Arrison v. Walmart Incorporated

District Court, D. Arizona·Decided July 15, 2024·No. 2:21-cv-00481·Unknown

Opinion

WO

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

Plaintiffs, ORDER

v.

Walmart Incorporated, et al.,

Defendants. Pending before the Court is Plaintiffs’ Unopposed Motion for Final Approval of Class Action Settlement Agreement. (Doc. 100.) The Court held a final fairness hearing on July 15, 2024. After reviewing the Motion, the attached documents, and the relevant case law, the Court will grant the Motion. This case is a wage and hour class action lawsuit covering approximately 81,000 employees who worked at Defendants’ 112 locations in Arizona. (See Doc. 26.) Plaintiffs primarily alleged that Defendants failed to pay wages for time spent in COVID-19 screening and failed to keep accurate records of related work time. (Id.) After much litigation and a full day mediation, the parties reached a settlement. (Doc. 100 at 7.) The Court granted preliminary approval of this settlement in February 2024. (Doc. 95.) Plaintiffs report that all but 1,942 members of the class received direct mail notice of the settlement—yielding notice to 97.6% of the class. (Doc. 100 at 9.) Plaintiffs also note that there have been forty-eight opt-outs and one objection. (Id.) The final fairness hearing was held on July 15, 2024 to determine whether the proposed settlement is fundamentally fair, adequate, and in the best interest of the class members. In advance of the hearing, Plaintiffs filed this Motion. Class actions require the approval of the district court before settlement. Fed. R. Civ. P. 23(e) (“The claims, issues, or defenses of a certified class—or a class proposed to be certified for purposes of settlement—may be settled, voluntarily dismissed, or compromised only with the court’s approval.”). The Ninth Circuit has declared a strong judicial policy that favors settlement of class actions. Class Plaintiffs v. City of Seattle, 955 F.2d 1268, 1276 (9th Cir. 1992); In re Hyundai & Kia Fuel Econ. Litig., 926 F.3d 539, 556 (9th Cir. 2019). Procedurally, this process moves forward in two steps. The first step is preliminary approval. During preliminary approval, the court conducts a preliminary fairness evaluation to determine if notice of the class action settlement should issue to class members and, if applicable, whether the proposed settlement class should be certified. See David F. Herr, Ann. Manual Complex Lit. § 21.632 (4th ed. 2023). The court looks to several factors to gauge fairness and adequacy, including: (1) the strength of the plaintiffs’ case; (2) the risk, expense, complexity, and likely duration of further litigation; (3) the risk of maintaining class action status throughout the trial; (4) the amount offered in settlement; (5) the extent of discovery completed and the stage of the proceedings; (6) the experience and views of counsel; (7) the presence of a governmental participant; and (8) the reaction of the class members to the proposed settlement Churchill Vill., L.L.C. v. Gen. Elec., 361 F.3d 566, 575 (9th Cir. 2004) (internal citation omitted). However, many of these factors cannot be fully assessed until the final fairness hearing, and therefore are weighed at the second step. Alberto v. GMRI, Inc., 252 F.R.D. 652, 665 (E.D. Cal. 2008). Accordingly, at the preliminary approval stage, courts need only evaluate “whether the proposed settlement (1) appears to be the product of serious, informed, non-collusive negotiations, (2) has no obvious deficiency, (3) does not improperly grant preferential treatment to class representatives or segments of the class and (4) falls within the range of possible approval.” Horton v. USAA Cas. Ins. Co., 266 F.R.D. 360, 363 (D. Ariz. 2009) (cleaned up). These factors dovetail with the considerations outlined in Rule 23(e). See Fed. R. Civ. P. 23(e)(1)(B)(2). The second step is the final approval. During this stage, “[i]f the proposal would bind class members, the court may approve it only after a hearing and only on finding that it is fair, reasonable, and adequate.” Fed. R. Civ. P. 23(e)(2). In doing so, the court must weigh several considerations along with the Churchill factors, including whether: “the class representatives and class counsel have adequately represented the class”; “the proposal was negotiated at arm’s length”; “the proposal treats class members equitably relative to each other”; and “the relief provided for the class is adequate.” Id. When considering whether “the relief provided for the class is adequate,” the court should also consider: (i) the costs, risks, and delay of trial and appeal; (ii) the effectiveness of any proposed method of distributing relief to the class, including the method of processing class-member claims; (iii) the terms of any proposed award of attorney’s fees, including timing of payment; and (iv) any agreement required to be identified under Rule 23(e)(3). Id. At this juncture, the Court will analyze the Churchill factors and the above considerations of Rule 23(e) in making its final decision on the settlement. Overall, the Court is cognizant that “[s]ettlement is the offspring of compromise; the question . . . is not whether the final product could be prettier, smarter or snazzier, but whether it is fair, adequate and free from collusion.” Hanlon v. Chrysler Corp., 150 F.3d 1011, 1025 (9th Cir. 1998). A. The Settlement Class Plaintiffs first request the Court approve the settlement class. (Doc. 100 at 10–12.) Final approval of a class action settlement requires, as a threshold matter, an assessment of whether the class satisfies the requirements of Federal Rule of Civil Procedure 23(a) and (b). Hanlon, 150 F.3d at 1019–22. Here, the Court initially granted approval of this class in July 2023. (Doc. 80.) The Court also reaffirmed its approval of its order granting class certification in its preliminary approval of the settlement. (Doc. 95.) At this time, no facts that would affect these requirements have changed since these approvals. Therefore, the Court need not reassess the relevant factors, and the Court incorporates its prior analysis under Rules 23(a) and (b). See Rodriguez v. QS Next Chapter LLC, No. CV-20-00897-PHX-DJH, 2021 WL 1307612, at *1 (D. Ariz. Apr. 7, 2021); Roes, 1-2 v. SFBSC Mgmt., LLC, 944 F.3d 1035, 1048–49 (9th Cir. 2019). Accordingly, the Court will grant final certification of the settlement class: All individuals who worked at a Walmart retail store in Arizona as a nonexempt store employee at any point during the class period of April 10, 2020 through February 28, 2022. (See Doc. 95 at 1.) B. Settlement Factors As stated, the Ninth Circuit has directed district courts to weigh and evaluate the non-exhaustive Churchill factors before approving or rejecting a class action settlement. See Juvera v. Salcido, No. CV-11-2119-PHX-LOA, 2013 WL 6628039, at *11 (D. Ariz. Dec. 17, 2013). The Court will now analyze each Churchill factor in turn. 1. The Strength of Plaintiffs’ Case Plaintiffs alleged straightforward claims regarding failure to pay wages and record keeping, and those claims were almost fully preserved through a motion to dismiss and a motion for summary judgment. (See Doc. 33; Doc. 78.) Moreover, this settlement came after a contested motion for class certification, which the Court granted. (D

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

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