Arrison v. Walmart Incorporated

CourtDistrict Court, D. Arizona
DecidedJuly 15, 2024
Docket2:21-cv-00481
StatusUnknown

This text of Arrison v. Walmart Incorporated (Arrison v. Walmart Incorporated) is published on Counsel Stack Legal Research, covering District Court, D. Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Arrison v. Walmart Incorporated, (D. Ariz. 2024).

Opinion

1 WO 2 3 4 5 6 IN THE UNITED STATES DISTRICT COURT 7 FOR THE DISTRICT OF ARIZONA

9 Kathy Arrison, et al., No. CV-21-00481-PHX-SMB

10 Plaintiffs, ORDER

11 v.

12 Walmart Incorporated, et al.,

13 Defendants. 14 15 Pending before the Court is Plaintiffs’ Unopposed Motion for Final Approval of 16 Class Action Settlement Agreement. (Doc. 100.) The Court held a final fairness hearing 17 on July 15, 2024. After reviewing the Motion, the attached documents, and the relevant 18 case law, the Court will grant the Motion. 19 I. BACKGROUND 20 This case is a wage and hour class action lawsuit covering approximately 81,000 21 employees who worked at Defendants’ 112 locations in Arizona. (See Doc. 26.) Plaintiffs 22 primarily alleged that Defendants failed to pay wages for time spent in COVID-19 23 screening and failed to keep accurate records of related work time. (Id.) 24 After much litigation and a full day mediation, the parties reached a settlement. 25 (Doc. 100 at 7.) The Court granted preliminary approval of this settlement in February 26 2024. (Doc. 95.) Plaintiffs report that all but 1,942 members of the class received direct 27 mail notice of the settlement—yielding notice to 97.6% of the class. (Doc. 100 at 9.) 28 Plaintiffs also note that there have been forty-eight opt-outs and one objection. (Id.) The 1 final fairness hearing was held on July 15, 2024 to determine whether the proposed 2 settlement is fundamentally fair, adequate, and in the best interest of the class members. 3 In advance of the hearing, Plaintiffs filed this Motion. 4 II. LEGAL STANDARD 5 Class actions require the approval of the district court before settlement. Fed. R. 6 Civ. P. 23(e) (“The claims, issues, or defenses of a certified class—or a class proposed to 7 be certified for purposes of settlement—may be settled, voluntarily dismissed, or 8 compromised only with the court’s approval.”). The Ninth Circuit has declared a strong 9 judicial policy that favors settlement of class actions. Class Plaintiffs v. City of Seattle, 10 955 F.2d 1268, 1276 (9th Cir. 1992); In re Hyundai & Kia Fuel Econ. Litig., 926 F.3d 539, 11 556 (9th Cir. 2019). 12 Procedurally, this process moves forward in two steps. The first step is preliminary 13 approval. During preliminary approval, the court conducts a preliminary fairness 14 evaluation to determine if notice of the class action settlement should issue to class 15 members and, if applicable, whether the proposed settlement class should be certified. See 16 David F. Herr, Ann. Manual Complex Lit. § 21.632 (4th ed. 2023). The court looks to 17 several factors to gauge fairness and adequacy, including: (1) the strength of the plaintiffs’ case; (2) the risk, expense, complexity, and 18 likely duration of further litigation; (3) the risk of maintaining class action 19 status throughout the trial; (4) the amount offered in settlement; (5) the extent of discovery completed and the stage of the proceedings; (6) the 20 experience and views of counsel; (7) the presence of a governmental 21 participant; and (8) the reaction of the class members to the proposed settlement 22 Churchill Vill., L.L.C. v. Gen. Elec., 361 F.3d 566, 575 (9th Cir. 2004) (internal citation 23 omitted). However, many of these factors cannot be fully assessed until the final fairness 24 hearing, and therefore are weighed at the second step. Alberto v. GMRI, Inc., 252 F.R.D. 25 652, 665 (E.D. Cal. 2008). 26 Accordingly, at the preliminary approval stage, courts need only evaluate “whether 27 the proposed settlement (1) appears to be the product of serious, informed, non-collusive 28 negotiations, (2) has no obvious deficiency, (3) does not improperly grant preferential 1 treatment to class representatives or segments of the class and (4) falls within the range of 2 possible approval.” Horton v. USAA Cas. Ins. Co., 266 F.R.D. 360, 363 (D. Ariz. 2009) 3 (cleaned up). These factors dovetail with the considerations outlined in Rule 23(e). See 4 Fed. R. Civ. P. 23(e)(1)(B)(2). 5 The second step is the final approval. During this stage, “[i]f the proposal would 6 bind class members, the court may approve it only after a hearing and only on finding that 7 it is fair, reasonable, and adequate.” Fed. R. Civ. P. 23(e)(2). In doing so, the court must 8 weigh several considerations along with the Churchill factors, including whether: “the 9 class representatives and class counsel have adequately represented the class”; “the 10 proposal was negotiated at arm’s length”; “the proposal treats class members equitably 11 relative to each other”; and “the relief provided for the class is adequate.” Id. When 12 considering whether “the relief provided for the class is adequate,” the court should also 13 consider: (i) the costs, risks, and delay of trial and appeal; 14 (ii) the effectiveness of any proposed method of distributing relief to the 15 class, including the method of processing class-member claims; (iii) the terms of any proposed award of attorney’s fees, including timing of 16 payment; and 17 (iv) any agreement required to be identified under Rule 23(e)(3). 18 Id. 19 At this juncture, the Court will analyze the Churchill factors and the above 20 considerations of Rule 23(e) in making its final decision on the settlement. Overall, the 21 Court is cognizant that “[s]ettlement is the offspring of compromise; the question . . . is not 22 whether the final product could be prettier, smarter or snazzier, but whether it is fair, 23 adequate and free from collusion.” Hanlon v. Chrysler Corp., 150 F.3d 1011, 1025 (9th 24 Cir. 1998). 25 III. DISCUSSION 26 A. The Settlement Class 27 Plaintiffs first request the Court approve the settlement class. (Doc. 100 at 10–12.) 28 Final approval of a class action settlement requires, as a threshold matter, an assessment of 1 whether the class satisfies the requirements of Federal Rule of Civil Procedure 23(a) and 2 (b). Hanlon, 150 F.3d at 1019–22. Here, the Court initially granted approval of this class 3 in July 2023. (Doc. 80.) The Court also reaffirmed its approval of its order granting class 4 certification in its preliminary approval of the settlement. (Doc. 95.) 5 At this time, no facts that would affect these requirements have changed since these 6 approvals. Therefore, the Court need not reassess the relevant factors, and the Court 7 incorporates its prior analysis under Rules 23(a) and (b). See Rodriguez v. QS Next Chapter 8 LLC, No. CV-20-00897-PHX-DJH, 2021 WL 1307612, at *1 (D. Ariz. Apr. 7, 2021); Roes, 9 1-2 v. SFBSC Mgmt., LLC, 944 F.3d 1035, 1048–49 (9th Cir. 2019). Accordingly, the 10 Court will grant final certification of the settlement class: All individuals who worked at a 11 Walmart retail store in Arizona as a nonexempt store employee at any point during the 12 class period of April 10, 2020 through February 28, 2022. (See Doc. 95 at 1.) 13 B. Settlement Factors 14 As stated, the Ninth Circuit has directed district courts to weigh and evaluate the 15 non-exhaustive Churchill factors before approving or rejecting a class action settlement. 16 See Juvera v. Salcido, No. CV-11-2119-PHX-LOA, 2013 WL 6628039, at *11 (D. Ariz. 17 Dec. 17, 2013). The Court will now analyze each Churchill factor in turn. 18 1.

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Arrison v. Walmart Incorporated, Counsel Stack Legal Research, https://law.counselstack.com/opinion/arrison-v-walmart-incorporated-azd-2024.