: 68

Dept. 68

Date: 2-6-2024

Case # 22STCV05880

Trial Date: N/A

APPROVAL OF PAGA SETTLEMENT

MOVING PARTY: Plaintiff Rodrigo “Kristy” Ramirez Lopez, individually and on behalf of aggrieved parties

RESPONDING PARTY: Unopposed/Defendant, W.K.S. Restaurant Corp., et al.

RELIEF REQUESTED

Motion for Approval of PAGA Settlement

SUMMARY OF ACTION

Plaintiff Rodrigo “Kristy” Ramirez Lopez (“Lopez”) alleges that she was employed by Defendants W.K.S Restaurant Corporation and W.K.S. LA Restaurant Corporation, and that   Defendants violated multiple provisions of the Labor Code and Industrial Welfare Commission

On October 18, 2021, Plaintiff provided written notice to the Labor & Workforce Development Agency, and Defendants, stating her intent to seek civil penalties pursuant to Labor Law Private Attorney General Act.

On February 16, 2022, after fully exhausting the statutory 65-day notice period by PAGA, Plaintiff filed a single cause of action complaint for violation of PAGA. The Complaint allege Defendants are liable for civil penalties due to violations of Labor Code sections 201, 202, 203, 204, 226, 226.7, 510, 512, 1174, 1194, 1197, 1198, and 2808 and IWC Wage Order No. 5. On April 11, 2022, Defendants answered the Complaint.

On March 14, 2023, the Parties participated in a private mediation session, which ultimately culminated in the issuance of a mediator’s proposal. This proposal was subsequently accepted by the Parties on November 16, 2023.

RULING: Granted.

Plaintiff Rodrigo “Kristy” Ramirez Lopez, individually and on behalf of aggrieved parties seeks approval of a settlement of claims under the Private Attorney General Act of 2004 (PAGA). “The superior court shall review and approve any settlement of any civil action filed pursuant to [the Private Attorneys General Act].  The proposed settlement shall be submitted to the agency at the same time that it is submitted to the court.”  (Lab. Code, § 2699, subd. (l-2).) [Declaration of Julia Wells, ¶ 15, Ex. 2.]

Labor Code section 2699, subdivision (i) requires that in an action brought under the Private Attorneys General Act, “civil penalties recovered by aggrieved employees shall be distributed as follows: ¿75 percent to the Labor and Workforce Development Agency for enforcement of labor laws, . . . and 25 percent to the aggrieved employees.”

The parties settled all claims for a gross settlement amount of $807,600.00. [Wells Decl., Ex. 1.] The Stipulation and Agreement for PAGA Representative Action Settlement stipulates the following allocation: Attorney costs of $17,426.32; settlement administration costs of $17,000; attorney fees of $269,200 based on a one third contingency recovery plus maximum agreed upon recovery cap; $123,493.42 in net settlement amount distributed to employees (25%); and, $370,480.26 payment to LWDA (75%); and, $10,000 payment to individual employee. The agreement also references a $10,000 agreed upon enhancement award, but adding in this amount would raise the total settlement to $817,600. The court therefore assumes said amount is NOT part of the settlement agreement. Plaintiff represents a potential of 3,871 impacted employees. [Wells Decl., ¶ 17.]

The agreement provides for two installment payments of $500,000 and $307,600. The first payment within 21 days of the “Effective Date” (61st day after service of notice of entry of final order and judgment, assuming no appeal or writ, and extended in case of appeal or writ), and the second within six (6) months of the first payment. Funds will be delivered within 20 days of receipt by the administrator.

The parties reached this agreement following mediation and negotiations. The release of claims occurs upon the approval of the settlement, The court acknowledges the request for retention or jurisdiction under Code of Civil Procedure section 664.6.

The unopposed motion is granted.

Moving party to provide notice.