Betancourt v. OS Restaurant Services, LLC

CourtCalifornia Court of Appeal
DecidedMay 21, 2020
DocketB293625
StatusPublished

This text of Betancourt v. OS Restaurant Services, LLC (Betancourt v. OS Restaurant Services, LLC) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Betancourt v. OS Restaurant Services, LLC, (Cal. Ct. App. 2020).

Opinion

Filed 4/30/20; Certified for Publication 5/21/20 (order attached)

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

SECOND APPELLATE DISTRICT

DIVISION EIGHT

RAQUEL BETANCOURT, B293625

Plaintiff and Respondent, (Los Angeles County Super. Ct. No. BC629916) v.

OS RESTAURANT SERVICES, LLC, et al.,

Defendants and Appellants.

APPEAL from a judgment of the Superior Court of Los Angeles County. Deirdre Hill, Judge. Reversed and remanded with directions. Raines Feldman, Lauren J. Katunich, Robert M. Shore and Leticia M. Kimble for Defendants and Appellants. Felahy Employment Lawyers, Allen Felahy; Yash Law Group and Yashdeep Singh for Plaintiff and Respondent.

__________________________ SUMMARY The Labor Code mandates an award of reasonable attorney fees to the prevailing party in any action brought for the nonpayment of wages, if any party requests attorney fees at the initiation of the action. (Lab. Code, § 218.5, subd. (a).)1 But an action brought for failure to provide rest breaks or meal periods (§ 226.7) is not “an ‘action brought for the nonpayment of wages’ ” within the meaning of section 218.5. (Kirby v. Immoos Fire Protection, Inc. (2012) 53 Cal.4th 1244, 1255 (Kirby); id. at p. 1259 [“the Legislature intended section 226.7 claims to be governed by the default American rule that each side must cover its own attorney’s fees”].) The trial court awarded plaintiff over $280,000 in attorney fees, even though the only wage and hour claims alleged and litigated were for rest break and meal period violations, and claims for penalties based on those violations. We conclude the trial court abused its discretion and reverse the judgment to the extent it awards attorney fees to plaintiff. FACTS Defendants are OS Restaurant Services, LLC and Bloomin’ Brands, Inc. They are the owners or operators of a Fleming’s Steakhouse & Wine Bar on Olympic Boulevard in Los Angeles. Plaintiff Raquel Betancourt worked there as a server from 2008 through 2015. 1. The Complaint In August 2016, plaintiff sued defendants. The complaint alleged defendants regularly failed to give plaintiff her full

1 Further statutory references are to the Labor Code unless otherwise specified.

2 uninterrupted rest periods, and that defendants wrongfully terminated plaintiff in retaliation for her making internal complaints that defendants violated wage and hour laws and food safety laws. Plaintiff alleged she saw a chef using a vegetable cutting board to prepare raw chicken, and reported the incident to her manager, but defendants ignored her report. Three months later, plaintiff informed Tiffany Yeargin, defendants’ senior human resource business partner, that one of the chefs routinely used vegetable cutting boards to prepare raw chicken, and that employees were regularly denied their 10-minute rest periods. Immediately following plaintiff’s complaints to Ms. Yeargin, defendants’ managerial employees began to retaliate by “highly scrutinizing Plaintiff’s performance” and singling her out for discipline for spurious reasons. Defendants continued to prevent her from taking her 10-minute rest periods. Ms. Yeargin ignored plaintiff’s complaints about the retaliatory actions. The complaint alleged that in December 2015, defendants issued plaintiff a formal written reprimand “based upon false and fabricated accusations of insubordination, which resulted in Plaintiff’s suspension.” After that, plaintiff again informed Ms. Yeargin of the retaliation and requested the reprimand be removed from her employment record, but her request was denied. “[I]n further retaliation against Plaintiff for her whistleblowing activities,” defendants terminated plaintiff’s employment. “To date, Defendants have refused to pay Plaintiff all wages earned and unpaid at the time of her termination; including, without limitation, unpaid rest period premiums.”

3 Plaintiff alleged causes of action for retaliation and wrongful termination because of her reports of rest break and food safety violations. She also alleged she was entitled to recover unpaid premium wages under section 226.7 for the rest break violations; penalties, costs and attorney fees under section 226 for failing to include rest break premiums on her itemized wage statements; and waiting time penalties under sections 201 through 203 for failure to pay all wages on termination, “including, without limitation, unpaid premium wages in lieu of rest periods.” The prayer for relief requested attorney fees under sections 218.5 and 226, Code of Civil Procedure section 1021.5, “and any other applicable provisions of law.” 2. The Litigation Defendants answered the complaint in October 2016. Discovery ensued. We will describe some of it as necessary in connection with our legal discussion. For now, it suffices to say that two days after the trial court issued a tentative ruling on October 11, 2017, compelling plaintiff to comply with discovery requests and awarding sanctions against her, and one day after plaintiff produced more than 1,000 previously withheld documents, the parties settled the case. About a month before the settlement, the parties had stipulated the complaint could be amended to add a cause of action for meal period violations. 3. The Settlement The parties put the terms of their settlement agreement on the record in open court on October 13, 2017. Defendants agreed to waive plaintiff’s payment of sanctions and to pay plaintiff $15,375 in full settlement of her claims for failure to provide meal and rest periods under section 226.7, failure to provide accurate

4 itemized wage statements under section 226, failure to pay all wages upon termination under sections 201 through 203, and “any and all wage-and-hour-related causes of action that were or could have been asserted in the complaint.” Plaintiff agreed to dismiss with prejudice and without any payment her claims for retaliation and wrongful termination. The parties agreed to kick the can down the road on their dispute about plaintiff’s right to recover attorney fees on her wage and hour claims by agreeing plaintiff could later file a motion for attorney fees incurred only on those claims, “consistent with applicable law.” 4. Plaintiff’s Motion for Attorney Fees Plaintiff then sought $580,794 in attorney fees (and costs of more than $16,000), under sections 218.5 and 226. This consisted of a lodestar amount of $387,196 and a multiplier of 1.5. No time records were provided to the court, but plaintiff’s counsel said 869.6 hours were incurred by his firm at various hourly rates. Plaintiff contended her wage and hour claims were “closely intertwined” with her retaliation and wrongful termination claims, so she was entitled to recover all of her fees and costs. Defendants opposed the motion, contending that, among other reasons, Kirby and its progeny dictate that a party cannot, as a matter of law, recover attorney fees when she prevails only on a claim for meal or rest break premium pay. Defendants also contended plaintiff’s claims of retaliation and wrongful termination were the crux of her case, and virtually all discovery was focused on those claims. Defendants gave multiple examples of discovery disputes requiring them to seek court intervention, none of which was relevant to meal and rest break claims, and many of which were directed at plaintiff’s claims for economic damage flowing from her retaliation and wrongful termination

5 claims. Defendants referred to the court’s October 11, 2017 tentative ruling stating that plaintiff “has wrongfully withheld documents” and that plaintiff and her counsel “have engaged in repeated abuses of the discovery process for months.” Defense counsel’s declaration stated that on October 12, 2017, plaintiff finally produced more than 1,100 probative documents that were highly damaging to plaintiff’s case and credibility.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Kirby v. Immoos Fire Protection, Inc.
274 P.3d 1160 (California Supreme Court, 2012)
Fieldson Associates, Inc. v. Whitecliff Laboratories, Inc.
276 Cal. App. 2d 770 (California Court of Appeal, 1969)
Zhou v. Unisource Worldwide, Inc.
69 Cal. Rptr. 3d 273 (California Court of Appeal, 2007)
Jonathan Vo v. Las Virgenes Municipal Water District
94 Cal. Rptr. 2d 143 (California Court of Appeal, 2000)
In Re Estate of Fain
89 Cal. Rptr. 2d 618 (California Court of Appeal, 1999)
Ling v. P.F. Chang's China Bistro, Inc.
245 Cal. App. 4th 1242 (California Court of Appeal, 2016)

Cite This Page — Counsel Stack

Bluebook (online)
Betancourt v. OS Restaurant Services, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/betancourt-v-os-restaurant-services-llc-calctapp-2020.